BUILDING BUSINESS STRATEGY FOR HA PHUONG COMPANY LIMITED IN PERIOD OF 2012 TO 2016 G1_00333 XÂY DỰNG CHIẾN LƯỢC KINH DOANH CHO CÔNG TY TNHH HÀ PHƯƠNG GIAI ĐOẠN 2012 ĐẾN 2016

BUILDING BUSINESS STRATEGY FOR HA PHUONG COMPANY LIMITED IN PERIOD OF 2012 TO 2016 G1_00333 XÂY DỰNG CHIẾN LƯỢC KINH DOANH CHO CÔNG TY TNHH HÀ PHƯƠNG GIAI ĐOẠN 2012 ĐẾN 2016

GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM

CAPSTONE PROJECT REPORT

| BUILDING BUSINESS STRATEGY FOR |

PERIOD OF 2012 TO 2016

Group Number: Nol0 Student’s name: 1 Do Thanh Son

2 Nguyen Anh Tuan

3 Nguyen Thi Khanh Ngoc

4 Luong Mai Anh

HANOI:

Hdanam February 2012

Tco whom it may concern

Svubject: Building business strategy for Ha Phuong Company Limited in period of 2012 to 2016 opn the Project of Group 10, Gamba X07.16 Class — Griggs University

| The student have closely followed up the current situation of the organization structure anh the business activities of Ha Phuong Company Limited to implement the project

t2 The content of The Ha Phuong Company Limited development stage 2012 2016 proJect mentions the goals that Ha Phuong is trying to reach and has high feasibility

3 The content of the project is excellent

7 ha m Ch Chay

[cS Global Advanced Master of Business Administration

ACKNOWLEDGEMENT

This Capstone Project is the last and most important request of our MBA program in finance This project focuses on the business strategy management which is integrated with others as marketing management, human resource management and corporation finance management This project helped us having an occasion to match the

knowledge and skills of modern business management from MBA program with the

practical situations of the medium firm in Vietnam

To full fill this project, we would like to express our deep gratitude for the favor

support of Griggs University, Center for Educational Technology and Career Development (ETC) of Hanoi National University and especially to the lecturers who have enthusiastically taught guided and provided us with the valuable knowledge We

sincere thanks also to the support and assistance of the leaders and staffs Ha Phuong

company limited They have spent highly valuable time on organizing surveys,

providing data and discussing with us about the relation between the project contents

and practical situations at the Company: from that, helping to create a close connection between theory and practice anc resulting in a highly feasibility in the future

We the Group 10 members, would like to receive the continual support of the lectures

to help us completing the course with the highest results Particularly, the support of all

Ha Phuong’s leaders and staffs will be an indispensable motivation for this project coming into the Company's practice

Capstone Project Report _ Gamba01.X0710 - Group Yol0

t2 Global Advanced Master of Business Administration

Program

INTRODUCTION

1 Necessary of project

In the context of integration, small and medium enterprises need to change to

avoid lost market share and profit because of changing in technology, and human

resource also In that case, it is impossible for the enterprise to fix their strategy for a

long time Enterprises need to change and if they want to change they must have new business strategy Whether the enterprise wants to innovate in business, technology,

products and services, production process or marketing activities it need to have

strategy and the guidance of strategy

It is not impossible for small enterprises to globalize their business, but the fact

is that they need to have globalization strategy Vietnam joined into WTO, it means that companies face to a stronger competition Importing products have been entering

to our market, domestic and international markets will be merged In such that case the

enterprise need to have new strategy to avoid difficulties

Recently, most of enterprises in the world are considering setting up business strategy

is the most important activity Directors of enterprises spend about 40% of their time to

study business strategies Realizing the importance of strategy to enterprise there are

many researches mentioned about this topic In which we can points out 2 of below big

topic:

Topic: “Business strategy planning for Vietnamese small and medium

enterprises’, implemented by Vietnamese business Association in 2010 The project analyzed strengths weaknesses of small and medium enterprises then showed out actual business situation of these enterprises The project also mentioned the

importance of setting up business strategy for companies in the context of integration

Topic: “Smal! and medium enterprises with Marketing strategy”, implemented

by Vietnam chamber of Industrial and Commercial in 2009 The topic focused on studying current situation of small and medium enterprises in the context of globalization then suggested necessary Marketing strategies for these enterprises

Capstone Project Repoit _— ŒGqmba0I.X0710 - Group Nol0

[Ss Global Advanced Master of Business Administration

Program

These below topics showed out new situation for SMEs in new business environment However, if we want to set up the business strategy for a specific

enterprise with a specific business field, we need to study more clearly its internal,

external business environment So the project “Building business strategy for Ha

Phuong Co., Ltd in the period of 2012 to 2016” was implemented with the objective to

satisfy the necessity of building business strategy for specific enterprise in the context

of globalization and integration

2 Purposes of project

In the context of integration, building business strategy for SMEs is very important Business strategy helps to maintain the company to be stable in strict

competitive environment and also helps them to reach new opportunities to expand its

business to the world market To Ha Phuong Co., Ltd, the topic aims at applying modern and classic strategic theories to analyze its actual business environment then give out business strategy for Ha Phuong to expand business activity, profit and train a experienced and loyal group of employee who will attach their contribution to the company’s long-term development

3 Objectives and scale

The project analyzes business activity of Ha Phuong Co., Ltd in Vietnam market From this analysis the topic conclude some suggested strategies to expand its

business and consolidate profit in both long and short-term

Data and information in the project were collected from actual business situation of Ha Phuong in recent five years The topic also gives out some forecast about market trend

for the company in the period of 2012 to 2016

4 Methodology

The project is the combination of a great theory “strategic management” on practical business strategy building of a big corporation To be successful in applying this theory on production and business of Ha Phuong, researchers used both qualitative and quantitative method in studying These methods are:

Capstone Project Report: Gamba01.X0710 - Group No10

vost Global Advanced Master of Business Administration

Program

- Collecting and analyzing method

- Comparative analysis method

- Specialist analysis method

- Economic statistic method

The project also use kinds of models for analyze such as: CPM, SWOT matrix

QSP matrix ete

A wide variety of academic researches, market report, journals are utilized to bring out the best understanding of the subject The sources of data are listed clearly in the reference

5 Structure

Besides, introduction, conclusion, appendixes and list of figure and table the project is divided into 3 chapters as following:

