Business development strategy of mercedes benz vietnam ltd , co –period 2018 20221

Therefore, in order to continue to stand firmly in the market, adapting to the ongoing changes and takingplace in the current business environment as well as future changes, the Company

INTERNATIONAL EXECUTIVE MASTER OF BUSINESS ADMINISTRATION PROGRAM

DISSERTATION SUMMARYBUSINESS DEVELOPMENT STRATEGY OF MERCEDES-BENZ

BUSINESS DEVELOPMENT STRATEGY OF MERCEDES-BENZ VIETNAM

LTD., CO – PERIOD 2018 - 2022 CHAPTER I: PREAMBLE Reason for choosing the topic.

In today's market economy, strategy plays a decisive role in the survival anddevelopment of every enterprise In the intense competition among businesses in the industry,where businesses are increasingly striving to offer the best quality products, accompanied bythe perfect of service quality, distribution channels, sales systems This leads to greaterinterdependence among enterprises Meanwhile, the business environment is constantlychanging, complex and contains many risks Therefore, to survive and develop, theenterprises must have the right, accurate and suitable development strategies, for the actualconditions of the enterprise The strategy is the direction and vision for the enterprise totarget, also is the basis for the leader to make accurate decisions, even timely landmark in thedevelopment of enterprises

Mercedes-Benz Vietnam is one of the companies in the automotive manufacturing anddistribution industry, needs to look for its direction to meet the diverse needs of the market.However, in the past time, the company has experienced many trials, including successes anddifficulties, from the success and difficulties that having achieved results as today Therefore,

in order to continue to stand firmly in the market, adapting to the ongoing changes and takingplace in the current business environment as well as future changes, the Company is required

to build a suitable strategy The topic chosen by the author is: " Business Development strategy of Mercedes- Benz Vietnam Ltd., Company – Period 2018 – 2022” as my

dissertation

Overview of the research topic.

Business strategy plays a very important role in the survival and development of eachenterprise Proper business strategy will create a good direction for the enterprise Businessstrategy can be a guideline for businesses in the right direction

Research objectives and questions.

General objectives

Develop business strategy for Mercedes-Benz Vietnam to 2022

Detail objectives.

- Analysis of opportunities and threats from the external environment affectingproduction and business of Mercedes-Benz Vietnam.

- Analyze the situation of production and business development in recent years to seestrengths and weaknesses of Mercedes-Benz Vietnam

- Formulating the business strategy of Mercedes-Benz Vietnam to 2022

- Propose solutions according to the chosen strategy for Mercedes-Benz Vietnam

Secondary data: The thesis uses secondary information from financial reports, market

analysis and other reports of Mercedes-Benz Vietnam The citations in the dissertation arecited the source clearly and listed in the reference list

Primary data: The thesis collects primary information through interviews with

experts

- Number of samples: 10

- Interviewed subjects: Leaders, officers of Mercedes-Benz Vietnam

- The questionnaire was designed on a scale to quantify and aggregate the groups offactors The authors used a 5-step scale with conventional values:

Evaluate importance (weighting): Option 1: Not important; Option 2: Less important;

Option 3: Quite important; Option 4: Important; Option 5: Very important

Evaluate the company's response level: Option 1: Weak response; Option 2: Medium

response; Option 3: Pretty response; Option 4: Good response; Option 5: Very good response

Evaluate internal activities of the Company: Option 1: Weak; Option 2: Average;

Option 3: Fairly good; Option 4: Good; Option 5: Very good

With the list of 10 predetermined respondents, the author has implemented the datacollection as follows:

Data processing methods.

The author uses Excel software to process primary and secondary data; usingstatistical methods, expert methods, analytical methods, comparative methods

1.5 The meaning of the topic.

- Scientific meaning: The topic systematizes the theoretical issues of strategic

planning; strategies formulating and application in practice

- Practical meanings: The research results of the project are reliable sources for

planning the development strategy of Mercedes-Benz Vietnam At the same time, the projectalso wants to contribute a small part in affirming the importance of building businessstrategies in enterprises in order to promote Vietnamese enterprises in general and Foreign-Invested Enterprises in particular about the importance of the strategy and the formulation ofthe strategy in a serious and scientific way

Dissertation structure.

In addition to the conclusion, table of contents, list of tables, short list, and list ofreferences, appendix, and the content of the dissertation is structured with 04 chapters:

Chapter I: Introduction

Chapter II: Theoretical basis of strategic management.

Chapter III: Analysis of the external and internal environment affecting production

and business activities of Mercedes Vietnam Ltd., Company

Chapter IV: Formulate Business Strategy for Mercedes Vietnam Ltd., Company to

2022

CHAPTER II: THEORETICAL BASIS OF STRATEGIC MANAGEMENT

Theoretical basis of Strategy and Strategic Management.

