G1_00180 BUSINESS STRATEGY OF HOANG ANH TECHNOLOGIES. JSC IN PERIOD 2011-2015 CHIẾN LƯỢC KINH DOANH CỦA CÔNG TY CỔ PHẦN CÔNG NGHỆ HOÀNG ANH GIAI ĐOẠN 2011-2015
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1.1.1 The concept of business strategy
According to Fred R.David, business strategy is “the means to achieve long- term goals ”
According to strategic management syllabus of Griggs University "strategy is a series of commitments and actions to take to be a competitive advantage by exploiting core competencies in a certain market”
1.1.2 The role of business strategy
Business strategy provides a unified direction for all types of business plans, aligning goals across the organization and ensuring cohesive action It helps enterprises realize their purpose and direction, serving as the guiding principle for every decision and action within the business.
As the business environment evolves rapidly, the market continually presents both opportunities and threats A robust business strategy helps organizations understand these dynamics, identify opportunities, and capitalize on them By actively seeking innovative solutions and anticipating market pitfalls, companies can navigate the competitive landscape and turn challenges into sustainable growth.
Business strategy contributes to improve the efficiency of enterprise resources, strengthen competitive position, and ensure the continuous development and sustainability of long-term business
The formulation and implementation strategy create a solid base to work out business policies and decisions in accordance with market fluctuations
There are 3 kinds of strategy: functional! strategy business strategy corporate level strategy
Orientation of building strategy may make the difference low price or a mixture.
1.1.3 The process of developing strategies
The process of building basic strategies involves two core steps First, environmental analysis, which includes assessing the external environment—covering the general environment and the industry environment—as well as conducting internal environment analysis Second, analysis combination, where insights from these analyses are integrated to form coherent strategic options and guide decision-making in strategy development for sustained competitiveness.
After selecting strategy, company moves to implementation phase and finally, examines and evaluates the strategy implementation to amend or build the new strategy
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1, 2.1 Analysis of general environment by PESTLE model
General environment analysis helps businesses identify and evaluate opportunities in the external environment that can be exploited and the threats they may face This process enables firms to set clear business priorities, define feasible long-term goals, and design strategies that are aligned with their business objectives.
It can be used PESTLE model to analyze the general environment This model uses elements:
External factors directly influence economic sectors and are objective forces that industries must endure Businesses should analyze and evaluate their impacts to guide policy formulation and align strategic activities accordingly Understanding these influences supports informed decision-making and resilience across the industry.
Political factors play a central role in shaping how government policy influences the economy and individual businesses They encompass government stability, labor laws, tax policy, tariffs, trade restrictions, and environmental regulations, all of which impact every business within a region Regulatory and legal frameworks can be powerful determinants of survival and growth across industries, especially when operating within a particular administrative unit Enterprises must comply with the local legal and institutional factors to trade and compete effectively.
Economic growth creates new development demand, while inflation drives up interest rates and the cost of capital for investments The investment climate is shaped by interest-rate trends, unemployment levels that affect hiring and firing and consumer demand, and exchange-rate movements that influence borrowing costs and profitability Fiscal policy and wage controls affect price levels and disposable income, and the balance of payments and advance payments considerations influence cash flow and risk Enterprises should base investment decisions on these economic factors when selecting sectors and regions to invest in.
Socio-cultural factors shape consumer behavior because every country or region has distinct cultural values and social characteristics that define local consumers These cultural values help form societies, guide daily life, and support development and continuity Cross-cultural exchanges across borders reshape consumer psychology and lifestyles, opening new opportunities and prospects for industries in the global marketplace.
Technological factors exert a significant influence on a company's business strategy In this era of rapid technological development, emerging technologies continually create opportunities while also posing threats to survival and growth To stay competitive, enterprises must apply science and technology strategically and flexibly, avoiding passive behavior and underdevelopment.
Legal factors refer to all the laws directly connected to a business/company and its area of activity, including consumer law, antitrust law discrimination law and health and safety law
Environment factors, including factors such as natural resources, environmental pollution, lack of energy
Globalization, as an integration factor beyond the basic PESTLE elements, has emerged as a major macro driver shaping modern industries The globalization trend opens new opportunities for businesses and governments through expanded markets, integrated supply chains, and cross-border collaboration, while also bringing challenges such as regulatory complexity, geopolitical risk, and intensified competition To leverage the benefits and mitigate the risks in today’s connected economy, strategic attention to production, policy design, and resilient planning is essential.