Chapter 1: Overview of business strategy and strategic management

Chapter 2: Analyzing business environment for Ha Phuong Co., Ltd

Chapter 3: Strategic choosing and solutions for applying business strategy in the

period of 2012 to 2016

Capstone Project Report _—— Gamba01.X0710 - Group No10

C27 Global Advanced Maste: «! Business Administration

DVI I scnrorcxecanesencanesuenasanmnnannnstaennenincns RGike NR Renmencrienenmeianenenmnniaineseninmnuateinses 11 I.1 Deflinitions and roles of strategy and strategic manàement - 11

1.1.1 Défimtions of strategy and stratepic nana weet rccccccnsasassnccenasccsaczwecasainteneanvard 1] 1.1.2 Roles of strategy and strategic management in the context of open market 12

l2» SUPS f6 S(Äÿ SEf6f6610 DĐIABHRHE seeesseenesrrsntrianngreioneotsHSiTGIVGRGING08136180-0138G0860600A 14

1x! E BIEETHE DNNEEeeesnesenesenoerrrueenanorantrnrerntrVfSOPSDSEDUDAEDIGSI9005090010T000010/00019/0G0114NSH01 14

Mag ick UT EGHEENHnsaaanaaeeenseeeedllisreeemvrerresriniitretsionttrongsrninigS0S900000090000/000:60/6023000 14

Dede Lc TIHIEFG EHVINGHHTBHDaeaaeaadraaadoainoagittfieeseseesvenssyoytrloetodtontovoroidirrgeipvgesrie 17 1.2 1DIGFHRI PHVITOTIfIEHÍ BTRHINETN gunaueanidiniininiiAct0i443004ess4ãAseceroarserertstesbenrusrginroiorssirdt 20

| cdot alk SE ALICE li LH ưrseenrsandnrnEoDUOEEEGDNEEEOSOEESASRGEOG000100000001783001G1/00000130300060800/34-la/0E-csuni 20

1.2.2.2 Organization’s culture and enterprise’s reputation .::cccccceseseeseeeeeeeeeeeeeeens ok

1,3 Supporting tools for defining and choosing strategic cscsasccensenanwumnauncuanne 21 1,3,1 Intertial Factors EvaluaHơii Biatfi%X (TẾ EÍ ueeseseeenasesgsnsognoiravsreoiveiNisiay001586000008 al Lae Emeril Feetors FAG (EE rcconnonenrereererrerennenrenmanmmananmnemmmenes Za Ltd 8 eG) RTI BNE CSP PII TƯ NNÿỹÿỹỚợỚ ẽ 20 1.4 Strategy building and choosing key Strat©ØI€S Gv ve 26

CHAPTER 2: ANALYZING BUSINESS ENVIRONMENT OF HA PHUONG

ROLE OPO © LBL IED) eesevnarenmmexexasexnasssanancansnnsssniesi GRAN tei tiemcentamvseneitimncinsirsaeniataions a

2.1 avermiee of HA Phuong 06 THÍ ngunesorenntgrioigtittotSe0SOLGIG0N1005L400183iN8615.ae18415466~cioclen 27 2: lol Ê-KEHBIISTWII€PE đi devel lepetl becccournsonncuverea nm zi

Capstone Project Report Gamba01.X0710 - Group No10

[CS Global Advanced Master of Business Administration

2201s) Macrescipic €nvifoifiebf CF Ê THdBlÌseeseannnanrrgrgtudadouosgpetos82203580loeses 30

+0: Micro environment (Michatel Porter's five forces HOT saaeaseesaseeaueaao“2Zol + £Xietnal 5AcföFS EvVäl(SHDH ĐNHDE v.-eesesssdeenxornteddtotorGEE000000040300000001gi8i00036) 40 đàn: DCIN È HƯƠNG ”S TIETTHI 6RGiYfifiieiifial 8881015 cnr 42 Eile Rae EUSA EA Ni TlseseaeeesseseeeeeneeonsetrstvdosdtrrdsitgiilblsttBf99bg0005/ 88.066 42 dic legile NEON, COR SifEueangnbesgtturatilGiGstESGSGEH1A01á06<xsuesionnliegisrstornog30910101009/00201400P1700G06/3000 44 5ð b0INDđï1y S0resligb núi FEPHEHDNĩsaeaeaedeeiiieeeesesoorerbsienhrrnrpioiol0psirsgrxIt 49 2.208% LSTA! TACTOTS evagltglion TRE N seuesseeaeardigdkioiioiaaliiaseesesedtieteseiokiseenrrbre 49

cuống F Ñ ÚJ |: HDÄäIVS16 TUẾ Ha PHƯƠNGEearsrrrnoirgsintriinttiitaoigpki040401400435432.seeorsevsgyrsree 51

6ê u có: XV BAN HỆ SE sadogasesesesenerrmnrtmonrtercvvtcrctrvtr4lgP-RĐNGDOERGGIENGHUEGHGDMGIGIDĐSESEIGGAIGIG080/0186 53

6 si KIDUFEUN TP E ngauosuainasiiritissgtgftseerseenornsrrefirrtrrtvotpntpst0 ASIKCGIEDUPSSS00/00107G17809850018 54 t0 UP" ,1 TRE s»ssarbsrorintsinngttontttoEiGBGI00185esyileeseosemomtrntirutrsgtdisrtfonstrretprimltfntstitoi1rSIEBSEEUG)SE85073 a0

2 ied OGG bids Tor Fe POU cacccscmncncieimitnrmemmeremmmenemeanmcnne a7

CHAPTER 3: CHOOSING STRATEGY FOR HA PHUONG COMPANY LIMITED

lÑ T61 FT Li Tu d1 ï nnyeeeresveseooryatoitoveeddii03G0600E1600040146<6ks60<gshunggaeMpioret 59

3.1 Ha Phuong’s long term development Objectives csccsscsscessestessesseceesneeeecees 59

3.2 Choosing business strategy for Ha Phuong in the period of 2012 to 2016 61

22.| Chowsing DUSINESS SITMEEY ViA SN? THÍ «seeraeeretrvrirtottioSHIG100000808030/ 0660000018 61 Sane, | OOS SÍHHIEEV VÍR I hi HH .eeeessrenerrenssttietotiugrSpURI090/94800000100005/000000088 62 3.3 solution to apply business stratepy for Ha PRUGHG q crcrncccennmanceomnennmmnameceum 617 33.1 Soimions to reaching the “The lead 1) COSt™ SUA EY oo eccecrccmecesveeserscneernenrcene 63 Fels k LAIST ie TrrffqaefPrriennl SGIUIGTS saeaseaaieeesesssenidioeosievkiotioseltnr32petpvinienti 63

