DISSERTATION MBA BUIDING BUSINESS STRATEGY - COWAELMIC FOR THE PERIOD 2011 - 2015 1 INTRODUCTION CHAPTER 1: THEORITICAL BACKGROUND ON BUILDING BUSINESS STRATEGY FOR ENTERPRISES 1.1 Definitions on strategy 1.2 Types of strategies 1.3 Business Strategic Planning Process 1.3.1 Defining the mission and key goals 1.3.2 Macro environment analysis 1.3.3 Industrial Environment Analysis 1.3.4 Internal Environment Analysis 1.4 SWOT Analysis Matrix 1.5 Generic business strategy 1.5.1 Strategy basis 1.5.2 Type of Generic Strategies 1.6 GREAT model – Selecting the optimum strategy 3 4 6 7 7 10 CHAPTER 2: ANALYSIS OF COWAELMIC’S BUSINESS STRATEGY 10 10 12 13 13 28 33 37 41 2.1 Introduction to COWAELMIC 2.1.1 Overview on formation and development of COWAELMIC 2.1.2 Organizational structure 2.2 Cowaelmic’s business environmental analysis 2.2.1 Analysis on impacts of the macro environmental factor 2.2.2 Analysis on impacts of the industrial environment factor 2.2.3 Internal environmental factor impacts analysis 2.3 SWOT analysis CHAPTER 3: RECOMMENDATION FOR COWAELMIC’S BUSINESS STATEGY FOR 2011 – 2015 3.1 Orientation for corperate’s development 3.1.1 Vision, Mission 3.1.2 Core Value 3.2 COWAELMIC’s business strategy Orientation for the period 2011-2015 3.2.1 Orientation of strategy for production and business organization 3.2.2 Strategies and optimum business strategy selection for 2011 – 2015 periods 3.2.3 Optimum business strategy selection according to GREAT model 3.3 Strategic Solutions 3.3.1 Technology and product Solutions 3.3.2 Solution for human resources management 3.3.3 Solution for capital resources 3.3.4 Analyzing finance of project 3.3.5 Marketing solutions 3.4 Implemetation 41 41 41 42 42 42 43 44 44 45 46 47 48 51 51 54 54 54 56 56 58 59 62 63 3.4.1 Implement strategy S/O 3.4.2 Implement solutions of Human Resource Management 3.4.3 Implement capital solution 3.4.4 Marketing implementation APPENDIX Appendix 1: The main business lines of COWAELMIC Appendix 2: Overview on production technology for steel structural types Appendix 3: Production technology in factory CONCLUSION REFERENCE Acknowledgements We certify that all the content of this project is the effort during the process of studying, understanding as well as topic selection by the author team members (besides the reference document and data enclosed) We hereby acknowledge that this written project has not been collected by any other studying or training program Ha noi, 20 August 2011 The Author group CHAPTER 1: THEORETICAL BACK GROUND ON BUILDING BUSINESS STRATEGY FOR ENTERPRISES 1.1 Definitions on strategy Strategy is an orientation and scope of an organization in long term in order to gain the competitive advantage for institution by defining all resources in a changing environment to meet the market demand and satisfy expectations of relate parties Roles of strategy - Create the relation between strengths and weakness of the company, the mutual supporting relation between opportunities and challenges outside the company, and then create the competitive advantage for enterprise - Help the manager to see the opportunities and threats that may happen in current and future business in order to make analysis and forecast the future market, take full advantage of opportunities, reduce the threats, improve the competitiveness of enterprise, and achieve great success - Help the enterprises to create better business strategy via using systematic approach, creating base for and increase the connection among internal members in realizing the common target of the enterprise 1.2 Types of strategies - Classification by strategy level: +/Corporate strategy (General strategy) +/Business strategy (sector) +/ Functional Strategy - Classification by the strategy content Regarding the strategy content, the managers can define strategy in different types: +/ Marketing, commercial strategy +/ Financial Strategy +/ HR Strategy +/ Technology Strategy 1.3 Business Strategic Planning Process The business strategic planning is regular task which requires the involvement of all enterpirse memebers It includes following steps THE MANAGING THE STRATERGY PROCESS Figures 1.1: Process of managing the strategy Source: Le The Gioi, Nguyen Thanh Liem and Tran Huu Hai, “Strategic Management”, Statistical Publishing House, 2009) 1.3.1 Defining the mission and key goals - Defining the organizational mission / Defining the strategic goals 1.3.2 Macro environment analysis Economic Political - Legal Threat from new entrants Global Supplier power Rivalry Buyer power Threats of substitutes Cultural Social Technological Demographical Figure 1.2: Macro Environment (Source: « Strategic Management: Concepts and Cases: Competitiveness and Globalization »’ Micheal Hitt and all, 2010) 1.3.2.1 Economic environment 1.3.2.2 Governmental, Legal, Political environment 1.3.2.3 Technological Environment 1.3.2.4 Natural environment 1.3.2.5 Cultural and Social Environment 1.3.3 Industrial Environment Analysis Industrial environment includes all internal factors close to the company that have a direct impact on the organizations strategy These factors are five forces demonstrated in the Porter Model of five