Concepts.

The strategic term is derived from the Greek and is used primarily in the military field

to refer to large, long-term plans given on the basis of what certainty the enemy can do,normally, strategy is understood as the plan and art of military command

Scholar Dao Duy Anh, in the Vietnamese dictionary wrote: “Strategy is the plans set out to win on one or more fronts Thus, in the military field, the strategy term is regarded as a commanding art to win a war” (Vietnamese Dictionary of Vietnam, 2009).

By the 1980s, Quinn made a more general strategic definition “Strategy is a model orplan that integrates key objectives, policies, and action sequences into a coherent whole”(Quinn, J., B, 2005)

There are different definitions of strategies In general, the definition of strategy isdifferent but includes the content of current and future market research, business objectivesplanning, decision implementation and monitoring to achieve these goals in both the presentand the future environment (Fred R David, 2006)

The concept of strategic management

Strategic management is an issue that many economists and administrators areconcerned about Because the content of strategic management is broad in scope and rich inpractical application, people in different perspectives are given different views and definitions

of strategic management Although each of these views is not completely comprehensive, butoverall, those views have greatly contributed to the perception and implementation ofcorporate governance Here are some definitions of strategic management

- Strategic management is the collection of decisions and management actions thatdetermine the long-term success of the enterprise

- Strategic management is a collection of decisions and actions that lead to theformulation and implementation of strategies to achieve organizational goals

- Strategic management is the process of studying the current and future environments,planning the goals of the organization; Implement and monitor the implementation ofdecisions to achieve goals in the current and future environment

- Finally, I would like to introduce a definition of strategic management that is widelyused in intensive business management training courses in the UK and the US and is widelyaccepted by economists.

- Strategic management is the art and science of formulating, implementing, andevaluating integrated decisions that help each organization achieve its goals

According to these definitions, strategic management focuses on the coordination ofgovernance, marketing, finance / accounting, product / operations, R & D and informationsystems to achieve success for enterprise

Strategic formulation process.

According to Fred David, the strategic management process consists of three stages:strategic formulation, strategic execution, and strategic evaluation (Fred R David, 2006)

The strategic management process consists of the 10 steps described in the followingmodel In particular, step 4 (reviewing business tasks) and step 8 (policy setting) can beomitted if the goals and policies of the enterprise do not make the necessary changes

Figure 2.1: Strategic Management Process (Fred R David, 2006)

Strategic assessment Strategic assessment

Feedback Feedback

Research the environment to identify

key opportunities and

threats Research the environment to identify

key opportunities and

threats

Set up long-term goals Set up long-term goals

Set annual goals Set annual goals

Distributio

n of resources Distributio

n of resources

Measure and evaluate performance

Measure and evaluate performance

Internal control to

identify strengths and

weaknesses Internal control to

identify strengths and

weaknesses

Review business tasks

Review business tasks

Build, choose strategy Build, choose strategy

Because the concentration of the topic is to build strategies for enterprises, I willexplore the strategy formulation phase.

Michael Porter developed a five-force model for industrial environmental analysis, asdetailed below:

Figure 2.3: 5 force-model of Michael Porter, 2009The industrial environment analysis (competitive environment) aims to recognize thecurrent and future competitive pressures that are threatening enterprises

Internal environment analysis of an organization

Strategic formulation tools.

Some strategic planning analysis tools

External Factor Evaluation matrix (EFE): EFE allows strategists to summarize and

evaluate information of economy, society, culture, demography, geography, politics,government, law, technology, and competition

Internal Factor Evaluation matrix (IFE): The final step in internal analysis is to

build an internal factor evaluation matrix (IFE) The tool that formulates this strategysummarizes and evaluates the strengths and important weaknesses of the functional businessdivisions, and it also provides a basis for identifying and evaluating the relationship betweenthese divisions

Competitive profile matrix: Competitive profile matrix compares among enterprises

to competitors, mainly based on the factors that affect the competitiveness of the enterprise,thereby helping the business executives identify the strengths, weaknesses of the enterpriseand the strengths and weaknesses of competitors, determine the competitive advantage forenterprises and weaknesses that enterprises need to overcome; the comparison supplies us alot of important strategic information The way to build competitive profile matrix is similar

to EFE building

SWOT matrix: The SWOT matrix is used to list all opportunities, threats, strengths

and weaknesses within an enterprise with appropriate order and location Based on therelationship between the factors, analysts will select the appropriate strategic solutionsthrough the combination: Strengths and Opportunity (SO), Strengths and Threat (ST),Weakness and Threat (WT), Opportunity and Weakness (WO) Depending on the businesssector of the enterprise, the administrator will use one or more SWOT matrices to perform theanalysis and select the solution

Use UPSTAIR tool to select the strategy.

