G1_00198 BUILDING BUSINESS STRATEGY FOR SONG DA 2 JOINT STOCK COMPANY FOR THE PERIOD 2012-2016 XÂY DỰNG CHIẾN LƯỢC KINH DOANH CHO CÔNG TY CỔ PHẦN SÔNG ĐÀ 2 GIAI ĐOẠN 2012-2016
ANALYZE THE CURRENT STATUS OF SONG DA 2 JSC
VISION, MISSION, and core VAIUES cs-cccseecsscecscccccnsesccescsceessssecssseseescessecesssees 19
“* Vision: As a leader in the construction industry for quality, technology, innovation, sustainable development and become the first choice of customers, partners, employees and shareholders
Our mission is to deliver high-quality products and services that meet customer needs, while ensuring staff satisfaction and engagement We aim to create meaningful value and benefits for shareholders and the broader community, and to actively contribute to the development of the country through responsible growth By prioritizing quality, people, and value creation, we support sustainable progress and shared success for all stakeholders.
- The staffs are creative and innovative
- Promote continuous improvement of technical & management
- Respect and cooperate with each other to succeed
- Renewal practically to bring value to customers and partners
- Promote and maintain professional business ethics
Analyze the business situation of Song Da 2 Joint Stock Company
Over the years, Song Da 2 Joint Stock Company has not established an overarching business strategy or long-term 1–5 year plans, nor has it set out future production and business plans; instead, the construction of key projects has been assigned to Song Da Corporation.
After finishing the construction of Ban Ve hydro-electric power, the company was
GRIGGS KH, an MBA, was assigned to oversee the construction of the Xekaman and Tuyen Quang hydropower plants for Song Da Group The company also continued to invest in new production lines with a capacity of 1,000 tons per hour, aiming to support successful business operations and stable development.
2 should have a clear and effective business strategy If the company does not setup itselfa business strategy, the competitors will occupy the market shares
2.3.1.1 Analysis of the macro environment:
Vietnam's economy remains steadily developed, with the construction sector acting as the engine of growth and delivering an annual expansion of about 14–16% This sector attracts labor, supports social security, and builds the infrastructure essential for advancing other key areas of the national economy As rapid urbanization continues, demand for infrastructure development and housing is large, making continued investment in construction a pivotal driver of sustainable growth.
Interest rates significantly affect the construction sector, where project financing through loans often constitutes a large share of a company's working capital As market rates rise, borrowing costs increase, elevating production expenses and potentially reducing operational efficiency during the project cycle In this environment, listing shares on stock exchanges can open new funding channels, boost the liquidity of the company's shares, and strengthen its capital structure This enhanced financial flexibility supports expansion of production and broader business operations in the construction industry.
- Inflation rate: According to Yearbook of General Statistics Office, the rate of inflation in Vietnam during recent years is high The inflation rate in 2008 was
GRIGGS G Global Advanced Master of Business Admini tration
19.89% Consumer Price Index (CPI) in 2009 rose 6.88% compared with the average CPI in 2008, inflation has been contained at less than 7% in 2009 but in
In 2010, with inflation at 11.75%, the company actively adapts its pricing strategy by adjusting both input material costs and output prices during contract negotiations with customers, helping to limit the inflationary impact on its operations and maintain business performance.
Exchange rate volatility directly and indirectly affects the construction industry, with currency fluctuations often hitting the cost of construction materials hardest—especially steel The February adjustment to the US dollar by the State Bank of Vietnam can amplify price swings in materials, reshaping project budgets and procurement planning For builders, developers, and suppliers, keeping an eye on FX movements helps manage risk, control costs, and secure timely material sourcing amid changing exchange-rate conditions.
2011 has direct impact on steel prices led to soaring prices of construction steel This has direct impact to production costs, thereby affecting the business results of the construction business
Vietnam faces a technology gap relative to global standards, and recognizing its under-development alongside the risk of future competition has pushed civil engineering to replace legacy systems with modern technologies This shift promises greater efficiency and competitiveness, but it also burdens firms that have not yet fully recovered capital from old technology, forcing them to mobilize additional financial resources for new technology investments and to contend with asset depreciation Effective implementation requires careful financial planning, cash-flow management, and workforce retraining to ensure the modernization yields sustained advantage.
The change in legal system, regulations and law on adjusting business operation of the Corporation can significantly affect business result of the Corporation and shareholders
Vietnam is a developing country actively reforming its legal system, but legal documents are still incomplete, overlapping, and unclear Consequently, the provisions of the laws are highly prone to change, which can impact legal certainty for citizens and businesses and complicate compliance.
GGS G Global Advanced Master of Business Administration erogran
For civil engineering, the Government approved the legislation on this field to
GRI contribute to accelerating the development of the industry (concretized by Decrees, Circulars, etc.)