forces Figure 1.3: M.Porter Five Forces Model Threats from the potential competitors Negotiating capacity of suppliers The competition of the available company Negotiating capacity of purchasers Threat of substitute products Model of competitive forces (Source: Le The Gioi, …, 2009, Strategic Management, by Mr Porter, pg.106) Michael Porter provided a framework that models an industry as being influenced by five forces The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates 1.3.3.1 Threats of entry 1.3.3.2 Theats of subtitutes 1.3.3.3 Supplier 1.3.3.4 Buyer power 1.3.3.5 Rivalry 1.3.4 Internal Environment Analysis : 1.3.4.1 Production and Operation 1.3.4.2 Research and Development 1.3.4.3 Finance 1.3.4.4 HR and organization 1.3.4.5 Marketing and sales 1.3.4.6 Defining sustainable competitive advantage 1.4 SWOT Analysis Matrix SWOT matrix is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates As such, it is instrumental in strategy formulation and selection If the analysis target of SWOT is a business strategy, the research objective is improving the enterprise performance; Figure 1.4: Simplified SWOT analysis Frame Environment analysis S- Strengths Internal External environment O Opportunities T Threats S-O: S-T: Pursue opportunities that Use its strengths to reduce are a good fit to the its vulnerability to external company's strengths threats W-T: W-O: Prevent the firm's overcome weaknesses to weaknesses from making it pursue opportunities highly susceptible to environment WWeaknesses external threats (Source: « Essentials of Strategic Management », D.Hunge and T.Weleen, 2006) SWOT can be understood as followed: • Strengths: Maintain, develop, use as leverage • Weaknesses: Improve attributes of the person or company that are harmful to achieving the objective • Opportunities: Good anticipation of external conditions that is helpful to achieving the objective • Threats: external conditions which could damage to the objective 1.5 Generic business strategy 1.5.1 Strategy basis Michael Porter defined three general strategies which can be applied at business unit level in order to create competitive advantage Basis of competitive strategy: (1) The demand of customer, what to satisfy; (2) Target groups, who to be satisfied; (3) Differentiation capacity, How to satisfy the customers’ demand 1.5.2 Types of Generic Strategies Figure 1.5: Porter's Generic Strategies (Source: « Essentials of Strategic Management », D.Hunge and T.Weleen, 2006) 1.5.2.1 Cost Leadership Strategy 1.5.2.2 Differentiation Strategy: 1.5.2.3 Focus Strategy 1.5.2.4 A Combination of Generic Strategies 1.6 GREAT model - Selecting the optimum strategy The enterprise need to select an optimum strategy because they can not implement all strategies at a time or each strategy by a random order It will cost time, efforts and resources That’s why it’s necessary to selection for a best strategy which will serve well the development objectives of the enterprise given its advantages and disadvantages On the synthesis of all strategies which has been figured out through the SWOT analysis SO, S-T, W-O, W-T, we can use GREAT matrix to identify fundamental features of each strategy, which will help us to find out the desired strategy Figure 1.6 : GREAT MATRIX Criteria Weight Strategy Rating Score 4=2x3 Strategies Strategy … Rating Score 6=2x5 … Column Gain (G) Risk (R) Expense(E) Achievability (A) Time(T) Total Xx Xx (Source: « Grands Strategies », C.Hill, 2008) Strategy n Rating Score i j=2xi xx Step 1: Recognize key aspects to be considered as criteria in column Step 2: Anticipate the impacts of those criteria on the general strategy; use the weight of impacts to show the importance and its degree of influence on strategic factors (weight in the range of 0-1, with the total of weights is 1) Step 3: Evaluate and Grade every criterion in each strategy The grade scale is 1-5, which is equivalent to levels: poor, average, above average, good, and excellent Step 4: Calculate the grades into equivalence by multiply column with the responsive weight, then we come up with the total grade for each strategy in the final row Finally, we highlight 1-3 strategies with highest grades, which are strategies to be focus on In conclusion: In today's highly competitive business environment, budget-oriented planning or forecast-based planning methods are insufficient for a large corporation to survive and prosper The firm must engage in strategic planning that clearly defines objectives and assesses both the internal and external situation to formulate strategy, implement the strategy, evaluate the progress, and make adjustments as necessary to stay on track Given the information from the environmental scan, the firm should match its strengths to the opportunities that it has identified, while addressing its weaknesses and external threats A competitive advantage can be based on cost or differentiation Michael Porter identified three industry-independent generic strategies from which the firm can choose The selected strategy is implemented by means of programs, budgets, and procedures Implementation involves organization of the firm's resources and motivation of the