LUẬN VĂN THẠC SĨ THESIS TITLE Building business strategy at company level for HA NOI - DIEN BIEN MINERAL AND RESOURCES COMPANY LIMITED in the period 2010 – 2015” GROUP VI INDEX Introduction Chapter I: Theory basis on business strategy I Overview of strategic management 1.1 Business strategy 1.1.1 Origin of strategy and concept of business strategy .6 1.1.2 Basic characters of strategy 1.1.3 Roles of strategy in business 1.2 Strategic Management 1.2.1 Definition of strategic management 1.2.2 Meanings of strategic management 1.2.3 Strategic management model 10 II Theory basis 11 2.1 Analysis of the environment within the enterprise 11 2.1.1 Analysis manpower 12 2.1.2 Analysis of the technical infrastructure and technology companies 12 2.1.2.1Technology renovation .12 2.1.2.2 Analysis of the infrastructure of an organization .13 2.1.3 Analysis of the capacity of the company 13 2.1.4 Analysis of the capacity of the company .14 2.1.5 Analyze the Marketing activities 14 2.2 Analysis of competitiveness .15 2.3 Analysis of Environment macroscopic 16 2.3.1 Analysis of Legal and Political factors 16 2.3.2 Analysis of the economic environment 17 2.3.3 Analysis factor in social and cultural 18 2.3.4 Analysis Factor in technological 19 2.4 Analysis of the environment sector 19 2.4.1 Analysis of competitor 20 2.4.2 Analysis of customer pressure .20 GROUP VI 2.4.3 Analysis of supplier pressure .21 2.4.4 Analysis of new product pressure 21 Chapter II: Analysis of the current status of the enterprise 23 I Company prpofile 23 II Function, obligation and strategic target 23 2.1 Function of the company 23 2.2 Strategic Target 23 III Analysis of internal evironment 24 3.1 Analysis according to resources 24 3.1.1 Organization structure of the Company 24 3.1.2 Human resource management 26 3.2 Technical and technological material base of the company 29 3.3 Analyze company’s financial condition 30 3.4 Analysis of the manufacturing capacity of the enterprise 33 3.5 Analyze the Marketing activities .34 IV Analysis of competitiveness 35 V Analysis of environment macroscopic 37 5.1 Analysis of Legal and Political factors 38 5.2 Analysis of the economic environment 39 5.2.1 Growth speed of the economy 39 5.2.2 Inflation .39 5.2.3 Forex 40 5.2.4 Interest rate .40 5.3 Analysis factor in social and cultural 40 5.4 Analysis Factor in technological 41 VI Analysis of the environment sector 42 6.1 World metal mineral market .43 6.2 Domestic mineral market 44 6.2.1 Evaluate sources of supply in the vietnamese market 44 6.2.2 Estimation of market demand .46 GROUP VI 6.3 Analysis of the environment sector 48 6.3.1 Analysis of potential opponents 48 6.3.2 Analysis competitor present .48 6.3.2.1Backan Mineral Joint Stock Corporation (BAMCORP) .49 6.3.2.2Hoang Bach Group 49 6.3.2.3Thanh Hoa SD Xuan Minh Joint Stock Company .50 6.3.2.4Bac Kan – Nikko Mineral Joint Venture 50 6.3.3 Analysis of customer pressure 53 6.3.4 Analysis of supplier pressure .53 6.3.5 Analysis of new product pressure .53 Chapter III: Designing strategies and solutions for the implementation of the strategies 57 I Formulating strategies 57 II Consideration of strategic target for the period from 2010 to 2015 60 III Major factors in the selected strategy 60 3.1 Market expansion .60 3.2 Investment, Process and Production 60 3.3 Strategy to develop its human resource 61 3.4 Marketing Strategy .61 IV.Investment plan and inplementation process .61 4.1 Actions to be taken for solution implementation .62 4.2 Person in chare of solution implementation .62 4.3 Time for solution implementation : years in total (From 2010 – 2015) 63 V Conclusion 67 List tables 68 List of the models 69 List of reference materials .70 GROUP VI INTRODUCTION Topic: “Building business strategy at company level for HA NOI - DIEN BIEN MINERAL AND RESOURCES COMPANY LIMITED in the period 2010 – 2015” Necessity of the subject: In the history of the world has observed many people integrate the business world with a small capital, but they were quickly then successful and gained victories and victories thanks to the right business strategy The business strategy is compared with steering wheel of the ship that helps to come over the ocean to the destination, particularly at the beginning time of its operation It is also considered a gust of wind that flies the kite higher and higher Actually, experiences of successes and failures in business have showed some billionaires are descended from bare hands with tiny capital thanks to optimum business strategy, vice versa some of millionaires have to pass their fortune to their competitors