Business strategies of DIC no.4 in TH oeriod of 2011 - 2020

Graph 1.1: Business Management Process Set organizational goals and mission Analyze external environment Analyze internal environment Set strategic objectives Plan and distribute resou

CAPSTONE PROJECT REPORT BUSINESS STRATEGIES OF DIC NO.4

IN TH PERIOD OF 2011 – 2020

Group: 08:

1 LE DINH THANG

2 TRAN THI DIEM PHUONG

3 HUYNH THI NGOC HOA

4 HUYNH KIM HOAN

5 LE DUC TAN

Class: GaMBA01.C05

Ho Chi Minh City, 2011

TABLE OF CONTENTS

Page

Opening 6

Chapter 1: Literature Review 8

1.1 Overview of Business Strategy 8

1.1.1 Definition of Strategy 8

1.1.2 Definition of Strategic Management 8

1.1.3 The role of Strategic management in company 8

1.1.4 Business strategies 9

1.2 Business Management Process 10

1.2.1 Define orgnizational goals and missions 11

1.2.2 Analyse environment 11

1.2.2.1 Analyse external environment 11

1.2.2.2 Analyse internal environment 14

1.2.3 Develop long term goals and plan for company development 14

1.2.4 Develop action plan and implement alternatives 14

1.2.5 Check and adjust 15

Chapter 2: Analyse the actual situation 16

2.1 Introduction of DIC No 4 Joint Stock Company 16

2.1.1 General infomation 16

2.1.2 Process of establishment and development 19

2.1.3 Organization chart of appratus operation 22

2.1.4 Structure of human resources management of dic no4 23

2.1.5 Quality assurance system - legal representative of contractor 25

2.2 Analyse the actual situation of DIC No 4 Joint Stock Company in term of strategies: 31

2.2.1 Factors influencing on strategies 31

2.2.2 External Factor Evaluation (EFE) 31

2.2.2.1 Economic Environment 31

2.2.2.2 Cutural, social, geographical factors 32

2.2.2.3 Lawyal & polictical factors 32

2.2.2.4 Technological factor 32

2.2.3 Micro factor 33

2.2.4 Competitors 34

2.2.5 DIC No 4 Joint Stock Internal factor (IFE) 37

2.2.5.1 Study the input supply or material control system 38

2.2.5.2 Construction activities 39

2.2.5.3 Analyse the investment activities 41

2.2.5.4 Evaluate manufacturing activities 43

2.2.5.5 Evaluate the Marketing activities 43

2.2.5.6 Evaluate the company Human resources 44

2.2.5.7 Evaluate its financial activities 46

2.2.5.8 Evaluate company culture 48

2.2.6 Internal – External Factor Evaluation matrix (IE) 49

Chapter 3: Solution to brand strategy and busines expandsion at DIC no 4 joint stock company in the period of 2011-2020 3.1 Growth forecast of company to 2016 51