staff to achieve objectives The way in which the strategy is implemented can have a significant impact on whether it will be successful In a large company, those who implement the strategy likely will be different people from those who formulated it For this reason, care must be taken to communicate the strategy and the reasoning behind it Otherwise, the implementation might not succeed if the strategy is misunderstood or if lower-level managers resist its implementation because they not understand why the particular strategy was selected The implementation of the strategy must be monitored and adjustments made as needed CHAPTER 2: ANALYSING COWAELMIC’S BUSSINESS STRATEGY 2.1 Introduction to the enterprise 2.1.1 Overview on formation and development of COWAELMIC 10 + High humidity resistant ability by a layer of anti-corrosive paint and fire resistant paint - Product style: Construction is covered by fluorescent reflector grass, prefabricated walls which can be decorated following the design drawing There is not much difference with traditional technical constructions b) Price: In order to bring its product into market, it requires Company to have a suitable price policy which helps them use the price as a tool to lure customer while ensure the profit at the same time Price is the only variable in mix marketing bringing profit for the enterprise All decisions on price relates to financial results of the enterprise However, product price is decided basing on many factors including internal factors and external factors Due to there is not only one type of steel-framed high building in the market, that developing to supply this product is one part in spreading image of Company as well as to accelerate turnover of other products It means requirement on making profit for this product is lower than of other products, it is to solve the housing problem for low-income people On the other hand, it must make up the cost of revenue and expenses Basing on it Company sets up the price as below: Steel-framed: 23.000.0000 VND/ton c) Distribution: Distribution is how to delivery product and service to customers Right distribution policy impact directly to other activities in marketing system, which contribute to accelerate the speed of consuming product with high effectiveness Currently, more and more enterprises are interested in distribution factor as marketing variables which creates long-term competition advantage for businesses in the market Enterprises organize and manage the distribution activities through distribution channels: direct and indirect The Company selected direct distribution channel for steel frame high building by signing contract with investors Company Sign Contract Investor Figure 3.5 : Distribution product At the moment, the Company has office at Ha Noi (to manage all projects in the North) and a branch in Ho Chi Minh city (to manage projects in the South) 50 Product delivery is carried by container truct and vessel d) Business Promotion: Marketing communication and business promotion programs have important roles in bringing the image of product to customers and consumers Business promotion accelerates the offer, sales, market penetration, increase revenue contributing to improve business efficiency This activity is not only to attract the attention of customers as well as to enhance the prestige and reputation of the enterprise, but also to create competitive advantages for businesses Steel-framed high building is a product with absolutely new features in Vietnam’s market, so the promotion of this product is indispensable in Marketing action plan This new technology is worldwidely known via WTC Twin tower once located in New York, Burj Dubai Tower, Dubai, United Arab Emirates The question for the Company is to introduce this new product to right objectives for them to see the remarkable features of this product Market Economy Department of Company has designed product messages, , advertising • Public Relationship: Customers, consumers of steel-framed high buildings are investors of lowincome apartment projects In order to show them remarkable features of product, the Company has been focusing on establishing relationship with related agencies and organizations such as Construction Department, Construction Ministry Combining with Central Television, the Company has introduced and shared information about new construction technology on VTV2 and HTV channels • Advertisement: Advertisement is the visual and the most widely effective method Advertisement has power to stimulate people to buy goods and enterprises are easily impacted by this power The Company focus on advertising on mass media such as Voice of Vietnam, Central Television of Vietnam (VTV1, VTV3, Hanoi, VTV9 ) Advertisment on television can be broadcasted many times and the scope of impact is very wide, every people in social can access The adversiment is suitable in the first stage to introduce product into the market, it’s waste of money if remain in long time Advertisment on media uses picture documentation and audio collected from study tour and thanks for teaching of Doctor Elisha Zeer Tasta (Israel) so investors can understand the