Building business strategy in the office for lease market the case of ba dinh joint stock company le thanh thuy 2009 a l0 00061
The thesis title
B u ild in g b u sin ess strateg y in the office for lease m a rk e t - T h e case o f
T h o u g h a ffec tin g by global financial crisis, V ie tn a m ’s E c o n o m y is still g ro w in g stro n g c o m p a re d to o th er c o u n trie s in the region H o w e v e r, m a n y en terprises are facing financial d ifficulties regardless T h e n eg ativ e im p acts are m a k in g en terp rise s red u ce their scales o f operation E n te rp rises are cu ttin g costs by re d u c in g office sizes or m o v in g to o th er places T h e law o f d e m a n d and su p p ly e n ta ils that b ig g e r offices for lease need to cut d o w n leasing prices to rem ain c o m p etitiv e In o th er w ords, the shift in s u p p ly and d e m a n d has created tre m e n d o u s d ifficu lties for b ig g e r real estate rental office c o m p a n ie s to rem ain co m p e titiv e in the industry Ba D inh Joint Stock C o m p a n y is a real estate c o m p a n y and office for lease is a o n e o f its seg m e n t w h ic h F ortun ately ,
Ba Dinh J o in t Stock C o m p a n y cu rren tly h as already im p le m e n te d specific strategies to d e v e lo p m e n t in new ch an g e o f m arket It is very essential for the co m p a n y to h a v e bu sin ess strategies to not on ly rem ain but also e n h a n c e bu sin ess capacity.
Objectives and A i m
- S tu d y on the C o m p e titiv e S trategy and B usiness S trateg y
- A n a ly z e Real E state m ark et from 2 0 0 6 - 2009
- A n a ly z e the Ba D inh Joint Stock C o m p a n y ’s cap acity
- A p p licatio n B u sin ess S trateg y to the office for lease o f Ba D inh Joint Stock C o m p a n y case.
G iv e out the ap p lication and e ffectiv e b u sin ess strateg y and action plan to im p ro v e Ba Dinh Joint S to c k 's b u sin ess capacity.
In the sco p e o f the thesis, the a u th o r tries to ad d ress the fo llo w in g questions:
- H o w is th e co m p etition in O ffic e for L ease m arket?
- W h at is the Ba D inh Joint Stock C o m p a n y ’s cap acity in 2 0 0 6 - 2 0 0 9 ?
- Flow to apply co ntex tu al th eo rie s in the real situation in the case o f the
- W hat is the bu siness strategy fo r the B a Dinh Jo in t Stock c o m p a n y ?
Method./ Approaches
- R ev iew the theory o f b u sin ess strategy an d strategic m a n a g e m e n t.
- R esearch the office for lease m a rk e t from 2006 - 2009.
- R esearch and an aly ze the cu rren t situation o f B a D inh Join t Stock
C o m p a n y in the office for lease m arket.
- Interview the board o f m a n a g e m e n t board to receiv e the re c o m m e n d a tio n s d u rin g the strategy building.
Scope o f work
T h e Ba Dinh Jo in t Stock C o m p a n y 2 0 0 6 - 2009.
T h e o p p o rtu n itie s and the threat in O ffic e for L ease m arket.
Data resources and processing
S econdary Source: Report and D ata o f the Ba D inh Jo in t Stock
C o m p a n y , In te rv iew w ith Ba Dinh Jo in t Stock c o m p a n y 's m an ag ers.
T ertiary Source: C o m p e titiv e A d v a n ta g e C re a tin g and S u stain in g
S u p e rio r P erfo rm an ce, M ich ael E Porter; C o m p e titiv e S trategy: T e c h n iq u e s for A n a ly z in g In dustries and C o m p e tito rs 1980.
D ata Processed by excel, c h art to s u m m a ry , c o m p a re an d analyze.
Limitations
T h e research o n ly focuses on Ba D inh Joint S to ck C o m p a n y and the data is co llected from 2 00 6 to 2009 T h e Real E state Industry is c o m p o se d by m an y d iffere n t sectors It m ay c h a n g e in the future.
Expected result
In o rd er to p erfo rm the o pp o rtu n ity , threat from the e n v iro n m e n t and the ca p ac ity o f th e c o m p a n y the thesis p ro vid es the b u sin e ss strateg y to reach the c o m p a n y ’s goal in o ffice for lease segm e nt T h e research is e x p e cted to be effectiv ely applied in o th e r se g m e n t in co m p an y
The thesis structure
Strategy
S trategy d escrib e s the w ay that the o rg an ization will p u rsu e its goals, given the threats and o p p o rtu n ities in the e n v iro n m e n t and the re so u rc e s and cap ab ilities o f the o rgan izatio n A c c o rd in g to this d efin itio n , the o r g a n iz a tio n 's strategies are based on the result o f a n a ly z in g the external e n v iro n m e n t, the internal en v iro n m e n t, and the goals that are b e in g p ursued.
Business strategy
Strategies exist at several levels in any org anizatio n ran g in g from the overall b u sin ess entity to in d ividuals w o rk in g in it D ep en d on the sco p e o f strateg y there are co rp o rate strategy, bu sin ess strategy, an d functional strategies B u siness strategy focuses on h o w to co m p ete in a g iv e n b u siness It is n a rro w e r in sco p e than co rp o ra te strategy but b ig g e r than functional strategies.
C o m p etitio n is inevitable in alm o st every' industry a ro u n d the w orld
S p ecific ally , not only are th o se high tech industries, but also th o se in dustries s h a k e n by dereg u latio ns, are facing en o rm o u s c o m p etitio n In short, c o m p e titio n is heatin g up across the bo ard ev en in w h at w e re o n c e c o n sid e red th e m o st sedated industries T h erefo re, only those m o n o p o listic in d ustries h a v e actually e scap ed co m p etitio n C o m p e titiv e strategy, c ap tu re d by the
“ F iv e F orces", offers a rich fra m e w o rk for u n d e rstan d in g th e u n d e rly in g fo rc e s o f co m p etitio n in the industries T he fram ew o rk rev eals the im p o rtan t d iffe re n c e s am o n g e v o lv in g industries, and helps c o m p a n y find a u n iqu e position.