The basis for strategy choosing of the enterprise is: the attractiveness of the businessindustry and the competitive position of the enterprise; Strategic objectives of the enterprise;Views of senior managers; Financial ability of the enterprise; Competence and qualifications

of the management team; The reaction of the stakeholders; The timing and maturity ofbusiness opportunities; The results of the current strategic analysis; Corporate culture

Business strategies of the enterprise.

Focused growth strategies.

Market penetration strategy.

Market penetration strategy is to find ways to grow the products that are currently inproduction while keeping the current market Below is a table of market penetrationstrategies

Market development strategy.

In some situations, in order to reduce the intensity of competition in the current marketand seek new business opportunities when the current market is saturated, enterprise mustthink about exploiting new markets For example, in recent years, when the color TV market

in cities has been competing strongly, market demand has been at a saturation stage As aresult, some color TV manufacturers and distributors have developed into the rural market To

do this, enterprises use market development strategies

New product development strategy.

The new product development strategy is to find ways to grow through thedevelopment of products for consumption in markets where the enterprise is operating

Diversification strategies

 Vertical integration diversification strategies

 Horizontal diversification strategies

Growth strategies by outward way

 Growth strategy through merger

 Growth strategy through annexation (acquisition)

 Growth strategy through joint ventures

Decline targeted strategies

Strategies serve stability target

CHAPTER III: INTERNAL AND EXTERNAL ENVIRONMENT ANALYSIS IMPACTS ON THE BUSINESS ACTIVITIES OF MERCEDES VIETNAM LTD.,

COMPANY Introduction about Mercedes Benz

Founded in 1883 and regarded as the oldest car maker that still alive today, Benz is one of the most prestigious brands dominating the automobile market in the world ingeneral and in Vietnam in particular; headquartered in Stuttgart, Germany, Mercedes-Benzmainly produces cars, trucks and buses

Presented in over 130 countries with its distinctive three-pointed star logo, Benz continues to rise to the top of the list, dominating the terrestrial, submarine and sky Havingexperienced the economic downturn, Mercedes-Benz gradually regained its peak position in

Mercedes-2005 in the automobile industry In 2007, Mercedes-Benz ranked fourth in the top of leading cars

in term of quality and in 2008 it ranked 3rd in the world

Introduction about Mercedes Benz Vietnam

Mercedes-Benz continues to lead the luxury car market in Vietnam in the past 21 yearswith a market share of over 50%, completing the dream of owning a luxury car of more than25,000 Vietnamese customers and becoming a key factor of the automobile industry in Vietnam

Mercedes-Benz offers the most diversified and youngest car segment in the luxury carsegment, along with a network of 12 sales and service centers nationwide

- Company name: Mercedes-Benz Vietnam Ltd., Co

- Address: 693 Quang Trung Street, Ward 8, Go Vap District, Ho Chi Minh City

Formation and development history of Mercedes - Benz Vietnam

Mercedes-Benz established its representative office in Vietnam in 1990 and licensed No

1205 / GP for the assembly of cars, light trucks and buses in Ho Chi Minh City with total capital

EUR 50 billion (US $ 45.54 billion), of which Mercedes-Benz accounts for 70% of the totalinvestment capital and Vietnamese partner - Saigon Automobile Mechanical Corporation(SAMCO) accounts for 30% of total investment capital in the form of land for lease, availableworkshops.

Licensed in 4/1995, after a positive preparation process, in June 1995, MBV started theconstruction of a factory and opened a representative office in Ho Chi Minh City In May 1996,MBV put the CKD assembly plant in operation This is a big step in technology development ofMBV And also in 1996, MBV launched the Mercedes-Benz assembly line in Vietnam

In parallel with the investment in technology, MBV also expanded the sales andmaintenance activities: opening Star Motor Sales and Maintenance Center in Vo Thi Sau street -

Ho Chi Minh City, opened the Sales and Maintenance Center 2 at Lang Ha Street - Hanoi, salesagents in the provinces and cities were born, representative office in Hanoi was developed intoDistribution branches for the northern provinces MBV's products have become popular in themarket, occupying the majority of the car market in Vietnam

Owning a large factory of 105,000 m2 and having production capacity of 3,500 vehiclesper year, MBV is located in Go Vap District, Ho Chi Minh City The factory includes a TrainingCenter, sales execution, marketing and technical training courses Mercedes-Benz Vietnam hasachieved ISO / TS 16949: 2009 and ISO 9001: 2008 certification in the quality managementsystem and ISO 14001: 2004 in the environmental management system

In December 2016, MBV was honored by the People's Committee of Ho Chi Minh Citywith “Top 21 Most Taxpayers” with a budget of more than VND 6,000 billion Notably, theproportion of domestic assembled cars in Mercedes-Benz has risen to 77% in 2016,demonstrating long-term investment commitment in Vietnam