GAN GRIGGS ¬ aT @ UNIVERSITY & INTERNATIONAL ACADEMY CAPSTONE PROJECT REPORT BUILDING UP BUSINESS STRATEGY FOR INVESTMENT CONTRUCTION AND APPLICATION JOINT STOCK COMPANY OF NEW TECHNOLOGIES IN STAGE OF 2012 - 2016 GROUP NUMBER: 01 - GaMBA.V0210 STUDENT’S NAMES Tran Hai Minh Tran Dinh Toan Tran Thi Hong Anh Nguyen Thi Thanh Vinh - 2012 — Hoa G09) GRIGG Group No 01 - Class: GAMBA V0210 Building up business strategy for TECCO in 2012 - 2016 TABLE OF CONTENTS CONTENTS PAGE t© TABLE OF CONTENTS ACKNOWLEDGEMENTS ND LIST OF ABBREVIATIONS LIST OF FIGURES AND TABLES Oo INTRODUCTION Oo The need for research Research objectives The object and scope of research 10 Research Methodology 10 The structure of the assignment II CHAPTER I: GENERAL THEORETICAL _ BUSINESS STRATEGIES BASIS OF BUILDING General theory of business strategy 1.1 The concept of business strategy 1.2 The role of business strategy for enterprises Process of building business strategy 2.1 Define the vision, mission and objectives of the enterprises 2.2 Assess the external business environment 2.2.1 Macro environment 2.2.2 Sector environment 2.3 Analysis of internal business environment 2.3.1 Financial Analysis 2.3.2 Analysis of human resources 2.3.3 Analysis of infrastructure and technologies 2.3.4 Analysis of the competitiveness of enterprises CGF Global Advanced Master of Business Administration t© 2.4 Model of strategic analysis - SWOT Matrix l2 G09 Group No 01 - Class: GAMBA GRIGCS V0210 puitding up business strategy for TECCO in 2012 - 2016 UNIVERSITY 2.5 McKinsey matrix model - GE 2.6 Choosing business strategies 2.6.1 Strategy of business unit level 2.6.2 Enterprise-level strategy (multidisciplinary) 2.7 [IE Matrix and QSPM ENVIRONMENT AND 2.1 Introduction about Investment Construction and to 1.2 History and development t2 1.3 Functions, tasks and business t2 1.4 Current development orientation 1.5 Organizational structure an G2 AN t2 _1.1 General Information b2 Application Joint Stock Company of New Technologies G2 nN BUSINESS Ww CHAPTER I: ANALYSIS OF ENTERPRISE 2.2 Analysis of macro environment 2.2.1 Politics and legal environment 2.2.2 Economic environment 2.2.3 Social environment 2.2.4 Technology environment 2.3 Current mainstream business environment 2.3.1 Supplier 2.3.2 Customers 2.3.3 Barriers to entry 2.3.4 Alternative products and services 2.3.5 Competition among existing enterprises in the market 2.4 Internal environment of the enterprise 2.4.2 Analysis of the competitiveness of TECCO 2.5 SWOT Analysis 60 Global Advanced J Master of Business Administratior G3 CG 44 ‘Nn 2.4.1 Analysis of resources of Investment Construction and Application Joint Stock Company of New Technologies G09 GRIGG Group No 01 - Class: GAMBA V0210 Building up business strategy for TECCO in 2012 - 2016 6] 2.5.2 Weaknesses 6] 5.3 Opportunities 62 5.4 Challenge 62 NO tO SF Jr 2.5.1 Strengths CHAPTER Ul: BUSINESS STAIEGY OF INVESTMENT CONSTRUCTION AND APPLICATION JOINT STOCK COMPANY OF NEW TECHNOLOGIES IN 2012-2016 AND IMPLEMENTATION SOLUTIONS 64 3.1 Company-level strategic choices 64 3.2 Options of business strategies for each target sector 67 3.3 Selecting strategy for construction sector 70 3.3.1 Restructuring strategy for the establishment of General Corporate TECCO 3.3.2 Management strategy by the parent - subsidiary company ie 3.3.3 Innovation strategy of management policy 80 3.3.4 Marketing Strategy 80 3.3.5 Human resource development strategy 81 3.3.6 Science and technology development strategy 81 3.4 Implementation solutions 81 3.4.1 Investment solutions 81 3.4.2 Solutions for organizational structure and human resources development 82 3.4.3 Solutions for enhancing capability of steering and construction management at the works and projects 83 78 3.4.4 Science and technology solutions 3.4.5 Economic and financial solutions 3.4.6 Solutions for ensuring the life, work and social security 3.5 Strategic roadmap CONCLUSION LIST OF REFERENCES wr Global Advanced “St ane Master 89 of Business Administration G09) GRIGG Group No 01 - Class: GAMBA V0210 Building up business strategy for TECCO in 2012 - 2016 ACKNOWLEDGEMENTS Group 01 - Class GAMBA to the leaders of Center V0210 would like to express our sincere gratitude of Technology and Employment System (ETC) of the National University of Hanoi, the teachers of Griggs University and the supervisors who always show enthusiasm and support the group to complete this graduation assignment We would like to express our profound gratitude to Investment Construction and Application Joint Stock Company of New Technologies (TECCO) and other agencies which we have met, surveyed and experts in the related fields who have contributed precious information and relevant ideas so that we can make this assignment significant We also would like to thank friends, colleagues and family members, who have always supported, created favorable conditions, shared difficulties and often sent us warm encouragement during the study and research CG Global Advanced Master of Business Administration sử Group01 - Class GaMBA V0210 6o) Group No 01 - Class: GAMBA GRIGG9 V0210 guyyyg up business strategy for TECCO in 2012 - 2016 LISTS OF ABBREVIATIONS Contents Investment Construction and Application Joint Stock Company of New Technologies Matrix McKinsey — GE Strategic matrix of MC.KINSEY Matrix of Strengths Weaknesses Opportunities and SWOT Threats Analysis - JSC Joint Stock Company / ROA Return on Asset ROE Return on Equity HR Human Resource HCM Ho Chi Minh city - c2 Global Advanced — GE Master of Business Administration “4 609) GRIGG Group No 01 - Class: GAMBA V0210 Building up business strategy for TECCO in 2012 - 2016 unt VERSITY LIST OF FIGURES AND TABLES FIGURES Migure 1.1: Basic SWOT Figure 1.2: SWOT Figure 1.3: The strategy matrix of MC.KINSEY Matrix — GE Diagram of organizational structure - Investment Construction Figure 2,1: and Application JSC of New Technologies Figure 22! Diagram of equity capital in 2009; 2010 and 2011 Figure 2.2; Diagram of Revenue and Pre-tax Profitl in 2009; 2010 and 2011 Figure 3.1: McKinsey matrix of TECCO Figure 3.2: Sale proportion of main industries of TECCO TABLE Table 2.1; Financial data synthesized from 2009 to 2011 Tablé 2.2: Typical projects of TECCO Table 2.3: Projects of TECCO Table 2.4: Financial indicators in 2011 of TECCO Table 2.5: Machinery capacity of TECCO Competitiveness comparison of large construction companies in Table 2.6: the Central Region and HoChiMinh city Table 3.1: Attractiveness of the sector ‘Table 3.2: Competitiveness analysis of the sector Table 3.3: Sale proportion of main industries of TECCO Table 3.4: SWOT List of subsidiaries by TECCO owning over 51% of the charter Table 3.3: CG Global Matrix of TECCO capital at the time of 9/2011 Advanced ) Master of Business Administration G09 Group No 01 - Class: GAMBA GRIGGS Building up business strategy for TECCO in 2012 - 2016 lable 3.6: _ lable 3.7: Table 3.8: Table 3.9: CG V0210 Global Advanced a List of associated companies by TECCO ; ; holding less than 51% of the charter capital at the time of 9/2011 Percentage of holdings of TECCO after the restructure in the associated companies Orientation of the period 2012-2016 at the subsidiaries of TECCO Tentative schedule and implement cost of strategic solutions in the period of 2012 - 2016 Master of Business Administration Group No 01 Gricos) Univensiry - Class: GaMBA V0210 Building up business strategy for TECCO in 2012 - 2016 INTRODUCTION The need for research Currently, most of enterprises all over the world consider building business strategy as the most important task The directors of large enterprises often use up to 40% of their time annually to study the business strategy In 1947, only 20% of U.S firms are run with business strategy In 1970, this number was up to 100% Many American entrepreneurs consider that building business strategy is time-consuming, very important and difficult work Mr Wilson, CEO of GE America once said: "Every day | not much work, but one type of work that is never complete is planning the