L o w cost relative to c o m p e tito rs is the th em e r u n n in g thro u g h the entire cost lead ersh ip strategy, an d the o b jec tiv e is clearly to ob tain industry cost lead ership A ttaining cost leadership typically requires ag g re ssiv e c o n s tru c tio n o f efficien t scale facilities and vig o ro us p u rsu it o f cost red u ctio n s th ro u g h e x p erien ce, tight cost and o v e rh e a d control, a v o id a n c e o f m arginal c u s to m e r accounts, and cost m in im iz atio n in areas like R & D , service, sales force, adv ertisin g, etc W hen a tte m p tin g to ach ieve an overall cost lead ership p o sitio n , a co m p a n y need s to look at all asp ects o f the o p eratio n to an aly ze a n d see w h e re costs can be cu t d o w n w hile m a in tain in g o ptim al productivity F.ven th o u g h the process is very difficult, o n ce the c o m p a n y ’s goal to keep c o s ts lo w e r than c o m p etito rs is reached, it will benefit from the a d v a n ta g es g iv e n by th e industry cost leadership position.
D ifferentiation consists o f differen tiatin g th e pro d u c ts o r serv ices o f fe re d by the firm In o th er w o rd s, h a v in g a pro d u ct or serv ice that is p e rc e iv e d in d ustry -w id e as being uniq ue is the m ain subjective
D iffere n tia tio n may be a c h ie v e d in v ario u s w ays, for e x a m p le th ro u g h design, b r a n d im age, tech n olo gy , features, c u sto m e r service, and d e aler netw ork T he f o u n d a tio n o f differentiation m ay be div id ed into th ree categories First, im p le m e n tin g differentiation, a firm m ay focus directly on pro d u ct (or s e rv ic e ) attributes, i.e pro d u ct features, product c o m p le x ity , tim in g o f pro d u ct in tro d u ctio n , or location A dd itionally, a firm m ay fo cus on the relatio nsh ip b e t w e e n its e lf and its cu sto m e rs, for e x a m p le th ro u gh pro d u ct c u sto m izatio n , c o n s u m e r m ark etin g and p roduct reputation Finally, d ifferen tiatio n m ay be im p le m e n te d by fo c u sin g on the lin kag e w ithin o r b e tw e e n firms, w h ich in clu d es lin k ag e w ith in fu n ctio n s o f a firm , linkage w ith o th e r firm s, p ro d u ct m ix, d istrib u tio n ch a n n e ls and se rv ic e support C o n tra ry to overall cost lead e rsh ip , d iffe re n tia tio n m a y im p ly a h in d e r to high m a rk e t share T h e re a so n is that d iffe re n tia tio n ty p ic a lly re q u ire s a perception o f e x c lu siv ity that is in c o m p a tib le w ith high m a r k e t sh are concept.
C o n s id e rin g that th is p a p e r fo cu ses on the tra d e -o f f b e tw e e n overall co s t le ad ersh ip a n d d ifferen tiatio n , it d o e s not serve the p u rp o se o f th e th esis to d escrib e th e focus strateg y in detail In brief, the focus strategy a im s at se rv in g a p a rtic u la r target o r s e g m e n t o f the industry w ell, as o p p o s e d to both o v e ra ll co st le ad ersh ip an d d iffe re n tia tio n strategies w h o s e o b je c tiv e is to seek to a c h ie v e th e ir o b je c tiv e s in d u stry -w id e F o r ex am p le, a firm m a y c h o o s e to s e rv e a p a rtic u la r bu y er g ro u p , s e g m e n t o f the prod u ct line o r g eo g rap h ic m a rk e t T h u s a fo cus strateg y sets out to a ch iev e a low cost o r differen tiatio n p o sitio n , o r both, from th e p e rsp e c tiv e o f its targeted m ark et seg m e n t.
Strategic management process
T h e focus o f c o m p e titiv e s tra te g y is on h o w to c o m p e te s u ccessfu lly in e a c h o f th e lines o f b u s in e s s the c o m p a n y has chosen to e n g a g e in T h e cen tral th rust is h o w to b uild a n d co n sta n tly im p ro v e the c o m p a n y 's c o m p e titiv e p o s itio n for each o f its lines o f business A c o m p a n y has c o m p e titiv e a d v a n ta g e w h e n e v e r it can attract c u sto m ers an d d e fe n d against th e c o m p e titiv e forces b e tte r th an its co m p etito rs C o m p a n ie s sh o u ld aim to d e v e lo p c o m p e titiv e a d v a n ta g e s that are sustainable S u ccessful co m p e titiv e strate g ie s u s u a lly in v o lv e b u ild in g u niq uely strong or d istin ctive c o m p e te n c ie s in one o r several areas crucial to success and usin g th em to m a in tain a co m p etitiv e ed g e o v e r rivals.
“ Source: Strategic m an ag e m en t, L lo yd L B yas, 1996"
B efo re build up any strategy for a c o m p a n y , the im p o rta n t thing is that w e m u st clearly u n d erstan d w hat the vision and m ission o f that c o m p a n y are
A v isio n statem en t o u tlin es w hat a c o m p a n y w ants to be It focuses on the future It is inspirational It p ro v id es c le ar decision m a k in g criteria, and it is tim eless A m ission statem en t o u tlin es w h at the c o m p a n y is now It focuses on to d ay ; it identifies the c u sto m ers; it id entifies the critical p ro cesse s and it states th e level o f p erfo rm an ce It has been said that a vision is s o m e th in g to be p u rsu e d w h ile a m ission is s o m e th in g to be acco m p lish ed
T h e external an alysis en ab les the c o m p a n y to obtain a clear p icture o f the threats and o pp o rtu n ities p rev alen t in the c o m p a n y ’s ex ternal e n v iro n m e n t H av in g do n e this, the c o m p a n y can d e v ise suitable strateg ies to ex p lo it the o p p o rtu n ities and negate the threats.
T h e e n v iro n m e n t is a significant so u rce o f ch an g e S om e c o m p a n y b e c o m e victim s o f chan g e, w hile o th er use ch an g es to their ad v a n tag e In this th esis I w ould like to analy ze the external en v iro n m e n ta l b ase d on the P o r te r ’s
F iv e Forces M odel and P E S T analysis a P E ST analysis
E n v iro nm ental an aly sis seeks to u n c o v e r relevant in fo rm atio n , rather th an extensive info rm atio n ; it rew ard s the pursuit o f q uality, rath er than q uantity E very c o m p a n y is su b jec t to general forces that are felt in m any industries, and that are not usually a m e n a b le to in flu enc e by a single co m p a n y T h e forces can be classified as eco n o m ic , tech n o lo g ical, social, and political factors.
Political factors: Political factors include g o v e rn m e n t re g u latio n s and legal issues and define both form al and inform al rules u n d e r w h ich the firm m u st operate.