3.2 Strategy Selection 53

3.2 1 Overall evaluation of the actual situation at DIC No 4 53

3.2.2 QSPM Matrix with S-O strategy 57

3.2.3 QSPM Matrix W – O strategy 59

3.3 ALTERNATIVE TO BRAND STRATEGY 61

3.3.1 Develop brand in the construction 62

3.3.2 Develop brand in investment 63

3.3.3 Develop brand in Marketing 64

3.3.4 Develop brand in security 65

3.4 Solution to business expansion strategy at DIC No 4 Joint Stock Company

in the period of 2011 – 2020 66

3.4.1 Expand and integrate into construction 67

3.4.2 Expand Investment - Manufacturing 69

3.4.3 Develop Commercial Trading 71

3.4.4 Expand business territory 72

3.4.5 Prepare for Human Resources 73

3.5 Conclusion 75

LISTS OF PICTURES AND CHARTS

Graph 1.1: Business Management Process 10

Graph 1.2: Model the impact of external environment factors 12

Graph 1.3: Model of 5 competitive pressure of M.Porter 13

Graph 2.1: Organization chart 23

Graph 2.2: Building output 41

Graph 2.3: Pretax income 47

Graph 3.1: SWOT matrix 53

Graph 3.2: Brand strategy 62

Graph 3.3: DIC No 4 plan the business expansion into following sectors 67

LISTS OF TABLES

Table 2.1: General information 19

Table 2.2: Summary finacial 26

Table 2.3: Volum of production 26

Table 2.4: General hopistal of Baria 27

Table 2.5:Cluster B3 28

Table 2.6: Office buiding 30

Table 2.7 : External Factor Evaluation Matrix of DIC 4 Joint Stock (EFE) 33

Table 2.8:Competitive image matric between Dic no 4 & its competitors in construction 36

Table 2.9: The criteria of construction quantity DIC No 4 did in past years 40

Table 2.10:Compare the company profit achievd in recent years 47

Table 2.11 : Internal Factor Evaluation matrix (IFE) 49

Table 2.12: Matrix evaluates internal – External factors 50

Table 3.1: Forecast growth of company from 2011 – 2016 52

Table 3.2: QSPM Matrix with S-O strategy 58

Table 3.3: QSPM Matrix W – O strategy 59

LISTS OF ABBREVIATIONS

EFE : External facors environment matrix

IE : Internal – External matrix

IFE : Internal facors environment matrix

QSPM : Quantitative strategic planing matrix

SBU : Strategic Business Unit

SWOT : Strengths - Weaknesses - Opportunities –Threatens matrix

WTO : World Trade Organization

OPENING



WHY CHOOSE THE TOPIC:

Vietnam ecomomy has grown at high speed in recent years though Vietnam has been in difficulty as the influence of the long lasted world economic crisis and natural calamity Vietnam became official 150th member of the World Trade Organization (WTO), officially intergrated into the world economy, that is both opportunity and challange to local economy organization, espcially to enterprises

Tendency of economic localization and globalization gives big opportunities, and set challenges to enterprises Global competitiveness is more and more various and severe, business environment, espcially technology environment keep changing fastly The reality requires enterprises hold an organzistion proactive, flexible, innovative so as to quickly adapt to market changes On the other hand, enterprises should formulate appropriate, flexible strategic plan, gain the support of department heads and staffs so as to have strong team obtaining success

Aware of the importance of strategy plan at companies generally, and at the construction company in particular, we choose the thesis topic: Strategy at DIC No 4 company in the period of 2011 – 2020

With the limitation of knowledge and time, there may be aslo shortcomings

in our thesis Nevertheless, we hope to get Teachers, your honorable evaluation for

us to improve; our points as well as your evaluation will be the base for us to propose to DIC No 4 Joint Stock company for their consideration of application to their actual business

Our group, we are sincerely thankful Teachers for your dedicated teaching and transfering valuable knowledge to us in the past time We especially would like

to send our big thanks to Teachers who enthusiastically gave us guideline to complete this thesis

Sincere thank to DIC No 4 for supporting and providing us critical information so that we can write the thesis as the best

Sincerely thanks again

CHAPTER 1: LITERATURE REVIEW 1.1 Overview of Business Strategy

According to Michael E Porter: “Strategy is the art of setting competitive advantages to prevent business”

1.1.2 Definition of Strategic Management

Strategic management is the process which study the enviroment currently and

in the future also, plan organizational objectives, plan, adopt, and implement, check the implementation of such objectives currently as well as in the future

According to Fred R David: “Strategic management can be defined as the art

or science which sets up, implements, and asesses decisions involving many functions in order to achieve set goals.”