3.3.1.2 Invest to renovate the production technology, raising the productIVIty 63

Capstone Project Report " Gamba01.X0710 - Group Nol0

Global Advanced Master of Business Administration

{as Program

3,1) oỲ PHẾ HH! B0 ĐI HE swseanednroingrtoirgtiorOaETGIAGRÚGE3E880ssueasbduidonaieep2.3u/1490 000100G/S0013809009/004% 64 đều lột ge TT eerernodsenrraogEROSHEERIRGENGERORIGSG14EEXGGIGIENG-SA.049000:g000006/010gi0200.0000300 65 3.2.2 PYOdUGl SHECINCAON Si7Alegy s0lư[ODfSsseeeeeeeaaendndioo tau0i68461444406.66s ssssseossseen 66

du dối KHẾHIGETTIHđử BGRNUDNGseeerreerntnrorornntitriioifERIUDIASSVG15i8 Đ0i89605L536310013680665A semssssesrseee 66 3.3.2.2 Enlarge market research to raise competitive ability of produects 66

34 Procedure 1) Apply DH6lfi6Ss SEHÍEEY seseeenssnristotravirodidiiSig1286 20800320000080034380003858148 67

CHẤN Du bi TIDN Ý sương naA6981sce-S0xseereoeseoreeermrrrnntpstrsgstrnvoteotttV0gliVDVIEOSISESOSIAN/0GNHSAGING3S40/J80013/086120GGG0 71

BE E HE GES aggunganutortiitgaiasmeeeeeeennsrngenstrrenirtitrtstirrrehon S20 aie est tna etn T5

GP HH LÍ Ễ sangngnarrenigG0GEA0886859xreeemseeeersstotSthtrbrsarieistdlsgkgigBfSSADHGIEEIEGMISEHHIDESHHU123 74

Capstone Project Report Ở _ỞỞ Gamba01I.X0710 - Group Nol0

t2 Global Advanced Master of Business Administration

l ADB Asia Development Bank

2 CPM Company profile matrIx

3 EFE External factor evaluation matrix

4 IFE Internal factor evaluation matrix

5 GDP Gross domestic product

| 6 |Ha Phuong Ha Phuong company limitted -

2 MOC Ministry of construction

8 PEST Political, economic, social and technology

9 PPP Purchasing power parity :

10 |POS Point of sale

II | QPDS Quality, price, delivery and service

I2 | QSPM Quantitative Strategic Plan Matrix

13 | ROA Return of Assets

14 | ROE Return of Equity

IS | SME Small and medium enterprises

[cS Global Advanced Master of Business Administration

Figure 2.5: Number of FDI project and amount into construction in Ha Ham 37

Figure 2.6: Supplier selection procedure Of Ha PHUOHG wicsessccessciz-nncerinnomericnnnmnnenssicomene 40

Figiire 2.7; Precast: concrete produmtion: PrOGESS a sccssssencenscnennnmnmnaennmnarvamansacnseenas a4 Figure 2.8: Growth of capital and asset in the period of 2007-2010 45

Fignré 2.9: Ha Phone ROE and ROA ti 2009+2010 senenseenddrddtinordaanaisirasssbirdass 48 TIHEHNEE ó.LH: 11ä.t HƯỚNG Siabor SHtiEldlDeeenneesneennrrintroottenettrgctttoniftoGiistrgiPNEOAE0009/k00 Ji

List of table

Table 2.1: Mam equiprnení suppiiers for Ha PhiôfB ii 39

Table 2.2; Ha Phuong’s External factors evaluaHGOfi THẾ cecsseiiiiskccia.adua, 41 Table 2.3: Growth of total capital and asset of Ha Phuong from 2007 to 2010 45

Table 2.4: Ha Phuong’s profit and turnover from 2007-2010 -c-++:+s«2 46 Table 25 Irit6Trial faotGfs 6valtaliôn rhÐ HN eeesessenanndrriodiiistaagiiosxgVkI4500559058850/50E88 50

Table 2.6: Employee`s satisfaction to company`s working environment ae

Table 2.7: Ha PRUOne” COAIPENIVE PROT MAAN cc cccmnccmorermnmnmesronvmemncrmennasen a

Table 3.1: Ha Phuong`s growth index in the period of 2012-2016 ‹- 60

Table 3.2: Quanttative Strategic Plan Matrix of Ha Phuong -5- 62

Capstone Project Report _ Gambat)1.X0710 - Group No!0

[CS Global Advanced Master of Business Administration

CHAPTER 1: OVERVIEW OF STRATEGIC PLANNING AND STRATEGIC

MANAGEMENT

1.1 Definitions and roles of strategy and strategic management

1.1.1 Definitions of strategy and strategic management

The term strategy has a long history and it originated from military field and from the ancient Greece The strategy was born and developed along with conquests of

imperial countries and it was considered as the art of winning in the battle The military

origination of the strategy has been shown in its oidest definition:

According to the dictionary of American cultural heritages, strategy has been

defined as a “science and art of commanding military, it is applied to make master

plans and carry out the big — scale campaigns”

In the economy field, after the Second World War, global economy has recovered rapidly, business environment have been changing so vigorously The second revolution of science and technologies have promoted industrialization and

modernization process more strongly, competition more fiercely That situation has

forced companies to have long-term business production and operation This requirement matches the nature of strategy definition from military field applying into

the economy Over the periods of development, “strategy” definition has some certain changes and not come to agreement, therefore remains many different definitions

Based on competition point of view of Michael Porter, strategy definition

understands as: “Strategy is the study of finding a suitable position to compete in the industry, a scope of operation where competitive activities occur”

Generally, “strategy” was understood as trend and method to resolve long term and Overview mission According to UNIDO definition: “Generally, a development

strategy can be described as an outline of developing process to reach intended targets

for a period from 10 to 20 years, it instruct strategic managers in attracting and allocating resources It can be said that, strategy provides a vision for development

Capstone Project Report _ Gamba01.X0710 - Group Nol0

tcCZ Global Advanced Master of Business Administ: ution

Proqram

process and the consistence for implement solutions Strategy also can be basics for overview developing plan in long term and short term or can be general awareness of related people about prospects and willingness and challenges in a specific period”

There are some differences in expression of concepts and definitions of strategy They still have some common content:

- Define company’s short term and long term targets

- Bring out solutions and methods to choose these solutions

- Deploy and allocate resource to implement these targets

Besides understanding concept of strategy managers of company also need to know the way to manage these strategies and make right decisions to reach company’s target, this process is called strategic management It can be generally said that:

“Strategic management is defined as a set of decisions and actions expressed via results

of planning implement and evaluating strategies, created to reach corporation’s long- run targets”

Strategic management includes these following specific steps:

- Strategic planning

- Strategic implement

- Strategic checking and evaluation

1.1.2 Roles of strategy and strategic management in the context of open market

Characteristics of business environment have a big affect to existence and

development of company They can create new opportunities and challenges for

corporation And the company which wants to exist has to find out a new management

method, it is exactly “strategic management” - strategy is the basis of this management

method In model business environment, strategy becomes more and more important to

existence of company [hese roles are:

- Strategy is the tool that generally shows the long-term goals of the organization or enterprise Enterprise's goals are special targets which it wants to reach

Capstone Project Report _ Gamba01.X0710 - Group Nol0

vat Global Advanced Master of Business Administration

Proqgran

during its operation process Specialization and making documents these targets via

strategies will help members of enterprise or organizations when finding the targets which they want to reach so, they will know what they have to do It will help the

enterprise easier in reaching its goals

- Strategy connects short term targets closely in long run conditions In model business situation, every enterprise has to flexibly move to adapt to changing of

environment Sometimes this movement will make the enterprise be separated from its long term goals In this case, strategy with strategic goals will help managers of

enterprise a long run direction So, resolving short term matters in long run conditions can bring enterprise a stable development Long run goals also are basics for short term goals

- Strategy helps to ensure unification and make plans for enterprise’s activities

In existence and development process, strategy provides a comprehensive and logical point of view in resolving problems which arises in business performance Strategy

also helps to associate different sections in a company and orient them to reach to a

unit goal, it is enterprise’s goal

- Strategy helps enterprises and organizations to catch up with market opportunities and create comparative position in the market Strategy unifies the

enterprise’s operation process in order to reach to enterprise’s strategic goals It means

that enterprise will have to use its resource in most efficient way So, enterprises have

to choose fastest way to catch up with market opportunities and deploy its available

abilities to create some new comparative advantages

Form below analysis we can see very important roles of strategy in enterprise's performance so, strategic management becomes one of the most necessary keys which helps enterprise open the door to advance toward success Strategic management brings theses following advantages:

- More efficient in making plans by using more reasonable and logical approach method when choosing strategies

Capstone Project Report Gamba01.X0710 - Group No1l0

[cS Global Advanced Master of Business Admini: ‘ration

Program

- Widely take care of related beneficiaries of enterprises (stock holders)

- Connect short term development in long term development

- Take care of both efficiency and effectiveness

1.2 Steps to study strategic planning

1.2.1 External factors

Every enterprise exists and develops in a given business environment and its

development is much affected by external factors Affection of external factors sometimes is good and sometimes is bad Enterprise which wants to exist and develop

has to realize the movement of these factors and adjust to be suitable with these factors

Business environment includes economics conditions or macro conditions and industry conditions or demonstration conditions Industry conditions affect to everyday activities of enterprise and economics conditions affect do not affect directly to enterprise’s but this affection is in long run and it can create crossroad in development process of enterprise External conditions which affect to control strategic management

include: micro conditions and macro conditions

1.2.1.1 Macro conditions Company’s operation is affected by external factors, external environment

impact to company both short and long term development Evaluation of macro

conditions will help the company have stable strategies and also can take the advantages of external factors to expand company’s activities Study and evaluation of

country and world conditions are very important to company’s strategy builders

Managers and employees need to have comprehensive evaluation about these factors in both long and short time

To study the impact of macro condition to a company economist used PEST model as a useful tools PEST model studies the impact of environmental factors in the

macro Factors which are: Political (Institutional - Politics), Economics (Economics),

Socio-cultural (Culture - Society) Technological (Tech) They are main factors that effect to company’s condition and the company has to analyze the to set up business strategies P.E.T.S model can be easily seen by the following figure:

Capstone Project Report Gamba01.X0710 - Group Nol0

cS Global Advanced Master of Business Administration

Political Political Stability Taxes policies Law system

Source: Strategic Management: Concepts and Cases (12th Edition) Fred R David

Figure Error! No text of specified style in document 1: P.E.S.T Model

- Political: This is the factor which has affection to all industries in a country, factors like: regulations and legal system can affect to every industries When doing business in administrative unit enterprise has to follow its legal system

o Stability: when study the political factor of enterprise we will take care of stability of conflict political factors with legal systems The country which has high stability in political condition will give a better environment for enterprise to expand its activities On the contrary, instability in political conditions will give bad affection to enterprise’s performance

Capstone Project Report —— / Gamba01.X0710 - Group Nol0

tCZ Global Advanced Master of Business Administration

protection regulations, etc

- Economic: Enterprise needs to take care of economic factors both in short

term and long term It also has to take care of intervention of Government into economy In general, enterprise will base on economic factor to decide which industry

or section to invest in

o Economic situation: Any economy also has different cycles, in a specific period of a cycle enterprise will have different decisions for its development

o Factors which affect to economy: Interest rate, inflation

o Economic regulators of Government: Basic salary law, Government’s economic development strategy, favorable regulation for a specific industry, increase

tax or subsidiary, etc

o Orientation of economy: Growth rate, GDP growth, GDP per capital

- Social: Any country or region has its own specific characteristics These characteristics affect to consumer’s opinion here Valuable traditions can make a basic

for a society and support for development of this society So, tradition factors are strictly protected, especially moral cultures However, we cannot deny that there is interfering in culture between counties This interfering will change life style,

psychology and create development prospect for industry

Besides culture, social factors and social characteristics also attract enterprise when making market research Social characteristics device society into many groups each group has different income, psychology characteristics Other social characters like: Average longevity, health situation, average income, income allocation life style, life psychology, knowledge level, living conditions

Capstone Project Report Gamba01.X0710- Group Nol0

vost Global Advanced Master of Business Administration

Program

- Technological: Recently, the whole world is still in technological revolution,

list of model technologies are implied and they are integrated into goods and services

