Topic: Distinguish corporate strategy, business strategy, and (functional strategy) Presentation of the relationship among these strategies Give examples Presentation abstracts strategy formulation process One strategy is built in accordance with procedures in the implementation process may need to be adjusted or not? Why? Give practical examples to illustrate Answer: Question To distinguish corporate strategy with business strategy and functional strategies, we will have some concept of corporate strategy and business strategy as well as the concept of strategic control Corporate Strategy: Current health of a company is measured by business activity, and system resources, while strong growth prospects in the long term depends primarily on strategy What is Strategy? Strategy is a concatenation, a series of activities designed to to create long-term competitive advantage over rivals In the environment of a company's operations, including market and competitor, outlines strategies for companies in a consistent behavior Strategic express a choice, a hit for the company that professionals often called strategic positioning The company operates without such a strategy for going on the road without his determination to go about anywhere, even on the crowd (and market competition) pushed in any direction they move in that direction If you go on like that forever he will only be a mediocre and alone in the crowd A leader will not have the field to the mercy of the future for their business and market competition is going to lead in that For this he had deliberately set out a direction and try to influence the market to lead in this direction, a direction that his company has prepared and will therefore have more favorable than those other Strategic Management In any public confrontation, its rivals are imposing his game on the opponent; the more will be the chances of winning more Thus, a clear strategy is required for that aspiring stand firm in leading position What about those who not have the ambition of being the first man, does it need to have a strategy? Yes, you still need to have a strategy if you not want others in the flock being pinched and eventually eliminated from the game The strategy is so important but why have some companies not have a strategy that can still grow? First of all, as defined above, to the strategic direction of long-term competitive advantage, and strategic importance is evident when competitive factors, such as us, the answer may fall in one of the following cases: • Company can fully develop in the early stages, when there were not many competitors, thanks to the ability to detect and seize market opportunities without the need to have a strategy (in case of companies developed after open state economy, ocean blue case) • The company can develop due to a specific market conditions, one or more advantages that other companies not have (state enterprises) • In some cases, although there is no specific strategy, but corporate leaders truly strategic orientation in their thinking He knew what he needed to to compete successfully (but strategically simple form) Why many companies previously could grow, but after developing a certain threshold then it becomes stagnant, unable to grow anymore? • In some cases, when thanks to seize the opportunity and go ahead market, the company developed to a certain extent, the market appears competitive Competitive pressures led the company halted (because not familiar with the competitive environment) Want to continue to grow in terms of the competitive business environment, companies need a proper strategy Strategic Management • In some cases, the company halted due to the company losing the peculiar advantages, privileges that other competitors not have In this case the company needs to quickly adapt to the competitive environment of transparency, and the need to have a proper strategy • Where the developer due to the strategic thinking of an individual, when grown to a scale that he himself can not directly deploy their own work (such as when the company was young), the factor advantages thanks to the strategic thinking of an individual no longer promote more effective The game was moved from an individual to play a team game In this case, the company will also need to adapt to the new environment, to change the mindset from "success depends on the individual" to "success depends on teamwork." Accordingly, the company may need to change the management model consistent with the team (corporate restructuring) Darwin's theory of evolution can also be applied in the business to survive and grow companies need to know to adapt to change yourself and your business environment Strategy firm identified related to: - The business sector should remain firm - The market will operate competing companies Depending on the characteristics of the resources of the business and the attractiveness of the business, senior managers need to select strategies for each sector to adapt to the environment inside and outside In fact, for now, the basic strategies that administrators can choose include: - The strategy of vertical integration - Strategic business diversification - Go into the strategy and control - Diversification strategy and integration - Strategic retreat Strategic Management Business strategy: When it comes to strategy, people tend to relate to the mission, the vision of the business Actually, not so The mission and vision of the business although always included as part of the strategy, but it does not give a clear direction for the operation of the business Strategy is the creation of a unique position and value through the deployment of an operating system different from what competitors So a strategy of how to help businesses build such position in the market? The elements of business strategy A business strategy must have four elements: strategic objectives, scope strategy, competitive advantage and operational strategies and core competencies These four elements require a consistent and fit together Strategic Objective A strategy should begin by determining the expected result that the business strategy is established to implement them The strategic goal will serve to guide the operation