Thesis topic BUILDING THE BUSINESS STRATEGY PHASE 2011 - 2015 AND ORIENTATION TO 2020 OF SONG DA FINANCIAL JOINT STOCK COMPANY TABLE OF CONTENT No Content INTRODUCTION Page Reason for selecting the topic Objective of the study Scope of the study Method of the study Structure of the capstone project CHAPTER 1: THEORY FRAMEWORK 1.1 Theory on business strategy of enterprise 1.1.1 Some concepts of strategy 1.1.2 Essence of business strategy 1.1.3 Characteristics of business strategy 10 1.2 Process of building strategy 12 1.3 Model of external environment analysis 13 1.3.1 Model – Macro analysis 13 1.3.2 Five Forces Model of Michael - Industrial analysis 16 1.4 Model of internal analysis 18 1.4.1 Value chain 18 1.4.2 Sustainable competitive advantages of enterprise 20 1.5 General analysis model (SWOT) 21 1.6 General competitive strategies 22 1.6.1 Cost-leadership strategy 22 1.6.2 Product differentiation strategy 23 1.6.3 Concentrated growth strategy 24 1.7 Analysis model selecting strategy of weighting method 25 CHAPTER 2: ANALYZING THE REAL SITUATION OF SONGDA FINANCE JOINT STOCK COMPANY 2.1 Overview on SongDa Finance Joint Stock Company 2.1.1 Process of establishment and development 27 27 2.1.2 Business lines of the Company 27 2.1.3 Organizational structure of the Company 28 2.1.4 Achievements in 2008-2010 period 29 2.1.5 Some notes about the development history of SDFC 30 2.1.6 Business situation 30 2.2 Analyzing external environment of SongDa Finance Joint Stock Company 35 2.2.1 Analyzing macro environment of SDFC 35 2.2.2 Analyzing micro environment of SDFC – Industrial environment 40 2.3 48 Analyzing internal environment of SDFC 2.3.1 Value chain model 48 2.3.2 Sustainable competitive advantages 55 2.4 SWOT analysis of SDFC 58 2.5 Vision, Mission and Strategic Objective of SDFC to 2020 63 2.5.1 Vision 63 2.5.2 Mission 63 2.5.3 Strategic Goals by 2015 and 2020 63 2.6 Selecting business strategy for SDFC according to weighting method 66 CHAPTER 3: SOLUTIONS, RECOMMENDATIONS AND CONCLUSION 3.1 Some solutions to successfully implement the selected strategy 71 Boosting the establishment and development of human resource with 3.1.1 advanced management and high-qualified and professional human resource 3.1.2 71 Optimizing management process to reduce the cost of goods sold of financial services, raise quality and pre-eminence of products 3.1.3 Investing in information technology and modern infrastructure 72 72 Ensuring the diversification of channels for mobilizing capital, 3.1.4 mobilize enough capital and optimally balance capital structure and time-limit for business 73 3.1.5 Concentrating resources to establish subsidiaries and joint-venture companies in the strong fields of the company 73 Some recommendations, shortcomings and following orientation 3.2 of the study 74 3.2.1 Some recommendations 74 3.2.2 Shortcomings of the study 75 3.2.3 Orientation of study in the future 75 3.3 Conclusions 75 DEFINITIONS Within the scope of this report, the following abbreviated terms are construed as follows: ACB ASEAN ATM BIDV BIM EVNFC Eximbank : Asia Commercial Bank : Association of Southeast Asian Nations : Machine and withdraw cash payment automatically : Bank for Investment and Development of Vietnam : Bao Minh Insurance : Electricity Viet Nam Financial Company : Export and Import Bank GDP : Gross domestic product M& A : Mergers & Acquisitions MB : Maritime Bank MIC : Military Insurance Company PVFC : Petro Viet Nam Financial Company PVI : Petro Vietnam Insurance Sacombank : Sai Gon Commercial Bank SBU : Sub Business Unit SDFC : Song Da Financial Joint Stock Company Vietcombank : Joint Stock Commercial Bank for Foreign Trade of Vietnam WTO : World Trade Organization List of Table and Figure Page Figure 1-1 : Model of strategic management process 12 Figure 1-2 : External environments 13 Figure: 1-3 : Diagram of industrial competition 16 Figure: 1-4 : Value chain diagram 19 Table 1- : Selecting strategy option according to weight method 26 Figure 2-1 : Management model of the Company 29 Table 2-1 : Capital mobilization by year 31 Table 2-2 : Balance of debit by year 31 Table 2-3 : Classification of lending forms 32 Table 2-4 : Data on the security rate and risks management 32 Table 2-5 : Business result in last years 34 Table 2-6 : Criteria of efficiency 34 Figure 2-2 : Value chain 53 Table 2-7 : Labor structure as of December 31, 2009 54 Figure 2-3 : SWOT matrix of SDFC 61 Table 2-8 : Select an appropriate strategy by using the weighting method 68 PREFACE Reason for choosing the subject: Becoming the 150th member of the World Trade Organization (TWO) on January 11, 2007 affirms that Vietnam’s economy in general and Vietnamese enterprises in particular have integrated into the world economy deeply and widely Vietnamese enterprises have been renewing their thought of business and reaped certain success To develop and