E conom ic factors: E c o n o m ic factors affect the p u rc h a sin g p o w e r o f p o ten tial cu sto m ers and the firm's cost o f capital.
Social factors: Social factors include the d e m o g ra p h ic and cultural a s p e c ts o f the external m acro en v iro n m e n t.
T ech n o lo g ical factors: T e ch n o lo g ic al factors can lo w e r b arriers to en try , reduce m in im u m efficient p ro d u c tio n levels, and influence o u tso u rc in g d ecisio n s. h Five Forces M odel
T h e e ssen ce o f fo rm u la tin g c o m p e titiv e strategy is to relate a c o m p a n y to its en v iro n m e n t A lo n g w ith the data o b tain ed from a n a ly z in g th e m acro en v iro n m e n t, the results o f its industry an a ly sis can clarify the c o m p a n y ’s m ajo r o p p o rtu n itie s an d threats T h e goal o f c o m p etitiv e strategy for a b u sin e ss unit in an industry is to find a p o sitio n in th e industry w h e re the c o m p a n y can best d efen d its e lf ag ain st th ese c o m p e titiv e forces o r can in flu en c e th em in its favor F o llo w in g the P o rter theory, co m p e titio n in an industry is rooted in its u n d erly in g e c o n o m ic structure and g o e s well b ey o nd the b e h a v io r o f curren t co m p etitors T h e state o f co m p etitio n in an in d ustry d ep e n d s on five basic c o m p e titiv e forces: threat o f sub stitu tion , b a rg a in in g p o w e r o f buyers, b arg ain in g p o w e r o f suppliers, potential e n tran ts and rivalry a m o n g cu rren t com petitors.
N e w entran ts to an in d ustry b ring new capacity, the desire to gain m a rk e t share, and often substantial resources Price can be bid d o w n or
9 in c u m b e n ts ' costs inflated, as a result, r e d u c in g p ro fitab ility T h e th re at o f entry into an industry d ep en d s on E c o n o m ic s o f S cale E c o n o m ic s o f scale refer to d eclin es in unit costs o f a pro d u ct as the ab s o lu te v o lu m e p e r p e rio d increases E c o n o m ic s o f scale deter en try by fo rcin g th e e n tra n t to c o m e in at a large scale and h en ce facing strong resista n ces from e x is tin g firm s o r c o m e in at a sm all scale and accept a cost d isa d v a n ta g e position.
Product Differentiation' Product d ifferen tiatio n m e a n s that e s ta b lis h e d firm s h a v e brand identification and cu s to m e r loyalties, w h ic h h av e b e e n built up from past m ark etin g , c u s to m e r service, pro du ct d iffe re n tia tio n , o r s im p ly bein g first into the industry D iffere n tia tio n creates a b a rrie r to e n try by forcing entrants to spend h eav ily to o v e rc o m e ex istin g c u s to m e r loyalties.
Capital Requirements: It requires a substantial a m o u n t o f ca p ita l to en try in an industry, it is not only capital for p ro d u ctio n facilities bu t a ls o for o th e r asp ects o f a b u siness such as c u s to m e r credit, in v e n to rie s , o r c o v e r in g start up losses E ven i f a capital is a v ailab le on the capital m a rk e ts , b e c a u s e n e w en try rep resen ts h ig h er risks, a very high risk p r e m iu m s c h a r g e w ill b o o st up the p rosp ective e n tr a n t's costs o f capital.
Switching Cost: S w itch in g cost m ay in clu d e e m p lo y e e re tra in in g costs, cost o f n ew ancillary eq u ip m en t, cost and tim e in te stin g o r q u a lify in g a n e w so urce, need for technical help as a result o f reliance on s e lle r e n g in e e r in g aid p ro d u c t redesign o r even p sy ch ic co sts o f sev erin g a re la tio n sh ip
Access to Distribution Channels: T o th e extent th at logical d istrib u tio n c h a n n e ls for the pro d u ct have already been served by e s ta b lis h e d firm s, th e n e w firm m u st p ersu ad e the ch a n n els to a cce p t its p ro d u c t th ro u g h p rice b re ak s, co o p erativ e ad v ertisin g allow an ces, an d the like, w h ic h re d u c e profits.
Cost Disadvantages Independent o f Scale: E sta b lish e d firm s m a y h a v e cost a d v a n ta g e s not rep licab le by potential en tran ts n o m a tte r w h a t th e ir size and attain ed e c o n o m ies o f scale T h e m o st critical a d v a n ta g e s are factors such as: P ro p rietary prod u ct tec h n o lo g y , fav o rab le access to raw m aterials, favorable locations, g o v e rn m e n t sub sid ies, learning o r e x p e rie n c e curve.
Government Policy: G o v e r n m e n t can limit or even fo reclo se entry into industries w ith such co n tro ls as licensin g re q u irem en ts and lim its on access to raw m aterials.
R iv alry a m o n g c o m p e tito rs is often the stro n g est o f the five c o m p e titiv e forces, but can vary w id e ly a m o n g industries I f the c o m p e titiv e force is w eak, c o m p an ies m ay be able to raise price, p ro v id e less p ro d u ct for the price, an d earn m o re profits I f co m p etitio n is intense, it m ay be necessary to e n h an ce prod u ct o fferin gs to k eep cu sto m ers, and pric es m ay fall belo w break ev en levels.
Overview o f Hanoi Real estate market
A s o f A ugust 1st, 2 0 0 8 H anoi has officially tripled in area to a p p ro x im a te ly 3,349 sq uare k ilo m eters T h e city is n o w h a v in g a p o p u lation o f a p p ro x im a te ly 6.14 m illion.