1.1.3 The role of Strategic management in company:

The survival of strategy is the key to the endeavor to company development The fact that company recognizing the purposes and ways is to achieve its goals, and to be aware of its positions during the implementation

To help company find opportunity and risk internally and externally; strengths and weeknesses in order to maximize strengths, and minimize weeknesses, grasp the opportunity, and set alternatives to prevent external risks

To help company make best decisions on busniess in order to enhance its efficiency and capability of its business acitivities

To help company select the proper business advantages in the continously changing business environment, realize the existing weeknesses, to strengthen its competitives

SBU- Strategic Business Unit

There are maybe one or more business units in a company However, company has to orientate every business unit or multi unites together to achieve the whole company goals; defines its business advantages of every unit compared with competitors then to set suitable goals, for example: differentiation, low cost, prevention to protect share, market attack It is severely competitive, brand development is considered as the key for business unit, and as the connection with involving functions

1.2 Business Management Process

Graph 1.1: Business Management Process

Set organizational goals and mission

Analyze external environment

Analyze internal environment

Set strategic objectives

Plan and distribute

resources

Adopt and implement strategy, and advance to international

Organization structure and control

The process of building and implementing strategy is considered as a continuous process It starts with the announcement of business goals, the reason why and how long we have goals, what we desire from such goals

1.2.1 Define organizational goals and missions

Missions is understood why there should be strategy, the meaning of the company birth and operation Company missions are the company manifesto to society Most of the times, mission includes criteria of clients, product or services, market, technology, philosophy, community, staff…Missions show a future picture

of company Mission is the primary base for selection of company goals

Clarify company goals: Goals is the specification of content, the means of implementing successfully the company manifesto’s mission

1.2.2 Analyze environment

Company environment includes internal and external one which affects directly or indirectly the company survival and development Hence, study internal

& external environment is very important to develop plans

1.2.2.1 Analyze external environment:

The analysis of external environment helps us realize chances and challenges

so that company can make decision on things The analysis is conduct on the macro and micro basis

Graph 1.2: Model the impact of external environment factors

 Macro environment includes: society, politic, technology, ecology, organization,

 Micro environment

M Porter - a leading strategist in the business sector has launched five competitive models to analyze the operational environment of the industry as follows:

Graph 1.3: Model of 5 competitive pressure of M.Porter

Potential competitors: the new competitors enter the market will take a part

of market share and profits To protect its competitiveness, company must increase the barriers such as diversifying its product units, scales

Replaced product: Replacement will lower company potential profit, and

share

Clients: clients’ interest is very important to company However, if clients is

in higher position, they will influence company for example they require price reduction and late payment…

Suppliers: include companies who supply input such as material, machinery,

equipment, finance, labor,…If supplier is in higher position, they will make disadvantage influence on company such as: selling higher price, early payment …

Competitors: this is the usual & direct threat against company when

increasing competitiveness and it threatens business position and survival

Internal competition

Competition between enterprises in the market

Clients

Replaced Products

Threat of potential competitors

Challenge of the subtitude

product / service

Potential competitors

Suppliers

Negotiating power

Negotiating power

1.2.2.2 Analyze internal environment

Internal environment includes factors can be controlled such as: management, manufacturing, finance, accounting, supply, marketing, Press Relation, human resources, information system… The analysis of internal factors will help company clarify its strength, weakness and develop strategic plan

1.2.3 Develop long term goals and plan for company development

The fact that Vietnam joins WTO means Vietnam has officially take part in the international playground; therefore, company faces harsh competitiveness in the market So it is really important for company to develop long term plan to survive and develop

It is business strategy which sets objectives reflecting current existence, thought about ways to reach such goals Besides, company should define its current position; and its strength & weeknesses as well so that company can maximize its strengths and improve weeknesses (depend on condidtions, sectors)

Clarify objectives is the process of forecast product demands as well as revenues, through which, managers makes decision on manufacturing, business This will be also the base to forest finance, human resources, …

Objectives set properly, will be the motives and measures for implementation

1.2.4 Develop action plan and implement alternatives

Developing plan to distribute resources is to implement selected key alternatives, on the basis of which, company can exploit efficiently resources, advantages, create the collective power to win in business

1.2.5 Check and adjust

As the market changes, consumers’ demand changes all the times, forecast in the future cannot be absolutely exact Therefore, company should check and adjust during the implementation of its plan