integrate into the world economy successfully, Vietnamese enterprises need to ceaselessly renovate and raise the adaptability to the market and clearly define the destination that the enterprises need to reach How to reach it and by which mean? Therefore, they need to have business strategy Sound and reasonable business strategies will insure the sustainable development of enterprises on the basis of effectively implement enterprises’ goals Objective of the study - Studying and systemizing theories, selecting effective model of analysis to building and implementing business strategy - Applying the system of theoretical bases and models to analyze internal and external environments and building business strategy of the Company - Suggesting solutions and recommendations to the Company in implementing business strategy to complete the selected business strategy; Scope of the study: Studying and analyzing business lines of SongDa Finance Joint Stock Company Method of the study The report mainly used quantitative analysis method Methods of collecting data such as using questionnaires, interviewing experts were used Using national statistical data, information and specific data; using secondary data about strategy and previous reports of the Company Structure of the Capstone Report Chapter 1: Theory framework Chapter 2: Analyzing real situation of SongDa Finance Joint Stock Company Give an overview of SongDa Finance Joint Stock Company Business strategy to 2015 and vision to 2020 Apply models of analyzing external environment affecting the enterprise – Five forces model Apply the model of value chain and sustainable competitive advantage to analyze the internal of the Company Apply SWOT analysis to have an overall evaluation to find out the strengths, weaknesses, opportunities, and threats Analyzing and selecting business strategy for the Company according to weighting method Chapter 3: Recommendations and conclusion Some solutions to successfully implement the selected business strategy, some shortcomings and recommendations to solve these shortcomings and orientation for further studies in the future The End is references CHAPTER 1: THEORY FRAMEWORK 1.1 Theories on Business Strategy of Enterprise 1.1.1 Concept of Strategy and Strategic Management • Concept of strategy - Strategy is model of goals, objectives and plans to achieve those goals (Kenneth, 1965); - Strategy and formation of a unique and valuable position include the differentiation, a bartering selection to mostly concentrate resources to generate advantages for an enterprise (Michael Porter) - According to group 7, “Strategy is a system of coherent and long-term measures and methods that an enterprise tries to implement to gain the clearer and more outstanding differentiation compared to its rivals to achieve a set goal” • Concept of strategic management - According to Alfred Chandler, strategic management is the process of identifying basic and long-term goals of an enterprise, selecting mode or orientation of action and distribution of vital resources to implement those goals - According to John Pearce and Richard B.Robinson, strategic management is a system of decisions and actions to form and implement plans to attain goals of an enterprise - According to group 7, “Strategic management is a systematic process from building strategy, developing strategy, controlling and evaluating strategy to achieve the targets set by an enterprise 1.1.2 Essence of Business Strategy Business strategy is a business model of enterprise, in terms of business strategy, is the platform of business activity; method of using resources; basis for handling all matters of the business Business strategy is the creation in management, which means that business, based on certain objectives to form a new effective and competitive management system Therefore, business strategy is preceded from the actual situation of the enterprise Two businesses in the same area, same product, same size, but the business strategy can not completely be the same because of their different subjective condition At the same time the creative management must combine closely with organizational creativity, technical innovation can promote the work of business strategy Business strategy is to show the competitive position of enterprises, while building their business strategy, enterprises need an objective analysis of their situation, explore opportunities and challenges that affect the objective circumstances to business Study of subjective conditions of the business to know the strengths and weaknesses and base on these actual situations to achieve the objective of the enterprise 1.1.3 Characteristics of Business Strategy • Conformity The conformity of business strategy is reflected on three aspects: It needs to be consistent with the dominant trend of development and the motto directing the