in a short time due to blunder in business method Closing down of loss-making companies and development of profitable enterprises really significultly depends on business strategy of such companies, particularly in the market economy Origin of success or failure is dependent on one of the important factors, which is what business strategy the company has Being aware of the importance in building the company Business Strategy , with the knowledge gained from MBA course provided by ETC (Hanoi National University) in association with Griggs University and study period in HA NOI - DIEN BIEN MINERAL AND RESOURCES COMPANY LIMITED, our group would like to choose the topic: “Building business strategy at company level for HA NOI DIEN BIEN MINERAL AND RESOURCES COMPANY LIMITED in the period 2010 – 2015” Purpose: With this topic, we wish to help the company have right track in the coming period GROUP VI Scope of research The concentration of resources to the question on the development strategies of HA NOI - DIEN BIEN MINERAL AND RESOURCES COMPANY LIMITED Analysis, to study the operation of the business of the company on the following aspects: the function, tasks and inside and Outside and environment branch Since the strategy of business for a period of 2010-2015 and the solutions and specific measures for the implementation of the strategies Methods of research Capstone project report use of scientific methods: comparison and to sum up, the method mark; the use of statistical data for the demonstration Thesis structure Apart from the introduction and conlusion, large exercise of of chapter: Chapter I: Theory basis on business strategy Chapter II: Analysis of the current status of the enterprise Chapter III: Designing strategies and solutions for the implementation of the strategies GROUP VI CHAPTER I GENERAL THEORY BASIS ON BUSINESS STRATEGY I OVERVIEW OF STRATEGIC MANAGEMENT : Motivated by increasing internationalization trend and scarcity of resouces, rainstorm development of technology, change of market demand, business environment is becoming more and more complicated and fluctuant Such business environment requires the enterprise to have a good business strategy, so that it can catch the opportunity, avoid risks, and ensure a stable and sustainable development 1.1 Business strategy: 1.1.1 Origin of strategy and concept of business strategy “Strategy” is a term originated from Greek language, “Strategos” which is used in military, the modern military theorist Clawzevit reckoned: Military strategy is the commanding art at the optimum advantage A publication of Larous dictionary considers: strategy is an art to commend all means to gain the victory Scholar Dao Duy Anh, in Vietnamese dictionary wrote: strategy is drawn plan to achieve the victory on one or many battlefields Therefore, in army aspect, strategy term in general is considered a commanding art aiming at victory achievement in a war In 1962, Chandler defined strategy as “determination of long-term basic target and goal of the enterprise and application of actions series as well as allocation of necessary sources to implement such targets” (Chandler, A (1962) Strategy and Structure Cambridge Massachusetts MIT Press) Until 1980, Quinn introduced a more general definition “Strategy is a pattern or plan which integrates essential goals, policies and action series into a firmly consolidated general” (Quinn, J.B.1980 Strategies for Change: Logical Incrementalisn Homewood, Illinois, Irwin) Then, Johnson and Scholes redefined strategy in an environment with a lot of quick changes: “Strategy is orientation and scope of an organization in long term to gain its competition power through formulation of its sources in changing environment GROUP VI in order to meet market demand and satisfy shareholders” (Johnson, G.,Scholes, K (1999), Exploring Corporate Strategy, 5th Ed Prentice Hall Europe) A part from the above traditional approach, many business organizations approach the strategy in a new way: business strategy is plan to control and use human, properties and finance resources aiming to enhance and ensure the indispensable rights Kenneth Andrews was the first to offer these outstanding ideas in the classical book "The Concept of Corporate Strategy!" He introduced that the strategy is what an organization must rely on the strengths and weaknesses of theirs in the context of both opportunities and threats Brace Henderson, strategist at the same time was the founder of Boston Consulting Group connected the concept of strategy with competitive advantage Competitive advantage