CHAPTER 2: ANALYSE THE ACTUAL SITUATION

2.1 Introduction of DIC No 4 Joint Stock Company

064.3585.070 info@dic4.vnwww.dic4.vn

3 Ho Chi Minh City

Branch

- Tel

- Fax

Floor 4, Bach Viet Building, No 65 Tran Quoc Hoan, Ward

4, Tan Binh District – Ho Chi Minh City

(BIDV) - Ba Ria Vung Tau Branch

5 Tax code 3500 68 69 78

6.Authorized

Capital

50 Billion VNĐ

7 Stock code DC4 (at Ha Noi Stock Exchange - HASTC)

8 Registration No 3500 68 69 78 at Department of Planning and Investment

of Ba Ria Vung Tau Province

- 1st Registration: 28/1/2005

- 8th Registration: 7/6/2010

- Date of changing registration no : 12/11/2008

9.Scope of Business - Investment in construction of industrial zones, urban areas,

construction of houses for sale, office for rent;

- Civil construction, industry, buildings, construction of urban infrastructure, roads;

- Building water supply systems, bridges, transmission line and transformer stations;

- Construction works of fire prevention, fire fighting for civil and industrial projects;

- Designing to build irrigation works, architectural design civil engineering and industrial projects;

- Supervision of civil and industrial works;

- Establishment and evaluation of projects;

- Dredge channels;

- PC Steel strand construction ;

- Installation of the mechanical construction products;

- Galvanized, painted, powder coated;

- Trading building materials and equipment for construction investment;

- Warehouse for rent, machinery, construction equipment, Road Transportation;

- Exploitation of soil, sand for leveling for civil, industrial projects and road base;

- Manufacture of plastic doors and windows uPVC; production of high-grade wood doors

10 Legal basic - No 25/QĐ decision dated 18/3/1994 of Director of The

Investment Construction and Tourism Services Company (Now is The Development Investment Construction Corporation) to re-arrange and re-establish the Material Construction Trading Enterprise of No.4

- No 162/2000-TCLĐ decision dated 30/8/2000 of Director

of The Investment Construction and Tourism Services (Now

is The Development Investment Construction Company Corporation) to change the name and scope of business of the Material Construction Trading Enterprise of No.4 (Change to the No.4 Construction Enterprise)

- No 1980/QĐ-BXD decision dated 09/12/2004 of The

Minister of The Construction Ministry to change The Construction Enterprise of No.4 to The No.4 Joint stock Company (DIC_No.4) which is a subsidiary company of DIC Group (Parent Company is The Development Investment

Construction Corporation)

Table 2.1: General information

2.1.2 PROCESS OF ESTABLISHMENT AND DEVELOPMENT:

DIC No 4 Joint Stock Company was established in 1994 with the first name as

a Trading Construction Material Enterprise a subsidiary of Development Investment Construction Corporation - Ministry of Construction, the scope business is to provide materials for construction Then switch the name to Construction No 4 Enterprise, with the main task is construction and installation of civil, industrial, buildings projects, constuction of technical infrastructure, transport, irrigation ; the transmission line and transformer stations, fire protection; trading of construction

materials, supplies and equipment,

In 2004, the Enterprise Construction No 4 was decided to change his name into DIC No 4 Joint Stock Company (DIC-No4) which is a member of the combined parent company - subsidiary DIC Group by the Ministry of Construction Since then, the company continuously improve quality, scale, field operations Company's activities have contributed significantly to the socio-economic development of localities in the country, and contribute significantly to the construction industry in urban renovation, infrastructure development, economic and construction of urban civilization and modernity

Over the course of striving, growth, DIC-No4 has gradually affirmed its brand

as a professional contractor in the construction and installation of high buildings, and effective investment projects on residential, urban, industrial, mining fill materials in the manufacturing sector has provided products to market high quality

plastic uPVC doors brand VINAWINDOW, production standards provided by ISO

9001 - 2000, the product was awarded Vietnam Gold Star Award in 2008 The staff and workers of the company to over 500 people, property and means of machines are equipped with modern and increasing; technical staff and workers are trained, professional willing to invest, execute projects and works which are large scale, complex