of the business in a number of years Need to distinguish between strategic objectives with the mission, vision of the business In fact, many businesses tend to confuse objectives with the mission of the enterprise The mission of the enterprise to address the purpose or reason for existence of the business is often so high generalization In contrast, strategic objectives need to ensure specific, quantifiable and clear deadline The choice of what goals have great influence in the business A selection of business is highly profitable strategic objectives will focus on serving the customer groups or market segments with highly profitable products with high added value or cost of performance exceeds expenses dominant In contrast, the choice of the growth target could lead businesses to diversify the product line to attract more customers in different market segments The most important goal-oriented business strategy to be profitable and sustainable The strategic objective is usually measured by the rate of return on investment (ROI), but also Strategic Management can be measured by the rate of return on equity (ROE) or rate of return on assets (ROA) Enterprises can also take other objectives such as growth strategies, market share, quality, customer value The choice depends on the target industries and stages of development of each enterprise, but business course to be very careful in choosing the growth target, the stock value or annual accounting profit making strategic goals as it may lead businesses to go in the direction of sustainable development Scope of the strategy An effective business strategy is not focused on satisfying all the needs in all market segments as if doing so will now be distributed resources and efforts So businesses need to set limits on customers, products, geographic area or industry value chain to focus and best meet customer needs - it's strategic scope Scope of the strategy is not necessarily accurate description of what businesses need to do, but very clear and transport staff will not business For example, a bank does not specify credit for business customers found that price volatility as iron and steel, fertilizer This is necessary so that middle managers not spend too much time on the project which will then be rejected because they not fit the strategy Businesses can choose to focus on one or a few meet the needs of many customers, such as - Focusing on the needs of many clients as a few cases of Phuoc An offer many different products (shirts, trousers, shift-to-beveled, suitcases, shoes ) for business customer’s people, work with high incomes - Enterprises can also choose to focus more on the needs of many customers in a narrow market sector The selection must be based on the scope of the principle of market demand and the real business savvy and able to meet the demand Enterprises also need to avoid confrontation with the powerful competitors or meet customer needs Competitive Advantage Strategic Management To gain a foothold in the competitive market segment selected product / service businesses have unique advantages or superior to products of competitors Therefore, the identification and creation of competitive advantage is the central issue of strategy Instead of determining the competitive advantage is low cost or differentiation, businesses must identify target customers really appreciate what a schema development and customer value that represents the end combination of factors that target customers willing to spend money to buy the products and services of businesses eg price, quality, design, speed, safety and reliability Uniqueness or differentiation of products and services is how to combine the elements to best meet the client objectives Thus, competitive advantage is the combination of value, but which must have one or two superior value to help customers realize business products among the products of competitors System operations strategy and core competencies After determining the competitive advantage in line with client objectives, strategies need to answer the question: how businesses can gain a competitive advantage? In other words, businesses must determine how to provide differentiated value to customers During system operation, the enterprise must determine what the core competencies directly contribute to the creation of sustainable competitive advantage identified Core competency is the ability to implement the activities outperformed competitors in quality or performance; it is often the ability to link and coordinate a group activity or function of a business and rarely in a specific function This capability enables enterprises can compete effectively and diversify products to For example, Honda's core competence is the ability to design and manufacture engine durability and unsurpassed fuel economy, core competencies of a company can build a construction management capacity ( thereby ensuring progress, quality and cost) The elements of the strategy clearly does not exist independently, but disjointed opposite alignment to ensure consistent and compatible with each other Level strategic function: Strategic Management As a solution to implement the strategy of companies and business strategies, including different strategies such as marketing strategy, financial strategy, strategic R&D, strategic operational and strategic HR Marketing Strategy Marketing strategy can strongly influence the efficiency and cost structure of a business Through marketing strategy, the company earned its position by coordinating pricing activities, promotion, advertising, product design and distribution It can play a major role in increasing the efficiency of the company Financial Strategy The objective of the financial strategy is to build a fund and establishing appropriate financial structures to help businesses achieve the goals set out M65t note the contents of the financial strategy are: cash flow planning, consider the relationship between debt and equity, dividend policy Research Strategy and Development Prominent role of research and development in the effort to achieve greater efficiency of two points: • R & D function can improve design efficiency by making products easier, because it can significantly