activities of the enterprise and needs to be in line with the development trend of the country in economic, technical and social aspects in a certain period of time; and needs to be conformable with the trend of world economic integration • Predictiveness In the past, due to having no strategy planning, doing activities spontaneously and following movement, many enterprises worked hard but ineffectively One of the causes of that situation is the lack of understanding about the development trend of the enterprises Therefore, to build business strategy, there must be good forecast on the economic and technical development trend of the society • Competitiveness If there is not competition, it is not necessary to have business strategy; thus, when building business strategy, we need to know how to get businesses a competitive edge over rivals and therefore win the competition • Risks Business strategy is the planning the enterprise’s development in the future The longer-term the strategy is, the riskier the strategy is, requiring entrepreneurs to have a prudent and objective vision and observation to have a sound strategy Business strategy should not be too long-term and needs to insure the flexibility and practicality • Professionalism and Creativeness Enterprises can base on their internal power to select a suitable field of operation and avoid the industry in which big enterprise has dominant position However, the technological advancement and competition in the market is unlimited; therefore, enterprises need to ceaselessly specialize and invent suitable technology and important measures to insure their existence and development • Relative Stability Business strategy of enterprises needs to have a relative stability in a certain period Otherwise, it will not have any steering implication to the real operation of the enterprise Business strategy also needs to be adjustable to suit the objective situation 10 Strategic solution WO * Strategy WO - Renovate the management to optimize the management process and reduce cost price of the service product The Company needs apply all successful factors of business such as professional characteristic has higher productivity, better management to reduce wastage and costs, banking business experience, select reasonable and stable capital mobilization channels, access and exploit the capital from the customers having idle funds with reasonable expenses and long term 2.5 Mission, Vision and Goals of the Company to 2020: 2.5.1 Vision SongDa Finance Joint Stock Company has a desire to become one of leading multi-purposes financial institutions in Vietnam in areas of financial investment, project investment as well as provide creative financial products, services and solutions with the aim of mobilizing capital, linking investment and bringing the highest value added for partners and customers 2.5.2 Mission - Accompany with business, share the risks and earnings; - To provide creative and suitable financial services with the demand of customers; as the instructor and connector of financial resources; - Gradually enhance the position in cooperating with national and international partners 2.5.3 Strategic Goals to 2015 and 2020: 2.5.3.1 Period (2011 – 2012) – Stability and development period: *Better material facilities: - Invest to the head office and other technical material facilities to keep pace with other credit organizations and develop as well as popularize image and trade mark of SDFC; - Base on the reality and when having enough condition, the company will found 1-3 branches in some key economic zones; 62 * Train and improve quality of human resources: - Train and improve human resource quality; gradually gain the professional knowledge and international working capacity; - Set up good treatment basis and attract talent, ensure the competitive capacity in area of human capital with other organizations * Set up the cooperative relationship network: - Establish the wide cooperation relationship with national and foreign financial organizations; participate in job association to enhance position of the company and increase development capacity; - Develop the customer network; * Develop SDFC trade mark: - Set up SDFC image connected with other famous ones by means of the investment and business cooperation; - Set up SDFC trade mark of humanity, friendly and close to community * Set up advanced information technology system: - Develop the stable information technology infrastructure, have capacity to connect and active online transactions with national banks and financial organizations; - Apply information technology in management, as a result, the information communication among management levels will be quick and reduce administration procedures * Improve financial ability: - Raise the charter capital up to 1.000 billion VND by means of issuing more shares; - Improve the capacity of capital mobilization, especially the mobilizing capital from economic organizations by derived financial products; * Fix product and service system and deploy the business operation:  Basic products: 63 - Develop credit including short term and long term credit in which pay attention to short term loan as well as increase the rate for middle term and long term loan;  - Develop the interbank lending and promote foreign exchange trading activities: Key products and services: Promote the financial investment operations, especially the investment in securities floor as well as research and look for long term investment opportunities; - Supply financial services in Song Da group as advisory for issuing bill, setting up and negotiating credit contracts; - Introduce financial products with flexible and creative structure matching to demand of customers; * Wide investment: - Enhance some departments of the company to new level to increase responsibilities as well as trading capacity; * List SDFC stock in 2012: In estimation, from 2012 on, national and the world economy as well as securities market have certain growth rate Moreover, after more than years of operation and development, SDFC has stability in organization and sustainable growth rate As a result, this is the suitable time for the company to list SDFC stock in securities market * Some main growing criteria: - Average growing revenue 20 - 30%/year, with about 860 billion VND in 2012; - Average growing rate of total asset 20 - 30%/year, with about 900 billion VND in 2012; - The average rate of earnings before tax /equity 10 - 15%/year; 2.5.3.2 Period (2012-2015) – Speed up: In this phase, human capital, information technology, product services are basically completed, and the company focuses on development and growth 64 * Investment: Promote the investment activities, pay attention to projects having efficiency in short term and middle term * Deploy the business operation: Maintain the traditional operations and deploy the key products and services to create the new milestone * Improvement: - Continuously improve the quality of human capital to expand new business sectors; - Train and prepare resources researching extraordinary solutions, products when SDFC is in saturated period * Expansion: Promote the business operation in international and regional market, in which pay attention to emerging markets as Cambodia and Lao; * Some main financial criteria: - Average growing revenue 20 - 30%/year, with 1.500 billion VND in 2015 - Average growing rate of total asset 20 - 30%/ year, with 22.000 billion VND in 2015; - The average rate of earnings before tax /equity 12 - 15%/ year; 2.5.3.3 Period (2016-2020) – New turning points: After a strong growing period, the growth rate begins falling as the company approaches to the limit point about resources (financial capacity, human capital) as well as weaknesses about business model, at this time, the company must have extraordinary improvements as: - Define the customers and target markets, expand the operation to international and regional market, promote the investment in Cambodia and Lao as well as research the investment to new markets in region; - Since the economy possibly enters the 10 year recession phase, in this period, the company should stabilize the business, monitor and restructure investment items as well as pay attention to risk management work 2.6 Select Business Strategy for SDFC by the weighting method Suggested Strategies 65 Strategy 1: Renovate the management to optimize the management process and reduce cost price of the service product (Competitiveness in cost) Strategy 2: Enhance the quality of service product by exploiting maximally the qualification of the qualified staffs of the Company to create outstanding quality products (Differentiate) Strategy 3: Boost to exploit the specific traditional market of the Company (concentrated) Strategy 4: The Company needs diversify its service products to minimize risks when it is too dependent on one area (product diversification) Use the weighting method to select a suitable strategy as follows: Step 1: Select criteria for assessing strategy Based on the characteristic of the operation of the Company, criteria including Owner value, Corporate culture, Competitive advantage achieved, Investment capital & account outstanding, and Revenue to assess strategies Step 2: Assign the weight to criteria Based on the above analyses on the business environment, internal conditions of the Company, weight of specific criteria is determined as follows: Criteria Weight Owner value 30 Corporate culture 15 Competitive advantage achieved 18 Investment capital & account outstanding 17 Revenue 20 Total 100 Step 3: Mark solutions by criterion Marking from 0.1 to 1.00 is based on criteria as follows: Base of the scale: The bigger owner value is, the higher mark