Thirty years ago, computer is only a tool used for calculation, now it is a tool with full functions and can work as a person Especially, in information technology section,

model communication helps us to shorten geographical distance

Nowadays, PEST model is expanded into P.E.S.L.T matrix (political,

economics, social-cultural, legal, technological) and S.1u.B la

(Social/Demographic-, Technological, Economics, Environmental, Policy, Legal, Ethical) and becomes more and more completed standard when studying external

factors of an enterprise

- Integration: No one can deny that, global integration now is an unavoidable

trend and this trend created many opportunities for enterprise and country in developing and expand their business

o Globalization creates competitive pressure from every sections and

regions Integration process will force enterprises to adjust in order to conformity with comparative advantages and global labor allocation in the world market

o In integration process commercial barriers will be step by step removed

to create a fresh and fair business environment for all countries in the world

- Natural: is one of the most important factors in human life, it also provide raw materials for many industries Recently, natural condition is much changed because of human destruction It also can affect to development trend of enterprises

nvals, competition strength of companies in the same industry, customer’s power,

Capstone Project Report | / Gamba01.X0710 - Group No10

17

ics Global Advanced Master of Business Administration

merchant’s power, new products replacement And Michael’s Porter five forces are indicated via figure 1.2 as following:

rivals

€Competitive.rivals in the

irae Density of rivals

- Current rivals: rivals are regular pressures and put the enterprise at risk directly The more competition current companies take the more risk they have in gaining profits and the existence and development of the company Therefore, this competition forces the company to increase investment capital to renovate the

Capstone Project Report —| —— Gamba01I.X0710 - Group Nol0

C2 Global Advanced Master of Business Administration

industry, having the big quantity of companies and their competition abilities are equal,

competition tendency will be fierce and more inclined to price competition In case of powerful companies, those companies intend to cooperate to control the market and less powerful companies have to follow the rules set by the leading

o Market demand Demand for products and services from companies have great effects on competition strength When the demand for products intends to

increase, those companies can protect or extend their market shares more easily,

competitions will be less fierce But the demand for products intends to decrease, it is

sure that companies have to compete violently with other rivals is they want to protect

their market shares and expand the market

o The expenses are more and higher and it is difficult for the enterprise to get out of the industry, so they are determined to fight to exist This makes competition strength fiercer, particularly in the industries in ripe period or recession On the

contrary, if barriers are lower, competition tends to be reduced

Except above factors, competition strength still depend on other factors like product differences, services of companies in the industry, growth rate of the industry, betting on the industry, fixed costs

- Suppliers: they can cause pressures to companies by request of increasing prices or reduce quality of input factors of the companies They affect to the prices and

quality of products and services of the company Therefore, they can affect to

customer’s reaction

- Customers: pressure from customer depends on a customer’s bargaining ability Bargaining ability is mainly bargaining for a discount or for quality improvement Once the customers’ bargaining increase the company is not able to

Capstone Project Report _ Œamba0]I.XU7I0 - Group Nol0

9o

C2 Global Advanced Master of Business Administration

Program

survive any more and if is able the company must accept a decreased benefit Such

pressure will increase if the product, services are not distinct one, not use by customers

in large amount, used by a few customers

- Substitution products are various products which can satisfy the same

demand Occurrence of substitution products will bring a threat to the company’s

competitive position in respect of price and benefit

1.2.2 Internal environment analysis

The ability of enterprise is basic factor deciding what it can do and its strategy can be successful or not To ensure feasibility of strategy, we need to evaluate the

situation, define weak and strong points, so we can define the abilities of enterprise and

its competition advantage Internal analysis will be carried out as follows:

1.2.2.1 Financial analysis

Financial situation and financial indicators are good reflection of financial

capabilities of the company It not only reflects operation capabilities of the company

in the past but the development in the future We care about financial indicators when performing the financial analysis in strategy building includes:

- Rotating indicators: reflects the capacity of the company to meet its short-term

financial obligations That is current paying capacity and rapid paying capacity:

urrent paying capacity = TƯ HH

Mobile assets — commodities in stock

Rapid paying capacity =

Short term debts

- Lever indicators: the table list out financial risks of the company It shows the

supported rate by debt capitals and joint stock capitals

- This indicator is not permitted to be too high, so it will cause much risk when the enterprise cannot pay the debts leading to bankruptcy

- Operation indicators: reflects effectiveness of capacity of the company

- Profit indicators: ROE, ROA

Capstone Project Report — Gamba01.X0710 - Group No10

r2 Global Advanced Master of Business Administration

Program

1.2.2.2 Organization’s culture and enterprise’s reputation The company culture is more and more important in establishing the company

Every company should make its employees io understand the goals and action opinions

of the company It will encourage them to achieve the common goal of the company

The company’s reputation also contributes to the success of goals for the company The reputation is an invisible value which is created during the company’s long-term development process The more well-known company on the market the more easily it approaches new market and its products are more accepted However, it

is difficult to build the reputation as well as reserve or improve it Besides the internal

analysis, they have interests in other factors such as the legality of the company

business activities, the leadership culture

1.3 Supporting tools for defining and choosing strategies

To support for establish and choosing strategy we use some main tools These

below models will be some typical examples

1.3.1 Internal Factors Evaluation matrix (IFE)

Internal factors evaluation matrix summarizes and evaluates main strong points, weak points of some sections in company or the whole company IFE matrix is

developed through five steps:

- First step: Establish the list of main factors which have determinant functions

to competitive ability of a company in an industry (normally, the list will have from 10

to 20 factors)

- Second step: Defining important level by classifying from 0.0 (no important)

to 1.0 (very important) for each factor 4e noted that important level defined for each

factor will indicate its relative importance to success of company in doing business So, for all company in an industry important level of all factors in first step are equal

- Third step: Classify from | to 4 for each representative factor Biggest weak

point equa! to 1, smallest weak point equal to 2, smallest strong point equal to 3 and

Capstone Project Report s Œarmba01.X0710 - Group Nol0

[cS Global Advanced Master of Business Administration

ability will lower than medium

1.3.2 External Factors Evaluation (EFE)

External factors evaluation matrix helps to summarize and quantify influence of external factors to enterprise It is also the same as IFE matrix analysis to analyze EFE

matrix we will implement through five steps:

- First step: Establish the list of main opportunity and threat factors which will have influence to company’s activities (normally, from 10 to 20 factors)

- Second step: Defining important level by classifying from 0.0 (no important)

to 1.0 (very important) for each factor Be noted that important level defined for each

factor will indicate its relative importance to success of company in doing business Total important level of all factors is equal to 1

- Third step: Classify from 1 to 4 for each representative factor Biggest weak

point equal to 1, smallest weak point equal to 2, smallest strong point equal to 3 and

biggest strong point equal to 4 So, they are scores which indicate the reaction of company to opportunities and threats of market

- Forth step: Calculate score for each factor by multiplying important level of each factor to its correlative classification score

