The business strategy of An Cu Group TABLE OF CONTENT TABLE OF CONTENT INTRODUCTION RESEARCH OF CONTENT Introduction on the An Cu Group 1.1 The process of formation and development 1.2 The principal business activities An Cu Group .5 Analysis of PEST model 2.1 Environmental regulations and laws (P) 2.2 Economic environment (E) 2.3 Social environment - population (S) 2.4 Environmental technologies (T) Analysis of environmental construction industry 3.1 Analysis of the internal environment .6 3.2 Competition of competitors in the industry 3.3 Competitive pressure of potential competitors 3.4 The pressure of suppliers .8 3.5 The pressure of customers .8 Develop business strategies for An Cu Group with strategic map 4.1 Regarding the ability to learn and develop: 4.2 In terms of internal 4.3 In terms of customers 11 4.4 On the financial side 11 CONCLUSION 13 INTRODUCTION In the context of the economy are more volatile and unpredictable as the current business strategy of a business if it is built, good performance will be the key determinant of survival, development or breakthrough of business To get the true picture of the business strategy managers use tools to evaluate strategic business unit, thereby offering the solutions implemented or adjusted, improved accordingly more efficient and effective This topic used models and other tools in Strategic Management Course to evaluate business strategy of An Cu Construction Investment Consulting Group Joint Stock Company - An Cu Group Through the results obtained will have the proposed revised strategy of An Cu Construction Investment Consulting Group Joint Stock Company in 2020 aims to define and limit the surface is poor, improve and promote the strengths of this unit, put An Cu Group to become a strong economic group sustainable development RESEARCH OF CONTENT Introduction on the An Cu Group 1.1 The process of formation and development - In 2002 Established An Cu Consultancy Services Construction and Trading Company Limited - Ho Chi Minh City - In 2003 Established An Cu Construction Machinery Industry Company Limited - in Vinh Phuc - In 2004 founded An Cu Factory Production Engineering - Ho Chi Minh City - In 2005 Transformation An Cu Construction - Trading - Service – Consulting Company Limited into An Cu Construction Investment Consulting Joint Stock Company and established mechanical factory in Binh Duong - In 2007 Establishment of Dai An Construction Joint Venture in Hanoi - In 2008 Established An Cu - Long An Steel Buildings Company Limited in Duc Hoa - Long An - In 2009 the merger of the member units of the An Cu Group Construction After nearly 10 years of development and growth Until now An Cu Group has become a leading corporation in the field of construction in Vietnam An Cu Group Construction Investment – Consulting Joint Stock Company is one of the leading enterprises in the field of design, manufacture and supply steel buildings (Preengineered buildings - PEB) in Vietnam An Cu Group is also active in the field of civil construction and industry With the method of delivery "service package" from consulting, design and installation for the production and construction of buildings and other items (office, canteen, general,etc, ), An Cu has done a lot of different types of works, such as plants, factories, offices, warehouses, apartments,etc, from simple to complex An Cu name has been associated with a lot of big projects both in size and value The recognition of the quality and aesthetics of the investors always help An Cu first invited tender for works and major corporations such as EH, Bounbon,etc, Focus on quality to satisfy customized, so An Cu was applied quality management system under ISO 9001: 2000 since 2007 1.2 The principal business activities An Cu Group Investment and property Investment in building business industrial park infrastructure Manufacture of An Cu Group Design consultant structural steel and building materials Construction and installation Analysis of PEST model Before going to define the competitive position of An Cu Group in the construction sector, the force, the competitors of the An Cu Group I analyze An Cu Group in the macro environment to see the characteristics changing macro environment can directly impact An Cu Group itself as well as any of its rivals since it determines the action respond to changes in the industry 2.1 Environmental regulations and laws (P) Politics Vietnam always kept stable, creating confidence among domestic and foreign enterprises to invest, production and business activities Vietnam strongly integrated into the world economy, creating equal opportunities for foreign businesses investing in Vietnam, creating strong pressure for domestic enterprises Laws of Vietnam currently lacking and incomplete, inadequate, administrative reform low scores affect the practice of business 2.2 Economic environment (E) Vietnam's economy continued high growth in the years from 6% -8%/year Especially the construction sector has a high growth rate, the Ministry of Construction said, in 2015, the growth rate of production and business of enterprises of the sector achieved an average increase of 20.7%/year Foreign investment into Vietnam is growing Government has put our country programs by 2020 become industrialized countries, creating a large market for An Cu Group conditional development 2.3 Social environment - population (S) Vietnam, the country has 85 million people of working age in fact (from 