new technique preeminent Sending leaflets to investors who are interested in this new technology 3.4 Implementation: 3.4.1 Implement strategy S/O: 51 a) Strategy of existing market development + 169 Nguyen Ngoc Vu multipurpose building project: The building has basements and 21 function floors Total building area: 12,330 m2 Total investment: 111 billion VND After completing the processing and manufacturing the frame system, steel column at steel structure manufacturing factory for high-rise building, on 15/05/2011 Water Electrical Mechanical Installation and Construction Joint Stock Company has installed structural steel for 169 Nguyen Ngoc Vu multipurpose building project Hanoi 169 Nguyen Ngoc Vu multipurpose building project is one of the first high-rise buildings in Vietnam which Water Electrical Mechanical Installation and Construction Joint Stock Company applied new technology using frame system, structural steel columns with concrete coating technology instead of traditional concrete pour The application of new construction technology into the construction of high-rise building will help the Company to save up the time, costs and manpower during the construction, construction quality management at the highest level by the entire frame is processing at the factory - Progress: Total construction schedule 120 days (from 15/05/2011 to 10/12/2011) + Resettlement area project Ward 11 District including two building H-098 and T106 Each building has 15 floors - H098 building has monads - T106 building has monads Total building area 51,619 m2 Total investment 477.35 VND This is the second project after 169 Nguyen Ngoc Vu multipurpose building project applied new construction technology into construction of high-rise building using structural steel frame covered with concrete With the cross-section, small size and reduce the vertical load so the building could be raise higher Comparing to previous construction methods, this new construction technology not only safe time, manpower, costs during the construction period but also improve the efficiency project land - Progress Total construction schedule: 363 days (from 01/04/2011 to 18/04/2012) Figure 3.6 : TABLE OF COMPARING NEW TECHNOLOGY APPLICATION METHOD AND TRADITIONAL CONSTRUCTION METHOD 52 CONSTRUCTION METHOD NO COMPARE ITEMS TRADITIONAL TECHNOLOGY NEW TECHNOLOGY Construction time of one floor 10 days days Consumption supplies + Concrete + Steel + Formwork, scaffolding 100% 100% 100% 70% 80% 40% Manpower 100% 70% Nil High The synchronization of structures The area column take place of floor 10m2 2m2 The area of department compare to construction area 78% 82% Project total cost 100% 90-95% RESULT OF EXAMINATION OF DESIGN AND TOTAL ESTIMATES - Reviews the design verification of Institute for Building Science and Technology - IBST - Ministry of Construction: Meet the requirement of bearing capacity and in accordance with Vietnam current technical standard - Opinion verify the estimates of Economic Institute - Ministry of Construction: Total cost of construction investment for a project when apply new technology lower than the investment for similar project invested by Ministry of Construction In addition, technology also has advantages such as reduce construction time, standardize the design, manufacturing… b) Expanding market strategy: + Long Tan A Residential Project - Nhon Trach District - Dong Nai Province Having total investment of 1,500 billion VND, is schedule in 2015 At this time the project is in progress of infrastructure, residential and commercial-service area The scale of Long Tan A Residential Project is 63.46ha in Long Tan commune - Nhon Trach District - Dong Nai Province, located in the master plan of Nhon Trach city 53 approved by Government With the truck roads are highway ring road Ho Chi Minh City - Nhon Trach - Vung Tau connected to District of Ho Chi Minh City through Nhon Trach - Dong Nai River Bridge, 15km from the city center, near Long Thanh International Airport This is a very favorable position to develop an urban residential area in modern key economic region in the South Project purpose: Investment and Construction of Long Tan A Residential to become new urban residential area applied new construction technology into construction of high-rise building using structural steel frame covered with concrete + Xuan Hoa ward new urban - Phuc Yen Town - Vinh Phuc Province: Having scale investment in infrastructure of 500 billion VND, is schedule for completion in 2015 At this time the project is in progress of technical infrastructure preparation for the construction of dormitories for students with 5.17ha area Xuan Hoa ward new urban - Phuc Yen Town - Vinh Phuc Province in chains and clusters in the northern city of Hanoi, is conveniently located in many aspects, especially the transportation with Hanoi capital, Hai Phong and Quang Ninh This area has importance transport hubs such as: railway, road and air (10km from Noi Bai airport), very convenient for trade with other area domestic and international This new urban area will be center of service, tourism, resort, sport and culture It is designed with many industrial parks, tourism and entertainment resort which are formed, landscape diversity, convenient transportation… will quickly create a prosperous Phuc Yen Town in the future Project purpose: Xuan Hoa ward urban - Phuc Yen Town are planning to become a tourist, service, resort center…meet international standard including: houses, villas, adjacent houses, apartment, office rental, supermarket, nursery, medical station, entertainment area… according to overall planning of Phuc Yen Town This urban applied new construction technology into construction of high-rise building using structural steel frame covered with concrete c) Joint venture strategy The company joint venture with other companys pushing up the application of the new technology in a large scale d) Diversification of products + Duc Hoa III - Long Duc industrial zone in My Hanh Bac commune - Hoai Duc District - Long An Province: Having scale investment in 175.27ha Project purpose: 54 Investment and Construction of Cali Long Duc Industrial Zone to become a system of complete infrastructure using structural steel frame (factory, building for worker) e) Human resource Training: Sending staffs to visit and learn the technology of lightweight materials production in China to prepare for investment into lightweight floor panels, wall panels factory, in order to perfect a method of construction using new technology replace the traditional construction methods nowadays Expecting to send 30 staffs of planning and investment department, market business and engineering department, new technology team visit to learn month at lightweight construction material factories in Beijing, Sanghai (Expecting in October 2011) Inviting Professor-Doctor Zeer Tasta (Israel) teaching, guidance and training human resource for Design Consultant Center qualified to undertake self-designed industrial buildings, offices, supermarkets, hotels, low-cost apartment and towards the design of skyscraper buildings in the future Expecting to start training from 09/2011 to 12/2011 3.4.2 Implement solutions of Human Resource Management - Aim to provide the trainings to improve the quality of governance, specific skill, consistent with the strategic business programs: Advance administrative capacity course - Company professional skills training (5 days - Start 18h dated 13/09/2011) - Aim to build the company culture based on core value which is recognized by all members of the company - Recruitment 100 workers trained by Hanoi School of Engineering and Business who will graduate at the end of August to meet the need of construction projects using new construction technology 3.4.3 Implement capital solution: Borrowing Bank of Investment and Development of Vietnam - Hanoi Branch 12,000,000,000 VND with interest rates 10.8%, to operate the business and production activities for high-rise building projects applying new construction technology 3.4.4 Marketing implementation: a) Implementation plan: - Submission and approval of marketing plan - Establishment of detailed distribution - Setting up of regulations and application for ads program license - Work with event management companies, marketing agencies to design the program (video production, banner, Poster, PR…) - Implementation of the planned program 55 b) Financial Estimates: Unit: VND TT Expense items Poster A3 Bangzon for 05 big events Banner introducing product Service to deploy poster, hang banner Leaflets Small gifts at trade fair, events Public Relationship TV Ads 10 Newspaper Ads, internet Cost of design: leaflets, program… 11 Other rising expenses Total Quantity 0,000 1,000 Unit price 2, 000 500, 000 50, 000 50 0,000 0,000 200 50, 000 20 Total amount % 20,000,0 00 0.58% 10,000,0 00 0.29% 50,000,0 00 1.44% 30,000,0 00 0.87% 100,000,0 00 2.89% 1,500,000,0 00 43.35% 50,000,0 00 1.44% 1,200,000,0 00 34.68% 300,0 00 0.01% 300,000,0 00 8.67% 200,000,0 00 5.78% 3,460,300,0 00 100.00% Figure 3.7 : Financial Estimates for Marketing implementation c) Control: - Managing warehouse and exporting products in right process - Assigning direct manager to be in charged of marketing plan for new technology product and those responsible for each part - Receiving feedback and handling within period of advertising, product PR to have timely action to avoid adversely affection to its image - Tightly controlling all expenses by item, rising events 56 Appendix 1: The main business lines of COWAELMIC a CONSTRUCTION AND INSTALLATION: - Construction of civil and industrial works - Construction and installation, restoration, embellishment of historical and cultural relics - Construction and installation of water supply and drainage systems, supplied water and waste treatment - Construction of traffic, irrigation, post and telecommunication works - Construction of technical infrastructures for urban and industrial zones - Installation of electrical and water works, elevator, air conditioning, refrigerating storage system, humidity treatment system - Installation of power transmission lines and substations up to 220kV - Manufacturing and installation of work structure - Concrete drilling and demolition of construction work , house displacement - Treatment of work foundation - Installation