is; the stronger corporate culture is, the higher mark is; the more competitive advantage is, the 66 higher market is; the higher investment and account outstanding is, the lower mark is; the higher revenue is, the higher mark is Theoretical base: Specific characteristic of banking operation Practical base: Combine interviews for survey with practical experiences Regarding surveying, direct interviews are conducted with State management agencies – leaders of departments of the State Bank of Vietnam, Leader of Song Da Corporation, and some partners who have business relationship on a large scale with the Company, leaders of SongDa Finance Joint Stock Company and some other credit institutions The content of the survey and interviews on criteria presents and determines the priority based on criteria including owner value, corporate culture, Competitive advantage achieved, Investment capita and Revenue The results of the survey show that ideas realize that the competition is fierce and fiercer and cost-leadership strategy and concentrated growth strategy are top priorities in banking operation Step 4: Define total marks of strategies by criteria Based on the results surveyed, experiences of the author who has been working in credit institutions for many year, total marks of strategies is determined clearly as in the following table Table 2-8 Select an appropriate strategy by using the weighting method Criteria Owner value Corporate culture Competitive advantage achieved Investment fund & account outstanding Revenue Total Weight Strategy Strategy Strategy Strategy Mark Product Mark Product Mark Product Mark Product 30 1,0 30,0 0,8 24,0 0,9 27,0 0,6 18,0 15 0,6 9,0 1,0 15,0 0,8 12,0 0,5 7,5 18 0,9 16,2 0,8 14,4 0,7 12,6 0,1 18,0 17 1,0 17,0 0,6 10,2 0,8 13,6 0,5 8,5 20 0,8 16,0 0,7 14,0 1,0 20,0 0,6 12,0 100 - 88,2 - 77,6 - 85,2 - 64,0 67 The results of the analysis by using the weighting method show that the best strategy based on the conditions of SDFC is as follows: * Strategy - Renovate the management to optimize the management process and reduce cost price of the service product (Cost leaderships) The Company needs apply all successful factors of the business such as professional characteristic has higher productivity, better management to reduce wastage and costs, banking business experience, select reasonable and stable capital mobilization channels, access and exploit the capital from the customers having idle funds with reasonable expenses, at the same time, improve the effectiveness of the business as well as financial capacity This strategy needs using in the first operating-years of the Company to raise market share for the Company * Strategy 2: Boost to exploit the specific traditional market of the Company (Concentrated growth strategy) Concentrate on the market segment of traditional customers, including: - Insurance companies, big corporations/groups like PetroVietnam, Vietnam Steel Corporation, State Capital Investment Corporation, etc Which the Company has an advantage of the market when it applies product differentiation strategies to improve the competitiveness of the Company - The Company has an advantage of access to the enterprise market within Song Da Corporation and this is supported strongly by the Corporation This market is expanding more and more widely as members of the Corporation are expanding its investment and business to hydropower and industrial urban area Based on the results of the above analysis, the strategy selected by SongDa Finance Joint Stock Company to pursue in the period from now to 2015 and Vision to 2020 is as follows: cost-leadership strategy, concentrated growth strategy These strategies aim to maintain and increase the existing market share, promote competitiveness and ensure the development to reach new markets 68 In short, Chapter presents an overview of SongDa Finance Joint Stock Company in recent years and introduces a business plan in 2015 and Vision of the company up to 2020 Simultaneously, it analyses the external environment and internal environment of the company; thereby to assess the integrated environment under the SWOT matrix and suggest the method to choose appropriate strategy by using the weighting method 69 CHAPTER 3: SOLUTIONS, RECOMMENDATIONS AND CONCLUSION 3.1 Some Solutions to Successfully implement the Selected Strategy 3.1.1 Boosting the establishment and development of human resource with advanced management and high-qualified and professional human resource * Clearly identify the human factor is important and decisive to the development and increase competitive advantages, so the Company needs to develop training plans to develop human resources with sufficient quantity and high quality Establish the management staffs with the advanced qualification, good professional staffs with high increasing productivity, quality and efficiency * Some