A c tiv ity in the real esta te m ark e t has g enerally b een slo w w ith reg ard s to large d e v elo p m e n ts in the third quarter, but quite active w ith reh abilitatio n s th ro u g h o u t central locations in c lu d in g H o a n K iem , Hai Ba T ru n g , D o n g Da, a n d a reas n e ar the city such as W est Lake and L o n g Bien S teady reh a b ilita tio n o f s h o p h o u ses and p riv ate a p artm en ts o c c u rre d th ro u g h o u t the
H an o i M etro p o lita n Statistical A rea (M S A ) as people co n tin u e d to im p ro v e th e ir p rop erties and o ffe r them for rent in a high p ric ed m arket L a rg e d e v e lo p m e n t activity has e ased m ain ly as a result o f liquidity restrictio n s by
V ie tn a m e s e ban k s and ap p re h e n sio n s ab out the global cred it crisis W hile in flatio n has definitely had a n eg ativ e m a rk e t im pact, food, fuel, and c o n s tru c tio n costs a p p e a r to h av e stabilized, and m o n th -o n -m o n th inflation h a s largely leveled off L o o k in g at the larger s u p p ly -d e m a n d situation,
H a n o i ’s co m m ercial real estate m a rk e t is still co n strain ed by short supply
T e n a n ts in the office, retail, and ap a rtm e n t sectors h av e d isp la y ed in creasin g re sis ta n c e to w hat are w idely p e rceiv ed as the m a rk e t’s ex o rb ita n t rental rates
L e a se s tend to be short-term th ro u g h o u t V ietnam , and term s h ave b eco m e e v e n s h o rter as tenants eye n e w su p ply on the horizon and lock in th e option to relocate.
D espite the e x trem ely u n settled global eco n o m ic c o ntex t, V i e tn a m ’s retail m arket rem ain s ap p e a lin g to both local and international investors Total retail sales o f go o d s and serv ices in the first three q u arte rs o f 2008 reach ed
U S $4 2 9 5 billion, a no m in al increase o f 3 0 % o v er the sam e period last year
A survey by T h e N ielsen C o m p a n y on “ C o n s u m e r co n fid en ce , co n cern s, sp e n d in g and attitudes to re c e ssio n ” in J u n e 2008 sh o w ed that V ie tn a m e s e are a m o n g “the m ost o p tim istic” c o n s u m e rs internationally, ra n k in g ninth in the w o rld (the top four b e in g N o w a y , India, In d o n esia and D en m ark ) A s is usual in cou n tries ex p e rie n c in g intense inflationary pressure, d iscretio n ary sp e n d in g has been m ost heavily im pacted, with sp e n d in g on item s such as n o n essen tial
F & B , clothing, and leisure activities see in g the steepest decline S h o p p in g p atterns h ave also ch an g e d , with so m e c o n s u m e rs rev ertin g to w e t m ark ets rather than m o d e m retail form ats H o w ev er, certain retail sectors h av e p ro ved m o re resilient than e xp ected ; p eo p le h ave co n tinu ed to sp en d on g o o d s and serv ices associated with the fam ily (esp ec ia lly children and e d u c a tio n ) as o p p o sed to the individual, and so m e seg m e n ts o f the p o p u latio n are co n tin u in g to sp en d as before C o n s u m e r sp e n d in g is e x p ec te d to reb o u n d qu ick ly o nce inflation returns to m o re norm al levels.
G iven the lim ited stock o f quality retail centres, rental rates in V in c o m
C ity T o w ers, Pacific Place, O p era B u sin ess C entre (O B C ), P ark so n Viet
T o w er, and T ran g T ien Plaza rem ain at a high level, w ith g ro u n d flo or rents rem ain in g betw een U S $ 6 5 psm and U S $ 1 3 0 psm p er m o n th in th e third q u arter o f 2008 T h e se properties are in p rim e locations and can c o m m a n d p rem iu m rents w hile re m a in in g at o r near full occup an cy H o w e v e r so m e sm aller retail cen ters in seco n d -tier lo cation s are now p o stin g h ig h e r v ac a n c y rates O ne class C s h o p p in g centre in D o n g Da is only 4 0 % o c c u p ie d four m o n th s afte r its o p e n in g , d e m o n s tr a tin g the variable c o n d itio n s in the retail m a rk e t, w ith p ro p erties p e rfo rm in g d ifferently based on location, m ark et p e r c e p tio n s o f ac cep ta b le rents, and q uality o f design and m a n a g e m e n t The o n g o in g s h o rta g e o f m o dern , q u ality retail sp a ce co n tin ued to su stain retailer d e m a n d for sh o p h o uses in central locations KFC lau n ched its 10th H anoi o u tle t in Ju ly 20 0 8 on L a n g Ha Street (D o n g Da D istrict) and A n P h u o c Pierre
C ard in , a fran c h ised fashion brand, stren g th en ed its p re se n c e w ith its 14th s h o p in H an o i on Ba T rieu Street (Hai Ba T ru n g District).
W ith the ex cep tio n o f the three n ew projects la u n ch e d in 2 0 0 8 , the o th e r 18 s e rv ic e d ap artm en t b u ild in g s in H anoi are well o ccu p ie d T h e three n e w e s t p ro je c ts, the
S o m e rs e t H o a Binh, S kyline, and F ra se r Suites at S y ren a are en c o u n te rin g s o fte n in g d e m a n d in the third quarter A v e ra g e ask ing rent psm per m o n th in the third q u a r te r rem a in ed at U S $ 3 3 from the previous q u arter F iv e pro p erties w ith s ig n ific a n tly high a sk in g rent include three S o m e rs e t pro p erties ( S o m e r s e t W e stla k e , S o m e rse t G ra n d and
S o m e rs e t H o a Binh), Sofitel Plaza and F raser Suites H a n o i, w ith av erag e a s k in g p ric e p sm per m onth o f each prem ise near an d a b o v e U S $ 5 0 Not in c lu d in g th ese five p rem ises, a v erag e a sk in g rent per sm p e r m o n th o f the o th e r 16 serv ic ed ap artm en t b u ild in g s is U S $25.
T h e re are several factors an d tren d s o f note in the H anoi serviced a p a r tm e n t sector The m o st im p o rtan t o f th ese is the m o v e by in creasing n u m b e rs o f p riv a te a p artm en t o w n e rs to ren o v ate units and rent them to e x p a tria te s as “ n o n -se rv ic e d " o r “ sem i se rv ic e d " ap artm en ts T h e se private a p a r tm e n ts ty p ic a lly have security and m aid service, and are usu ally situated in b u ild in g s h a v in g less than 10 units, o r in c o n v erted villas R en ts in these p riv a te ap artm en ts are usu ally on e-th ird to o n e - h a lf the rents for trad itio n al serv ic e d apartm ents T h e ex p atriate c o m m u n ity in H anoi is b e c o m in g in creasin gly aw are o f such ap a rtm e n ts, w h ile local land lo rd s p re fe r the p r e m iu m incom e that a rented ap artm e n t can bring O n e only n ee d s to drive th ro u g h Tay Ho (W est Lake) to n otice a p leth o ra o f n e w units bein g u p g rad ed for fu tu re rental.