is setting a company in a better position than its competitor’s to create the economic value for customers "Strategy is a careful search for an action plan to develop and combine competitive advantage of the organization The difference between you and your competitor is the basis for your advantage He believed the two competitors can not coexist if their business methods are identical Difference creation can enable the existence Michael Porter also agreed with Henderson’s judgment: "Competitive Strategy relates to differences That is a careful selection of a series of different activities to create an unique set of values” By what means of approach, nature of strategy is drafting the future image of the enterprise in their activities field and operation capacity According to this understanding, business strategy term is used in most popular meanings: - Determination of long term goal of the enterprise - Provision of the general action program - Selection of action options, allocation of sources to implement such goal “Source: Chapter – General view on Strategic Management – National Economic University” 1.1.2 Basic characters of strategy - Strategy specifies clearly fundamental objectives, business directions to be obtained in each period and is fully consistent thoroughly in the areas of operations management of the GROUP VI business Orientation character of the strategy is to ensure business continuous and firmly development in the usually fluctuated trading environment - Business strategy only drafts operation course of the enterprise in long term, and operation framework of the enterprise in future That is orienting only but in practice, business activities require combination of strategic target and economic target, taking into consideration of reasonability and adjusting to suit the environment and condition of business to ensure the business efficiency and remedy errors caused by orienting character of the strategy - Business strategy is built on basis of the enterprise competitive advantage to ensure maximum mobilization and good combination with operation and use of sources (manpower, asset power of both visible and invisible), core capacity of the enterprise in present and in future aiming to promote Strengths, capture the chances to obtain upper hand in competition - Business strategy is reflected in a continuous process from building up, implementation organization, evaluation, inspection and adjustment of the strategy - Business strategy always carry attacking idea to gain victory in competition Business strategy is formed and realized based on identification and utilization of business opportunities, competitive Strengths of the enterprise to achieve high business efficiency - Every important strategic decision in the process of building-up, implementation and adjustment of strategy is often focused to high rank managers group To ensure the correctiveness of long term decisions, information secret in competition is important 1.1.3 Roles of strategy in business With the above characters, it is said that in market mechanism, building and realization of business strategy has an important meaning for the enterprise existence and development - The business strategy help the enterprise recognize its target of orientation in future as guideline for all activities of the enterprise GROUP VI - Business Strategy plays oriental role of the enterprise operation in long term, it is the firm basis for deployment of activities Lack of strategy or unclear strategy without firm ground will make the enterprise lose the direction, problems arisen are foreseen in short term not in long term or viewed partially not in whole operation of the enterprise - Business Strategy will provide assistance to the enterprise in seizing and making use of trading opportunities, simultaneously proceeding countermeasures against threats in business market - Business strategy contributes to enhance efficiency of sources usage, intensify company position to make sure of uninterrupted and unshakeable development - Business strategy creates strong base for the enterprise to make decision suit the market changes It gives firm basis for activities of research and development, investment to personnel training and improvement, market widening and product development In fact, almost mistakes in investment, technology, and marketing… are in consequence of building wrong strategy or wrong target 1.2 Strategic Management 1.2.1 Definition of strategic management Some definitions of strategic management: - Strategic management is a group of decisions and actions to decide the long term success of the Company - Strategic management is a group of decisions and measures to make plans and implement strategies to realize targets of the Company - Strategic management is to study existing and future conditions and to make plans for targets of the Company; to organize and check the implementation of decisions to realize targets in both existing and future conditions 1.2.2 Meanings of strategic management - Help to realize, give priorities and obtain opportunities - Point out real opinions and views on difficulties of management works - Put forward an outline for the synchronous development of activities and control - Minimize risks GROUP VI 10 - Economic growth - Inflation - Exchange rate - Interest rate Technology - Equipment and machine - Internet and Technology Cultural & social environment - Job creation for workers Natural environment - Weather - Structure and quality of minerals Legal, political and governmental policies - Government - State policies Total II Sector environment Potential rivals Existing rivals - Trade mark - Physical and capital capacity - Business scale - Product quality - Distribution network Clients - Demand changes - Clients’ policies Suppliers - Ability of raw material supply - Prices of raw materials - Number of suppliers Substitutes Total Note: Importance level: Not important: 2 1 0,1 0,1 0,1 0,1 0,1 0,1 0,1 3 0,05 0,1 0,1 0,1 0,1 0,1 3 0,05 0,1 2 0,1 0,05 0,05 2 0,2 0,2 0,05 0,05 0,5 0,2 0,3 0,2 0,2 0,3 0,1 0,2 0,6 0,3 0,3 2,1 0,05 1,3 0,2 0,3 0,3 0,3 0,2 0,2 0,1 0,2 0,3 0,2 0,1 0,1 2,45 Response level: Very important: Important: 0,1 0,1 0,05 0,05 0.5 Very important :3 Important: Little important: Not important: GROUP VI 55 Findings after analysis: With the scores above, factors with scores of equal or higher than 0.3 are considered as opportunities, vice versa, factors with scores of equal or lower than 0.1 are regarded as challenges for the Company Details are as follows: Opportunities - Internet and Technology - Exchange rate - Legal, - Interest rate political and governmental policies - Financial capacity and physical facilities - Business scale - Product quality Threats - Weather - Demand changes - Prices of raw materials - Number of suppliers CHAPTER III: DESIGNING STRATEGIES AND SOLUTIONS FOR THE IMPLEMENTATION OF THE STRATEGIES I FORMULATING STRATEGIES: One enterprise does not need to follow best opportunities In spite of these best opportunities, the enterprise can improve its competitive Strengths by understanding the linkage between its strengths and incoming opportunities In some cases, the enterprise could reduce its weakness to obtain attractive opportunities To develop a strategy on the basis of SWOT analysis, we should summarize results of analyzing opportunities, challenges, strengths and weakness to combine these factors in to a group of strategy options for the enterprise GROUP VI 56 Extract: “Chapter – Analysis and selection of strategy – Strategy management introductory course” OPPORTUNITES - Internet THREATS and - Technology - Legal, - political and - governmental policies - - Financial capacity and physical facilities Exchange rate Interest rate Weather Demand changes Prices of raw materials - Business scale - Number of suppliers - Product quality STRENGTHS STRATEGY SO - Active leaders with good -Taking and Strengths of - Taking Strengths widespread competence of leaders, widespread relationships with clients financial and STRATEGY ST leaders of of relationships capacity, with clients and financial local equipment and machines, capacity, product quality, authorities at all levels and product quality to advanced equipment and - Young and professional establish a strategy with machines to recover its staff and skilled workers opportunities in investments, - Financial capacity to meet technology, Legal, revenues, and profits prior the business scale of the political enterprise create and to the occurrence of governmental policies to changes in state policies, - Advanced equipment and expand its market share: law, etc machine with productivity high building a professional - Integrated strategy to the enterprise, cooperation to back: reduce its dependence - Product quality is highly develop appreciated by and take on suppliers clients, Strengths of local and reasonable and competitive foreign partners, obtain prices of products opportunities to expand GROUP VI 57 its market to the regional countries STRATEGY WO WEAKNESSES - Unprofessional STRATEGY WT and - Build an enterprise - Set up associations, joint technical staff, few skilled culture with features of ventures with partners in workers a high level enterprise the The culture will show its experience, building trade system high responsibility with mark - Poor cost management the society through a distribution channel and multi-product - Poor administrative poor reporting mechanism sector: and sharing expand its supply mode with high quality - Distribution channel has to clients not established consumers and Model 3.1: Table of SWOT analyses From the table above, the Company selects STRATEGY SO by itself and establishes targets and makes its plan to be suitable with its capacity and with the current economy STRATEGY SO: - Invest to diversify product, increasing quality of product in order to build up sustainable development for the company and meet customer’s demand better and better - Concentrating on setting out Marketing strategy to be strongly competitive when the market expands for rising up quality of exported goods - Strengthening management organization model to enhance management efficiency for development of the Company in the coming time - Building a professional enterprise, cooperation to develop and take Strengths of local and foreign partners, obtain opportunities to expand its market to the regional countries GROUP VI 58 - In the next year, the Company will expand its share in the domestic market, especially in Cities with industrial zones Further more, the Company will pay much attention to foreign clients from China, South Korea, Taiwan, Japan, India, etc Reasons to choose STRATEGY SO: As the company does not have much experience and well known trade mark in the market, the only Strengths it has are price and product quality Besides, financial capacity and the wide relationship of company’s leaders with opportunities in technology, Legal, political and governmental policies are the strengths of the company as well In this case, SO strategy is the best suitable strategy to expand the market, apply the professional working manner, take chances to expand the market to other countries in the region Besides, current domestic and regional demand on lead and zinc ore are very high, about 20,000-25,000 ton/year but the exploitation scales are small so the demand for domestic use and for exportation is always much higher than the supply of the same product In recent years, ore exploitation and business bring investors a lot of profits, many exploitation enterprises have been found and many of them are quite successful in business In conclusion, the selection of strategy SOby the Company is a right and best decision in the current period II CONSIDERATION OF STRATEGIC TARGET FOR THE PERIOD FROM 2010 TO 2015 Based on the actual production and business situation of the Company, the strategic target selected by the Company in the analysis is: taking Strengths of competence of its leaders, its financial capacity, equipment and machine, and product quality to establish a strategy to expand its market: build a professional company, cooperate to develop by taking Strengths of domestic and foreign partners, and obtain opportunities to expand its market to the regional countries Within the contents of this thesis, our Group would like to present the strategy to expand the business activities of the Company for the period from 2010 to 2015 GROUP VI 59 III MAJOR FACTORS IN THE SELECTED STRATEGY To realize the strategic targets, the Company should set up reasonable and detailed steps itself Details are as follows: 3.1 Market expansion: Due to the features of the Company’s products, demands on these products are high In the next year, the Company will expand its share in the domestic market, especially in Cities with industrial zones Further more, the Company will pay much attention to foreign clients from China, South Korea, Taiwan, Japan, India, etc 3.2 Investment, Process and Production: The Company will continue its capital accumulation, strengthen its financial management capacity, enhance its cooperation and association with others to mobilize externally financial resources and budgeting for investment, research and intensive process of products from intermediate minerals to increase added value of final products The Company will further finalise its programs to strengthen its production and management capacity, technical management capactiy, maintenance of its equipment, machines The Company will further manage the implementation of procedures or codes of practice in maintenance, operation and production to ensure safety of verhicles, goods, people and the environment The Company will rationalise its production phases, set up reasonal and economical production norms, but also ensure the quality of its products and services The Company will maintain its exploitation efficiency and effectiveness, control risks, ensure working safety, and pay attention to the protection of the environment, natural lanscape, and reduce industrial wastes, etc 3.3 Strategy to develop its human resource Due to the purpose of market expansion, the Company’s production demand will be increased As a result, the Company will need to recruit new staff, and workers Further more, technical and skill training is also necessary in the incoming period The Company will establish a training and human development policy to ensure the professional style at all positions in the Company GROUP VI 60 3.4 Marketing Strategy The Company will enhance its marketing activities and spread its name and picture through mass media and improve the quality of its products and services to meet the increasing demands of clients IV.INVESTMENT PLAN AND IMPLEMENTATION PROCESS: Meet domestic demand on pig lead and pig zinc of mechanical and metallurgical industry, consume goods production industry as well as exportation demand To effectively invest and avoid risks, the investment must comply with procedures and regulations of geological and reserve investigation to achieve a high precision on reserve and base on those data, we can make the feasibility study report and exploitation plan This project is highly effective and low risk in finance because: - Investigation and exploitation area has been listed in Gouvermental exploitation and processing master plan in 2009-2015 period, vision to year of 2020 Estimated reserve accepted by Department of Geology and Minerals of Vietnam is about 291,732 ton of metal which means in 333 or 334A level - Current global especially Chinese demand on ore is very huge while the natural resources are overused to shortage and the tariff barrier cause the demand over supply - Road from Hanoi to Son La has been upgraded and road from Son La to Dien Bien will as well be upgraded in 2010 which will bring a great convenience for transportation and exportation the products to Laos and China - Operation of the company will bring a lot of employments, promote other services and make more income to local people, increase the income to the province and effectively use the non-recoverable mineral resources of the nation in general and of Dien Bien province in particularly 4.1 Actions to be taken for solution implementation: - Step 1: Investment to completely construct Lead & Zinc Processing Factory for production and study, refinery of basic-processed products in order to increasing quality for the output products GROUP VI 61 - Step 2: Employ manpower including technical personnel, high-skilled workers to implement the plan set by the company, reach the goals of product quantity and quality in the coming time Additionally, the company must build up policies of comprehensive human resources development, talented people treatment, carrying out integration to increase professional skill and qualification for its manpower - Step 3: Market research and development must be paid attention properly It should recruit more professional staff to be in charge of this important task Sufficient cost and other incentive policies should be significantly considered in executing activities of the company - Step 4: Marketing in coming stages needs to be invested methodically and reasonably Main customers of the company are foreign importers, therefore, the company’s marketing activity should attach special importance to such kind of customer If the company has good customer care and high quality product, their customers will be the person who popularize the company’s image and reputation 4.2 Person in chare of solution implementation : Director Boards and other Functional Department 4.3 Time for solution implementation : years in total (From 2010 – 2015) Based on the deposite taken from geological data, miniral deposit in all area of Xa Nhe Mine is 1,558,000 tons of metal ore (lead and zinc) with average content of 10,87% Total area of the mine is 65 The above mentioned deposit is a basis for determination of the proposed solution As project of designing sorting out ores (lead and zinc) line with capacity of 300 tons/day, so capacity of one year (330 working days) is 99,000 tons/year, equivalent to > 10,000 ton of refined lead, zinc ore/year Turnover to be estimated for 2010 (for raw product) : - Lead product : The company estimated 9,403 tons consumption of product of year Average consumption price : 6,000,000 VND/ton Turnover of lead product : 9,403 ton x 6,000,000 VND/ ton = 56,418,000,000 VND - Zinc product : GROUP VI 62 The company estimated 1,949 tons consumption of product of year Average consumption price : 6,000,000 VND/ton Turnover of lead product : 1,949 ton x 10,000,000 VND/ ton = 19,490,000,000 VND Estimated total of turnover of year : 75,908,000,000 VND In 2010, the company will collect and complement materials sources in order to be able to 3-4 times upgrade and expand refinary workshop, invest into metal zinc and axit sunphuric production, even invest into electrolysis workshop to produce high quality zinc, lead Evenly, the company can produce phosphate (with apatit sourcing from Lao Cai) to in-place use axit sunphuric Licensed materials sources are sufficient for the factory in years Estimated, turnover of the company will increase 50% year-on-year in the period of 2011-2015, (calculated from selling lead, zinc products – tentative price will increase 50%) Market and marketshare expansion In the period of 2010 – 2015, the company will expand its market to several countries, specifically : 2010: The company will expand its market to Taiwan, and research Korean market In addition, the company keeps on researching local partners in order to supply its products to such partners 2011: The company officially expands its market share to China, South Korea, Taiwan, Japan, India, etc 2012 – 2015: Based on available partners, the company will continue cooperation to expand further to developed countries with advanced industry such as America, England, German, etc GROUP VI 63 Table 3.1: Anticipated turnover in the period 2010 - 2015 period No Item Code Formula Turnover Lead Zinc II Value added tax III Net turnover (1) (2) (3) (4) (5) (1) = (2) +(3) (2) (3) (4) = 10% *(1) (5) = (1) - (4) 2011 113,862.0 75,908.00 56,418.00 84,627.00 19,490.00 29,235.00 7,590.80 11,386.20 68,317.20 102,475.80 IV I 10 V VI VII 2010 Calculation units: million dong 2012 2013 2014 2015 384,284.2 170,793.00 256,189.50 576,426.38 126,940.50 190,410.75 285,616.13 428,424.19 43,852.50 65,778.75 98,668.13 148,002.19 17,079.30 25,618.95 38,428.43 57,642.64 153,713.70 230,570.55 345,855.83 518,783.74 118,001.6 78,667.74 177,002.42 265,503.62 30,742.74 46,114.11 69,171.17 103,756.75 1,537.14 2,305.71 3,458.56 5,187.84 11,610.00 17,415.00 26,122.50 39,183.75 Total of expenditure Materials Tools and equipments Labor Depreciation of machinery and equipment Overhead cost Sales cost Repairing and Maintenance cost Natural resources tax Environmental tax Other cost (3) (6) (7) (8) (3) (6) = 20% *(5) (7) = 1% * (5) (8) 34,963.44 13,663.44 683.17 5,160.00 52,445.16 20,495.16 1,024.76 7,740.00 (9) (10) (11) (12) (13) (14) (15) (9) (10) = 6% * (5) (11) = 4% * (5) (12) = 2% * (5) (13) = 3% * (5) (14) (15) = 2% * (5) 3,820.20 4,099.03 2,732.69 1,366.34 2,049.52 22.70 1,366.34 5,730.30 6,148.55 4,099.03 2,049.52 3,074.27 34.06 2,049.52 8,595.45 9,222.82 6,148.55 3,074.27 4,611.41 51.08 3,074.27 Before tax profit Company Income Tax After Tax Profit (16) (17) (18) (16) (17)=28%*(16) (18) 33,353.76 9,339.05 24,014.71 50,030.64 14,008.58 36,022.06 75,045.96 21,012.87 54,033.09 GROUP VI 12,893.18 13,834.23 9,222.82 4,611.41 6,917.12 76.63 4,611.41 112,568.9 31,519.30 81,049.64 19,339.76 29,009.64 20,751.35 31,127.02 13,834.23 20,751.35 6,917.12 10,375.67 10,375.67 15,563.51 114.94 172.41 6,917.12 10,375.67 168,853.4 253,280.12 47,278.95 70,918.43 121,574.4 182,361.68 64 GROUP VI 65 Table 3.2: Personnel arrangement for workshop and mine Position Staff working indirectly General Director Mine Executing Director Factory Executing Director Materials Accountant Accountant Storekeeper, Treasurer Electrical and Mechanical Team Security Canteen Worker and staff directly working in Shift 12 1 1 1 2 90 Shift Shift 2 2 68 56 mine and factory Worker working in open-air and in pit Safety staff Technical worker Refined workshop Technical worker Transport and load/unloading team Total of electrical and mechanical Chief of Mining Technical Dept Worker of ZnO powder workshop Worker of Lead workshop Workshop security Total 30 3 17 10 10 102 30 3 10 30 3 10 72 10 60 Total 20 1 1 1 6 214 90 9 27 10 27 30 234 Manpower sources: - General worker: working in supporting team, security, preparation and gathering materials, product collection etc are locally employed - Executing and management staff: locally employed and hunting from competitive companies - Technical and Technology staff: employment via professional examination at enterprise, then they