1.2.2 Analysis of sector environment by Michael Porter's Five forces model:
Porter's Five Forces framework identifies five competitive pressures that shape industry profitability: the threat of new entrants, the level of rivalry among existing firms, the bargaining power of buyers, the bargaining power of suppliers, and the threat of substitute products or services Together, these forces determine how intense competition will be and guide strategic decisions on entry, pricing, supply chain, and differentiation.
M.Porter showed that the more powerful these forces being the more limited ability of existing businesses to raise prices and earn higher profits The tasks set for administrators is aware of opportunities and risks that changes of the 5 forces will
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Figure 1.2: M.Porter’s Five Forces Model
Source: Strategic management syllabus, Lé Van Tâm p.45
1.2.3 Synthetize, evaluate the impact of external factors on businesses by EFE Matrix:
EFE Matrix helps to synthetize, evaluate the impact of external factors on organizations The EFE matrix is made follow these steps: Identify factors list > identify the importance of each element > classify elements > scoring elements > Add scores of factors
That is to analyze the company’s situation and ability to find out its weaknesses, strengths taking advantages of its strengths to overcome the limitations
Analysis of human resources: leadership, staff
Analysis of technological resources: machinery equipment
Analysis of financial resources: capital, business assets financial indicators
Analysis of marketing: Assess ability to meet the market demand of the business: product types, quality, price
Section 1.3.2 evaluates whether the enterprise’s organizational capabilities align with its strategy and whether the organization has the capacity to execute the proposed plan Section 1.3.3 analyzes the enterprise’s competitiveness, focusing on maintaining and improving its market position Section 1.3.4 synthesizes these internal factors and evaluates their overall impact on the business using the Internal Factor Evaluation (IFE) Matrix, providing a structured basis for strategic decision-making.
An IFE Matrix synthesizes and evaluates the impact of internal factors on organizations, supporting strategic planning by highlighting internal strengths and weaknesses It is developed by following these steps: identify the factors list, determine the importance of each element, classify the elements, score the elements, and add the scores of the factors to obtain an overall IFE score This structured approach helps prioritize actions, allocate resources efficiently, and provide a clear view of the organization's internal environment for better decision-making.
1.4 Synthetize, evaluate internal and external factors by IE Matrix:
IE Matrix is used to synthetize, evaluate internal and external factors
Total Importance Score of IEF Matrix
- Position of firms in 3 squares (I, II, III) is area “to develop and construct": should implement focus strategy (market penetration, market development and product development)
- Position of firms in 3 squares (IV, V, VI) is area "to acquire and maintain": should implement market entry strategies and product development
- Position of firms in 3 squares (VII, VIII, IX) is area "to reap and eliminate",
SWOT abbreviate of: Strengths, Weaknesses, Opportunities, Threats SWOT analysis matrix is useful to help us understand the problem or decision-making in the organization and management of business activities
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SWOT analysis helps to produce feasible strategies which can select by disposing, combining important internal and external factors
1.6 Evaluate, select strategies by QSPM Matrix
BUSINESS SITUATION ANALYSIS o.cccccccccccccccscesceseececceccecescesce 15 2.1 An overview of the process of formation and development of Hoang Anh
Results of the company operation from 2008-2010 5 1n 17 2.3 External environment analysis of Hoang Anh Technologies JSC
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The company's financial performance shows non-negative results with ROE, ROA, and revenue growth remaining modest, indicating healthy but restrained profitability Sales revenue rose from 2008 to 2009 by 6,257,877,157 VND (about 8%), and it also increased by 6,130,795,134 VND (about 7%) in 2010, though some notes suggest the 2010 level did not match the 2009 peak In the context of macroeconomic fluctuations, including high inflation in 2010 and domestic currency depreciation, demand for domestic products softened as consumers spent more cautiously, contributing to the observed revenue and profit decline Despite these pressures, the company maintains relatively healthy finances: equity declined slightly in 2009 versus 2008 and then rose by about 2% in 2010, even though short-term debt remained elevated.
Payment index: ằ GwớQo3 €2 Global Advanced
For fast payment index at 31/12/2010 was 0.74