T h e long-term ou tlo o k for serviced ap artm en ts is healthy, but d u e to the
X -fa c to r o f private ap artm en ts, it ap p e ars that the sector is d u e for a c o rrection in the short- to m e d iu m -te rm S ervic ed ap artm en t rents are curren tly
U S $ 3 ,0 0 0 -U S $ 4 ,0 0 0 per unit per m onth, w h ile a n o n -se rv iced o r sem i- serv ice d private a p artm en t is U S $ 1 ,0 0 0 - U S $ 1 ,7 0 0 p e r m onth T h e n o n - and s e m i-se rv ic e d private a p a rtm en ts are often in ex cellen t central lo catio n s such as H o a n K iem and T a y H o (W est Lake) T h e s e private ap artm en ts are often also o f g o o d design and feature quality furniture, fixtures and e q u ip m e n t (F F & E ).
In the third quarter, prices in all residential seg m e n ts h av e been b e lo w th e peak prices o b serv ed b efo re Tet H oliday T ran sactio n v o lu m es have also s lo w e d due to d iffering ex p e ctatio n s b e tw e e n b uyers and sellers, th ou g h activ ity has picked up slightly in the third quarter A lth o u g h a sk in g p ric es o f m a n y projects have grad ually decrease d , the Typically, a serv iced a p a rtm en t o p e ra te s on fully furnished ap artm en t units ranging from stu dio typ e to a larg er size (p en th o u ses), with kitchen, c h in a w a re and electrical app lian ces
Office building market
B u ild in g office like oth ers real property', both o f them have c h aracteristic like fixity, lo ngevity, p erm an en ce, risk and m ark et s e g m e n ta tio n
F ix ity : Real prop erty is fixed in location, w h ich g reatly restricts the sco p e o f its m ark etability A s a resu lt o f this fixity, b u ild in g office v a lu e s are acted on an d are su b jec t to any political and eco n o m ic activ ities o c c u rrin g in the im m e d ia te vicinity.
L o n g e v i t y : B u ildin g office is gen era lly con sid ered to be a lo n g term in v e stm e n t b e c a u s e o f the durability o f the im p ro v em en ts and the p e rm a n e n c e o f the land T h e q u ality o f lo n gevity e n ab les investor to estim ate, w ith som e d eg ree o f relia b ility, the present valu e o f a future stream o f in c o m e from their pro perties.
P e r m a n e n c e : It is the attribu te o f p e n n a n e n c e o f b u ild in g office that form s th e basis o f our system o f long term m ortg ag e d eb t am o rtiza tio n
I n v e stm e n t in o ffice building, usually in v o lv es relatively large d o lla r a m o u n ts that re q u ire c o m p le x financial a rran g em en ts These co m p le x itie s, in turn, require th e e x p e rtise o f law yers, acco u n tan ts, brokers, p ro p e rty m an ag ers, real estate c o n s u lta n ts and oth er specialists.
R is k : B u ild in g office like Real estate investm ent is relatively high risk v en tu re that reflects the uncertainties o f a s o m e w h a t u n p re d ic ta b le m arket In fact, there is no readily identifiable, org an iz ed national m a rk e t for real estate, as th ere is for stocks an d bonds T h e realty m ark et is a co m b in a tio n o f local m ark e ts th a t react sp eed ily to c h a n g e s in local e c o n o m ic and political activ ities a n d s o m e w h a t m o re slo w ly to regional, national, and international events.
M a r k e t S e g m e n t a t i o n : The fractured aspect o f this u n o rg a n iz e d and largely u n reg u lated real estate m ark et is fu rth er c o m p licated by the lack o f sta n d a rd iz a tio n o f the pro d u ct and the fact that m o st o f the m a r k e t ’s p artic ip a n ts react intuitively, g iv in g little attention to formal feasibility o r m a rk e tin g studies H o w e v er, th e in v esto r w h o seeks q u alified help and takes ad v a n ta g e o f availab le p ro tectiv e m easu res can often m itig ate so m e o f the risk.
B esid es th ese inherent ch aracteristics o f real pro p erty , m a n y g o v e rn m e n t activities also directly o r indirectly influence p ro p erty values The g o v e rn m e n t g iv es regulation and control o f m o ney T h is p o w e r effectively dictates the ex ten t o f real estate activity th ro u g h m an ip u latio n o f su p p ly as w ell as the cost o f m o rtg ag e m o n ey V arious levels o f g o v e rn m e n t also function in n u m e ro u s o th er w a y s to affect real estate p ro p erty values
E n v iro n m e n ta l co ntrols and im pact studies add tim e and co sts to the d e v e lo p m e n t o f land co sts that are inev itab ly paid by c o n su m e rs Local political attitu d es re g a rd in g z o n in g and g ro w th restrictions act to raise the prices o f p ro p e rtie s alread y d e v e lo p e d , effectively c rea tin g a m o n o p o listic position for th eir ow ners.
V a c a n c y o f o ffic e b u ild in g in V ietnam is alw ay s a very small ev e n t in the tim e o f international e c o n o m ic d o w n tu rn T here has been an in crea sin g
29 n u m b e r o f p eople w h o w ork in an office building setting S o m e office b u ild in g s are specifically targeted to distinct m arket niches: m edical offices, banks, back office functions As for location, office b u ild in g can be found in d o w n to w n s, s u b u rb an h ig h w a y strips, o ffice p arks, and m ix ed - use d ev e lo p m en ts.
O ffice space can be c ate g o riz e d a c c o rd in g to several factors, in clu d ing the fo llo w ing
G ra d e is m easu re d by e v a lu a tin g a b u ild in g ’s age, location, q u ality o f finishes, b u ild in g system s, am en ities, lease rate, and ten an t profile T h ree office g rades space are usually defined G ra d e A, o r in v e stm en t grade, b u ild ing s are the m o st desirable; they featu re high g rad e fin ish es and am en ities, w h ich offer status to the b usin e sse s within G ra d e B and G ra d e C b u ild in g are often o ld e r p ro p erties that h av e not kept up w ith m o d e m tre n ds in d esign o r features; h o w ev e r, o ld er b u ild in g s can so m etim es be re n o v a te d and rep o sitio n ed as G rad e A properties A n d n e w buildings are G ra d e A, but sm aller, basic office structures with few am en ities can be G r a d e B So age size, rent level, location, b u ild in g m ateria ls, and am e n itie s are all co n sid e ratio n s.