- Fifth step: Calculate total score for all factors in matrix by plus correlative

score of each factor

Capstone Project Report Gamba01.X0710 - Group Nol0

tCZ Gli bal Advanced Master of Business Admiinistration

1.3.3 SWOT matrix and QSP matrix

Completion of the internal analysis, we have to sum up the company’s strengths

and weaknesses This is the last task and is a result of internal analysis The summary

table of strengths and weaknesses is established based on the collective table of opportunities and threats in the environmental analysis part

Combining two tables above - opportunities and challenges; strengths and

weaknesses - we get the analysis result of strengths and weaknesses, opportunities and challenges (SWOT matrix) This is the last desired result of environmental analysis and

internal analysis and is a premise for planning strategy of the company

The enterprise can not choose each replaced strategy in turn due to waste of

time and no efficiency So it is necessary to select the best strategy group in order to develop it and calculate in every detail advantages, disadvantages, cost and benefit

brought from this strategy as well as master the methods and how to apply, especially

using models to choose business strategy suitable with its business activities such as

strategy analysis on SWOT matrix, GREAT matrix

In SWOT matrix we have the following strategies:

- S-O strategy: To pursue opportunities that best suits the enterprise’s strengths, business orientation on the market (Attack)

- W-O strategy: To overcome weaknesses to seize opportunities (Competition)

- S-T strategy: Determine the way that the enterprises can utilize their advantages to cut down damage to the external challenges (Caution)

- W-T strategy: Setting up a defense plan to prevent the company’s weaknesses fron threats from the external environment (Defense)

The table 1.1 is the indication of SWOT matrix:

Capstone Project Report Gamba01.X0710 - Group Nol0

[Ss Global Advanced Master of Business Administration

The comparison is made in three basic directions as follows:

- Compare on time: it means that the company’s business activities are

compared in different periods associated with its context of history

- Compare on the sector’s standard: comparing the company’s business

activities with the sector’s standards and major competitors shows that how the

position of company is in the whole sector

- Recognize the core success factors in the sector: they are a few factors which

have an important effect on the company’s success in the sector

Capstone Project Report —— Gamba01.X0710 - Group Nol0

24

[S Global Advanced Master of Business Administration

Proqram

The Quantitative Strategic Planning Matrix is a strategic tool which is used to

evaluate alternative set of strategies The QSPM incorporate earlier stage details in an organize way to calculate the score of multiple strategies in order to find the best match

strategy for the organization

The QSPM comes under the third stage of strategy formulation which is called

~The Decision Stage” and also the final stage of this process The best thing about QSPM is that it never insist the strategist to enter the information on assumptions, it extract the information from stage 1 The Input Stage and stage 2 the the matching

stage The input stage is based on EFE Matrix, IFE Matrix and CPM and stage 2 made

up of TOWS matrix, SPACE Matrix, BCG Matrix, IE Matrix Grand Strategy matrix The QSPM combine the intuitive thinking of managers with the analytical process to decide the best strategy for the organization success

Table 1.2: Quantitative Strategic Planning Matrix

Capstone Project Report Gamba0!.X0710 - Group No10

[Ss Global Advanced Master of Business Administration

Program a

AS stands for attractive score assign priority to key factors using the numeric value 4 for most importance and | for least importance and the last column TAS (Total attractive score) is the value calculated by multiplying weight by AS One thing

important to note for each strategy separate AS and TAS value added in the table, Weight remain same for all set of strategies mentioned in QSPM The topmost shows

the strategies are compared in the QSPM matrix, below mentioned iable illustrate the structure of QSPM matrix

1.4 Strategy building and choosing key strategies

Strategy is a system which includes list of policies and great solutions to deploy

and coordinate action routines help the company get the best way to archive its targets

Each enterprise can create a competitive advantage for itself And they also have them all way routine and steps operate, for example, the best quality, the best service, lowest

cost or focusing on target market, etc

A company can apply many different strategies in a period The company can

pay much attention to development in this area while cut down others Those activities aim at implementing successfully the company’s general objective during the strategy

implementation period

The strategic choice out of strategies above depends on the company’s capability and related environment factors From the result of analysis of SWOT

matrix QSP matrix the company will choose for itself the best business strategy

Capsone Project Report ŒGamba01.X07I0 - Group No¿?9

{cS Global Advanced F jram Master of Business Administration

CHAPTER 2: ANALYZING BUSINESS ENVIRONMENT OF HA PHUONG

COMPANY LIMITED

2.1 Overview of Ha Phuong Co., Ltd

2.1.1 Establishment and development

Ha Phuong Co., Ltd was established in 12/9/2003 in Binh My town - Binh Luc district - Ha Nam province

Business registration NO: 0700.221.477

The company's activities are divided into three main areas: capital construction and civil engineering, quarrying, precast concrete production Annual revenue from above operations is from 230 to 270 billion VND With lines of modern technology and equipments imported from Japan, Korea, Germany, Ha Phuong Co., Ltd accomplished many important traffic and irrigation works in Ha Nam province yearly, create jobs for 300-400 employees

2.1.2 Products, services and organizational chart

Ha Phuong's products are divided into three major areas: building, quarrying and manufacturing precast concrete Below chart is its activity details (Figure 2.1):

Basic construction Quarrying Producing precast

concrete

Source: Sales department, Ha Phuong Co., Ltd

Figure 2.1: Ha Phuong Co., Ltd’s business fields

co Global Advanced Master of Business Administration

Program

To operate effectively the above activities, Ha Phuong Co., Ltd set up a compact coherent apparatus to simplify its operation and keep its activities always effective and economical Ha Phuong Co., Ltd organization chart is described as below:

| CARPENTE MECHANIC | BUILDING PAINTING CONSTRUC

| R TEAM AL TEAM COMPLETE TEAM TION

Capstone Project Report Gamba01.X0710 - Group No10

28

tCZ Global Advanced Master of Buisiness ACdrïitimiStratiom

2.1.3 Vision and Mission

With its practical experiences Ha Phuong Co., Ltd always wants to provides the

best quality services to urbanization and modernization contributes to impulse the development of the national economy and Ha Nam province's economy Now and in the future, there are many State's policies on investing to new urban and housing

projects Therefore, beside the existing business areas Ha Phuong Co., Ltd will expend

its activities into investment on the residential districts, economic areas and industrial parks, concurrently manage housing and urban infrastructure development and investment projects

To always maintain, strengthen and enhance its position in the field of

construction, to meet the urgent needs of the new period, Ha Phuong changes management methods accordingly and apply new scientific knowledge, technological advances in business management and construction works Ha Phuong's mission is to contribute to the construction of high quality and beauty works, furthermore, it contributes the spiritual values, new ideas in the business of construction