The scope of activities of DIC-No4 is in the Ba Ria-Vung Tau Province, Ho Chi Minh city, and South-Eastern provinces

Achievements that the company has got is construction of hundreds high quality, large and small construction projects, is rated by investors and contractors

as capable, experienced contractor, always hand-work schedule and quality assurance, labor safety Follow are the projects that DIC-No4 has been constructed:

- D2 – 21 floor apartment in Chi Linh District Centre – Vung Tau City (21 floors + 1 basement)

- Van Anh Hotel - Vung Tau back beach (14 floors + 1 basement)

- An Sinh General Hospital – Ho Chi Minh City

- Office Building, 179 Nguyen Cu Trinh, Ho Chi Minh City (11 floors + 2 basements)

- Thuy Van Building - Vung Tau City (18 floors + 1 basement)

- 15th floor apartment - The Chi Linh Centre – Vung Tau City (15 floors + 1 basement)

- Office Building 193 Dinh Tien Hoang - Ho Chi Minh City (14 floors + 1 basement)

- Cluster works B3 – The Administrative and Political center of Ba Ria - Vung Tau Province (26554.8 m2 floor area)

- General Hospital of Ba Ria, Ba Ria - Vung Tau Province (700 beds for patients, 17-storey height, total construction area of 1,755,669 m2)

- Construction pile at Ho Tram Osaka

- Bank for Agriculture and Rural Development - Tan Phu branch, Ho Chi Minh city

- Expanding University of Baria - Vung Tau (7 floors)

- Office Building 506 Nguyen Dinh Chieu St., Ward 4, District 3, Ho Chi Minh City

- Leveling the Dai Phuoc Ecological Tourism Zone

- Residental of Go Cat Project –

- Tam Phuoc I Industrial clusters project

- First step of leveling - Phase I - Lot No 1 of the Urban Eco-Tourism Dai Phuoc project in Nhon Trach District - Dong Nai province

- Sand supply for connection Road from Highway 51 in Cai Mep works, Tan Thanh district, Ba Ria Vung Tau province

- Provide sand for Thi Vai port project in Phu My I Industrial Zone, Tan Thanh district, Ba Ria Vung Tau province

- Supply and construction of strand for prestressed concrete - batch B + C - 15 storey apartment Bau Trung - Chi Linh Urban centre - Vung Tau city

- Supply and construction of of strand for prestressed concrete - block A –International Exhibition Conference Center of Vung Tau city

- Simultaneously, the company is also the owner of important projects like residential projects Go Cat Ba Ria town, sand mine project in Tan Thanh, Ba Ria

Vung Tau Province, Tam Phuoc 1 Industrial Zone and many other important projects in the South East region

All construction works are applied in process quality standards ISO

9001-2000

With the experience and results have been achieved in 17 years by the technical staff, professional management, modern vehicle DIC-No4 willing to work stable, long-term with investors in all sectors of investment, construction, and

manufacturing with the motto: Prestige, quality and efficiency

2.1.3 ORGANIZATION CHART OF APPRATUS OPERATION

Graph 2.1: Organization chart

2.1.4 STRUCTURE OF HUMAN RESOURCES MANAGEMENT OF DIC No4

* Board of Directors:

- Mr Khuong Manh Tan - Member

* Control Board:

- Mr Nguyen Quang Tin - Chief

- Ms Tran Thi Thu Tam - Member

* Board of Director:

- Mr Le Dinh Thang - General Director

- Mr Nguyen Van Da - Deputy Director of engineering

- Mr Nguyen Van Tan - Deputy Director of economic

* Other departments:

- Finance – Accounting Department: chief accountant: Ms Nguyen Tuyet Hoa

- Technical Department : Manager : Mr Tran Gia Phuc

- Personnel Department : Manager : Ms Nguyen Hong Minh

- Planning Department : Manager : Mr Bui Dinh Phong

- Business Department : Manager : Mr Vu Khac Hien

- Management Projects : Deputy Manager : Mr Nguyen Van Duong

- Ho Chi Minh city Branch : Branch Director : Mr Nguyen Huu Tiep

- VINAWINDOW factory : Factory manager : Mr Nguyen Van Manh

* Teams:

- No.1 Construction team : Team leader : Mr Pham Nhu Phong

- No.2 Construction team : Team leader : Mr Le Van Trong

- No.4 Construction team : Team leader : Mr Bui Van Bieu

- Power Team : Team leader : Mr Nguyen Van Tuc

- Painting Team : Team leader : Mr Thai Van Xoan

- PC Steel strand crews : Team leader : Mr Vo Trung Kien

- Mechanical team: Fabrication of mechanical products, repair formworks, scaffolding for construction Projects

* The total number of officers and employees of the Company: 550

In there, technical staff and managerial staff is 75 people

2.1.5 QUALITY ASSURANCE SYSTEM - LEGAL REPRESENTATIVE OF CONTRACTOR

DIC No 4 Joint Stock Company was built a complete quality management system ISO 9001 version 2000 and was certified ISO 9001-2000 by TQCS International Pty Ltd

The legal representative of DIC No 4 Company:

- Mr Le Dinh Thang Title: General Director

- Adress: 72/86E5 Le Hong Phong street, Ward 4, Vung Tau City, Ba Ria Vung Tau Province

- Tel : 84-64-3613518 - Fax: 84-64-3585070

- Email : info@dic4.vn

FINANCIAL CAPACITY OF DIC No 4 COMPANY

Summary financial data in the recent fiscal years:

(Base on financial statements 2008 - 2009 - 2010 has been audited, unit: VND)

6 Profit after taxes 10.161.413.546 7.909.091.705 10.637.247.731

Table 2.2: Summary finacial from 2008-2010

(Source: DIC No 4 company)

VOLUME OF PRODUCTION OF CONSTRUCTION AND INSTALLATION

TYPICAL CONTRACTS THAT DIC No.4 IN PROGRESS

GENERAL HOSPITAL OF BARIA – BARIA VUNGTAU

PROVINCE

Table 2.4: General hospital of Baria

1 Contract name Contract No 41/2009/ HĐKT

2 Project name General Hospital of BaRia – BaRia VungTau

Province

4 Investor Board of projects managers – Construction

Bureau of Ba Ria Vung Tau Province

5 Investor’s address No 215 Le Hong Phong street – Ward 8 –

CLUSTER B3 – THE ADMINISTRATIVE AND POLITICAL

CENTER OF BA RIA VUNG TAU PROVINCE

4 Investor Board of projects managers – Construction Bureau of

Ba Ria Vung Tau Province

5 Investor’s address No 215 Le Hong Phong street – Ward 8 – VungTau

city

6 Date of contract 01/06/2009

7 Implementation period Estimate : 24 months

10 Image

18 FLOOR- APARTMENT - No 83, PHAN CHU TRINH TREET –

VUNG TAU CITY

OFFICE BUILDING - No193 DINH TIEN HOANG STREET – HO CHI MINH CITY

Table 2.6: Office buiding

2

2.2 Analyse the actual situation of DIC No 4 Joint Stock Company in term of strategies:

2.2.1 Factors influencing on strategies:

Regarding to macro, company maybe influenced by factors as belows:

- Economics;

- Culture, society, geography;

- Law, government, and politics,

- Technology;

- Competitiveness

2.2.2 External Factor Evaluation (EFE) 2.2.2.1 Economic Environment

Company may be influence by: Economic cycle, economic growth, GDP, GNP, especially Personal Income PI, inflation rate, unemployment rate, interest rate policy, monetary policy, international payment balance, foreign exchange, stock price fluctuation, governmentally economic policy, ect

2.2.2.2 Cutural, social, geographical factors

Company is influenced by these following characteristics: Population, culture & living standard, costoms, lifestyles, consumer behaviors, geographical location, land