of automatic firefighting water and combustion prevention system b PROJECT DEVELOPMENT INVESTMENT: - Housing development and trading - Real estate Trading - Investment in trading and development of infrastructure of urban and industrial zone, office rental, and parking - Real estate service trading: real estate brokerage, real estate valuation, real estate trading floor, real estate auction, real estate consultancy, real estate advertisement and management - Investment in projects in the form of turnkey - Provision of management services for the high-rise buildings in urban zones and apartment rent - Entertainment services - Management, exploitation, maintenance of technical infrastructures of urban zone, and industrial zone c DESIGN AND CONSULTANCY: - Design , consultancy in civil and industrial works - Consultancy in project building, bidding, and economic contract - Construction survey, experiment, planning design, work design and evaluation of investment projects - Evaluation of technical designs for total estimate, management of construction project 57 - Examination and certification of conformity construction work quality - Design of transmission lines and substations up to 110kV - Construction monitoring and supervision - Other construction consultancy services d CONSTRUCTION MATERIAL MANUFACTURING AND CONSTRUCTION EQUIPMENT TRADING: - Manufacturing of Tuynel bricks - Production of precast concrete - Production of Asphalt concrete - Fabrication of building steel structure - Manufacturing and trading of fresh water - Manufacturing and trading of hardware, equipment, , construction material accessories, water supply and drainage, local and central air conditioning - Trading of goods transportation, cars, trucks, construction mean and equipment for hire e OTHER BUSINESS LINES - Provision of environmental sanitation services, green park, and car, motorcycles and transportation mean keeping; operation and maintenance elevator and water and electrical repair - Trading of supermarket, kiosk, restaurant, tennis court, swimming pool - Vocational education: professional intermediate education, and vocational training 58 Appendix 2: Overview on production technology for steel structural types Production technology for steel structural types in general is not too new to Vietnam, since the 1960s we have had many manufacturing and production factories of steel structural types serving construction objectives and national defense In general, production technology for steel structure in Vietnam as well as in many countries in the world is the same in production process, only different from using machines to produce processing products Basic steps to produce into steel structural products as shown as follows: Depot Processing, embryogenesis Rendering mount Factory products Combination weld Complete painting, packaging Common feature of steel structural products is type produced according to orders, thus production technology must meet the requirements: − Ensure flexibility − Enable to diversify products − Ensure the requires of products quality − Ensure time of product delivery However, each manufacturer has their own features in selecting and using the equipment in each production stage, applying technical improvements…depending on their product types, market requirements, financial ability and common technical level of society 59 Appendix 3: Production technology in factory Purchased depot Types of steels Semi-finished product material smmammproducpmaterials Vật tư bán Automatic cutting, punching-and-shearing machine machine machine đshearing machinecắt đột liên hợp Mechanical processing machines Bending machine U, C, Z gust axis Construct structure, combined weld by welder, welding equipment Assembly Trial assembly – complete welding Clean -> pain (paint blaster) Packing, baling according to each detailed type of products Finished products to ship According to capacity scale and product selection as presented above, space may be available and production organization ability of Company’s staffs Process of production technology in factory can be summarized as follows: Preparation for input materials Outsourced materials are gathered on the storage according to each category, including: 60 - Main materials: types of steel plates, form steel … - Sub-materials: electrode, welding composition, welding rod, gas, oxygen, synthetic paint … - Semi finished materials: motor, electric equipment, controller Pursuant to design drawing of products, the task of this step is to define right bloom yard size to get the correct sign and ensure savings most on the 1mx6m standard steel plate or form steel of U, I, L types… Billet cut processing After being marked, types of steels are given into step of processing to cut bloom yard to cut and form Depending on each type of material and product requirements has processing model below: a) Steel Cutting: - Plate Steel: Steel plate of ≤ 4.5 mm thick, cut by machine, creating band blending cutting machine for cold-bending process of types of purlin in U, C, Z shaped cross-section or creating semi-finished products to make pillar, rafter of ≤ 15m aperture Steel plate of > 4,5mm thick is cut