15 to 64 years), are in the "demographic bonus": the average two workers raising a dependent person In a speech in Hanoi's World Population Day 2010, Ms Urmila Singh, Deputy Chief Rep esentative of the United Nations Population Fund (UNFPA) evaluation: "With the changing structure of the population, Vietnam is entering a period of 'demographic bonus" During this period, every age people, dependents (under 15 or over 60 years old), there are two or more people of working age (between 15-60 years) This special period only happened once in the history of the development of any nation Vietnam is clearly an opportunity "gold" when using a child workforce in general and abundant labor for the construction industry in particular during the period of economic growth from 2010 to 2020 Moreover these are potential customers for residential products and other products of the construction industry 2.4 Environmental technologies (T) The application of new construction technologies, technology transfer trends in the construction sector is increasing Construction machinery increasingly modern, help improve execution, increase productivity, reduce product costs, create competition in construction The trend of international economic integration opens up many opportunities for Vietnamese enterprises to have access to modern science and technology, expand markets, but also create significant challenges, tough competition Impact of financial crisis and global economic downturn affecting the economy in general and Vietnam in which enterprises in Vietnam as An Cu Group Analysis of environmental construction industry 3.1 Analysis of the internal environment Vietnam construction industry is a key sector of the economy with annual growth rates ranging from 16% to 22%/year contributed to the growth of the economy is from 7% to 8%/year, attract manpower sector, solving social welfare, create infrastructure for the development of important sectors of the national economy Construction demand in Vietnam is still very large, especially infrastructure construction and housing The construction sector in the integration of external competition in the industry will now have to compete with foreign enterprises have the potential and very good experience We used five forces competitive impact of M Porter to analyze the competitive forces in the industry As we know in this business is the construction sector, including businesses and make the products (goods and services) that can substitute for one another in order to satisfy the same needs of consumers that use The mission of the strategic analysis of the competitive effects of a competitive environment to identify opportunities and risks that companies face in theory, selecting five forces competitive impact of Mr.Porter make strategic planners recognize that problem We apply this model to analyze in detail the competitiveness that Retreat Group encountered in the industry Therefore, it is important to use this model to have accurate judgments about each component of a specific model 3.2 Competition of competitors in the industry They are now capable and similar lines of business, financial capacity and equipment with high competitiveness compared with An Cu Group These players are the traditional businesses in the construction industry, with extensive experience in construction, construction and installation (can for example here as Song Da Corporation, HUD, LICOGI) Last time featuring Vietnam's economy, businesses are focused on improving competitiveness by: scaling operations, increasing investment in machinery and modern construction, enhance training, improve the efficiency of business management for the purpose of: reduce product costs, to ensure the progress and quality of construction products while enhancing the marketing, advertising and brand promotion of your business and also very proactive initiatives, product innovation should new construction must say Vietnam market increasingly strong competition This is the most powerful force in five competitive forces 3.3 Competitive pressure of potential competitors The construction sector and real estate sector are singing, the branches have very high margins (Score giants face Vietnam's Hoang Anh Gia Lai, north of Saigon, Nam Cuong Group,etc, were from the construction and real estate business) so many companies operating in other sectors want to jump into the field providing construction and property business,etc, Yet investing in this field should have large amounts of capital, have strong economic potential, wide ties so many businesses nor want is to enter the industry 3.4 The pressure of suppliers In the construction industry and property business, the land reserve of the business is extremely important in determining the success or failure of the project, a new mechanism to compensate current clearance enterprises have to deal with people, therefore, very high compensation costs and warehouse agreements so great influence on the progress of the project and the cost of the project cost is very high there are many suppliers of materials, machinery, manpower to make a construction product 3.5 The pressure of customers Competition among suppliers is increasingly fierce because some suppliers increasingly have the potential to finance, large-scale advertising and marketing good, big promotion, customer care good, satisfying all conditions of the customer Customers have many choices by building rich