& rivers, natural resources, enery policy, infrastructure, ect

2.2.2.3 Lawyal & polictical factors

Comany generally, and DIC Join Stock Company in particular are all influenced

by external factors, which are: polictical stability, national defense, social order, legal system, policy & preferbalility, tax & investment law government role & administrative management system, law, external relation, international frestige,

2.2.2.4 Technological factor

Today, information & technology is the base to make the competitiveness; almost successful company who cut cost by the application of high technological achievement So did DIC 4 company

No Major EFE

Impor tant level

Table 2.7 External Factor Evaluation Matrix of DIC 4 Joint Stock (EFE):

Show that company made pretty good reaction; company strategy applied & reactied effectively to External factors

7 Increasing energy price (electrical price) 0,10 4 0,40

10 Government policy to reduce or exempt tax 0,12 3 0,36

Suppliers: May bring the pressure of increasing or decreasing the supply quantity or raising supply price

Potential competitors: they are start-up companies or companies want to join the construction sector, in which DIC No 4 does its business

Companies manufacturing substitute products: company products high class plastic window of brand Vinawindow

Companies doing the same business: companies who do business of other kinds of window such as: Ero window, EU window, Queen window, EBM window vv…

2.2.4 Competitors

With sector diversification strategy, the key area is still Construction, Investment In addition, its office is based in the key business area of the Southern,

so DIC No 4 is under the pressure of competitiveness

Because the construction have its own typical characteristics and depend much on the opinion of the business leader, & its business capability is relatively small, its revenue is majorly from construction, to the extent of this thesis, we just analyze more on the competitors in construction:

Competitor analysis is the process assessing the strong points and weak points of the current as well as potential competitors The analysis help the enterprise a full picture of the attack and defense strategy, then enterprise can define opportunity and challenges Specifying competitors is the process of collecting all information sources on competitors systematically, in order to support formulating, developing and adjusting the best strategy

Analysis of the targeted competitors is crucial and required the answers to the 4 following questions:

1 Who are your competitors?

2 What do they want?

3 What can they do?

4 What will they do?

Even though DIC No 4 is estimated as strong brand company in construction

in Ba Ria Vung Tau, DIC No 4 is the pioneer in building high rise building with years of experience, and DIC No 4 is the subsidy of a big economic organization in Construction, there’s till DIC No.4’s competitiveness, some harsh competitiveness

in the bid of several large scale projects

Back to question “Who are the company competitors”, its competitors in

Ba Ria – Vung Tau are: Urban Development & Construction Company, Dong Nam construction company, Tan Phuoc Thinh Joint Stock company, Vung Tau Real Estate and Construction Joint Stock company, and others company from other province having its office in Vung Tau such as Phuc Hung Joint Stock company, Cuong Thinh Company Limited,… These are company capable in construction ensuring competitive quality and progress compared with DIC No.4 They show strong desire to get the market share to reinforce its position and to enhance its capability However, they just achieved several small or medium projects Just some are really competitive to DIC No.4 in large project and high rise building

To assess the details of its competitors on the technical system basis, we analyze its competitors and set up the competitive image matrix

Table 2.8: COMPETITIVE IMAGE MATRIC BETWEEN DIC No

4 & ITS COMPETITORS IN CONSTRUCTION

No Success factor in

Construction

Weight Rate

Weight

Assessm ent Rate Weight

Assess ment

Assess ment

Assess ment Rate

Based on the assessment rate on the above matrix, we find DIC No 4 have much more competitiveness than others in the same area The matrix, however, just compare the winning possibility at the big project bid They are equivalent in small and medium project

From the competitive theory, we find competitor definition will bring a high competitiveness So it is the complete definition of competitors will be the key to success to competitiveness This help you know who are your competitors in the next step in business

(Sources: Competitor analysis textbook translated by Phạm Vũ Hoàng Quân from Wikipedia)

2.2.5 DIC No 4 Joint Stock Internal factor (IFE)

Study the enterprise internal factors to find out company’s strenghten & weeknesses, through which enterprise seek for its competitive advantage and area of improvement The analysis result is the most important base to plan enterprise’s strategic business

DIC No 4 should focus on following points: