BUILDING BUSINESS STRATEGY of BEN JSC cpmpany

ABBREVIATIONS EFF External Factor Evaluation Matrix IFE Internal Factors Evaluation Matrix SWOT Matrix Strengths - Weaknesses - Opportunities - Threats QSPM Quantitative Strategic Planni

CAPSTONE PROJECT REPORT BUILDING BUSINESS STRATEGY PERIOD OF 2011 - 2015 – BEN JOINT STOCK COMPANY

Subject: Strategy Administration

Group: 13_ Class M0709

Full name: Nguyen Thi Kim Anh

Phung Thi Thu Ha

Vu Danh Hiep

Do Thi Hoa

TABLE OF CONTENTS PREAMBLE

1.1 General context, necessity and importance of theme research

1 2 Research purposes and application capacity

1 3 Research method

CHAPTER I: THEORETICAL BASIS

1.1 FUNDAMENTAL PROBLEMS OF STRATEGY

1.1.1 The concepts of strategy

1.2.3 Analyze labor forces to determine essential capacities

1.2.4 Sep up long-term objectives

1.2.5 Select strategy:

1.2.6 Steps to establish strategy

1.2.7 Tools to establish and select strategy

1.2.7.1 Tool supplying information to establish strategy

1.2.7.2 Tools to build optional strategy

1.2.7.3 Tool to select strategy - Quantitative Strategic Planning Matrix (QSPM)

CHAPTER II: ANALYZING ACTUAL STATE OF ENTERPRISE

2.1 Overview of Enterprise

2.2 Analysis of factors impacting on business environment of Ben joint

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stock company

2.2.1 Macro environment

2.2.2 Industry environment of BEN

2.2.3 Evaluating the opportunities and threats of BEN

2.3 Operation analysis of Ben company

2.3.7 The company’s culture:

2.3.8 General evaluation of BEN’s internal conditions

CHAPTER III: CONSTRUCTION DEVELOPMENT STRATEGY OF

SUSTAINABLE CORPORATION

3.1 Perceptions of strategic objectives and strategy

3.1.1 BEN strategic perspective

3.1.2 The goal of the BEN to 2015

3.1.3 Prospects and market forecast

3.2 Construction development strategy of the company

3.2.1 SWOT analysis matrix to suggest strategies

3.2.2 The proposed strategy

3.2.3 Strategic choices

CHAPTER IV: SOLUTIONS, CONCLUSIONS AND

RECOMMENDATIONS

4.1 Solution to implement strategy

4.1.1 Solution to implement the strategy of market development

4.1.2 Solution to implement strategies on quality improvement and product

differentiation

4.13.Solution on implementation of human resource strategy

4.1.4 Solution on implementation of organizational re-structure strategy

4.1.5 Solution on implementation of other function strategies

4.2 Conclusion

4.3 Recommendations

REFERENCES

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ABBREVIATIONS

EFF External Factor Evaluation Matrix

IFE Internal Factors Evaluation Matrix

SWOT Matrix Strengths - Weaknesses - Opportunities - Threats

QSPM Quantitative Strategic Planning Matrix

CNTT Information Technology

GDP Gross domestic product

WTO World Trade Organization

LIST NUMBER OF DATA TABLE

Table 3 : Human Resources Structure basing on Business

structure of BEN

35

Table 4: Human resources Structure basing on Age: 36

Table 6: Report of business activity results in 03 years 40

Table 7: Internal Factor Evaluation (IFE) Matrix of BEN 44

PREAMBLE:

1 1 General context, necessity and importance of research

Vietnam joined the WTO organization and is now attracting investment from bigtechnological companies such as Intel and Microsoft In 2006, Intel Corporation invested 1billion USD to build the largest Chip production and testing plant in Asia and it went intooperation in October 29, 2010

In 2008, IDG, reputable International Data Group of USA decided to invest 500million USD into Vietnam's IT market, and disbursed to the end of 2010 Therefore, alongwith the $ 100-million fund of Vietnam Venture Capital Fund IDG operated from 2004 tonow, capital of the IDG in Vietnam will reach the figure of $ 600 million IT services willgrow fastest with the second growth rank in Asia - Pacific region, after India.

According to data announced by GFK Market Research Company (Germany), themarket size of information technology (IT), Electronics and Telecommunications ofVietnam in 2008 was $ 3.9 billion and was expected to reach $ 4.9 billion in 2009

In 2008, despite the world economic downturn, the information technology industry(IT) of Vietnam achieved the growth of 20% Since 2007, Vietnam entered Top 30 of themost attractive nations in the world of software outsourcing Vietnam now ranks 18th inthe world with the number of 21 million Internet users, 6th in Asia on internet developmentspeed

The Government, together with IT enterprises and training units set a target by theyear 2015: it is estimated that Vietnam will have 600 thousand professionals in IT andincrease to one million in 2020 The government also approved funding to support thedevelopment of software industry and IT in Vietnam The goal is that by 2020, Vietnamwill become a powerful nation in IT

Vietnam has 75% of young and highly educated population and more importantly,they always have a positive attitude and really look forward to application of informationtechnology to life These are good conditions for further development of Internet inVietnam and also a big opportunity for companies trading in hardware and software inVietnam

Computer is considered a powerful and useful tool in life of a modern society Thedevelopment of used computer generations can also show that a part of growth of a nation

Year 2009 is the year that Vietnam Computer market witnessed a truly domination

of the notebook computer (laptop) compared to desktop computer (Desktop) Many expertspredicted this trend would continue in 2010

According to Mr Thieu Phuong Nam, Sale Manager of Intel in Vietnam andIndochina, the growth of the computer in the Vietnam market in 2009 has exceededpreviously predicted expectations and forecast of Intel In particular, the laptop is a productgroup with the highest growth rate, about 70% in 2009

There are three reasons for this result First, in 2009, despite the impact of globalcrisis, Vietnam's GDP growth was still positive The second reason is the demandstimulation program of the Government has had a direct impact to the expenditure ofVietnam people, such as, tax reduction program from 10% to 5% for computer products

Another reason leading thriving of Vietnam Computer market in 2009 is thanks togreat demand for purchase of computers by pupils and students in the country Computernow almost become an indispensable learning tool of pupils and students.

In the condition of the growth and the average need of 20-25% annually for theinformation technology sector, averagely and annually, dozens of large and smallcompanies are formed BEN Computer Company was formed in 2001 with a very smallscale from a computer retail store with an area of 30 m2 and total staff of about 50 people.From that it developed to BEN joint stock Company with its head office area up to nearly

1000 m2 with total staff of up to 200 people

In an open economy and perfect competition environment, although Company hashad a certain place and a certain market share for customers and partners, the board ofDirectors of company see that Company should have a clear business strategy plannedthrough the qualified experts in business to build the sustainable development competition

of the company For this reason, in 2009, the Board of Directors of company assignedmanagers to study MBA program of Master of International Business Administration(GaMBA) linked to organize by Griggs University (USA) and the Center of TechnologyTraining and Employment System of the Hanoi National University with very clearobjectives to acquire knowledge in school and build business strategy for the company infive years from 2011 - 2015

The field selected by the Group 13 as the topic for graduation test is to build business strategies for Ben Joint Stock Company to trade Notebook, set of computer, computer assembly with Ben brand name and distribute IT products as a member of the group is Vice Sale Manager of the Company.

