LUẬN VĂN XÂY DỰNG CHIẾN LƯỢC PHÁT TRIỂN CỦA CÔNG TY CỔ PHẦN ĐẦU TƯ BẤT ĐỘNG SẢN NINH BÌNH RESEARCH SUBJECT MAKING DEVELOPMENT STRATEGY OF NINH BINH REAL ESTATE INVESTMENT JOINT STOCK COMPANY Hanoi, October 21st, 2009 TABLE OF CONTENT page INTRODUCTION …………………………….…………… I REASONS TO CHOOSE THE TOPIC …………………………….………… II PURPOSES AND RESEARCH QUESTIONS ……… 2.1 Research matter …………………………….…………………… 2.2 Research question …………………………….………………………… II REPORT STRUCTURE …………… ….…………… CHAPTER I - GENERAL THEORY OF PLANNING BUSINESS STRATEGY OF ENTERPRISES I OVERVIEW OF BUSINESS STRATEGY ………… ……… What is business strategy? …………………………….………………… Meaningful features of business strategy? ……………………… Meanings of business strategy toward enterprises …… 3.1 Fiscal benefits …………………………….…………………………… 3.2 Non-fiscal benefits …………………………….…………………… II SET AND CHOOSE BUSINESS STRATEGY OF ENTERPRISES Strategy management process…………………………….……………… 1.1 Strategy formation process …………………………….…………… 1.2.Strategy implementation process …………………………….……………… 10 1.3 Strategy assessment process …………………………….…………… 11 Analysis of the business environment of the enterprise ……………… 13 2.1 Factors of the business environment …………………………….……… 13 2.1.1.Macro-environment …………………………….…………………………… 14 2.1.1.1 Economic factors …………………………….………………………… 16 2.1.1.2 Governmental and political factors …………………….………… 16 2.1.1.3 Social factors …………………………….……………………………… 17 2.1.1.4 Natural factors …………………………….…………………………… 17 2.1.1.5.Technology factors …………………………….………………………… 17 2.1.2 Operation environment …………………………….…………………… 18 2.1.2.1 Competitors …………………………….………………… 19 2.1.2.2 Customers …………………………….……………………………… 20 2.1.2.3 Suppliers …………………………….………………………… 20 2.1.2.4 Potential competitors ……………………….………………………… 21 2.1.2.5 Substitution products …………………………….……………………… 22 2.1.3 Internal environment …………………………….………………………… 22 2.1.3.1 Human resource factors …………………………….…………… 22 2.1.3.2 Development Research factors …………………………….………… 23 2.1.3.3 Production factors …………………………….……………………… 23 2.1.3.4 Fiscal-accounting factors …………………………….…………… 24 2.1.3.5 Marketing factors …………………………….………………………… 24 2.1.3.6 Organizational discipline …………………………… 24 …………………………… 2.2 Business environment analysis of enterprise 25 2.2.1 Information collection ……………………….………………………… 25 2.2.2 Planning summary …………………………….………………………… 25 2.2.3 Planning reactive strategy…………………………….……………… 26 Some assessment models…………………………….……………………… 27 3.1 Assessment matrix of outer factors…………………………….…… 27 3.2 BCG matrix …………………………….………………………………… 28 3.3 HOPER matrix…………………………….……………………………… 29 3.4- SWOT matrix …………………………….……………………………… 29 CHAPTER II - CORPORATE STRATEGY ANALYSIS FOR NINH BINH REAL ESTATE INVESTMENT JOINT STOCK COMPANY I OVERVIEW OF NINH BINH REAL ESTATE INVESTMENT JOINT STOCK COMPANY 31 31 History of foundation and development, function and tasks 31 Organizational structure…………………………….…………… …… 33 2.1.Current organizational outline…………………………….………… 33 2.2 Labor structure…………………………….………………………… 34 State of land and assets…………………………….……………….…… 35 State of business and production (2006 - 2008) ……… 36 II CONFIRMATION OF MISSION AND VISION……………….……… 37 III EXTERNAL ENVIRONMENT ANALYSIS ……………….……… 38 3.1 Macro-environment analysis…………………………….……………… 38 3.2 Sectoral environment analysis…………………………….……………… 41 IV INTERNAL ENVIRONMENT ANALYSIS 44 4.1 Advantages …………………………….………… 44 4.2 Disadvantages…………………………….………… 46 V ANALYSIS OF STRATEGIC TARGETS……………….….… 50 VI DETERMINATION OF STRATEGIC SELECTIONS……………….…… 52 VII ASSESSEMENT OF STRATEGIC SELECTIONS…………….… 53 CHAPTER III PROPOSAL OF CORPORATE BUSINESS STRATEGY FOR THE COMPANY IN 2010-2013 55 I CORPORATE STRATEGIC TARGETS FOR THE COMPANY 55 II CORPORATE STRATEGIC METHODS OF THE COMPANY 60 General strategy…………………………….………………………… 60 Portfolio strategy…………………………….…………… 61 General administration strategy…………………………….…………… 61 III SOME BASIC FUNCTIONAL STRATEGY METHODS TO SUCCEED IN CORPORATE STRATEGY 62 Marketing …………………………….…………………………………… 62 Finance…………………………….……………………………………… 63 Human resources…………………………….……………………………… 64 Production…………………………….……………………………………… 64 Research & Development (R & D)…………………………….………… 64 IV SOME PROPOSALS FOR SUCCESSFUL STRATEGY ORGANIZATION 65 CONCLUSION…………………………….………………………………………… 67 REFERENCES…………………………….……………………… 68 ABBREVIATIONS In this document, the abbreviations are understood as follow: UBND People’s Committee BQL Management Unit TCCL Quality Standard TSCD Fixed asset TSLD Working asset BDS Real estate XN Enterprise DN Business DNNN State company DT Investment DV Unit CBCNV Staff QLNN State management INTRODUCTION I Reason for choosing the theme: Vietnam’s economy is in the development momentum thanks to right policies of the Party and Government in orienting development and managing the economy, bravely abolishing old mechanism, creating an economy with its own character, suiting conditions of the country Vietnam is an official member of the World Trade Organization, creating many challenges and opportunities for domestic businesses Businesses must recognize which opportunities that need to be caught and which challenges that need to overcome in a multidimensional competitive world: “bigger fish eat smaller ones” Over the last time, we have realized clear influences of foreign economic organizations, groups on our country’s economy Foreign economic organizations, groups have potentials in terms of capital, management competence and will become big competitors of domestic businesses Although the State have intervened with economic policies for foreign organizations to protect domestic businesses, integration roadmap in long-term must base on inner strength of domestic businesses themselves, as joining commitment is required to go according to a certain roadmap, the State cannot intervene forever Thus, the problem for businesses is how to build for themselves a strategy to exist and develop To solve this problem, businesses must have intelligent coping ability to changes of the market, know to exploit their advantages, understand their strong as well as weak points of competitors’, know how to approach the market to find out about business opportunities and correct way for themselves Thus, businesses are absolutely necessary to build a long-term development strategy for themselves Ninh Binh Real Estate Investment Joint Stock Company was established according to License No 4485/GP – TLDN dated March 06th, 2006 issued by Ninh Binh Province People’s Committee Business registration No 0364027/GPĐKKD dated March 12th, 2006 issued by Department of Investment and was officially put into operation from March 15th, 2006 In the past three years, the Company has built plans to orient its development in certain periods At the same time, it also met a lot of difficulties in 2008, when being affected by global economic crisis So far, standing in front of the process of international integration, globalization, the application of short-term plans are no longer suitable, it is required that the Company build strategy in accordance with the requirement of developing business production in the new period The enterprise clearly determines the emphasis on the implementation of investment in real estate business projects This is a specific business with extremely severe industry and business competition pressure, thus, building a right strategy for the Company is very necessary Standing in front of such opportunities and challenges, making a clear, correct strategy is the key factor, premise for the development and status affirmation of the Company in the business world This shows objective necessity of the research of the theme: “Making business Strategy for Ninh Binh Real Estate Investment Joint Stock company” II Objective, issues and questions of research: 2.1 Issues need to be studied: - Studying real state and result of the implementation of plans of the Company in 2006, 2007, 2008 - Making development Strategy of Ninh Binh Real Estate Investment Joint Stock company in the period of 2010-2013 2.2 Questions for study: How was Ninh Binh Real Estate Investment Joint Stock company established and how did it operate and develop? What are differences between organizational structure and business professions of the Company and other similar enterprises? What are business results of the company in three years (2006, 2007, 2008)? What are opportunities and challenges, strong and weak points of the Company? Mission and visibility of the Company? Strategic objective of the Company? Determination of strategic choices? (Chapter 3) What contents does the project of development strategy of the Company for the period of 2010-2013 contain? Systems of controlling the strategy and basic functional solutions to ensure the implementation of the development strategy of the Company? (Chapter 4) What are conclusions and petitions given to leaders of the Company, sector and the Government? (Chapter 4) III Chapter structure of Report: Chapter 1: Introduction Chapter 2: General reasoning on business strategy making of the enterprise Chapter 3: Analyzing business strategy for Ninh Binh Real Estate Investment Joint Stock Company Chapter 4: Proposing business strategy for the Company for the period of 2010÷2013 CHAPTER I GENERAL REASONING ON BUSINESS STRATEGY MAKING OF THE ENTERPRISE I OVERVIEW OF BUSINESS STRATEGY What is business strategy? The term “strategy” originates from military art from the old days, it was considered as the art directing means to win Being borrowed from military terms, the word “strategy” has been used quite commonly in economic life in both macro and micro scale in which there are many notions on strategy such as: - Strategy is the art of building firm competition advantages to defend (M.Porter) - Strategy is determination of ways and means to reach determined objectives through policies (General Aileret) - Strategy of enterprises is total decisions aiming to obtain important positions, defend and create exploitation results which can be used immediately (F.J.Gouillart) - Strategy is the art of combining actions and controlling them to reach long-term objectives (G.Hirsch) - Strategy of enterprises is the outlining of firm and long-term development orbits, we may arrange accurate decisions and actions of the enterprise around those orbits This is conception of Alain Charles Martinet, author of the book “Strategy”, who was granted with big award of Havard I' Expansion in 1983 According to another approach, “Strategy” is a tool for enterprise to answer questions: where we want to go? Where can we go and how to go there? What we have? What others have? 10 CHAPTER III SUGGESTIONS ON ENTERPRISE STRATEGY FOR THE COMPANY FROM 2010 TO 2013 I The enterprise strategic objectives for the company: The objective is to build and develop the company to become a strong housing developmental investment and real estate business enterprises in Ninh Binh province With the strong ponts, weak points, opportunities and challenges above, the particular strategetic objectives of the company from 2010 to 2013 include: Reduce the investment in biulding, focusing on executing the works that the company is the investor, emphasizing on building the civil works and highrise block works (under the company’s project) which require the modern and complex executive technology It is estimated that the revenue in this field will account for 30% to 40% of the total revenue Enhance the investment in project, business of house for sale, high ranking flats and office for rent Focusing the investment in real estate business with the measures of personnel arrangement, ability, technology and marketing improvement and so on Frequently updating the real eatate market information, collecting and processing the information systematically in order to get the market changes objectively and honestly for the real eatate investment and business Establish the real eatate exchange centre of the company, taking part in the official real estate trading floor of the State (under the Ministry of Construction and the Vietnam Real Estate Association: www.vietreal.net.vn, www.Batdongsan.net.vn) The customers can actively search the information about real estate of the company Set up the system of synchronous management based on the centralized principle, training and improving the professional skills for the managers 61 Strengthening the staff, training and improving the professional knowledge Complete the rewarding principle in order to maintain and attract the talents for the big objectives of the company in the future Build the infrastructure, applying the morder technology to improve the quality and lower the product price Ensuring the stability for business, meeting the competitive demand in the new age Increase the share value, maximizing the enterprise value, ensuring the highest interest for the shareholders Marketing to improve the company’s prestige and trade mark in the market by making the policy om product quality and the service of mainteance and post-promotion Co-operation with the strategetic partners to carry out the large-scale investment projects Carrying out the projects: The company invests the money in building infrastructure, in return the City hand over the land to the company for implementing the housing and urban developmental project Expand the business industries: For the project that the company is the investor, the company keeps some advantages places for service business, opening supermarkets, entertainment centres, restaurants and hotels and so on in order to deal with the problem of job and increase the labor’s income Build the cultural charaters for the company, building the working and behavior style of the employees in the company from the top level to the staff and the labor force The objective of investing in the company’s big projects: Table 3.1 The company’s projects and total investment Unit: VND No Projects Total investment level (Billion dongs) Accumulated value up to the present time (Billion dongs) Completion time Notes 62 The villa, garden house area of Canh Vo, Tan Thanh Ward – N.Binh The living house areas of Central Square – Ninh Khanh precinct – Ninh Binh City Tan An new urban area –Tan Thanh Ward – Ninh Binh City The luxurious office, apartment complex at 144- Nguyen Hue Road, Ninh Binh City 384 226 08/2010 480 180.5 10/2013 570.9 270 12/2012 170 2012 The trading, service area (restaurant hotel) Ninh Khanh 256 2013 Building tunnel brick plant of 20 million units/year 50 2011 The project of road 477 section to avoid Ninh Binh City 405.7 2012 Being implem ented 236- Le Hong Phong, Ninh Binh Prepare d to implem ent Main economic objectives: Table 3.2 The anticipation of the company’s business results from 2010 -2013 Unit: VND No Criteria I The total business value Growth rate The vale of project investment The value of building work contract The value of other business activities II The total revenue Growth rate The project revenue The building revenue Unit Million VND % Million VND Million VND Million VND Million VND % Million VND Million VND Year 20010 2011 2012 2013 126.500 145.500 174.600 210.000 15 15 20 20 71.500 87.000 110.000 140.000 52.000 55.200 58.000 60.000 3.000 3.300 6.600 10.000 71.800 82.600 99.150 120.000 15 15 20 20 40.300 46.500 61.000 75.000 30.000 33.500 34.000 38.000 63 Million VND Other revenue 1.500 2.600 4.150 7.000 5.744 6.700 8.000 9.600 4.308 5.025 6.000 7.200 Million VND 3.400 4.020 4.700 5.800 Million VND 3.087 3.304 3.950 4.800 III Profit Pre-tax profit Post-tax profit Million VND Million VND The profit of dividend warrant sharing Paying into the IV budget V Labor The total number of labor force Capita 800 870 950 1.100 Monthly income Million VND 2,0 2,2 2,5 2,8 Despite new implementation of investing in housing developmental business, with the guideline of key investment, sustainable and stable development the investment in carrying out the housing developmental and real estate business will continue to be strongly invested and will become the main industry of the company The estimation of output and revenue value of the company from 2009 to 2012: Chart 3.1 The chart of output- revenue of the company from 2010 to 2013 The chart of output- revenue 300000 Year Output Revenue 200000 100000 Year Output Revenue 2010 2011 2012 2013 126,500 145,500 174,600 210,000 71,800 82,600 99,150 120,000 64 Figure 3.1 The main business industries of the company The main business industries of the company Commerce service Building Building the urban infrastru cture and transport ation Building the electric work Supermar ket, restaurant and hotel business Civil building Project House for sale and high ranking flat business Real estate business Office for rent Figure 3.2 The strategy of the company’s levels Company-level strategy: - Diversifying the business fields; - Expanding the scale; - Investing in the development of big projects; - Developing the company’s trade mark Business unit-level strategy Building the urban infrastru cture and transport ation Building the electric work Civil building Supermar ket, restaurant and hotel business House for sale and highranking flat business Office for rent Real estate business Production R&D Function-level strategy Organization structure Marketing Finance Human resources 65 II The enterprise strategy METHOD of the company: The general strategy: The company carries out the growth strategy by: Diversifying the business industries, expanding the scale, investing in the development of new projects Maximizing the profit, increasing the effect of capital use, using the labor to achieve the objective of continuous increase in investment value for the shareholders Based on the analysis of the model SWOT, we can conclude that: Maintaing the position in the market, rapidly expanding the company’s scale, focusing on the development of competitive advatages, expanding the relationship with the strategetic partners, maintaining and bring into full play the relationship with the State agencies and the local ones Carrying out the pathway of increasing the capital through issuing the share, bond into the market: In March, 2010, increasing the charter capital to 27 billion VND from 15 billion VND; in the early 2011 increasing the charter capital from 27 billion VND to 40 billion VND Focusing on the project development, co-operating with the strategetic partners to invest in big projects Trying to make the project business become the main advantage of the company till the end of 2010 Building field is still considered as the core of the company’s business activities In the previous period, so as to ensure the job for the labors, the company still had to bid and execute some works with low economic effect However, in the next period, on taking part in bidding the company will need to pay attention to the capital source and avoid the deadweight debt In addition, the company also will have to pay special attention to the price of the labor, equipment, materials and so on at the time of signing the contract so that the works executed will brings about high economic effect 66 Building the strong customer-consumer network to fight the market changes Co-operating lengthways in the process of business and supplying the products and services to the customers Investment list strategy: This is a very important content for the business activity of the company through the BCG analysis and identifying the strategetic business units (SBU) of the company We can make judgement on re-checking the investment list as follow: Firstly, gathering all the resources on project development and investment to help the company take many chances of expanding the market share and carrying out the business measurements which creat many benefits such as the supermarket, restaurant, hotel business at the building sites whose investor is the company Secondly, the company hands over to the subsidiary enterprises the works that it invests, ensures the quality and create jobs for the labors Thirdly, the company needs to study, re-arrange and change some enterprises into the joint stock companies running based o the model of company and sub-company Establishing the enterprises which specialize on building electricity, transportation works, urban infrastructure and which specialize on civil works execution The goal is to enhance the competitive ability in the Construction industry Fourthly, the Company concentrates on bidding and executing the projects that the company has experience in construction, the projects that actually bring about economic effect, avoid dispersal of execution leading to capital stagnancy Fifthly, Establish another 01 tunnel brick plant and 01 company of production and dealing with construction material (exploiting rock) so that the company is active in executing and implementing the project 67 The general management strategy: The general management is the awareness that the organisation structure makes the stability for the company so that it can sucessfully carry out the strategies and maintain the existing competitive advatage, as well as develop the strong competitive advantage for the future Thus, the company leaders always care about: Considering and re-structuring the organization vertically, enterprises and belonging units so that it is small and neat Increasing the ability to manage and consult of the enterprises and units directly under the company Improving the executive capability and consulting management capability of departments horizontally, implementing well the delevelling, distribution of power between senior and lower leadership, between leaders and staff Implementing the recruitment process, the labor training process to suit the requirement of the jobs Building and completing the regulations, the new management norms to suit the actual situation of business operation of the Company, in order to implement well the Company’s Charter of organization and operation The internal control system of the implementation process of strategic plans and save management cost of the Company, ensuring safety in business and reach high efficiency To meet the development requirement of the Company, in the next 1-2 years, it will establish a sub-company of Managing living houses and urban areas in order to meet the requirement for managing, exploiting and using living houses and urban areas which the Company is the investor … However, with the change of the market economy, the strategic plans of the Company are no longer stuitable and need changing to adapt to the new conditions The organizational structure of the Company should also need adjustment, the key thing is when and how the administrator of the Company 68 implements changes so that the machinery still operate smoothly without disturbances III Some basic functional strategic methods to implement the Company’ s strategy successfully: Marketing: Improving the prestige and brand name of the Company through promoting, communicating propaganda through mass media of the Company and of the province according to the publicity programs for the units which have achievements Continue to heighten the competitive competence of the Company through the aims: improving the quality of the projects, products, techniques, measure and execution progress, scientific and technical machinery and equipment to actually improve the size of the Company to a company which is strong in construction and investment in real estate Understanding well the customers and the demand of the customer: unceasingly improve the process of collecting information and dealing with all information concerning customers, the finance capabilities and competitive capability in the market, the current demand and the trend of changes of demand in the future Doing business on the Internet, advertising the product and service on the professional website and receiving orders, contracts by e-commerce Taking part in forums to discuss about: architecture, planning, structure, interior design, the difference between the products of the Company with the ones of the same kinds Finance: Capital is an important element for enterprises, especially those operating in construction, installation and real estate In order to maintain the annual average revenue 69 growth rate of 15%, Ninh Binh Real Estate JSC has to mobilize from different capital sources to ensure supplying enough capital demand of the company up to 2013 Specifically: - Through issuing shares, among the shares issued, maximum is 20% of charter capital will be sold to strategic investors; the open auction shares is 20%; 9% for prioritizing to sell to the staff and objects who hold capital increase bonds - Through the plan of issuing shares to increase charter capital through paying annual payment with the level of 27% in shares and issuing bonus share of 73% over the face value - Mobilizing from sources: + The advanced capital from customers when buying houses 30% (buying houses); and 20% (buying apartments) + Finance of financial organizations + Taking advantage of capital sources supported from domestic investment funds.Borrowing credit domestically and abroad with prioritized interest rate with time from 5÷10 years to build hire purchase houses for low-income people + Implementing will the house building programs for low-income people, being relocated, households living on the channels, ditches to make full use of the capital source granded and the demand stimulative capital of the state According to initial calculation, the capital demand of the company by 2013 is quite enough (not to mention the capital for other business fields) Every year, the company increases the ownership capital of about 65% after-tax profit This amount can be used for business capital demand when necessary Human resources: Standardize staff, implementing the norm of appointing officials holding managerial position per office term, dealing with the regimes for the staff who are not competent enough to complete the tasks 70 Diversify training methods, training new and self-training Organize recruiting young staff, with competence being trained, with high qualifications and responsibility spirit to nourish the adjacent force, frequently organize training to improve competence, skills for laborers Build adequate salary, bonus payment mechanism, step by step improve income for the laborers, creating corporate culture activity habit, avoid unnecessary disorders Production: Invest in developing