reduce assembly time, leading to higher productivity and lower costs • The improvement process, which is an improvement on how the operation of the production process to improve efficiency The improvement process is often a source of competitive advantage Operational strategies Economies of scale are reducing unit costs related to product high yield Another cause of the economics of scale most obvious is the ability to allocate fixed costs for large volume production products Fixed costs are the costs incurred to produce a product with a corresponding level of output, this cost includes the cost of purchasing equipment, Strategic Management machinery costs for a set time production and details workshop fees, advertising expenses and R & D Human Resource Strategy Labor productivity is one of the key determinants for performance and cost structure of a business Higher labor productivity, unit costs for a product decreases The challenge for the administrative functions of human resources in a company is to find ways to increase labor productivity There are three basic options to this, including: employee training, labor organizations into autonomous groups, links between remuneration and performance Thus, we easily distinguish between the corporate strategy with business strategy and functional strategy Each holding different functional roles, but always complementary throughout the process of sustainable development and growth of enterprises Corporate strategy to ensure the long-term development and growth for the business, and the business strategy is an operating system different from what competitors It serves to guide enterprises in the development stage For evidence of the strategy clearly plays a direct role in the implementation of corporate strategy and business strategy Question Depending on the characteristics and scope of business activities, each enterprise can have a strategy building process with different levels of complexity The construction process of the company's strategy to help businesses clear mission, purpose and context of the current business environment and the future, the position and role of business in the business environment, which outlines development objectives and the implementation of appropriate solutions in the future A corporate strategy as specific clearly will help enterprises more easily and successfully applied Mission Purpose External environtment analysis: * Opportunity * Threat Choose strategies Strategic Management Internal environtment analysis: * Strength * Weakness The company's mission is a concept used to determine the purpose of the reasons the company that launched the company and the most fundamental basis to companies that survive and thrive in the present and the future The company's mission is the proclamation of the company to society; it proves the usefulness and significance of the existence of the company to society In essence, the mission statement of the company's focus to clarify a very important problem: the business of the company for what purpose? The scope of the mission statement often related to products, markets, customers and technology of a system of philosophy other companies pursuing business in the process Apply the SWOT matrix to analyze the external environment, internal environment to find opportunities outside threats, strengths and weaknesses of the company where Since then offer appropriate solutions for the development of the company One strategy is built according to the process, in the course of implementing the strategy can sometimes be adjusted to suit the current situation, to ensure the overall development objectives of the strategy, avoiding failure due to too rigid as proposed strategy Because there are many objective factors and subjective in the implementation process may not fit reality or the previous forecast inaccuracies or get real data to analyze the future even objective factors of environmental law, the amendment or change the regulations, the mandatory release laws have changed now part of our strategy An example of the change to be more successful: Dat Xanh Group, just before the real estate brokerage firm, but after the operation of real estate broker’s lucrative form is then transferred to the investor Dat Xanh Group bought the land for his many demons in all cities and provinces such as Long An, Binh Duong, Dong Nai, Vung Tau, Da Nang, Nha Trang for both investor is just a distributor Dat Xanh Group has undertaken the implementation of their projects, but last period of 2011 the real estate market downturn is severely required corporations to change strategy Many are forced to stop the project implementation as Suoi Son Project - Dong Nai To ensure sustainable development for businesses in the challenging economic situation Or as Hoang Anh Gia Lai Company, which comes from the lumber business, then move on to the real estate business, rubber, sugar, and ore But the real estate business in difficult economic period from 2008 to now, the situation of the real estate and mining difficulties, the Hoang Anh Gia Lai invested heavily diverted for rubber, sugar Especially Strategic Management his business promptly redirected to the countries in the region such as Cambodia, Laos, Myama, to seek new investment opportunities, not being dependent on a market as volatile economy Examples of consistent strategy for failure: Binhanfishco case is a very unfortunate example Looking forward to rapid growth has propelled a leading enterprise in the field of fisheries stalled, nearing bankruptcy and finally had to call to the aid of the State and other investors Bianfisco of giants Dieu Hien is famous for seafood export sector, raise thousands of workers, thriving even decades But this has now rapidly leaving the inability to pay debts totaling over $ 1.000 billion Total debt was later sold the company to buy assets and outstanding debt (Ministry of Finance) and SHB bank acquisition, capital injection to production and business organizations REFERENCES http://www.qvcorp.com.vn/chien-luoc-cong-ty 1-2046 http://ocd.vn/index.php/vi/news/trithuc-quanly/765-chienluockinhdoanh http://ocd.vn/index.php/vi/news/trithuc-quanly/789-tu-van-chien-luoc Strategic Management