1.2 Research purposes and application capacity

According to research by IDC, the PC market in Vietnam has faced many challenges

in the first half of 2010 due to falling demand However, the laptop market continues togrow despite the inventory and fierce competition on the retail price Demand on desktopdecrease due to less demand of consumer, as well as budget cuts for government projects

on education

IT Products business segment in 2011 is predicted 20% growth by IDC

Based on the above predictions, Ben Joint Stock Company has also built a businessstrategy orienting to 2015 with the following specific objectives:

+ To transform business form from distribution and retail to fully retail

+ To expand the scale by opening more shops of utility at new residential area: it isestimated to open 03 Ben Store

+ Market share of about 10 - 15% retail market share in the North; to rank No 1 onsales of information technology products in the North

+ Average revenue growth of 20-25% per year

+ To expand products: mobile phone, LCD TV

+ To coordinate with Intel manufacturers to produce computer with BEN 10 brandwith the average number of 5,000 products per year

+ To coordinate with other computer Corporate such as Acer, Toshiba, HP to buildlink stores such as Hp Store; Toshiba store, Acer Store to continue success of two Stores in

2009 and 2010 namely Dell Store and Lenovo Store

+ To build a complete ERP system administration

* Applicability of theme

The Company has prepared the infrastructure and investment for long-term strategy

by hiring more spaces in 2010

According to the overall growth trend of the industry

Orientation of leaders about the possibility of sustainable and long termdevelopment of enterprise

1.3 Research method

To complete the requirements and meet the objectives of the research process, thegroup conducted concurrently the following methods:

- Method of investigation, field surveys in the enterprise

- Analysis of the overall strategy based on planning tools according to BCGMatrix, SWOT and the theory of competitive strategy by Michael E Porter

- Comparison of evidence and from which to make comments, reviews,effectively and feasible recommendations and solutions

CHAPTER I THEORETICAL BASIS

Focusing on intensive research of business strategy (as a scheduled index) and

concurrently, add knowledge in the fields studied in other universities:

+ Marketing Administration

+ Corporate Finance

+ Human Resource Administration

+ Development of leadership skills

Define the business strategy of the company: Different and low cost

1.1 FUNDAMENTAL PROBLEMS OF STRATEGY

1.1.1 The concepts of strategy

There are many different definitions of strategy; each definition is more or lessvaried depending on the different views of each author

In 1962, Chandler defined strategy as “The determination of the basic long-term

goals and objectives of an enterprise and the adoption of the courses of action and the allocation of resources necessary for carrying out these goals.” 1

In 1980, Quinn defined a more general strategy as "a strategy is the pattern or plan

that integrates an organization's major goals, policies, and action sequences into a cohesive whole” 2

Then, Johnson and Scholes have redefined the strategy in the changeable

environment as: "Strategy is the direction and scope of an organization over the long-term:

which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations” 3

According to Mintzberg, definition of strategy can be summarized with the 5 Ps

Plan: Sequence of actions planned in a consistent manner

Pattern: consistency in behavior, whether or not intended

Position: "match" between organization and environment

Perspective: A way of perceiving the world

Ploy: a specific manoeuvre intended to outwit an opponent or competitor

In essence, the definition of strategy depends on standpoint, however, in the mostcommon, the strategic levels include: Company-level strategy, Business Unit level strategyand functional strategy

According to Charles W.L.Hill and Gareth R Jones: "Strategy is a process of

determining the basic and long term objectives of an enterprise, choosing the method or the direction of operation and allocation of resources necessary to implement that goal"

Fred David: "Strategy is the means to achieve long-term goals."

William J Glueck: "Strategy is a unified, comprehensive and integrated plan

designed to assure that the basic objectives of the enterprise are achieved”.

Business strategy of an enterprise is a general action program towards theimplementation of the optimal objective of the enterprise However, the strategy is not

1 Chandler, A (1962) Statregy and Structure.Cambrige Massacchusettes.MIT Press.

2 Quinn, J,B (1980)Statregies for change; Logical Incrementalism Homewood.

3 Johnson, G, Scholes, K (19990 Exploring Corporate Statregy, 5 th Ed.Prentice Hall.

aimed to specifically outline how to achieve those goals but only to frame to guide thinkingand action.

The important feature of all business strategies when are formed and paid attention

to is the "competitive advantage" because it is used to distinguish them from other businessplans In fact, any competitor develops their own strategies because strategy is the onlypurpose and ensures for enterprise to search and gain their sustainable advantages beforetheir competitors

Through access to the above definition, whether expressed, but we can generalizethe Strategy as

“A complex series of actions to mobilize the resources possible of an organization to

achieve a certain goal"

1.1.2 Strategic Management

According to Garry D Smith, "Strategic Management is defined as the process of

studying the current environment as well as in the future, planning objectives of the organization: propose, implement and supervise the implementation of decisions designed

to achieve the objectives in current environment as well as in the future”

According to Fred R.David, “Strategic Management can be defined as the art and

science of formulating, implementing and evaluating cross-functional decisions that enable

an organization to achieve its objective.

Strategic Management focuses on fusion of the management, financial and accounting marketing, manufacture, research and development of information systems and business sectors to achieve success "

There are many different concepts of strategic management, but according to thedocument "Strategy & business policies" of the doctor Nguyen Thi Lien Diep, we can setthe following three approaches:

•Environmental approach: "Strategic Management is a decisive process aimed at

connecting the internal ability of the organization with the opportunities and threats of the outside environment." Characteristics of this approach are to make company-oriented

environment, exploit opportunities and deal with risk

•Approach of the objectives and measures: "Strategic Management is a part ofdecisions and administrative actions set long-term performance of a company." Thisapproach allows administrators to define precisely the objectives of the organization, which

is the foundation of management as well as to use efficiently the resources of theorganization

•Approach of action: "Strategic management is carried out considering the present

and future circumstances, create goals of the organization, make decisions and control decisions, focus on implementing objectives in the current and future situations "

Strategic Management is defined as the process of studying the current environment

as well as in the future, planning objectives of the organization: propose, implement andsupervise the implementation of decisions designed to achieve the objectives in currentenvironment as well as in the future as well as to enhance the competitiveness and position

Environmental conditions that organizations face is rapidly changing and often makessurprises, Strategic Management helps administrators see clearly the future environment,there they can better hold and take advantage of good opportunities, and can avoid orreduce risks

Strategic Management helps managers use effectively the existing resources ofenterprises and allocating them appropriately It allows the company to associate thedecisions with the environmental conditions involved In addition, strategic managementalso brings harmony between needs of the organization, through which, inducing managers

at all levels and creates resonance to achieve the overall objectives of the Company

The actual researches show that the companies applying strategic management oftenachieve better results than the former results and compared with results of the Companiesthat do not apply strategic management

1.2 CONTENT AND STEPS IN BUILDING STRATEGY

1.2.1 Environmental analysis

To build business strategies, the study of environmental factors is important, it canhelp businesses identify opportunities to hold and realize the risks and challenges for aprecaution

Environment is factors, forces; institutions existing effecting the operation and performance of the business Business environment includes the macro environment, the micro-environment (sector) and conditions of the enterprise

The combination of strong points and weak points with the opportunities and risksallows to form SWOT matrix and the strategies enable to select

Research on operation environment of the company is focused on identifying andevaluating trends and events beyond the control of the Company The evaluation ofexternal factors shows opportunities, challenges that the company meets, so the managercan plan out strategies, take advantages of opportunities and minimize risks We turn toanalyze the operating environment of the enterprise including micro environment andmacro environment (Sector environment)

1.2.1.1 Macro environment

1.2.1.1.1 Economic factors

Referring to external factors, they not only orient and affect directly managementactivities but also affect the micro environment of business These factors are also the mainreason to create opportunities and threats to each business in different sectors Research onmacroeconomic factors plays an important role for management activities of an enterprise,including the following factors: economic growth, inflation, exchange rates, interest rates,wages and income

1.2.1.1.2 Factors of law, government and politics

Factors of law, government and politics include systems of perspectives andpolicies of the Government, the current legal system, political and diplomatic trends withother countries, the political happenings in the country, region and world

Political and legal factors can create opportunities or threats for enterprises To takeadvantage of opportunities and minimize risk, the companies must capture the perspectives,regulations, priority programs of the Government and establish a good relationship, evenperform the lobby when necessary, in order to create a favorable environment for businessactivities

1.2.1.1.3 Social factors

The social factors involve recreation interests, ethics, aesthetics, lifestyle,occupation, customs, traditions, concerns and priorities of society, level of awareness andeducation of society The social factors often change too slowly to recognize

1.2.1.1.4 Natural factors

Natural conditions consist of geographic location, climate, landscape, land, riversand sea; minerals in the earth, resources of sea forest, water and air The naturalconditions are important input factors for many economic sectors In many cases, thenatural conditions become important factors to create competitive advantage of productsand services

1.2.1.1.5 Technological factors

This is a dynamic factor containing many opportunities and challenges for thebusinesses, the pressures and threats derived from the technological environment are that:The new technologies lead to appear and increase competitive advantages of substituteproducts, threaten the traditional products, make pressure and require the businesses torenew technology to increase competitiveness

In addition of the above threats, technological environment also creates certainopportunities for some businesses, such as: new technology creates conditions tomanufacture products of higher quality, cheaper price and competitiveness Usually, thefollowing businesses have many advantages to make use of this opportunity rather thanexisting enterprises in the sector

1.2.1.1.6 Worldwide

In the trend of globalization today, the participation in associations, in internationaleconomic organizations such as WTO, APTA has considerable influence on theenterprise They need to identify orientation of economic integration with the worldeconomy in development strategy of the enterprise The businesses will stay backward andundeveloped if the growth of enterprises is not located in the trend of globalization andintegration

1.2.1.2. Micro environment:

Macro environment includes interior and external factors for the Company, decidingfeatures and competitive levels in the business production There are five basic factors:Competitor, Supplier, Customer, replacement product and potential rivals Besides,Distributor and Creditor are factors affecting business environment of the Company

To give a successful strategy, the Company should carefully analyze each factor

Understanding on these factors helps the Company realize its strengths, weaknessesrelated to opportunities and threats faced by the business services

1.2.1.2.1 Competitor:

It is important to understand competitors for a Company because of many reasons.Competitors go against, deciding features and competitive levels or trick for advantages inthe industry depends on competitors

1.2.1.2.2 Customers (Buyers)::

Customer is an integrated part of the Company; faithful customer is a big advantage ofthe Company Faithfulness of the customer is built by satisfaction of customers and desiresfor better

1.2.1.2.3 Suppliers:

Companies must link with suppliers for different necessary resources for their ownbusiness production such as materials, equipment, human resources, capital and so on.Research for understanding suppliers, human resources for the enterprise can not ignoreduring environment research

1.2.1.2.4 Potential rivals:

Potential rivals joining business in the industry is also a profitable factor of the enterprisebecause they exploit new production capacities for market shares and necessary resources.Therefore, on building strategy and protect the competitive status, the enterprise shouldmaintain legal barrier from outside

1.2.1.2.5 Substitution product:

Substitution product is result of technological- technical explosion Pressure ofsubstitution product limits high price for Companies in the industry If potential substitution

products are not paid attention to, the enterprise can be backward against small markets.Thus, the enterprises should pay attention and take human resources for development oroperate new technologies in their strategy for success

1.2.2 Internal conditions of the Enterprise

Each Company has strong and weak points in its business No Company is strong or weak in all aspects Internal strong and weak points together with external opportunities andthreats and clear tasks are basic points concerned when objectives and strategies of the Company are established Companies should analyze internal factors to clearly define their strengths and weaknesses Base on this, they give methods to reduce weaknesses, mobilize strengths for maximum advantages Key internal factors include functional areas as follows:

to carry out the given strategy, including recruitment, training, rewards and punishment asappropriate

Research and development are to create new products prior to competitors, raisequality of the product, control or improve production process to minimize costs Researchand development can help the Company keep the vanguard position or be backward againstrivals in the industry

Administration includes:

* Planning: all activities related to preparation for the future: estimate, build

objectives, give strategy, develop policies and form plans

(5) – Textbook of strategic Administration- Griggs University

* Organization: activities creating structure of relationships between rights and

responsibilities Concrete works are: to design organization, specialize job, describe job,detail job, expand the control, unify the order, coordinate, arrange, design and analyze job

* Leadership: includes attempts to orientate activities of human beings, specified:lead, contact working groups, change method of operation, mandate, raise work quality,satisfy job, satisfy demand and change organization

* Control: management activities to ensure real result suitable to the given one Key

activities: check quality, finance, sale, inventory, costs, analyze changes, reward and punishand so on

Production and operations include all activities to transform inputs into goods orservices Administration of production - operations requires five following requirements:Firstly, the process: design the physical production system Second, capacity: determinesthe best output Third, the inventory: management of raw materials level, work in processand finished products Fourth, the labor force: the management of administrative staff,skilled workers and unskilled workers Fifth, quality: producing high quality products

Factors are concerned by administrators, weaknesses in this work often causesdifficulties for the implementation of objectives of the enterprise Contents to beconsidered: the ability of capital compared with the performance requirements of plans ofthe enterprise; the ability to raise capital from outside; the situation of distribution and use

of funds; the control of costs, the revenue - expenditure and financial relations internallyand with other units

Marketing is described as the process of identifying, forecasting, setting and meetingthe needs, desires of consumers for products and services According to Philips Kotler,marketing activities include four basic tasks: First, analyze the ability of the market; second,choose target market; thirdly, draft program marketing mix (product, price, distribution andpromotion); fourth, conduct marketing activities

1.2.2.8. Corporate culture:

Corporate culture plays an important role in strategic management in the company.Corporate culture effectively creates differences in values, norms, rituals and festivals forthe development of companies and in guiding the behavior of workers

Image 4 – Conditional diagram inside the Enterprise

1.2.3 Analyze labor forces to determine essential capacities.

Every business has its strengths, weaknesses and unique environmentalcharacteristics Therefore a strategy can help this business succeed, but not be effective inother enterprises, situations Development places the enterprise in front of the choice ofbusiness domains and markets Companies can only focus on one business area, developunder the direction of vertical integration, or diversify new business areas

The objective of the analysis of business structure is to choose a set of appropriateproducts (services) through the review of future prospects of each business area Todetermine the structure of business, managers need to find probable strategic alternatives,from which to choose strategies from the set of strategies according to different approaches

If the company diversifies businesses, it can choose a set of relevant business areaspossibly achieved by using one or more the analytical tools of business structure.Businesses can use the analytical tools of business structure or can define positions ofbusinesses in two criteria: highly or lowly tangible and intangible assets There is also able

to identify businesses in three, four or more different parameters

1.2.4 Sep up long-term objectives

Each objective typically requires a period of time and associates with a certaincriteria such as growth of revenue, capital or market share So the timeframe for objectivesand strategies should be suitable together

Corporate culture (orderly routine)

Information system

Marketing

Finance

Production- Operation Administration

Research and Development (R&D) Labor forces

Internal conditions of the Enterprise

It should be noted that in an era of integration and globalization trends, identifyinglong-term goals should not be too ambitious for a too long period, usually from 2 to 5 years

is most appropriate

1.2.5 Select strategy:

The choice of strategy is based on following options:

• First, the advantages of the Company, through analyzing thefollowing aspects:

- The strength or relative position of the company compared tocompetitors

- Based on the profit / high investment capital in the future of theindustry

- Analyze the value chain of customers, the Company and itscompetitors

• Second, goals: Strategies selected for achieving goals

• Third, resources, financial conditions

• Fourth, qualifications, abilities of the Company: depending on thequality and level of ability, different capacities of the company tochoose strategies

• Fifth, the legal basis and the reaction of stakeholders: suppliers,alliance partners, customers

• Sixth, to identify investment opportunities

The strategy is long-term mode of operation Thus the basic characteristics arerooted in the economic nature and technology of the industry should be particularly paidattention, much different to short-term factors which temporarily affect competition andshort-term profit of the business The choice of strategy depends on cultural aspects,political factors and the role of the strategic management board which is most dominant inthe selection of strategy

Through the process of environmental analysis, the strategic makers have subjectivejudgments based on objective information about politics, culture, morals and socialresponsibility; they set out the strategy combination and analysis of feasible capabilities andselect process of particular action Under organizational structure of enterprises, the extentand coverage scope of the strategy can be divided into three levels:

* Company-level strategy: Focus on solving problems:

o How to allocate resources

o Which areas should be developed

o Which new areas should be maintained

o Which areas should be involved in

o Which areas should be removed

* Monophyletic business unit level strategy: focus on defining mode of operation for each

business area of a multicompany or a SBU (strategic business unit) or an enterprise Thisstrategy focuses on the problems: how to overcome the competitive forces? Defensive oroffensive? Based on low cost or product differentiation, main-point concentration? This isalso the focus of competitive strategy

According to Michael E Porter [6]: "The purpose of the competitive strategy of a business

unit in the industry is to find a position in the industry, where companies could succumb to the competitive forces in best way or they may impact them to his advantage”

* Functional strategy: Determine mode of actions of each functional component:

Marketing, research and development of product, production, personnel, finance,information and so on to support, ensuring the implementation of strategy of the company,competitive strategy of the unit Support for the implementation of strategy of the SBU andcompany includes:

o Marketing Strategy

o Administrative Strategy

o R & D Strategy (technology strategy)

o Production strategy (services) / Activities

o Financial strategy

o Human resources strategyThe majority of small and medium-sized enterprises and even some large businesseshas no strategic business divisions, strategic business tasks is also considered and settled bythe company

1.2.6 Steps to establish strategy

Process to build strategy is carried out through following steps:

This phase summarizes basic information entered necessary to form strategies Theformation consists of analyzing the external and internal environment The strategicmanagement techniques such as matrix evaluating external factors EFE, matrix valuatingelements inside the IFE, competitive image matrix and so on often used during this period

This is the time to focus on making feasible strategies possibly selected byarrangement, combination of important factors inside and outside The techniques whichcan be used in this phase include: SWOT Matrix, strategic location Matrix and actionanalysis (SPACE), BCG Matrix, internal and external elements Matrix (IE), key strategicMatrix

In the framework of the subject and with the characteristics of the enterprise, SWOTshould be used, because it suits to the actual situation as well as the data can be met On theother hand, it is a method commonly used, easy to implement, fairly completed andsomewhat less time-consuming.

This is the final stage to choose strategies for businesses to pursue The strategychosen must be arranged in order of priority To pick out the strategies, managers can usequantified strategic planning matrix (QSPM) The decision to choose the strategy fallsunder the jurisdiction of the best managers in each company

In this thread, only preliminarily selecting appropriate strategies to suggest business topursue based on the analysis and evaluation of the business environment of the businesssuch as finance, human resources, marketing, competitor, and the law and so on Criteria tochoose strategy:

• Ensure to achieve the objectives of the Company

• The effectiveness of enforcement of strategies

• Feasibility (feasibility on finance, staffing, level of technology, governmentregulations and so on)

All the techniques in strategy formulation processes require a combination ofintuition and analysis process The use of these techniques allows the analysis and synthesis

of many factors that impact and evaluate them objectively, interpret successfully by themethod of system thinking

1.2.7 Tools to establish and select strategy.

1.2.7.1.1 External Factor Evaluation Matrix (EFE)

EFE Matrix helps summarize and quantify the influence of environmental factors forthe Company

According to Fred R David, the EFE matrix is established through five steps:

Step 1: Make a list from 5 to 10 external factors which have a decisive role for the

success of the Company, including the opportunities and both the threats affecting theCompany and its business industry

Step 2: Determine the importance from 0.0 (not important) to 1.0 (very important)

for each element This classification shows the corresponding importance of the elementsfor success in the business of the Company Appropriate level of classification can bedetermined by comparing successful and unsuccessful companies in the industry Totallevels of importance must be equal to1.0

Step 3: Classify from 1 to 4 for each element to see the company's response to these

factors These levels are based on the effectiveness of strategies in the Company In which:

4 is good, 3 is above- average; 2 is average, 1 is weak

Step 4: Multiply each of the importance of each factor to its kinds to get some

important points

Step 5: Plus all important points of each factor to determine the total important

points of the company

Regardless of EFE matrix has how many opportunities and threats, total scores ofthe highest important points that a company can have is 4.0, average is 2.5 and the lowest is1.0 If the total important points is 4, indicating that the Company reacts very well to theexisting challenges and opportunities in its environment But total important one is 1,showing that strategies given by the Company does not take advantage of opportunities andavoid the external challenges

1.2.7.1.2 Competitive image matrix

In the events that affect a company's strategy, the impact of competition isconsidered the most important Competitive image matrix identifies the major competitors

as well as their particular strengths and weaknesses This matrix is an extension of theexternal factor evaluation matrix (EFE) in the case of important levels, classification andtotal important points have the same meaning

How to build competitive image matrix is similar to how to build the external factorevaluation

Classification level shows the Company's strategies response to each factor: 4 isgood, 3 is above average, 2 averages and 1 is poor

1.2.7.1.3 Internal Factors Evaluation Matrix (IFE)

(IFE) Matrix summarizes and evaluates the strengths, weaknesses of functionalbusiness divisions and it provides the basis for determining and assessing the relationshipbetween these divisions IFE matrix is established through five steps:

Step 1: List from 10 to 20 key internal elements, including strengths and

weaknesses

Step 2: define important levels from 0.0 (not important) to 1.0 (very important) for

each factor (based on industry) This classification shows the relative importance of factorsfor the success of the company in the industry Total important levels must be 1.0

Step 3: Classification from 1 to 4 for each factor (based on the Company), in which:

1is the biggest weakness; 2 is the smallest weaknesses; 3 is the smallest strengths; 4 is thebiggest strengths

Step 4: Multiply each of the importance of each factor to its kinds to get some

important points of each element

Step 5: Plus all important points of each factor to determine the total important

points of the company

Regardless of IFE matrix has how many elements, the total score of the highestimportant points that a company can have is 4.0, the average is 2.5 and the lowest is 1.0 If

the total score is greater than 2.5, indicating that the company has strong interior, and lessthan 2.5, meaning its interior is weak

1.2.7.2.1 Strengths - Weaknesses - Opportunities - Threats Matrix (SWOT)

The purpose of the SWOT matrix is to give optionally feasible strategies but not todecide which strategy is best Therefore, in the strategy to set out SWOT matrix, only a fewbest strategies are selected for implementation

Model of SWOT analysis is a useful tool for understanding and deciding in any situation for any business organization 4 abbreviated letters are S (strengths), W (weaknesses), O (opportunities) and T (threats).

Strengths and Weaknesses are the internal factors of the company, Opportunities andthreats are external factors of SWOT to help analyze different factors which have relativeinfluence on the competitiveness of the company SWOT is often associated with PEST(Political, Economic, Social, Technological analysis), model of market analysis andevaluation of potential through external factors in terms of political, economic, social andtechnological SWOT analysis is the evaluation of the data arranged in the form of SWOT

in a logical order to help you understand as well as present and discuss to reach thedecision-making easier

SWOT analysis is a subjective evaluation of the data arranged in a SWOT format inlogical order and easy to understand and present, discuss and make decisions, which can beused in all decision-making process SWOT samples enable to stimulate thinking ratherthan based on the reactions of habit or instinct SWOT analysis sample is presented as amatrix of 2 rows 2 columns, divided into four sections: Strengths, Weaknesses,Opportunities, and threats Therefore it is necessary to clarify the subject of analysisbecause SWOT evaluates the prospects of a certain issue or subject, such as:

SWOT matrix is an important combination tool to help managers develop four types of thefollowing strategies:

- Strengths - Opportunities Strategy (SO): The strategies use the strengthswithin the enterprise to take use of external opportunities

- Weaknesses - Opportunities Strategy (WO): The strategies are to improveinternal weaknesses to the business to take advantage of externalopportunities

- Strengths - Threats Strategy (ST): The strategies use the strengths within thebusiness to avoid or reduce the impact of external threats

- Weaknesses - Threats Strategy (WO): The strategies are to improve internalweaknesses to avoid or reduce the external threats

The combination of internal and external important elements is the most difficult task

of establishing a SWOT matrix It requires a good sense, appropriate and optimal

combinations of the internal and external elements If not, the development of strategieswill not bring the desired results The construction of SWOT matrix is carried out througheight steps:

Step 1: List important opportunities outside the company

Step 2: List the important challenges outside the company

Step 3: List the strengths within the company.

Step 4: List the weaknesses within the company

Step 5: Combine strengths to opportunities to form SO strategy

Step 6: Combine weaknesses to opportunities to form WO strategy.

Step 7: Combine strengths to threats to form ST strategy

Step 8: Combine threats to weaknesses to form WT strategy

1.2.7.2.2 Key strategic matrix

All organizations can be located in one of the four square corners of the key strategicmatrix This Matrix assesses the position of the company based on two aspects: competitiveposition and market growth Strategies appropriate to the Company are listed in attractiveorder in each square corner of the matrix

1.2.7.3. Tool to select strategy - Quantitative Strategic Planning Matrix (QSPM)

According to Fred R David, QSPM matrix uses input information from the IFEmatrix, EFE matrix, competitive image matrix, SWOT matrix and key static matrix toobjectively evaluate the best alternative Six steps to develop a quantitative strategicplanning matrix QSPM as follows:

Step 1: List the external opportunities / threats and internal strengths / weaknesses of

the company The information is taken directly from the IFE and EFE matrix This matrixincludes a minimum of 10 external important success factors and 10 internal importantsuccess factors

Step 2: Sort each internal and external important success factors This classification is

similar to the IFE and EFE matrix

Step 3: Identify possible alternative strategies that the Company should consider for

implementation Collect strategies into separate groups if possible

Step 4: Determine attractive points of each strategy (AS) Attractive score indicates

relative attractiveness of each strategy compared with other strategies Only strategieswithin a group can be compared with each other Attractive score is distributed as follows:

1 is not attractive; 2 are somewhat attractive, 3 and 4 is quite fascinating and 4 are veryattractive If success factor does not affect the strategic choice, do not mark strategic points

in this strategic group

Step 5: Calculate total attractive score (TAS), by multiplying the classification score

(step 2) with attractive score (in step 4) in each row

Step 6: Calculate total attractive scores for each strategy The higher score represents

more attractive strategy

Conclusion of chapter I

Strategic management process is a very dynamic and continuous process and each change

in major component of the model can lead to change one or all other components.Therefore, the formation of the activities, implementation and evaluation of strategiesshould be implemented continuously

Every company does not exist independently but is often influenced by environmentalfactors When environmental factors change, they may create opportunities or challengesthreatening the existence and development of the Company

In order to business to be effective, not only requires managers to address internal issues,but also to address the impact factors from the environment, and this is the important issue,deciding the success of the enterprise in the market Therefore, managers should spend time

to study and predict changes in environmental factors, and consider it a work to be carriedout regularly Results of the research of business environment will provide managers theimportant data to give strategies for proper and prompt corporate development

The following are the analysis on operation environment of BEN Corporation, from which

to identify the opportunities, threats, strengths and weaknesses as a basis for formulatingstrategies in the development of BEN Corporation in coming years

CHAPTER II ANALYZING ACTUAL STATE OF ENTERPRISE 1.1 Overview of Enterprise

Company name: Ben Joint Stock Company

Head office: 74 Nguyen Khanh Toan, Quan Hoa ward, Cau Giay, Hanoi

Certificate of Business Registration No.: 0101760800

Charter capital: 9,900,000,000 VND

Number of labor: 200 employees

Ben Joint Stock Company (Ben Computer) was established in 2001 with the BENtrademark issued Certificate no 42378 dated July 25th 2002 by Ministry of Science andTechnology Ben Computer is a company operating in the field of trading Notebook, PCunits, assembly of computer with Ben trademark and distribution of its IT products

Business Types: Retail, Online Sales, Distribution Sales

After nearly 10 years of building and development, BEN Joint Stock Company BEN COMPUTER has become one of the three largest retail companies in Hanoi andbecame one of strategic distribution partner of famous computer corporate: HP, Lenovo,IBM, Acer, Dell, Sam sung, etc in Vietnam

-1.1.1 Business Philosophy

The core value of the enterprise

- Truthfulness: Help us with personal discipline and organizational discipline

- Patience: Help us make commitment to the last

- Constant evolution: Help us to adapt flexibly

- Passion for creativity: Help us actively overcome challenges

Enterprise’s Mission and Vision

We, with the technological products and services, strive to create mutual benefitsfor the community with the highest value and the lowest social cost We constantly create

to become an effective bridge between users and devices, future technology solutions

1.1.2 Current position of enterprise

+ Average revenue growth of 20% per year

+ The third largest market in North and the fifth largest one throughout the country

in the field of computer retailing

+ 7% market share in the North

+As a strategic partner of Intel, Samsung, HP, Lenovo, Toshiba, Acer, Dell

2.2 Analysis of factors impacting on business environment of Ben joint stock company.

the period of 2006-2010 is 7% per year and average national income per capita in 2010 isestimated at $ 1,160

Economic recovery is an important cause of promoting investment anddevelopment The capital source for whole society in 2010 has achieved positive results

It is estimated that total social investment in 2010 reached 800 trillion VND, increasing12.9% compared to 2009 and equal to 41% of GDP In which, capital sources fromprivate forces and population led, by the 31.2% investment capital for whole society, stateinvestment capital (including investment from the State budget, Government bonds,investment credit under the State plan and the investment of state enterprises) by 22.5%,

up 4.7% compared to 2009.These results show that domestic resources are mobilizedmore actively Capital of foreign direct investment (FDI), up to November, the countryhas attracted 833 new projects with total registered capital of 13.3 billion, making up 60%over the same period in 2009, in which, implementation capital is estimated to reach $ 10billion, up 9.9% Although the registered FDI capital is much lower than in 2009 but therate of implementation capital on the registered capital is much higher This can be seen

as bright spots in attracting FDI in 2010 This also shows the long-term commitment offoreign investors in Vietnam market The high and rapid growth rate of investment, onthe one hand, shows that the accumulation and consumption relationship is transferringpositive direction, but on the other hand, shows the limitations of the investmentefficiency

There have been positive changes in Vietnam's legal system in recent years Manylaws, circulars and decrees related to the production and business activities arepromulgated to create a basic legal framework for business activities such as Law onEnterprise, Commercial Law, and Law on Competition Besides, Vietnam has officiallyjoined the WTO, regional trade organizations such as APTA, etc This is an opportunity

as well a challenge for Vietnam enterprises in the process of international economicintegration because of tariff reduction and investment expansion for foreign investors inVietnam

Information technology industry, in general, and the activities of the BEN, inparticular, is area with investment incentives under the Law on Domestic InvestmentPromotion In addition, the Government has also built the technology informationdevelopment strategy by 2020, with resources sufficient to perform This is a hugeopportunity for development of IT enterprises

Vietnam has pursued a strict management policy of foreign exchange through thebanking system to control exchange rates Vietnam dong rate against the U.S dollar hasremained the rate of 19,000 to 20,000 VND / USD, however, during the last time the StateBank continuously adjust the inter-bank rates, discounts VND to reduce trade deficit andincrease reserves of foreign exchange, therefore, the people is reducing their belief in

VND and there have been the phenomenon of economy dollarization Stable level ofexchange rates has a positive impact on import and export activities, reserves of the Stateand socioeconomic development The unstable exchange rate is also creating difficult forCompany in terms of finance to import goods from overseas businesses.

Vietnam is stepping up economic integration with the region and the world Thispolicy has strongly attracted foreign investment, creating the preconditions for theeconomic development in the coming period

Government promulgated and continues to improve laws such as the Law onForeign Investment, Commercial Law, Law on Public Investment, Law on PriceManagement, Law on High Technology, Law on Information Technology, etc toaccelerate the economic reform The open economic policies to encourage thedevelopment of economic sectors have created a favorable, healthy and stable andbusiness environment

State’s policies to encourage foreign investment into Vietnam have been calling formany investors, opening up prospects for many sectors, especially the strong opening forthe technology industry, with the very powerful participation of developed countries such

as Japan, Korea, India, China, U.S, etc

Law systems of Vietnam and documents under the law have been improved andstricter than before However, that there are still many inconsistent, changeable pointsand lack of consistency in the enforcement among authority levels, the localities have alsoadversely affected the operations of enterprises

Currently, Vietnam is a member of the WTO, the tax tariffs will gradually be lifted

by the commitments, enterprises will be more competitive with not only domestic but alsofor foreign enterprises Currently, that the ASEAN countries have established AFTA with

the CEPT Common Effective Preferential Tariff program to promote the general trade

relations among ASEAN countries, including Vietnam has also created manyopportunities and challenges for enterprises in this process of integration

Currently, Vietnam is considered as a country with highly stable politicalenvironment This is important condition for enterprise to feel secured to invest andexpand production scale

Vietnam has implemented policies to expand diplomatic relations with allcountries in the world under the trend of peace, cooperation and respecting each other'sautonomy This is the opportunity for domestic enterprises to expand trade relations withother countries and learn to management experience and expand the consumption market,Etc

These are political and legal factors with strong impact to business operations ofthe Company It can be said that the political system, the law of Vietnam have beencontinuously improved in order to create the best conditions for the operation ofenterprises, however, in some areas, in a number of policies, there have still beeninadequacies and shortcomings which the Government is trying to gradually improve.

- Trends and the basic objectives of the IT development in Vietnam

According to plans, strategies, the National Information Technology Application andDevelopment program, by 2020, with IT as a core, Vietnam quickly switch Socio-economicstructure, basically become an industrialized country and is one of the countries with theadvanced level of information society development in the ASEAN region

By 2010, on the basis of the strong IT development and application, Vietnamreaches the above average level in the ASEAN region for the Information Society

- IT applications

Information Technology is widely applied in all areas, in all sectors to build anddevelop an electronic Vietnam with the electronic citizens, the electronic government, theelectronic enterprises, and the electronic transactions and commerce, etc over 50% of theemployees, 80% of young people who can use IT applications 100% of communes havepost offices and community education center with the Internet connection 80% of publicadministrative services are basically provided by online services Over 50% of basicpublic services is provided information and transmitted by online transactions 90 to100% enterprises apply IT in business management, administration and forcedevelopment, branding diffusion, marketing and market expansion 50 to 60% enterprisesuse IT applications in monitor, improvement and automation of production processes,design, test and evaluation of product quality 25 to 30% of the total transactions ofindustries are made through electronic transactions

- Development of telecommunications and Internet infrastructure

Telecommunications and Internet infrastructure in Vietnam has the moderntechnology, rapid growth, diversification and supply of high-qualified services,information security, low cost Internet subscriber density is 8 to 12 subscribers per 100people (of which 30% are broadband subscribers) at the rate of Internet use up 25% - 35%and community education centers are connected to the Internet Over 90% of secondaryschools and hospitals are connected to the Internet, etc

- IT Human resources development

Training and development of human resources to meet the requirements of ITdevelopment and application in the country; Training of IT at the main-point universitieswith advanced qualification and quality of ASEAN in terms of knowledge, practice skillsand foreign languages 100% of universities, colleges, high schools, the Departments of

Education and Training have their own electronic information pages Most officials andpublic servants, teachers at all levels, doctors, physicians, college and university studentsand high school students, 50% junior high school students and most people have demand

of training knowledge of IT applications and Internet exploration Most of the ministries,industries, provinces, cities, and the equivalent units have leaders of informationmanagement who are complemented, and trained IT management programs with levelequivalent to the region

- IT Industry Development

Vietnam has become an attractive and reliable investment location of internationalpartners, especially the large IT corporations Vietnam becomes a regional center forassembly of electronic devices, telecommunications and computer, production of somecategories of components, accessories, and design and manufacture of new equipment ITindustry becomes a key and important economic sector with average growth rates of 20 -25% per year, achieving total sales of about 6-7 billion dollars in 2010 Personalcomputers, mobile phones and software with Vietnam brand occupy the maximum marketshare of the country and export not less than $ 1 billion per year

Different form consumption product industries, the Company's operations are lessaffected than by social factors Perhaps the social issue affecting the businessenvironment of company is social awareness as well as concern of the field of informationtechnology that Company operates and orients to

Natural conditions are factors affecting the Company's operations, with thedifficult conditions of geography, transport systems, weak infrastructure, and limitation ininformation technology Therefore, expansion of business activities to the uplandprovince still faces many difficulties

With a operation range of the northern provinces, this is a huge and potentialmarket which the computer companies, information technology systems are entering aperiod of strong development, and there has been less participation of enterprise operatingthis field

Technology is the key issue affecting decisively the business environment of theCompany The strong development of Science and Technology is very good conditionsfor the company to receive and renew the equipment, as well as innovate management in

a scientific and effective way

In the trend of globalization and international integration, currently, strengtheningthe development of information technology is critical to the success of the system oforganizations in the world, from the state administration agencies, economic and social

organizations, and to the population community Thus, the application of moderntechnology elements into operation and the company is inevitable Technology helpscompanies improve the management and administration, development of Marketing andonline sales system, online exchange system with customers, help the company towardsthe strong, wide development reaching out integration and international development

Globalization is the dominant trend, which covers all aspects of socioeconomic life

of nations throughout the world today The participation in international economicorganizations and associations such as WTO, APTA, etc is a factor largely influencing onVietnamese enterprises, in general and BEN, in particular In the context of globalizationand international integration, the company is more likely to approach the modernlyscientific and technological achievements of the world, to receive appropriatetechnologies which can not be done in the country, to improve technological level, tostrengthen cooperation, partnership, association and expanded investment

According to the common development strategy of information technologyindustry, the development of BEN is placed in the general direction of the integratedeconomy Development of the portal systems, modern IT equipment in all provinces andcities throughout the country, with huge demand of residential communities in thiscountry, grasping carefully the development orientation and growth characteristics will beapplied flexibly by BEN to for effect of Company’s business operation

From the above analysis of the macro environment, we have confirmed thatopportunity (O) of the Company in the global economic environment is great, however,the challenges that companies face is not small Company will face an inevitable trendthat is integration for the development or regression and bankruptcy

2.2.2 Industry environment of BEN

* Pure computer team, including a number of companies which have big

brands on the market today such as Phuc Anh Company As a company operating in

computer business for 10 years, it has retail offices scattered throughout the Hanoi area.Scale of retail stores is equivalent of BEN with 4 stores; area of operations : informationtechnology products: laptops, computers, computer components, servers, software, officeequipment and other related products Hanoi Computer Company is one of the leadingbusinesses operating in the business of Information Technology products Founded in

2001, the Company has established a solid position in the wholesale and retail market,becoming a familiar brand and a trusted partner at home and abroad With over 9 years ofoperation, the company has a stable customer network from North to South Hoang Mai

Company is one of the top units in the field of information technology in Vietnam, MaiHoang Computing Co., Ltd includes 03 facilities:

* Computer – Electric machine group: Tran Anh Company: After 7 years of

operation, its current scale increases with nearly 500 employees and two businesslocations including area of 7000m2 After a time of confirming the name on the business

PC - accessories, digital entertainment equipment, office equipment and mobile phone, on10/10/2009, Tran Anh has expanded into the field of Electronics and electricalrefrigeration, household equipment with media mart - IT Tran Anh has open space,scientific style of decoration for pavilions, this facilitates for customers to visit and selectproduct Tran Anh Company has a strong staff with high professional level (more than50% have graduated from the University or College specializing in Economics,Engineering), they can afford to meet all requirements of the most demanding customers

- Pico Company: is one of the top media marts in Vietnam today Pico refers to a

professional retailer of electronics – electrical refrigeration Telecommunications IT Digital - Household appliances of the leading brands in the world such as Sony, Samsung,Panasonic, LG, JVC, Philips, Sharp, Sanyo, Electrolux, Fagor, Nokia, Motorola, Lenovo,

-HP, Acer With a total area of more than 10.000m2 and tens of thousands of genuineproducts are sold

Evaluating the competitiveness of BEN Join Stock company: Phuc Anh Company is the direct competitors of BEN, it is also likely to cause the greatest harm to the market and sales of BEN now and in the future Among the group of electrical refrigeration and computing companies, Tran Anh Company is a direct competitor to the group of NB and PC of BEN; Pico has only a computer industry competing with BEN.

2.2.2.2.1 Retail operation

The company now has five retail stores in Hanoi; each store has area of 200 m to

1000 m Especially the new sales model that was put into operation in BENSTORE in

2010 has received support from many customers in Hanoi Besides, the company alsocooperates with the two leading computer maker in the world as Dell and Lenovo to buildtwo shops specializing in technology products Dell and Lenovo Store initially affirmedthe value and service of the product transferring to the end customers

2.2.2.2.2 Sale distribution

Establishing wholesale systems that distribute notebook products; LCD, PC,HDD includes 500 computing companies of small and medium scale from the North toHue

2.2.2.2.3 Online Sales

Call centre system involves 30 salesmen and customer care staff workingcontinuously seven days a week, every day, they listen and answer the phone from 500 to

1000 transactions Website of the company: http://www.ben.com.vn/ became one of themost interested sites in the field of information technology, counter up to thousands ofaccess every day

In the trend of integration and globalization, with strong growth of technology, theparticipation of new competitors, potential competitors is a necessity Currently, potentialcompetitors that BEN should take interest in are suppliers of equipment and computersoftware, they are encroaching the supply of computer equipment market, in addition tothe computing companies in South area, because they have a strong business platform,methodology and philosophy, business though sharper than the Northern companies

Business activities of BEN will face many difficulties in competing with competitors

in the same industry, but BEN has enough values ready to compete and overcomecompetitors in the operation field

2.2.3 Evaluating the opportunities and threats of BEN.

From the analysis of the macro environment and industry environment of BEN, theopportunities (O) and threats (T) of BEN are drawn in the business operation of theCompany as follows:

1 In recent years, Vietnam's economy maintains stable and continuous growth for manyyears and has clear strategy to develop information technology industry, stillmaintaining a reasonable price rate So the information technology industry haschances to develop well

2 Vietnam owns a stable politics that is unaffected by the political conflict, this is a goodopportunity for business to expand and develop

3 Natural conditions favorable for the information technology industry are the need ontechnology that is indispensable conditions for the development of each nation andpeople

4 Preferential investment policies of the Government are to attract investment capital intechnology development increasingly powerful and groundbreaking priority

5 In the trend of globalization and integration, the company has the opportunity toimplement the partnership, association with various economic groups, and manycompanies of large foreign brands to expand the market

6 Platform of 10 years development of the company is very good conditions for term development, along with the leadership team, staff were basically trained, with

long-modern model of operation, consistent with the general development; the company hasalso built a great brand in the market north.

7 As a joint venture company, association with several major brands in the world, so thecompany always gets the huge support of foreign companies in capital, monopoly andinvestment incentives of business activities

1 The process of economic integration in the region and in the world proposes manydifficulties and threats for the BEN Company The companies will compete withdomestic and foreign companies, especially strong potential enterprises of the currentnorthern region and the invasion of southern enterprises

2 Tight monetary policy, interest rates increase, inflation decrease and the trend todevalue the local currency of the Government, credit institutions, banking are huge threat

in dealing with business capital of the Company

3 Competitive environment in Vietnam also represents many inadequacies Besides dealwith competitors at home and abroad, the company also faces the potential competitorsdue to barriers to entry in this field and negatives in the bidding equipment (running forbidding winning…)

Here is an External Factor Evaluation Matrix, showing the adaptive extent of BEN with respect to affective factors.

From actual findings at BEN, through the methods of investigation, survey anddirect interviews of the Economist, combined with analysis of data collected, the researchteam made the External Factor Evaluation Matrix of BEN as follows:

Table 1: External Factor Evaluation Matrix (EFE)

important scores

6

The support of industry, support of foreign companies about

capital, monopoly and the investment incentives in expanding

business activities

0,48

7 Competition of domestic and foreign enterprises 0,2 4 0,8

8 The impact of price increases of input factors 0,1 3 0,3

Level of responses to the threats stays at above-average level Therefore, thedevelopment strategy of the company must focus on improving the reaction of theCompany for this threat.

In parallel with the External Factor Evaluation Matrix (EFE), we use CompetitiveProfile Matrix to fully evaluate and analyze the advantages and disadvantages ofcompetitors The establishment of Competitive Profile Matrix is based on external factorsaffecting competitors and internal factors of competitors impacting the strengths,weaknesses of that competitor

From the information collected regarding companies trading in technology, theresearch team analyzed the strength and weakness of the BEN’s competitors, includingMai Hoang company, Tran Anh Company; Pico Company These are companiesoperating in the field of information technology, located mainly in Hanoi and somenorthern provinces

The classification levels show the reaction for each factor in the strategy ofcompanies: 4 means good reaction, 3 is above average, 2 is equivalent to average and 1 ispoor

To estimate the weight, researchers have conducted surveys in the business andanalyzed on the basis of documents supplied by BEN

Table 2: Competitive Profile Matrix of BEN

ant level

Company

Classi ficati

on

Number of importa nt scores

Classifi cation

Number of importa nt scores

Classi ficati on

Number of importa nt scores

a total of important score of 2.42

Phuc Anh Company is trading in computer for 10 years, with retail offices scatteredthroughout in Hanoi Scale of retail stores is equivalent of BEN with 4 stores The area ofoperations: information technology products: laptops, computers, computer components,servers, software, office equipment and other related products

Currently, Phuc Anh brand has become a major brand in the IT market in Vietnam with aseries of showrooms throughout the city Hanoi

Pico Company was opened on 01/07/2007 Pico (previously known as Pico Plaza) is one

of the leading-scale media marts in Vietnam now Pico is a professional retailer of

products such as Electronics – Electrical Refrigeration Telecommunications IT Digital - Household products of the leading famous brands in the world as Sony,Samsung, Panasonic, LG, JVC, Philips , Sharp, Sanyo, Electrolux, Fagor, Nokia,Motorola, Lenovo, HP, Acer, etc With a total area of more than 10.000m2 withpresentation of tens of thousands of genuine products, Pico addressed at 76 Nguyen Trai,Hanoi is considered as one of the largest shopping center’s for electronic products notonly in Vietnam but also the whole Southeast Asia The year 2008 marked the strongdevelopment of Pico when the its second supermarket at 35 Hai Ba Trung, Hanoi wasopened in April of 2008, which led Pico officially become the leading-scaled media martchain in Vietnam And with continuous expansion of the business scale, in October 2010,Pico continued opening the third supermarket at No 173 Xuan Thuy, bringing the totaluse area of the 3 supermarkets up to 25.000m2 Concurrently, this period marked theevent that Pico changed to a new logo and officially announced that Pico activity hasexpanded into other fields such as: furniture, tourism and commercial center In the group

-of computer and electronic companies, Tran Anh is the opponent competing directly tothe product group such as Notebook and PC of BEN We can say this is a worryingopponent because he has advantage of market knowledge and experience; however,currently Pico has only one product chain namely computer to compete with BEN

In short, through analysis of the competitive image matrix, we see that in order forstable operation and sustainable development, BEN need to focus on building theappropriate strategy to limit the opponent's strengths such as experience, market share andthe staff, faithful staff with high skills and level of competitors, continuing to improvetheir weaknesses in finance, market share, concurrently preparing defense carefully forpotential competitors

2.3 OPERATION ANALYSIS OF BEN COMPANY

2.3.1 Human Resources:

Out of total 180 cadres and staffs working permanently in the company, there aretwo with doctor degree, 05 with economic Master degree, 30 with University degree, 40with college degree, and the rest are graduated from vocational training school serving asthe service staffs, marketing staff and other unskilled laborers When the companyorganize other activities to do the market survey, the company will employ seasonallaborers at the number around 50-70 people up to the demand of marketing, advertising,products introducing or other service

The Details of Human resources analysis are descried in the following tables:

Table 3: Human Resources Structure basing on Business structure of BEN Human Resources Types Quantity (Person) Percentage (%)

Office staffs 30 16,67%

Business Staffs, Salesman,

Installation and Design

staffs

Table 4: Human resources Structure basing on Age:

Age Quantity (Person) Percentage (%)

Table 5: Qualification of the Human Resources

Types Quantity (Person) Percentage (%)

Data sources: room the kernel of BEN Joint Stock Company

2.3.1.2.1 Strengths (S)

- Except some of unskilled laborers doing the service works, BEN is honor ofprofessional staffs 88,9% of human resources holds high technicalqualifications of which 20,4% are having university or higher education degree,22,22% are having college degree and the technical staff, salesman trained invocational school with basic skills accounts for 46,1 In summary, the Humanresources of BEN are of quite high quality

- The human resources structure is of young group who are flexible, creative.Together with the many year-experienced cadres All of them will help theBEN Company to learn new technology to integrate into the market economy