production in the direction of diversifying jobs, besides, go deep to exploit the strength of its traditional production and installation and construction execution fields Research and development: In parallel with exploiting efficiently its available machinery and equipment, continue to accumulate capital, invest further modern machines and equipment to cater for many big projects, many tall buildings with high quality In immediate term in 2010, consider investing in some new machines and equipments timely for execution such as: tower cranes, cage hoists, concrete mixing stations, machinery to manufacture timber products Table 2.4 Allocating investment in facilities between 2010 - 2013 Criteria Unit 2010 2011 2012 2013 Investment capability Million VND 5.400 4.100 3.000 2.000 IV Some suggestions to organize implementing the strategy successfully: The strategic targets should be highly flexible, to implement the strategy effectively, need a detailed series of actions, ensemble with the time frame and 71 more importantly, the talented people are correctly allocated, from the highest leadership to the whole staff agree to implement it Besides, controlling the implementation of strategy is also very important, it is the basis to hold strategic plan to go in the right direction I personally offer some suggestion to implement the chosen strategies: - Decisive in action, having unmovable will, consistency, leading by their prestige and applaud, transmitting that strong will into the whole staff in the Company - Cooperate in action, all plans, all functions all tightly connect with each other in order to implement the decided strategy There should not be the imbalance between the demand of human resources, facilities, machinery, technology with the financial capability of the Company - Paying high attention to the resources, pracising saving, anti-wastage - Developing their own tradition, unceasingly turn the Company into a leading project business enterprise of Ninh Binh province - Build and complete the system of regulations, norms, regulations of organization and operation of the Company Frequently update and assess the information, supervise tightly the movements of macro, micro environment, the regulations and legal corridors of the industry and the government From which to have timely adjustment to adapt to the new situation - Human is the deciding element of the success or failure the Company Unceasingly improve the professional qualifications, morality of the laborers, having good policies to keep and attract talented people - During the process of organizing to implement the strategy between 2010-2013 , it will certainly meet a lot of difficulties from the environment, due to regional and global economic integration, leading to more severe competition This makes the implementation of initial targets of the Company not achieve the planned requirements Thus, the action plans should not be too rigid, convenient 72 to adjust when necessary to adapt to the changing business environment The strategic change in the future is objective and necessary - Deploy to build the supervising and testing system according to standard ISO 9001:2000 to ensure the effect of checking and supervising the departments, functional committees, enterprises and belonging units The functions should not be overlapping, the neat and light machinery, concentrating and uniforming Increase checking and supervising but not impeding the business operation activities of the Company 73 CONCLUSION In order to look up to the corporate strategic completion solution at Ninh Binh Real Estate Investment JSC, improve the competitiveness as well as contributing actively in the implementation of the objectives of the Company that is to take the business production results as the major measure for sustainable development Especially in the period of shifting of Vietnam economy and the international economic integration trend, the studyt and strategic planning for the enterprise is certainly the necessary requirement Today, to build corporate strategy is a very difficult and complex job requiring Corporate Leadership to take care of all fields, assessing comprehensively to all aspect of management and directing the Enterprise The administrator of the Company always takes the lead, accessing information quickly and sensitively, assessing the changes of the market, invest strongly into research and development in order to offer solutions and recommendations, improving strategic planning of the Company as well as completing the strategy between 2010-2013 The corporate strategy of the Company in the future should concentrate on developing quickly the fields that the Company has a strength, making full use of the staff, investment and prioritized policy of the State to increase the scale and competitiveness in the market Finally, defining correctly the strategic target for the Corporate is still the key to success As in several years now, economic schools, business administration schools, newspapers and books, strategic research institutes all consider it as the secrets for success of enterprises But to maximize a strategy would become non practical if it is not done through correct action plans and checking and supervising of that strategic implementation strictly and scientifically 74 REFERENCES Strategic Management, Asso.prof.Dr Le The Gioi, Dr Nguyen Thanh Liem, Tran Huu Hai MA, Statistic publishing house, 2007 STRATEGY - Effective business strategy (Harvard business secrets), Ho Chi Minh City General Publisher, 2006 Building and deploying – Business strategy – the way to success, Nguyen Canh Chat – Institute for researching and training on managment, Social labor publishing house, 2006 Strategic management, Dao Duy Huan, Statistic publishing house, 2004 Business strategies and tactics, Garry D Smith, Danny R Arnold and Boby R Bizzel, Statistic publishing house, 2003 Business strategy textbook, Business Administration department, Hanoi National Economics University, 2005 Textbook of Corporate Administration, Business Administration department, Hanoi National Economics University, 2005 The business production plan of Ninh Binh Real estate Investment JSC The report on business production results of Ninh Binh Real estate Investment JSC in 2007 and 2008 10 Scientific research method, Janes Williams, Prentice Hall Publishing House, 2004 11 Competition strategy - Michael E.Porter, Science and Technology Publishing House Ha Noi 75 [...]... Housing and Urban Development projects in Ninh Binh Such projects can be named as: + Residental quarter at Canh Vo – Sourthest of Dong Thanh Ward– Ninh Binh city Investor: Ninh Binh real estate invesment joinstock company Area: 50.000 m2 Total investment capital: 18.29 million VND + Residental area at Center Quarter- Ninh Khanh Ward- Ninh Binh city Investor: Ninh Binh real estate invesment joinstock... strategies 32 CHAPTER II ANALYSE BUSINESS STRATEGY FOR NINH BINH REAL ESTATE INVESMENT JOINSTOCK COMPANY I General introduction about Ninh Binh real estate invesment joinstock company (Ninh Binh REIJC): 1 Foundation, development and function of the company: Ninh Binh REIJC was established under license No 4485/GP - TLDN date 06/3/2006, issued by Ninh Binh People’s committee Business regislation No 0364027/GPĐKKD... solutions about business production, finance and solving human factor to put business activity of the enterprise to a new state of business activity which is higher in terms of quality In short, business strategy is the art of organizing to combine optimally resources, proposing and implementing decisions in conformability to changing tendency of the environment to obtain success in competition to reach long-term... capital temporarily from financial community This source can be lent in short term or long term or issued in stock When enterprises carry out analysis of financial community, firstly they need to pay attention to determining their status compared with other members in the community Labor source is a main part on the competition environment of enterprise Ability of attracting and holding competent employees... 97.500 m2 Total investment capital: 48 million VND + Residental area at Tan An –Tan Thanh Ward Ninh Binh city Investor: Ninh Binh real estate invesment joinstock company Area: 62.300 m2 Total investment capital: 37.9 million VND + Dyke project at Hoang Long river – Nho Quan district Investor: people’s committee of Ninh Binh province Total investment capital : 30 million VND + Spilway project at Dong Truong... the stability in terms of politics, organization, relationships, etc; specifically, increase efficiency, enhance prevention ability to difficulties of the company In addition, the success of strategy also brings about order and discipline for the company It may be the beginning of an effective administration system, recovering belief in the current business strategy or showing the necessity of having... identify possible opportunities and risks When one or more factors change, they can affect enterprises such as: human racism tendency, entertainment taste, ethical standard and conception on life style, business community and female laborers Sociology factors above often change or develop slowly, thus, sometimes it is difficult to identify them Other changes develop faster if they are caused by any external... study new technical solutions to solve in the sector problems and determine currentCompetitors technologies that can be exploited in the market Price squeeze Price squeeze capacity of the buyer 2.1.2 Operational environment capacity of good s supplier Operational environment consists of factors in the sector and Supplier Buyerthat are surroundings factors to the enterprise, deciding the competition nature... - What is the capacity of competitor? - - What are weak points of the competitor? - What can help the competitor retaliate most strongly and effectively? Current strategy At present, how is the enterprise competing? Potentials Strong and weak aspects 2.1.2.2 Customers Customer issue is an inseparable matter in competition environment Trust of customers is the most valuable property That trust is gained... property That trust is gained as 23 enterprise knows to satisfy customers’ demand better than competitors do Another key matter is bargaining capacity of customers Buyers can make profits of the sector decrease by squeezing price or ask for higher quality and must do more service job 2.1.2.3 Supplier Business enterprises need to have connection to supply organizations of different goods such as materials,