products, quality, price, service and other conditions better Develop business strategies for An Cu Group with strategic map After analyzing the conditions of the business environment, competitive position, strengths - weaknesses An Cu Group and selecting appropriate targets from which to build strategies to achieve its objectives Here is our choice of building solutions business strategy under four perspectives: 4.1 Regarding the ability to learn and develop: Ability to learn and develop is the first element, a prerequisite in the development, planning and execution of business strategy Ability to learn - this development is an intangible asset and are classified into categories as follows: * Capital Organization: Building corporate culture, brand An Cu Group, the capacity and the vision of the leadership team, promoting teamwork ability of officials, interoperability and links between divisions, departments and subsidiaries together and with the Corporation * Information sources: Information systems, networks and infrastructure required to support the strategy, focusing on the field of information technology construction industry as software design, internal management, storage, internet network, a LAN system,etc,… * Human Capital: People are invaluable assets, the strength of An Cu Group, include: skills, qualifications, skills, practical knowledge and abilities required updates to support strategy All elements in human capital, information, organizations are building a concrete and clear way to realize its business strategy: Skills and qualifications of staff and staff; Ability to work in teams, links and interaction between the company's Board Room, between subsidiaries with the parent company, between the Subsidiary together; Business training; Company culture (building regulations, manners, work,etc, ); Leadership (enhanced leadership skills of key staff, the Board of Directors of the Company); Infrastructure, information management (build LAN systems, Internet, data base management, software technology for the construction industry, accounting, estimating, design must be standardized Chemical and updates); Executive and management personnel,etc, 4.2 In terms of internal The internal processes can be classified into groups as follows: - The operational management processes - The customer management processes - The process of innovation - The process of adjustment and social * The operational management processes: The active management process is the basic process that takes place every day and by which companies produce products and services available and gives the customer The management process of manufacturing activities include the following processes: - Inputs from suppliers - Transformation of inputs into finished products - Delivery of finished products to customers - Forecasting and Risk Management The operating procedures of the service companies create and deliver the services customers use Business process as clear, scientific, concise, the production activities of the company as occurs rhythmically, smooth, efficient and cost-saving production * The customer management processes: Process customer management science, efficient help for finding and expansion, serving customers as quickly as possible and the best customer satisfaction Can identify four sets of customer management process follows: - Select customers are directed to - There are customer oriented - Customer Retention - Develop business with customers - Expansion, customer-oriented in the future The customer has been associated with making good products, perfect service, reasonable prices, competitive and satisfy the needs of each customer Development of a customer business with the company include managing relationships effectively, the cross-selling multitude of goods and services, and become known as a supplier and consultant be trusted For example, An Cu Group offers products in the infrastructure side, it can also provide advice and "crossover" products such as steel buildings, construction materials, clean water,etc, An Cu Group that have products or the distributor * The innovation process: The process of developing innovative products, processes and services, often helping companies to penetrate the market and new customer segment The management of innovation includes four sets of the following procedures: - Recognize opportunities for new products and services - Management investment portfolio for research and development - Design and develop new products and services - Bring new products and services to market * The process and social adjustment: When operating in each country, the local, the need to understand and comply with the provisions of international, national, local there - on the environment, health and safety of employees The process of social adjustment in accordance with the following contents: - The environment - The safety and health - The practice of hiring permanent job 10 - Invest in community Investment in environmental, health and safety as well as giving the company an image, a reputation for performance and society, to support the company in attracting and retaining staff with high quality, thereby helping the process of using human resources more effectively Moreover, reducing environmental incidents and improve safety and health for workers to increase productivity and reduce operating costs 4.3 In terms of customers Selecting comprehensive customer solutions, providing products, service quality, expanding cooperation with partners at home and abroad Clearly identify the specific customer segment that the company is heading for growth and profitability levels For example, An Cu Group provides ground infrastructure Phong Chau - Que Vo industrial zone for businesses in the northern province,etc, Design and construction consultancy, providing products for enterprises selected package (Supply ground infrastructure Design Consultancy, the Construction Manufacturing assemble prefabricated steel buildings),etc, Also, An Cu Group also has implemented policies and condominium projects serving low-income clients, customers not have housing by investing in the construction of affordable housing projects, home society with an average area of only 50 to 60m2/apartment Thus, An Cu Group will have clients with various needs with high availability 4.4 On the financial side * Improve productivity: The productivity improvement can be done in two ways First, reduce cost by lowering direct costs and indirect (cost of labor, materials, energy, supplies, rationalization of production processes, application of new science and technology) Second, by using assets in money and in kind (equipment, infrastructure,etc, ) a more efficient way * Development Strategy: The second phase of the financial strategy in order to increase revenue yields profits, this aspect also performed by expanding income opportunities by expanding markets, expanding partnership, product development new but related products specialized deep Retreat Group has competitive advantages Retreat Group currently 11 expanding investments in the financial sector by establishing a financial company to increase profitability and be more proactive to help arrange capital for business service Real Estate and Construction inherently need a large amount of capital, a stable and long term of the Company However, fiscal targets cover of An Cu Group was developed to maintain shareholder value, so the financial factors will be ensured both in terms of long-term (development) and short term (yield ) 12 CONCLUSION Through research business development strategy of An Cu Group Joint Stock Company is executing, which we can draw is: Strategic An Cu Group currently unclear about potential targets and unsustainable factors It is manifested in the existing financial capacity, An Cu Group is pursuing multiple business areas is not the strength of a business that is building trades That makes distributed resources should be focused on the Group An Cu sectors more profitable, creating greater competitive advantage to overcome their opponents Furthermore, by analyzing the current status of An Cu Group strategy, we see corporate governance An Cu Group also revealed many shortcomings especially the executive management of the subsidiaries, level management staff of the department in the Corporation and its subsidiaries not meet the tasks posed The training of skilled technical personnel is not commensurate with the task of businesses We not deny: An Cu Group today is one of the big companies in the construction sector in Vietnam, but to An Cu Group rose to become a leading corporation in the country and the region in the field of real estate development and construction in 2015 as proposed vision - the mission of this project required the construction An Cu Group give yourself a strategy in which all resources are developed, all potentials are evoked Want thus An Cu Group to expeditiously implement the following major plan: restructuring businesses, restructuring of corporate finance, improve the efficiency of corporate governance An Cu Group and to develop a very specific process to implement effective plans in place Because of time constraints, content research problem to a rich, complex, advanced information and strategies of the Company should not permit common results are not as expected If conditions and time permits I will study all the details of the document in the primary, secondary, conducted additional interviews, sampling, surveys, comments, further investigation of the matter concern in this project and hope the result will be better One problem we share is: "We can open the building by hand but with the supplies they will open more quickly, we can successfully run the company through intuition and experience but professional use of technology will help us get there faster more " In fact, the goal of strategic management with an effective tool PEST 13 model, model five competitive factors, Strategy maps and other supporting tools to help us analyze and assess the status of a business strategy faster, more objective and more it helps us orient, planning implementation of a business strategy of scientific and more efficient This has great practical significance for each of us - those who are managing and operating businesses in the integration period 14 ... failure of the project, a new mechanism to compensate current clearance enterprises have to deal with people, therefore, very high compensation costs and warehouse agreements so great influence on... profitable, creating greater competitive advantage to overcome their opponents Furthermore, by analyzing the current status of An Cu Group strategy, we see corporate governance An Cu Group also revealed... businesses, restructuring of corporate finance, improve the efficiency of corporate governance An Cu Group and to develop a very specific process to implement effective plans in place Because of