by automatic steam cutters or punching-and-shearing machine - Angle Steel: ≤ L small edge steel cuts on punching-and-shearing machine, if L ≤ 90mm, cut on saws - Formed steel (U, I): Form steel is cut by single-purpose automatic steam cutters and can cut at any optional angles b) Mechanical processing: According to design drawing and depending on product requirements, specifications and bloom yard materials after cutting can be brought to mechanical processing stage to drill holes, whet, turn, thrust… Steel structure complex welding and equipment assembly This is the main process of production and all types of structural steel products, building frame, non-standard equipment must go through this stage - Step 1: Specifications as well as assemblies installed on automatic attached machine in accordance with design test and move to step - Step 2: welding steel structure complex, applying automatically welding under the protected welding layers or welding by gate welder and one-way welder…depending on features and requirements of weld joint - Step 3: Assembling whole structure and equipment (including semi-finished products if any), check according the design, complete and refine products if necessary (set, adjust…) For structures of big size and aperture after completing they will be split into many sessions to transport easily and then assemblies into installation works 61 For industrial equipment after completing the stage of steel structural processing, they are combined with the design block Cleaning, painting, packing, shipping - Structural products after being tested will be move to cleaned place before painting There is equipment of cleaned sprayer - After checking cleaning quality, steel structure or equipment coated by paint sprayer Check last time and write receiving report before packing Total amount of structures, specifications, equipment and accessories are numbered and listed the full installation guide Specifications as foundation bolt, connecting bolt… are packed in accordance with each category, number, format Frames produced under the standards can be packed, arranged in order to transfer easily For single equipment, non-standard structures are collected synchronously for each equipment according to the design 62 CONCLUSION Any business strategies need to be put in specific business environment Each enterprise should improve its own strengths, restrain Weaknesses and at the same time surveys and forecast business environment to make business strategy (long term and short term) No matter how business environment changes, enterprise’s planed strategy can be magnificently affected For stable development, any enterprises in any economic sections have to review their policy to revise the strategies to make it in line with the changes of the market COWAELMIC also must identify clearly the plans to penetrate in to the integration, cooperation and rival competition world COWAELMIC is on the way to be the most customer centric bank of Vietnam and we are sure COWAELMIC is now in a right direction for moving forward Basing on the theory of strategic management and the analysis from COWAELMIC, the research shows some strategic proposal for COWAELMIC up to 2015 Much effort has been taken in the capstone project, however it is unable to avoid the shortcomings Therefore we hope to receive the supporting comment from lecturers, COWAELMIC top leaders as well as the readers for more practical value of the project We would like to express our sincerely thanks to the lectures, COWAELMIC top leaders and related departments in COWAELMIC who give us the knowledge background about business management for us to built this final project Sincerely yours 63 REFERENCES Liam Fahay & Robert M.Randall , “Portable MBA – Strategic Management”, 2009 Fred R David, “Principal of Strategic Management”, HCMC Statistical Publishing House, 2003 Le The Gioi, Nguyen Thanh Liem and Tran Huu Hai, “Strategic Management”, Statistical Publishing House, 2009 Global Advance Textbook of Griggs University « Strategic Management: Concepts and Cases: Competitiveness and Globalization »’ Micheal Hitt and all, 2010 ; Competitive Strategy: Techniques for Analyzing industries and Competitors, Micheal E.Porter, Free Press, 1998 The Five Competitive Forces That Chape Strategy, Micheal E.Porter, HBR, 2006 “Business Tactic and Strategy”, D Smith and all, Social and Technical publishing house, 2008 COWELMIC’s annual reports 10 COWAELMIC’s Competitor analysis document 11 Information on social and economic situation of Vietnam on Internet 64 ... Orientation for corperate’s development 3.1.1 Vision, Mission 3.1.2 Core Value 3.2 COWAELMIC s business strategy Orientation for the period 2011- 2015 3.2.1 Orientation of strategy for production and business. .. Classification by strategy level: +/Corporate strategy (General strategy) + /Business strategy (sector) +/ Functional Strategy - Classification by the strategy content Regarding the strategy content, the managers... both the internal and external situation to formulate strategy, implement the strategy, evaluate the progress, and make adjustments as necessary to stay on track Given the information from the