will directly work with technical specialist of foreign partners within one year for technology transferring Thus, in the time coming, the company should establish a full organization structure with sufficient functional departments, adequate number of worker to serve for GROUP VI 66 production plan set out by the company Therefore, the company can reach product’s quantity and quality as its target V CONCLUSION: If the Lead and Zinc Refinery Factory is established and developed as the project, obviously it will be meaningful in term of economic and social matters immediately solve refined or raw ore, take all precious metals contained in ore, saving natural resources for the country Of course, it will create jobs and help to increase income for local labor, contribute to eliminate hunger and reduce poverty, transfer economic structure of the provincial economy to industrialized trend High demand of input ore consumption will promote development of minerals exploration and processing sector as well as other related industrial, services, business Lead and zinc refinery technology is selected to ensure advanced technology and limit negative impacts on surrounding environment and welfare of the people Location of Refinery Factory is in the same area of Exploration Factory of the company Therefore, it is convenient in all aspects, from infrastructure construction and utilities, management, production monitoring, transportation, communication to materials supply Etc CONCLUSION Strategy determination helps the company to take all business opportunities and strong points as well as limit risks that can affect to development in the future of the company Besides, strategy determination can find out relation and cohesion between environment and business, between the past, the present and the future Such GROUP VI 67 relation and cohesion are the foundation for setting out target and strategy determined later on by the business From the study goal, the essay has tried to make incentive analysis, investigation and collection of opinions of experienced senior expert in the field of minerals exploration and processing Hopefully, this essay will be a contribution for HanoiDien Bien Minerals and Resources Company Limited to firmly stand and develop in such current challenging period Although big efforts were made, it is surely that this essay is unavoidable of shortcomings I would like to receive comments of lecturers, colleagues and friends for it so that this essay can be better finalized To complete this dissertation, I was whole-hearted instructed and supported by lecturers and Board of Directors of Hanoi-Dien Bien Minerals and Resources Company Ltd., I would like to express my grateful and deep thanks to all of lecturers and Board of Directors of Hanoi-Dien Bien Minerals and Resources Company Ltd., who supported me to complete this dissertation LIST TABLE No Symbol table Table 2.1: Classified by labour structure Table 2.2: Labour structure classified by qualification Table 2.3: Labour structure classified by age Table 2.4: Payroll and average income Table 2.5 Balance sheet and Income statement Table 2.6 Summary of internal factors envionment (IFE) GROUP VI Page 26 27 27 28 30 36 68 Table 2.7: Mineral field of the corporation minerals of Vietnam Table 2.8 Comparation budget forecasting field of competitors Table 2.9 Correlation comparison between the company and its 45 51 51 10 11 12 rivals Table 2.10 Summary of factors of the external environment (EFE) Table 3.1: Anticipated turnover in the period 2010 - 2015 period Table 3.2: Personnel arrangement for workshop and mine 54 65 66 LIST OF THE MODELS No 10 11 12 13 Symbol model Model 1.1: Strategic management model of F David Model 1.2: Three competitive strategy of basic M.Porter Model 1.3: Core competitive capacity Model 1.4: Five-forces model Model 2.1 Implementation process and Chain of value Model 2.2: Organization Chart Model 2.3: PEST model Model 2.4: Model of growth of GDP Model 2.5: Mineral reserves north (million tons) Model 2.6: The lead, zinc domestic 2005-2020 period (thousand tons) Model 2.7: The ore occurrences 2007-2025 period (thousand tons) Model 2.8: Levels of the business environment Model 3.1: Table of SWOT analyses Page 10 15 16 20 24 25 38 39 44 46 46 54 58 LIST OF REFERENCE MATERIALS Exercise Strategic management – National Economics University – Reader Doctorate Ngô Kim Thanh, Reader Doctorate Lê Văn Tâm National Economics University Balance sheet and Income statement and The internal information of TAINGUYEN COPR Proposals to establish TAINGUYEN COPR GROUP VI 69