CAPSTONE PROJECT REPORT CONSTRUCTION OF BUSINESS STRATEGY IN PERIOD OF 2010 – 2015 OF SONG DA SOMECO JOINT STOCK COMPANY BÁO CÁO DỰ ÁN CAPSTONE XÂY DỰNG DOANH NGHIỆP CHIẾN LƯỢC GIAI ĐOẠN 2010 – 2015 CỦA CÔNG TY CỔ PHẦN SÔNG ĐÀ SOMECO
BASIC ISSUES OF STRATEGY ADMINISTRATION
BUSINESS STRATEGY REALITY OF SOMECO SONG DA JOINT
Analyzation and evaluation of Someco Song Da business strategy
2.2.1 Agreement of Someco Song Da Jointstock Company
Become a powerful company, multi industries, in which mechanics and assembles are major for structure and development Mechanics and assembles will develop into key industry
As a leading EPC contractor, we design, manufacture, supply, and install irrigation-related and industrial mechanical facilities for hydroelectric power plants, while also delivering complete fabrication and assembly services for hydroelectric projects, cement plants, and other industrial works, providing turnkey engineering, procurement, and construction solutions from concept through commissioning.
Investing in research and development of products and services, we pursue continuous improvement to strengthen our competitive edge and brand prestige By promoting and expanding the Someco Song Da brand, we aim to build a powerful, well-known brand with a leading position in the market.
Provide products with best quality
Enable Friendly environment for Officers to improve capability and creation Comply with stockholders benefit, Officer benefit and customer benefit Human civilization and community value
Total output value 400,4 billion VND
Budget must pay for Government 8.8 billion VND
Revenue before tax: 19,0 billion VND
Total possessive budget 97,1 billion VND
Average income/staff/per month: 4.0 million VND
2.2.2 The real situation of the organization to implement and control current strategy of Song Da Someco Joint Stock Company
Since the converting operating form to joint stock company model, Someco has selected and applied low cost strategy to be main business strategy of the company
2.2.2.2 Organize the implementation of strategy
Building on the five-year business strategy approved by the Shareholders Congress for 2006–2010, the Board of Directors sets annual targets to be achieved every year At the same time, it ratifies policies, strategies, and resource usage, and assigns implementation to the Executive General Director to organize and execute.
Each year, the competence department sets concrete targets for every function within the company in line with overarching corporate goals The Economics and Planning Department acts as the central hub, aggregating and summarizing these departmental targets to form the company's annual targets This approach ensures cross-department alignment, clear performance benchmarks, and a cohesive framework for monitoring progress and achieving strategic objectives.
Annual concrete targets of the company comprise criteria that reflect volume of work, rate of progress and financial- economic criteria and criteria on human resources such as:
Construction volume, rate of progress of the work:
Total value of business and manufacturing;
Average income per person/ month;
After the concrete targets are ratified by the Shareholders Congress, the Executive General Director directs the functioning department to establish concrete weekly, monthly, and quarterly targets and to develop deployment plans for implementing them.
Monthly, weekly, and quarterly implementation results for concrete targets are reported to Economics and Planning for company-wide consolidation On that basis, affiliates and departments prepare analytic reports on the implementation status of each quarterly target to evaluate performance, identify pending issues, and propose practical solutions to carry them forward into the next phase.
Song Da Someco Joint Stock Company has established a Design-Consultant Center dedicated to consulting, design, and in-house execution of hydraulic and mechanical equipment installations, lifting systems, and cranes—including machinery for machine stalls and other crane types such as derrick cranes Previously, the company relied on outsourcing and renting external services, which incurred significant costs The center enables in-house design and execution, accelerates construction progress, and substantially reduces unit costs, boosting efficiency and competitiveness.
The machinery, mechanics, and assembly industry hinges on a highly skilled workforce to meet complex technical demands and drive ongoing development To stay competitive, professionals must hold advanced qualifications, engage in regular training, and benefit from policies that prevent brain drain At present, the industry faces a shortage of both skilled workers and engineers, which constrains productivity and innovation Additionally, labor mobility and collective bargaining dynamics can affect business stability and manufacturing performance, and Someco is no exception.
To aware that skillful workers and engineer team is decisive factor to bring about success for enterprises, Song Da Someco Company pays attention to train
With a 52-member team, the company operates under a strategic plan to organize programs that develop professional skills and management capabilities It also cultivates a professional working environment and competitive remuneration, creating favorable conditions for employees to enhance their abilities and advance their careers As a result of this strategy, the organization boasts a highly skilled workforce and strong, long-term employee commitment, benefiting both the individuals and the company.
The machinery assembly and mechanical engineering industry requires a solid foundation in advanced technology, regular modernization of equipment, and ongoing improvements in operating capacity to stay competitive According to statistics from the Ministry of Industry, our country’s mechanical sector currently remains limited to steel-structure manufacturing and lacks modern technical and material facilities needed to produce high-quality machinery Enterprises in the sector are 30–40 years behind regional peers and up to 50 years behind global leaders in technological development, with outdated equipment, no effective technology transfer, and expired depreciation cycles Additionally, fragmented manufacturing organizations, a lack of specialization and cooperation, and delayed adoption of new technologies hinder timely upgrades, preventing the industry from keeping pace with the modernization drive.
Vietnam's mechanical industry is robust, with the total production capacity of mechanical enterprises across all sectors of the economy However, only about 33% of domestic demand is currently met by this capacity Without strategic and adequate investment, Vietnam's mechanical sector risks losing its competitive edge, and the market could become dominated by imported foreign goods.
Song Da Someco Joint Stock Company continuously researches and applies scientific and technological advances to its construction and manufacturing activities It consistently invests in modern equipment and machinery to improve its construction capacity and installation capabilities In five years of operation, the company has invested in dozens of projects totaling over 100 billion dong This investment in modern equipment helps the company accelerate project execution, shorten construction timelines, and reduce costs associated with its business and manufacturing activities.
Currently, the company maintains credit relationships with banks in the BIDV system and with Song Da Financial Joint Stock Company, and it has signed an overall cooperative agreement with Hoa Binh BIDV valid through 2015 These arrangements show that the company's capital sources for investment and for supporting its business and manufacturing operations are secured in line with its strategic plan Additionally, these credit partners serve as traditional customers, providing access to credit loans, preferential interest rates, and favorable terms on other financial services.
To control manufacturing operation costs and minimize expenditures, the company has established and applied an internal unit-cost system based on defined work items, with internal flat-rate regulations applied across the entire operation and, in some areas, partially This framework is supported by a system of internal regulations and management policies designed to standardize cost measurement, improve cost visibility, and drive unit-cost reductions throughout the business.
2.2.2.3 Pending in the strategy management process Song Da Someco Joint Stock Company
Over more than five years, the company has implemented its business strategy, contributing to the development of Song Da General Corporation and to the country's industrialization and modernization It has participated in the construction of many high-quality major projects, including the Can Don Hydropower Plant, the 500kV Pleiku–Doc Soi–Da Nang transmission line, cement factories in Ha Long and Cao Bang, and the Sesan Hydropower 3A project.
(108 MW), thuy dién Tuyén Quang (342 MW), Binh Dien Hydro ecolectric station and at present, construct Nam Chien, Xekaman 3, Xekaman | ( at the People’ Democratice Republic of Laos)