D o w n to w n central b u sin e ss districts are usually p rim e lo catio n s that are ch aracterize d by high density office b u ild in g s and high rents M ajo r firms in fields such as law, acco u n tin g , and c o n su ltin g as well as g o v e rn m e n t ten an ts o ften p re fe r d o w n to w n location L o cated o u tsid e o f th e central b u sin ess district, but still in the city, are ofte n s e c o n d a ry office n o d e s that m ay c e n te r aro u n d hospitals, universities, o r o th er b u sin ess m agnets S u b u rb an locatio n s are m o re difficult to e v alu ated , an d th e y appeal to a m o re d iv e rse g ro u p o f o ffic e users.
O ffic e bu ildings g e n erally fall into three size categ o ries: high rise (16 stories or m ore), m id rise (fo u r to 15 stories), and low rise (o n e to three stories) F lo o r plate size is im p o rtan t for ten ants that n eed large co n tig u o u s blo ck s o f space F loor space flexibility is b e c o m in g in c re asin g ly im p o rta n t as m o re te n an ts opt for op en floor lay ou ts and m ore efficient use o f space.
B u ild in g can be eith er single ten ant o r m ultiten an t structures A single ten an t b u ild in g m ay be o w n e d by the tenant, in w hich case it is referred to as an o w n e r/ u se r building A b u ild in g co n stru cted for a specific ten a n t is called
“ built to su it” , w h ile a b u ild in g co n stru c te d for u n k n o w n ten an ts is a sp ec u la tiv e o r m odel building.
O n e o f the m ost im p o rtan t ch aracteristics is the a v ailab ility and cost o f parkin g or in urban cores, the p ro x im ity o f m ass transit T h e im p o rtan ce o f so m e o f a b u ild in g ’s features is d efin ed by the target m ark et If th e targeted ten an ts are high tech firm s, the electrical p o w e r and te le c o m m u n ic a tio n s in frastru ctu re may be m ost im portant I f the target ten an ts are high profile law firm s, th e arch itectu re and quality o f finishes in public are as m a y be th e key factors S o m e ten an ts m ay require on site health clubs, restau ran ts and retail outlets.
T h e m ost im p o rtant factor that ten a n ts c o n s id e r w h e n s ig n in g or r e n e w in g lease are rents and p ass thro ug h charges A nd the next m ost im p o rtan t factors w ere asso c ia te d w ith the quality an d p ro d u ctiv ity o f the w o rk e n v iro n m e n t: co m fo rta b le te m p e ra tu re s , in d o o r air quality, and a c o u s tic s and n o ise control T he next m o st im portant criteria relate to m a n a g e m e n t resp o n siv e n ess and m ain ten an ce.
O w in g to the co n tin u ed lack o f n ew supply, the third q u a rte r o f 2008 w itn esse d only m in o r leasing activity in G ra d e A office b uildings A t the end o f the third q u a rte r ju s t 1,000 sm o f G ra d e A an d ap p ro x im a te ly 8 ,0 0 0 sm o f
Strategy formulation
A fte r the ren o v atio n in 1986, the im portant o f the real estate w as affirm ed A lm o st p eo p le will c o n c en trate to invest in real esta te w h en they h av e the potential finance re so u rc e o r w h en they restru ctu re the asset holding
In the tim e o f the c h a n g in g rapidly o f Viet N a m e c o n o m ic (2 0 0 7 ), the real esta te m ark et is o n e o f the im p o rtan t m ark et that attracted m a n y re so u rc e s and atten tio n o f popular Viet N am has im p le m en te d n u m e r o u s p o licies to s tren g th en the e co n o m ic d e v e lo p m e n t and a c h ie v e d m a n v fav o rab le results. a Expanding the area o f Ha N ơi capital
T h e national c o n e re ss on M ay 2 9 Ih, 2008 T he H a N oi Capita] R eg io n , esta b lish e d in the future, will be e n c o m p a s s in g the en tire p re cin cts o f the capital city H anoi and sev en o th e r n eig h b o rin g p ro v in c es na m e ly H a Tav,
V in h Phuc, H ung Y en Bac N in h , Hai D u o n g and H oa Binh T h e capital re g io n c o m p rises Hanoi as the n u cleu s and seven su rro u n d in g p ro v in c es, all to be d e v e lo p e d into a political, e c o n o m ic, and cultural hub E x p a n d in g H anoi is
37 a p o sitiv e factor for Real E state m arket T h e new ly d e v e lo p e d areas, w here the pric e o f Real Estate has been low b eca u se o f the o b so lete in frastructu re and far d istan ce from the cen ter, will d efin ite ly e n c o u n te r an o b v io u s j u m p in real esta te values E x p a n d in g H anoi will also en co u ra g e an increase in the n u m b e rs and the sizes o f real estate projects T h e office b u ild in g s will be not j u s t o n ly located in the ce n te r but also in the n e w areas. b Reducing the administration procedures in the construction
A c c o rd in g to the R esolution 3 3 /2 0 0 8 /N Q -C P , the g o v e r n m e n t will pilot so m e re fo n n a tio n s in its ad m in istra tiv e p ro ced u res for the co n stru ctio n in v e stm en ts w hich co v er n ew urban areas, h o u sing areas, and the industrial te c h n o lo g y infrastructure T h e P eo p le's C o m m itte e s at the pro v inc ial level are a llo w e d to assign investors to set up the p lan n in g and s u b m it th em for ap p ro v al a c c o rd in g to the regulations T h e o rg an izatio n s a s se s sin g the p la n n in g will co n sid e r and resp on d in term s o f the full and the v alid ity o f the d o c u m e n ts w ithin 5 w o rk in g days W h e n e v e r the d o c u m e n ts are not sufficient, the assessm en t a g en cies sh o uld p ro v id e detailed w ritten g u id elin e s for the investors so that they can su b m it the necessary d o c u m e n ts T h e c o m p le te sub m issio n o f the d o c u m e n ts is suggested to be c o n d u c te d once
T he tim e for assessin g and ratify in g the d etailed p lan nin g for the c o n stru c tin g at the 1/2,000 scale does not ex ceed 30 w o rk in g days.
For the detailed p lann in g at the scale o f 1/500; the local g o v e rn m e n t should co m p le te the a s se ssm en t and ratification o f the p la n n in g and grant the ratified d ecisio n s to the investors w ith in 30 w o rk in g days from the date o f the in v esto r su b m ittin g the full d o c u m e n ts For the regions that h ave had the d etailed p lan n in g at the scale o f 1/2,000 and raised the n e w ly -ra tified p ro p o sa ls different from the 1/2 0 0 0 -sca le p la n n in g w h e n setting the d etailed p la n n in g at the scale o f 1/500 o f the project, the au thorized ag en cies should c o n s id e r and assess th o se p roposals If they are su itab le, the a g e n c ie s s h o u ld se n d th e d ec isio n in w ritten on a p p ro v in g the p la n n in g at the s c a le o f 1/500
T h e tim e for the approval sh o uld not e x c eed 15 w o rk in g days. c H ousing f o r foreign people
W ith the d ecree 5 1 /2 0 0 9 /N D -C P , the foreign p e o p le can b u y, be in h e rited , o w n or give to a n o th e r if they live in Viet N a m at least 12 m o n th s and th ey are not be in real estate business T h is po licy c a n m a k e d iffic u lt for g o v e r n m e n t to control and m a n a g e the m a rk et but it a ttra c t m o re fo re ig n p e o p le in v est and w ork in V iet N am
B e s id e polices w ere im p lem e n ted V iet N am is b u ild in g p o lic y to ease real esta te in vestm en t that help real estate m ark et h a v e m o re in v e sto rs not o n ly in V iet N a m but also in the international
• M a k e policy m uch e a sie r for b u sin ess and in v e s tm e n t by e n s u r in g m a rk e t rules are fully in line w ith d e m a n d s o f in te rn a tio n a l e c o n o m ic in teg ratio n and intern a tio n a lly -acc ep ted practices a n d rules.
• G r e a te r tra n sp aren cy , o p e n n e s s and equal o p p o r tu n itie s for all e c o n o m ic sectors to be on c o m p etitiv e g ro u n d to p a rtic ip a te a ctiv ely a n d efficiently in the m ark e t
• D iv e rsify in g real estate p rod u cts d ev elo p ed [into] h o u s e s fo r rent, o ffic e s and b u sin e ss space
• A p p ro p ria te m easu res will be taken to boost d e m a n d for lo w - in c o m e h o u s in g cu sto m ers and e n h a n c e c o m p e titiv e n e ss in the d o m e s tic real esta te m arket as c o m p a re d to o th er m ark ets in th e re g io n to m a k e it m o re attractive to investors.
• T h e g o v ern m e n t, from th e central d o w n to local levels, will im p ro v e p la n n in g in land use and real estate d ev elo p m en t.
• T h e r e ’ll be additional refo rm s in the land fin a n cin g policy.
• T h e state will he m ore p ro activ e in reg u latin g land p ric e s on the basis o f m ark et sup p ly and d e m a n d , and b u ild in g the land b ond tax system in line w ith the overall land policy o f the g o v e rn m e n t
B ec au se o f the global crisis, the V ie tn a m e se G D P g ro w th d ecelera te d to 6 2 % in 2008, d o w n from m o re than 8% in the p re ced in g 3 years Falling sto ck prices and a co o lin g real esta te m ark et w ere c o n trib u tin g o f d e celerated
G D P from 6 5 % in the first 3 qu arters o f 2008 to less than 6 % in the fourth, as th e external en v iro n m e n t w o rsen ed severely T h e G D P g ro w th rate o f the first q u a rte r 2009 ju st ap p ro v e 4 0 % o f the g ro w th rate c o m p a re w ith the first q u a rte r 2008: A g ricu ltu re area and aq u icu ltu re area in crease 0 ,4 % , Industry a n d co nstru ctio n area increase 1,5%, serv ice area increase 5.4% A lth o u g h th e G D P gro w th rate in 2 00 9 is lo w er th an the target o f the natio nal assem b ly :
6 % but the international e x perts c o m m e n t that Viet N a m is lo w e r affected from international e c o n o m ic crisis So that th e G D P g ro w th rate is still be one o f the 12 national on the w orld h av e the p o sitive g ro w th rate, the e c o n o m y is b eliev e d to g ro w strongly in 2009.
Diop bose lent Diop tue ô iprne landlord Incentives Tenant
Drop tutting tenant op&om to breofc the leasô early ComoMatewittinokmfloiifiportMK; t V friend the leas* j M b The Global crisis
Implementing the growth strategy
W ith the vision o f b e c o m in g one o f the lead ers in the real e s ta te m a rk e t, Bacis need to b uild strategy to use stren g th to ta k e a d v a n ta g e o p p o rtu n itie s and av o id threat, c o n cu rre n tly o v e rc o m e w e a k n e s s e s b y ta k in g a d v a n ta g e o f op p o rtu n ities T h is strategy su g g e sts B ac is to c o m b in e p ro d u c t d e v e lo p in g and m a rk e tin g and sale im proving D e v e lo p th e p r o d u c ts w h ic h will p ro v id e the quality o ffice and quality v alue ad d ed for satisfy th e d e m a n d o f c u s to m e r and using im p ro v e m ark etin g c a m p a ig n to attra ct m o re c u s to m e r s to k n o w and u sing the p ro d u cts o f c o m p a n y and affirm th e im a g e o f B a c is for not o n ly local cu sto m e rs and foreign custom ers.
T h e target o f c o m p a n y w h e n u sing this strateg y are full u p 9 5 % v a c a n c y o f office b u ild in g and k e ep in g 80 % c u s to m e rs s ig n in g th e lo n g leasin g contract.
A ctu ally the office had q u ality sta n d a rd for each g r a d e o f o ffic e like th e light sy stem , fire sy ste m , sa v in g p o w er, standard flo o r s q u a r e s o that
67 c o m p a n y should ap p ly and im p le m e n t stan d ard for the office b u ild in g from c o n s tru c tio n to serv ice and m a n a g e m e n t activities.
T h is team will be set up to m a n a g e the quality o f office building T he m e m b e r o f team is a pail o f m a n a g e r w h o direct re sp o n s ib le for all the activities o f this team T h e team will in v o lv e in research and ap p ly the quality sy stem for all the B a c is ’s office buildings T h e y are re sp o n sib le to test and give re c o m m e n d a tio n for m a n a g e m e n t bo ard w h en h av in g tro u b le d u rin g the office b u ild in g ’s activities.
B ec au se o f the ad v an tag e o f o ffice bu ilding position, the c o m p a n y usually sells 9 5 % p ro d u c ts so that the m a rk e tin g and sale activities are nearly zero T h e se activities are very im p o rta n t to attract cu sto m ers w h en the su pply is o v e r d e m an d T h u s c o m p a n y sho u ld h av e m ark e tin g and sales d e p a rtm e n ts or th ey can o u tso u rce for the recent tim e w h e n there is no e x p e rie n c e in e m p lo y e e an d m a n a g e m e n t team
T h e d e m a n d o f cu sto m e r e n h a n c e rapidly T hey are m o re a n d m o re fastidious, stro n g e r neg otiatin g , m o re educated, m o re d e m a n d in g : tra n sp are n cy in service charges, o v e rtim e ch a rg es, resp ect for the lease term and co n d itio n s T h e cu sto m ers have m u ch c h o ic e to rent an office if th ey h av e an intention to quit the recent office T h is team will su p p o rt cu s to m e rs d u rin g the leasin g tim e and this in fo rm atio n from the d ep artm en t is very n e cessa ry to quality co n tro l d ep artm en t, m a n a g e r board and other b u sin ess activ ities o f co m p a n y
T r a in in g in q uality m a n a g e m e n t, m a rk e tin g and sale s m a n a g e m e n t is v e ry im p o rta n t for e m p lo y ee; they are nearly lack o f e x p e rie n c e and update m a n a g e m e n t an d m a rk e tin g and sales p ro ce d u re inform ation E m p lo y e e can be tra in e d th ro u g h the short c o u rse w h ich is o rg an ized in c o m p a n y o r send th e m to th e tra in in g center T h e m a n a g e rs sh o u ld intent to the national or in te rn a tio n a l s e m in a r related to th e c o n stru c tio n and office for lease m arket.
Im proving produ ct quality m a n agem en t
1 E valuate the real quality o f b uilding office
3 E valuate q uarterly quality o f office building
4 Set up quality m a n ag em en t departm en t
D eterm ine and d escribe the w ork d u rin g the product dev elo pm ent
6 D eterm in e and describe the w ork for related departm ents
Set up resp on sible for m anager and su p e rv iso r in each function d ep artm en ts
8 Training for e m p lo y e e and m a nag er
9 D eterm ine the quality criteria B oard o f m a n a g e r
1 1 Providing the solution for adjustm ents
12 Periodically evaluation Project dep artm en t
Im proving m ark etin g and sales
1 Clarify the objective o f com pany
2 Clarify the dem and o f custom ers
J Set up m arketing and sale departm ent
4 Set up budget for m arketing and sales
5 Repairing technology to im prove m arketing effective
Set up plan to appear regular on custom ers iwfp inm.fiinm
7 Coordinate and im plem enting marketing and sales activities
M a rk e tin g and Sales Dept
M a rk e tin g and Sales Dept
9 Training for em ployee and m anager mm flfel H u m a n reso urce dept
The choosing strategies are based on the result o f a n aly zin g the external environment, the internal environm ent, and the goals that are being pursued so that it is more effective if Bacis implements strategic in six key supp o rtin g factors: A ctio n plan n in g , O rg a n iz a tio n S tru ctu re, H u m a n R eso u rces, T he
A n n u al B u sin e ss P lan, M o n ito rin g and C ontrol and L inkage.
2 O rg an iz atio n S tru ctu re
5 M o n ito rin g an d C o n tro l and L ink ag e
“ S ource: B irn b au m A sso ciates, B usin ess S trateg y C o n s u lta n ts"
A c t io n P la n n in g : B a c is sho u ld d ev elo p detail actio n plan for im p le m e n tin g strategy T h is in cludes detailed action step w hich assign resp o n sib ility to a specific individual for each action steps and set a due date an d estim ate the reso u rces re q u ired to a c co m p lish each o f action steps.
O r g a n i z a t i o n S t r u c t u r e : E v a lu a te careful the p ro d u ct q u ality m a n a g e m e n t d ep a rtm e n t and m a rk e tin g and sales d e p a rtm e n t are fitted the cu rre n t stru cture? A n d th e cu rren t structure ap p ro p riate to the intended strateg y ?
H u m a n R e s o u r c e F a cto r: B a c is sho u ld allow tim e for e m p lo y e e s to g r o w th ro u g h e x p erien ce introduce tra in in g o r hire n e w e m p lo y e e s d e p e n d s o n strategy im p lem en tatio n steps.
T h e A n n u a l B u s in e s s Plan: C o m p a n y successful at im p le m e n ta tio n is aw a re o f th eir need to fund their in ten d ed strategies First Bacis d e te rm in e s the b u dg et that requ ired for strategies, and then it is calculate o n e m o re tim e d u ring the d e v e lo p in g the action plan T h a t w ay Bacis link th e strateg ic plan to annual b u s in e s s plan and budget T hus, all action will be re p aired clearly and in co n trollin g
M o n i t o r i n g a n d c o n tr o l: D u rin g the im p le m e n tin g strateg ic plan, m o n ito rin g and co n trollin g help to c h e c k th e option that m ust be ch an g in g : schedule, actio n plan even strategy an d objectiv ities i f there is any c h a n g in g in internal and external o f com pany.
L in k a g e : T h is action links all the activ ities o f c o m p a n y to g e th e r to m ak e sure all th e B ac is resources are r u n n in g in th e sam e d ire ction S trateg ies require link all things both vertically a n d horizontally V ertical lin kages establish co o rd in a tio n and support b etw e en divisional and d e p a rtm e n t plans
H orizontal linkages will across d e p a rtm e n ts, regional o ffices, c o n stru ctio n plants or d iv isio n w hich requires co o rd in a tio n and c o o p eratio n to g et the org an ization al units harm ony.
B u ild in g strategy and im p lem en tin g a strategy su ccessfu l re q u ires the co llectiv e effo rts o f m ultiple c o m p a n y units, because o f each w o rk in g on different activ ities so that the m a n a g e r is responsibility for e n s u rin g all w o rk in g to w ard a co m m o n goal im p le m e n tin g c o m p a n y 's strategies.
The specific analysis p ro v id es fo u r strategies for Bacis: Im p ro v in g product q u ality m an ag e m en t, investing in n e w G rad e B and G ra d e C office, flexible p ricin g , and im p ro v in g m a rk e tin g and sale A fter u sin g S W O T and
G R E A T m o d e ls, the m o st e ffec tiv e strateg ies are to im p ro v e p ro d u ct q u ality m a n a g e m e n t a n d to excel m a rk e tin g and sale T h is c h a p te r also re c o m m e n d s so lu tio n s to im p lem en t strateg ies Bacis.
T h is ch ap ter's o b jectiv e is to p ro v id e strategies that help Bacis m ain tain its m in im a l profitab ility d u rin g the difficult tim e and d e v e lo p in the future.