measures to recruit and use staffs and management mechanism: - Should have a plan and pay attention to the programming and recruitment by associating with several universities, selecting talent or preset targets; - Elect officials and staffs with high achievement, good outlook for development and expectation to work at the company for a long time in the specialized fields to be trained to improve their professional qualification - Retrain them through school; complete professional training materials, for management staffs; implement the policies of mutual learning, learning is close to the reality school through practical working - In some areas which need leading experts to apply advanced science and technology, the Company will send staffs abroad for training - Consolidate the organizational structure to minimize the number of staffs, organize and assign tasks to employees by their functions and missions - Implement well the recruitment of employees by standards and regulations on recruitment, have remuneration policy to attract good people, talented professionals - Finance Build the culture of Song Da Finance in all activities; live healthy with loyalty and solidarity to help each other to complete all assigned tasks 70 - Complete the payroll policies; other forms of contracting business targets; highly appreciate the application of material bonus regulation 3.1.2 Optimizing management process to reduce the cost of service products; raise quality and pre-eminence of products - Develop and complete the management mechanism, manage the Company under the direction of radical decentralization to ensure that all levels, departments and individuals must be responsible for their working performance to assigned tasks - Must know how to combine the power of the leader collective with the implementation of all staffs to complete tasks assigned - Find every measure to maximize the available capacity to solve problems promptly and motivate staffs and workers to actively emulate each other - Apply the information technology to the and strictly implement to treat timely the information by level - Build quality management systems for products made by the Company; ensure the provision of utility products and services with high quality, on schedule and more competitive cost price - Improve the consultancy capacity and offer the most effective solutions for customers to timely treat possible problems during the business process 3.1.3 Investing in information technology and modern infrastructure To improve the operating capacity to meet the increasing demand of customers, the Company needs focusing on using measures as follows: - Invest in modern technology relevant with the task requirements of the business and ensure the sustainable growth to improve the competitive position; - Target at investing in equipment and high technology It is necessary to immediately deploy the investment in new technological equipment in the banking sector 71 3.1.4 Ensuring the diversification of channels for mobilizing capital, mobilize enough capital and optimially balance capital structure and time-limit for business The mobilization of adequate capital to meet timely the demand of business; using the optimal capital structure in the present context is a very important content, so the Company should be interested in implementing specific measures as follows: - The main source of capital for business in the coming years is from the insurance businesses, member companies within the Song Da Corporation, commercial banks, so it is necessary to strengthen the traditional relationship, creating a support based on the principle of "quality, credibility, cooperation and mutual benefit” On the other hand, the company should actively seek new capital source, especially entrusted funds from financial institutions, foreign investment funds - The mobilization of loan and increase in equity capital via issuing stocks and bonds to must consider carefully the structure to ensure the appropriate use of funds with the lowest cost in order to constantly improve the business efficiency - Strengthen the management and risk control in the business to increase efficiency and profits to raise financial resource, increasing the own capital of the Company - Issue additionally stocks to raise capital for the business - Do well the mechanism of urge, inspect and control of the business, reduce management costs and increase profits - In the implementation process, the company needs check, and detect discrepancies to improve them to attain the objectives set in order to mobilize capital sufficiently and timely; set the appropriate capital structure to ensure the lowest cost of capital in order to bring high economic efficiency for the business operations of the Company 3.1.5 Concentrating on resources to establish subsidiary companies joint-venture companies in the strong fields of the company 72 In the coming time, the Company must prepare the important resources such as personnel and capital to be able to proceed to set up subsidiary companies in securities, asset management, etc These are tools for the Company to well investment operations, and also bring revenue from dividends to the Company In addition, the Company should promote association and cooperation with other partners to conduct the establishment of new legal entities to invest in sectors where the Company has advantages of access to such as Investment and Business of Real Estate; investment of exploitation and processing of minerals, energy, etc.; thereby, accumulate their own capital and improve the financial capacity, creating a premise for the company to accelerate to promote the development and integration with the other financial institutions in the market 3.2 Some Recommendations, Shortcomings and Following Orientation of Study 3.2.1 Some Recommendations In order to let the company successfully implement the proposed strategy to maintain stable growth, ensure business efficiency, increase competitiveness and increase market share of the Company, the report proposes a number of recommendations as follows: - Have policies to attract skilled human resources based on the specialty of the Company to maintain and implement well the strategy outlined At the same time, organize the job training at the company and sent them to take part the intensive training of new business operations to enhance the provision of high-quality human resources for the company in the coming period - Apply scientific solutions simultaneously to create differences in products between the company and its competitors - Decentralize management aspects thoroughly and ensure a clear legal framework for the units to promote the initiative in the management of business activities, especially the management and risk control 73 - Consider carefully loan capital mobilization to raise equity scientifically; ensure the structure and optimal capital terms, ensuring high liquidity in the banking business 3.2.2 Shortcomings of the Study Due to constraints in terms of time as well as other resources, it is inevitably for the report to have some shortcomings The report is only focusing on studying specific cases of SongDa Finance Joint Stock Company, so f the conclusions drawn apply only to the building and selection of strategies for the Company itself In order to be able to apply the conclusions drawn here for other types of strategy as well as other businesses, it is necessary to conduct additional researches 3.2.3 Orientation of Study in the Future - The relationship between the strategy selected and the functional strategy, international competitive strategy, etc - How is the selected strategy adaptable and suitable if Vietnam fully joints the World Trade Organization (WTO)? 3.3 Conclusion The project "Building business strategy in 2011 – 2015 period and vision to 2020 of SongDa Finance Joint Stock Company" has been studied and established by our group to persuade the Company to apply this strategy in the practice at the Company On the basis of documents and knowledge learned from the course as well as the real exchange between colleagues, especially with the whole-hearted guidance of the instructors, we can complete the project The research results of the project is expected to help Leaders of the Company have a vision, grasp and maximize opportunities to limit the risks in the integration environment in the coming time, contributing to the successful implementation of the mission and the development objectives of SongDa Finance Joint Stock Company up to 2020 74 REFERENCES Abraham, 1999: “Strategic Alternatives and Choice – The Heart of Strategic Planning” - Blocher and partners, 2002: “Strategic Analysis and Strategic Cost Management” - Brown and partners, 2002: “Customer Value Measurement” - Raymond- Alain Thietart.1999 Corporate strategies (translated version) - Griffin, 2005: “Competitive Strategy” - Hill & Jones, 1998: “Strategic Management: An Integrated Approach” - FredR.David, 2000: “Concept of strategic management (translated version), Statistical Publishing House” - Garry D.Smit, Danny R Arnold.2003 Business strategy and tactic (translated version) Statistical Publishing House - Lectures of GaMBA Program - Strategic management – Textbook on Strategic Management – Statistical Publishing House in 2007 - Strategy to develop construction industry and electricity industry of Vietnam in 2004-2010 period, vision to 2020 approved by the Prime Minister - Document from SongDa Finance Joint Stock Company: • Annual reports, financial statements audited in 2008, 2009 and 2010 • Resolutions of Management Board of development orientation of the Company; • - Financial statements and operation statements of SDFC General Statistics Office (information about socio-economic indicators at website www.gso.gov.vn) Building Vietnam www.moc.gov.vn - Song Da Corporation www.songda.com.vn 75 76 [...]... Advantages of the Enterprise • Competitive advantages of the enterprise is constituted from 4 factors: The first is the knowledge and technological capacity of the staff including knowledge and skills of each employee; and qualities and knowledge structure of the whole staff The second is the technical system of the enterprise or the crucial system of techniques to implement the business strategy of the enterprise... Some Notes about the Development History of SDFC: - On January 31, 2008, the State Bank of Vietnam issued Document No 1091/NHNN-CNH accepting the regulation on establishing SongDa Finance Joint Stock Company - On April 07, 2008, the General Shareholders’ Assembly happened at Song Da Corporation to establish SongDa Finance Joint Stock Company - On May 23, 2008, SongDa Finance Joint Stock Company was issued... Investment and consulting Dept (Source: SDFC structure according to decision 172 dated 26/02 /2011 of SDFC) 2.1.4 Infrastructure and technologies of the Company: • Infrastructure The headquarter of the Company is located at No.121, Chua Lang Street, Dong Da District, Hanoi The building consists of 01 ground floor and 7 high floors with the area of over 1,000m 2 The Company has a system of elevators, standby... cost-leadership strategy lies in the ability of competitors in finding the way to produce with lower cost and attack the cost leader by its own “forte” The possibility that competitors will imitate the methods of the cost leader is a threat to the cost-leadership strategy; there is a threat that the cost-leader only thinks about cost and unlikely to be able to follow the changes in the taste of customers It... 2.1 Overview of SongDa Finance Joint Stock Company 2.1.1 The Establishment and Development Process SongDa Finance Joint Stock Company (SDFC) is a non-banking credit organization established and took effect from 7/2008 according to license number 137/GP-NHNN issued by Governor of Vietnam State Bank on 23/5/2008 After three years of operation, the company has gradually marked their position and prestige... within the industry The competition among enterprises in the same industry is expressed via the patterns, characteristics of competition, relating to the following factors: - The business may base on the assignment of the industry, position and role of the industry in the process of social production, resources used by the industry, the prospect of the economy, consumers’ habits, etc Via those analyses to. .. enterprises analyze and approach the overall business environment and find out the real advantages and disadvantages influencing the production and business activities of the enterprise 11 • Mandate of the enterprise Determining current missions, goals and strategies of the enterprise is the starting point of strategic management When having developed in a business environment that contains full of fluctuations,... The third is the management system of the enterprise, the enterprise’s strengths formed through regimes, regulations, organizational structure, organization plan, and leadership, encouragement of the enterprise and the leader’s art of leading The fourth is the concept of value and the enterprise’s culture system, the important constituent of the enterprise • The analysis of competitive advantages of. .. investors or business bankruptcy Therefore, this leads to dangerous situations as the economy stalled, and will take time to overcome * Exchange rate: In 2010, up to 18.8.2010, the State Bank of Vietnam has adjusted to three times the interbank rate, up 11.17% to a total of 18.932 VND / USD Dated 11/02 /2011, after a long time holding back, the State Bank of Vietnam to increase inter-bank rate rose to. .. advantage of the enterprise is, the longer the time for maintaining the strength is and the firmer the competitive strength is - How to develop and foster the enterprise’s competitive advantage? The development and fostering the enterprise’s competitive advantage often include the investment and revive the human resource of the enterprise, ceaselessly raise the technical quality of the staff, timely renovate ... internal and external environments and building business strategy of the Company - Suggesting solutions and recommendations to the Company in implementing business strategy to complete the selected business. .. Company Structure of the Capstone Report Chapter 1: Theory framework Chapter 2: Analyzing real situation of SongDa Finance Joint Stock Company Give an overview of SongDa Finance Joint Stock Company. .. Assembly happened at Song Da Corporation to establish SongDa Finance Joint Stock Company - On May 23, 2008, SongDa Finance Joint Stock Company was issued license for establishment and operation No