In the strategy period 2012 - 2016 Ha Phuong focuses on the following objectives:

+ Expanding market share, contracting the important traffic and irrigation works

in Ha Nam Province

+ Modernizing precast concrete plant and quarry workshops to increase sales in

the above areas

+Training human resources with high quality and sticking to the development of

the company

Capstone Project Report _ Gamba01.X0710 - Group No10

t2 Global Advanced Master of Business Adriinistration

Program

Therefor, all of above activities are directly managed by construction department, and

the operiting efficiencies also have impact on the operation of higher management

levels: narketing department, engineering department and general financial departmat

21.3 Vision and Mission

Vith its practical experiences Ha Phuong Co., Ltd always wants to provides the best Guaity services to urbanization and modernization contributes to impulse the develcpnent of the national economy and Ha Nam province's economy Now and in

the futue, there are many State's policies on investing to new urban and housing

projects Therefore, beside the existing business areas, Ha Phuong Co., Ltd will expend its act.viles into investment on the residential districts, economic areas and industrial parks, Oncurrently manage housing and urban infrastructure development and

investnat projects

T) always maintain, strengthen and enhance its position in the field of

constricion, to meet the urgent needs of the new period, Ha Phuong changes managenent methods accordingly and apply new scientific knowledge, technological advan:e in business management and construction works Ha Phuong's mission is to

contridue to the construction of high quality and beauty works, furthermore, it contridu2s the spiritual values, new ideas in the business of construction

li the strategy period 2012 - 2016 Ha Phuong focuses on the following objectvs:

+xpanding market share, contracting the important traffic and irrigation works

in Ha Na Province

+Modernizing precast concrete plant and quarry workshops to increase sales In

the alov areas

+ raining human resources with high qual!iy and sticking to the development of

the conany

Cap:toe Project Report ~ _ Gamba01.X0710 - Group Nol0

[CS Global Advanced Master of Business Administration

Program

There are also many central agencies in Hla Nam, so that policies to support SME’s development were mainly based on the development requirements of SMEs located in the province Ha Nam has been actively implemented Decree No 56/1009ND-CP in Policy support for SMEs’ development (formerly Decree No.90/2001/ND-CP); Decree 45/2010 / ND-CP Decree 88 ND-CP/2005 in July 30"

2005 on organizing, managing and establishing business associations (formerly Decree

88 / 2005 / ND_CP); Decision No 143/2004/QD-'Tg of Prime Minister in August 10", 2004 on approving the Program to help train human resources for the enterprises:

Decision No 236/2006/QD- TTg on Development Plan for SMEs in the period

of 2006-2010; Programs supports the development of state enterprises such as:

industrial extension program, commercial promotion program, support program for intellectual property rights protection, many types of technology transfer and information technology application funds ete

Overall, the political situation of the country and local governments are creating

more favorable conditions for Ha Phuong Co., Ltd’s development in the coming

period With its specific: business lines associate with the industrialization and

modernization of the country, the political premises will continue to facilitate Ha

Phuong’s strategic goal implementation

Economic statement of the country: Viet Nam’s economic situation in receit

years has many deep changes Two main transforms that affect the development of

enterprises are:

+ Global economic integration trend is now more and more profound Pinnacle

of the world economy integration possession was marked by the event Viet Nam become a member of World Trade Organization in 2007

+ The influence of global financial crisis: Global financial crisis descended from

United States and European countries, then wide spread all over the world This crisis

slows down Vietnam’s GDP growth to 6-7% per vear However Vietnam’s success in

Capstone Project Report —_ Gamba01.X0710 - Group No10

cS Global Advanced Master of Business Administration

Program

keeping economic growth rate affirmed Government and enterprises’ effort in the way

to overcome crisis to continue improving

Figure 2.3: Vietnam’s GDP growth rate in recent years Was affected by Global financial crisis, Vietnam’s Economy tried its best to cortinue growing State government also create more and more favorable conditions for enterprises to further improve their business to perform well industrialization and molernization mission

Economic statement of Ha Nam province: Ha Nam has a fast and stable ecmomic growth rate in recent years The average economic growth rate is about 13%/year Some estimated economic and financial targets of Ha Nam in 2011 are bebw:

+ Gross output is 6,097 billion VND, increase 13.2% from the same period in

200

+ GDP per capita is 20.42 million VND, up 21% from the same time in 2010 + In 2011, Ha Nam tries to have Economic structure: Agriculture, Forestry and

Fisieries 19.9%, Industry — Construction 50.1%, Service 30% Below chart shows

Cipstone Project Report Gamba01.X0710 - Group Nol0

32

[Ss Global Advanced Master of Business Administration

Program

more details of development tendency focusing on industrialization and modernization

in Ha Nam province in the past years

To develop potentiality and strength of resources, Ha Nam particularly focuses

on building materials industry with cement as the main product All levels of government will also provide good condition for cement enterprises operate maximum capacity, and encourage them to invest in “after cement production” development projects concurrently towards energy-saving purpose and environment protection; try

to achieve from 8 to 10 million tons of cement per year, from 200 to 300 million units

of adobe brick, from 9,5 to 10 million m? of construction stone by 2015 Besides, localities step up the small scale industry, revive traditional trade villages, create new professions, create jobs to increase income; strive in industrial production to get 22.1 %

of average raise per year

Natural conditions

Ha Nam has plentiful and multiform resources located in the western of Day river, belong to two provinces: Thanh Liem and Kim Bang Specially, there is a limestone source which is material for cement and light powder production These

Capstone Project Report — Gamba01.X0710 - Group No1l0

33

[CS Global Advanced Master of Business Administration

85% of the whole province’s labor force Almost of them have education levels,

abilities to receive and apply modern technology Science and technology labor force is plentiful with 11.900 people having College, University and Master degree (3% of labor force), include: Master: 34 people, Bachelor: 4,250 people, College: 7.240

people The secondary level labor force is 13,000 people, primary level labor force and technicians are 10.400 people Vocational trained labor force is about 99.7 thousand

people, among them laborers having vocational training certificate are 41.5 thousand people (10% of labor force) Yearly, Ha Nam’s population increases from 8 to 9 thousand people, provides national economy with a profuse labor source