Despite some progress, our legal system still has notable drawbacks, and law enforcement remains ineffective, preventing the creation of a healthy regulatory environment for construction development This shortfall undermines quality control, raises risks for investors, and can compromise public safety in construction projects Additionally, some quality managers in the construction sector have colluded to lower construction standards, thereby reducing overall quality and damaging the industry's prestige.
Vietnam is an agricultural country with a young population, which means a relatively large working-age population However, seasonal farming cycles cause the labor force to swell and recede at different times of the year, creating both opportunities and challenges for the construction industry Companies can quickly mobilize a sizable contingent of seasonal workers for peak construction periods, but the size and composition of this workforce can be volatile and unpredictable The agricultural calendar often reduces labor availability when a new season begins or during holidays, and the seasonal labor groups are frequently not highly skilled and may exhibit lower labor discipline, complicating planning, productivity, and project timelines in construction.
Driven by advances in information technology and the Internet, globalization has brought regions closer together, accelerating the exchange of information and fostering mutual understanding and cooperation among developing countries, contributing to a global civilization It also fuels faster international trade, expands cross-border capital flows and foreign direct investment, and enables rapid cross-border data transfer through information technology, alongside growing international cultural exchange.
GGS G Global Advanced Master of Business Administration caer
* Competitive pressures from existing competitors
The construction industry remains highly competitive, driven by substantial investments in machinery and construction technology Song Da Joint Stock Company, part of Song Da 2 Group, is regarded as a leader with over 50 years of experience and stands as a flagship in concrete construction within the group Equipped with advanced capacity and state-of-the-art machinery, Song Da 2 Group benchmarks against major civil construction rivals, including Vinaconex 6, to maintain its competitive edge in the market.
Vinaconex 6 is the member unit of the VINACONEX Joint Stock Corporation, which was established on 06/08/1991 under the Decision No 419BXD/TCLD Vinaconex has extensive experience in the fields of civil and industrial construction, foundations and traffic works construction For over 20 years of development, the company has become one of the strongest units of the Vinaconex Corporation Vinaconex 6 is capable of undertaking large projects, with high technical and progress requirements The company has achieved many many gold medals and merit for high quality construction projects
- Has a brand name and reputation in the market
- Extensive experience in construction work
- Has capability of good construction machinery and testing equipment
- low number of high-skilled workforce
“* Hanoi Construction JSC No.3 (HANCO 3)
Founded in 1976 by Decision No 736/QD-UB with a capital of VND 55 billion, the company has grown over more than 35 years of operation and development into one of the city’s leading construction firms, earning a string of significant achievements.
GGS c2 Global Advanced Master of Business Administration
Brag business and other titles of excellence in Hanoi construction industry The
GRI company has a good reputation with well qualified staff in technical professional and management
- With a long history of more than 30 years, the company is considered as an experienced contractor in the field of civil construction
- Has a well-trained and high qualified workforce including management and technical staff who are capable of inheriting and developing to take on management and implementation of large scale projects
- The company does not focus on new technology investment; construction machinery of the company is now outdated and old, so this can affect its construction progress andquality
- The company is also passive in market expansion and projects searching
- The operating area of the company is in Hanoi mainly s* Lung Lo Construction Company
Lung Lo Construction Company is a fully state-owned enterprise (100% state capital) and is classified as Class A by the Ministry of Defence, reflecting the highest profitability margins on sales and the highest return on owners’ equity among defence-sector contractors While primarily handling military construction projects, Lung Lo also undertakes civil works, traffic and transport infrastructure, infrastructure investment, and housing developments The company has expanded its operations and actively partners with both internal and external collaborators—from within the Ministry of Defence and beyond—to design and implement construction projects.
- Has well -equipped with modern and specialized machinery The company also has skilled scientific staff and technical staff
- Has advantages when bidding for housing or infrastructure construction projects
GRIGGS \ Global Advanced Master of Business Administration those hosted by the Ministry of Defence as an investor
- Has not have a strong brand in the construction of civil works, so the company gets more difficulties when bidding for construction projects outside the Ministry of Defence
“* VINACONEX Xuan Mai Concrete and Construction JSC
Solutions group to implement business strategy of Song Da 2
As a recognized leader in hydroelectric power construction, Song Da 2 should expand market penetration and strengthen brand-building in civil engineering The strategy involves boosting mass-media advertising to attract potential customers, increase market share, and sharpen competitive positioning against rivals in the field.
Diversify the product portfolio by leveraging available resources to expand into building materials production and a range of construction sectors, including traffic infrastructure, urban development, civil construction, industrial facilities, and thermal power projects, while implementing a structured marketing policy process to identify opportunities, align offerings with market demand, and optimize resource allocation.
— Image: Continue to improve and update the company's Website repeatedly Information on financial capability, production capacity and image quality
GrRIGGS OE G Global Advanced Master of Business Administration should be posted on the site to customers, shareholders and make it easy to access
Advertising in newspapers and journals helps enhance the corporate image and brand visibility Building detailed company records strengthens competitiveness by presenting a thorough, reliable profile to potential clients, especially during bidding for new work This combination boosts credibility with procurement teams and improves the chances of winning contracts.
— Focus on developing residential and industrial construction markets, especially concentrate on marketing bidding for construction of civil, urban projects in Hanoi and surrounding provinces
Customer care in the construction and installation industry focuses on post-handover product warranties and prompt repairs after project completion and settlement The company plans to deliver warranty service for products, conduct surveys, and periodically check in with investors once the project is handed over and put into use This continuous post-delivery activity strengthens the brand and enhances Song Da 2's competitiveness in the market.
Effective management of materials supply is strained by the global economic crisis, which depresses the construction materials market and introduces price and supply volatility Exchange rate rises push up costs for fuel, electricity, iron, steel, and cement, making procurement more expensive and less predictable Compounding the challenge, slower receivables and cash collections shrink working capital, delaying payments to suppliers and risking disruptions in material availability To navigate these pressures, firms should strengthen supply chain resilience, diversify sourcing, and optimize cash flow and payment terms to sustain project schedules.
- Setup a provider network which defines the clientele to obtain supplies and plentiful materials at reasonable prices, limit prices when the market was forced scarcity
Expedite settlements with suppliers while preserving contract payment terms to strengthen pricing leverage for the lowest input costs By keeping payment schedules intact, the company can negotiate more favorable prices and reach agreements that minimize input expenses.
- The company needs to plan budgets close to reality and make plans to purchase materials meeting production requirements and actively coping with the fluctuations of the materials market số
C;là ơ G Global Advanced Master of Business Adminstration
Cost competitiveness arises from optimizing technology resources, labor, and production management to cut costs and elevate a company's competitive position Since material norms must align with strict specifications, cost reduction should focus on minimizing defects and waste through improved production management, quality control, and process optimization rather than altering materials This approach greatly influences a company’s ability to win bids and sustain a durable competitive edge.
Efficient production relies on a thoughtful production layout and strategic placement of machines and lines, which aligns material preparation with site flow to reduce daily labor costs and lower construction equipment rental by using shifts This approach boosts process efficiency while maintaining technical standards For example, concrete formwork installation—typically carried out by four workers—can be accomplished with three workers when the workflow is optimized, without compromising quality.
Setting appropriate material norms and actively reducing losses and waste is key to efficiency in structural steel production State provisions define a typical raw-material loss rate of 2%, but through strict supervision and meticulous management of transport logistics—from material batching and production at the plant to delivery at construction sites—the loss rate can be reduced to 1%.
Information technology is increasingly applied to operating company management, enabling online briefings, seamless office-to-enterprise communications, and internet-enabled internal management that streamlines workflows In high-rise construction, global modern technologies are used in both top-down and bottom-up approaches, including sliding formwork and advanced cladding materials such as metal finishes, with science and technology leveraged to cut costs and boost overall business performance.
Recruitment and training human resource
The company focuses on recruitment to have skilled force workers and technicians and sufficient quantity and quality for the company development strategy period 2012-2016
- Have in place training policy to train human resources, particularly for training: Human resource for unit management, projects staff and technical staff of professional focus, skilled workers specialized civil construction and industry
- Create a manager resource by sending young staff capacity to manage ciasses, professional training at universities, institutes
- Recruit technicians and skilled workers meeting the orientation of the company in the future
Recruitment is the process of selection of workers with professional qualifications in accordance with the company, training and development is to equip them with the necessary skills to serve the current and future policies to the employee who is the solution to maintain the stability of human resources to meet the needs of production and business Workers encouragement is represented by the elements of financial and no financial factor as follows:
We will implement a comprehensive salary and reward policy that guarantees employees’ incomes increase annually and that inflation adjustments are published and applied each year Compensation, bonuses, and benefits will be determined based on clear criteria, including the achievement of work results, position level, and responsibilities, to ensure fairness and transparency This approach promotes greater accountability, self-discipline, and capacity development, while sustaining motivation and long-term performance across the organization.
Create a productive working environment by fostering a friendly atmosphere among managers, employees, and across departments, enabling people to work happily and collaborate effectively Provide and arrange essential facilities—office buildings, machinery, furniture, and labor-protection measures—to create favorable conditions for professional tasks Design an airy, clean, safe, and scientifically designed workspace that supports smooth operations and enhances efficiency and productivity.
Mì `Z^€ Global Advanced Master of Business Administration
Maintain inventory value at reasonable levels by aligning stock with the construction progress of each project to ensure timely execution while avoiding capital tied up The company should implement a practical inventory plan that prevents capital accumulation and optimizes cash flow In addition, it should regularly monitor and forecast fluctuations in raw material prices throughout the year to plan timely responses and mitigate cost risk.