future." This shows that many firms in countries attach great importance to the development of business strategy In the past, many attention businesses have gained to the internal effective way functioning Currently, and success because they only paid performing their daily tasks in a most most of the enterprises are facing increasingly volatile, complex and risky business environment So, just paying attention to the internal functions and routines is not enough, to survive and grow enterprises need to outline the policies and business strategies in order to fully take advantage of opportunities business and limit risks to the minimum level, thereby improve the efficiency and competitiveness of the business Business practices within country and abroad also request how for enterprises to success and make profits in the changing conditions of the increasingly fierce competitive environment and scarce resources Therefore, the business strategy is indispensable; it is of particularly important significance for the development of the company in the future Basing on the volatile state of the business environment as well as from real life our group (No 1) implement this topic to analyze and select business strategies and at the same time, to give out necessary solutions regarding these strategies for Investment CG Global Construction Advanced Master and of Business Application Administrator Joint Stock Company of New G09 Group No 01 GRIGG: - Class: GAMBA V027T0 Building up business strategy for TECCO in 2012 - 2016 lechnologies (TECCO) in the period of 2012-2016 in order to improve the competitiveness and business performance for the sake of sustainable development of the company Research objectives Research objective of this graduation assignment is to analyze the factors affecting specific business operations of Investment Construction and Application Joint Stock Company of New Technologies in order to build the business strategy for phase 2012-2016 and propose the strategy, function and particular solutions for the successful implementation of selected strategy The object and scope of research Research Company object of New is Investment Construction and Application Joint Stock Technologies with 04 main areas of activity: construction, real estate, business investment and services Research Methodology This study used synthetic qualitative research methods such as observation, interviews, focus group discussions from which to synthesize, analyze and compare the primary data and secondary data about the business environment and the operation of Investment Construction and Application Joint Stock Company of New Technologies Secondary data was collected from various sources such as: The management report, finance, personnel, production and business plan of Investment Construction members and Application of the company; Joint from Stock Company Ministry of New of Construction, Technologies Industry and and Trade Planning and Investment; Nghe An Department of Statistics; Nghe An Department of Construction, Development newspapers Joint Stock and Internet; Company No from 30: Nghe enterprises: An Investment Petroleum and Construction Corporation; Hoa Binh real estate joint stock company Primary directly c2 with Global data was officials Advanced P0 Master collected in charge of Business through of Administration discussions Finance and 10) work, Accounting, and HR interviews planning ... BUSINESS STRATEGIES BASIS OF BUILDING General theory of business strategy 1.1 The concept of business strategy 1.2 The role of business strategy for enterprises Process of building business strategy. .. specific business operations of Investment Construction and Application Joint Stock Company of New Technologies in order to build the business strategy for phase 2012-2016 and propose the strategy, ... Construction members and Application of the company; Joint from Stock Company Ministry of New of Construction, Technologies Industry and and Trade Planning and Investment; Nghe An Department of Statistics;