Regarding to intellectual level of the people, Ha Nam was acknowledged that have completed universalizing secondary education, the average number of training

years of a labor is 9.1 years per person (total 12 years) Economic development,

intellectual level and social — cultural knowledge of population are rather high so that living standard is also better The salient characteristics of Ha Nam’s people are hard

working tradition: always try their best to overcome all difficulties to improve production, they also are possessed of traditional fondness for learning, thirsty for

knowledge and full of creativeness in economic, social and cultural development

Those are very important sources to develop economy and society in province

Technological conditions

Inheriting achievement of international technological development generally

and especially Viet Nam technological development, Ha Phuong Co., Ltd always pays

attention to technological renovation | wo ways to improve technology are:

Capstone Project Report Gamba01.X0710 - Group No10

[SS Global Advanced Master of Business Administration

Program ú

+ Equipment, machine and facility are invested and modernized

+ Information and communication management system operates effectively and smoothly

Technological improvement specially engine manufacture is premise to

improve productivity, quantity Ha Phuong’s products in the next years

2.2.1.2 Micro environment (Michatel Porter’s five forces model)

- Density of rivals

Extraction of construction materials: Recently, there are some construction stone mires extracting in Kim Bang district and they are near Ha Phuong’s stone mine The biggest competitor of Ha Phuong in this field is Thi Son Co., Ltd With the advantages

of machines, transportation, and nearly 20 years experience, Thi Son is the most dangerous competitors to Ha Phuong This company can expand its business to other

mines and also take out Ha Phuong traditional customers with its advantages

Production of construction materials: With the same scale and longer development, An Duy JSC is the biggest competitors of Ha Phuong in production of precast concrete

Besides providing precast concrete for the company’s construction, An Duy also sells

its products to other small and medium construction enterprises

Basic construction: This is the most fierce competition field to Ha Phuong The main competitor is Thanh Dat construction This company was established in 2001 and its bus:ness fields include: civil construction, irrigation, road works, building transmission lines and substations with less than 35KV of capacity and providing construction materials: construction stone and precast concrete Main comparative advantage of

Thanh Dat to Ha Phuong are:

+ Thanh Dat is working in the same business field with longer development history

+ Thanh Dat has bigger production scale (about 690 pers)

Capstone Project Report _ Gqamba01.X071I0 - Group Nol0

[cS Global Advanced Master of Business Administration

Program

+ Via many years working as a construction contractors and precast concrete in

Ha Nam, Thanh Dat has long-term and deep relationship with local Government and big partners this factor helps the company to win in bidding construction works

Competition from big state construction company in Hanam: The biggest

companies in Ha Nam are: CC] (focus on basic construction), LICOGI (focus on

transportation construction) These companies have long -term development history and also the relationship with local government then it’s difficult for Ha Phuong to

gain big construction projects On the other hands, these companies are also Ha

Phuong’s customers for material of construction: construction stone, concrete The

development of these companies helps Ha Phuong to have market and experience in

basic construction

- Potential rivals

Recently, the Government has open investment policy, and so many banks will

plentiful of credit services they are favor conditions for new enterprises to launch new products in the market For construction companies, new SMEs can be easily

established because of its suitable size and capital Potential rivals to Ha Phuong are

new enterprises in the same field

Besides SMEs, Ha Phuong also meets the serious competition from new big

state owner construction groups and foreign direct investment companies Total FID of capital amount for construction in Ha Ham has increased year by year In 2010 to 2011

the number of projects has increased 16% and investment amount increase! 173%

Capstone Project Report Gamba01.X0710 - Group Nol0

cS Global Advanced Master of Business Administration

In extraction construction materials: From 2010 onward, infrastructure,

transportation, irrigation, housing projects in Hanam and close provinces (Ha Noi, Hung Yen, etc) will be simultaneous deployed then demand for construction stone will increase and it was forecasted to continue to increases till 2020 With stable infrastructure, synchronous equipments with stable capacity and ventilate roads to Kim Bang mine This is the the big chance for Ha Phuong to expand its business in extraction of construction stone The increasing in demand also limits customer’s power and increases their loyalty to company’s material

In production of precast concrete: precast concrete bocks are provided for 2 big types

[cS Global Advanced Master of Business Administration

in Red River Delta and disaster prevention, Ha Nam government chose Ha Phuong to

be strategic constructor The company won some big contracts with the contract time from 3 to 5 years such as: Prevention of erosion in right side of Red river with total

investment 1,762 billion VND, upgrading and construction of rural transportation system with total investment 2.300 billion VND and some other urban transportation

projects However, company’s customers in this field are mainly state companies so the

customer’s power is clear defined in administrative procedures and bidding To attract

more customers in this sector the company needs to invest in preparing documents and

related administrative procedure

- Supplier’s power:

There are 2 main kinds of supplier to Ha Phuong: Cement suppliers and equipment suppliers

To cement materials: In 2010, Ha Nam’s People Committee operated and built

proiect “Developing Ha Nam cement industry till 2015” with the objectives of

attracting new FDI in cement projects till 2015 and the design capacity will reach to 8

to 10 million ton per year (five times up compare with 2010) In the short time after

this project was deployed there were 6 cement companies accepted and invested to

build by Ministry of Construction include: Hoa Phat Cement (1 million ton/year),

VINASHIN Cement (1 million ton/year), CAVICO-PHI (2 million tons/year), Ha Nam Trang An Cement (0.7 million ton/year), Xuan Thanh Cement (1 million ton/year) and

Tan Tao Cement (1 million ton/year) To construction materials sector in Ha Nam also

invested to upgrade new technology foilow direction of modernization and

Capstone Project Report Gamba01.X0710 - Group No10

38

C2 Global Advanced Master of Business Administration

Proqram ii

industrialization to produce high quality products, nice appearance and diversification

to satisfy construction material demand in and out Ha Nam With stable supply of cement and others material Ha Phuong can be active in material collecting and ensure

the material supply for company’s expansion and development

To equipment supplier; Main equipments for Ha Phuong are extraction

equipments, construction equipments and concrete production equipments Together with the development of manufacturing these equipments also updated with high and

stable capacity and long time using Some main suppliers for Ha Phuong:

Table 2.1: Main equipment suppliers for Ha Phuong

Equipments Japan Korea Russia China Vietnam

Source: Production planning, Ha Phuong Co., Lid

Supplier selection procedure base on some below criteria: Q: Quality, P:

Price, D: Delivery, S: Service (included maintenance, insurance and equipment replacement) With this procedure, Ha Phuong ensures to provide high quality equipments, stable capacity to guarantee quality and schedule for company’s works

Capstone Project Report 7 Gamba01.X0710 - Group No10

39