BUILDING BUSINESS STRATEGY of ben JSC

ABBREVIATIONS SWOT Matrix Strengths - Weaknesses - Opportunities - Threats QSPM Quantitative Strategic Planning Matrix LIST NUMBER OF DATA TABLE Table 3 : Human Resources Structure basin

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

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

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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

SWOT Matrix Strengths - Weaknesses - Opportunities - Threats

QSPM Quantitative Strategic Planning Matrix

LIST NUMBER OF DATA TABLE

Table 3 : Human Resources Structure basing on Business

PREAMBLE:

1 1 General context, necessity and importance of research

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

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

According to data announced by GFK Market Research Company (Germany), the market size of information technology (IT), Electronics and Telecommunications of Vietnam 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 the most attractive nations in the world of software outsourcing Vietnam now ranks 18th in the world with the number of 21 million Internet users, 6th in Asia on internet development speed

The Government, together with IT enterprises and training units set a target by the year 2015: it is estimated that Vietnam will have 600 thousand professionals in IT and increase to one million in 2020 The government also approved funding to support the development of software industry and IT in Vietnam The goal is that by 2020, Vietnam will 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 information technology to life These are good conditions for further development of Internet in Vietnam and also a big opportunity for companies trading in hardware and software in Vietnam

Computer is considered a powerful and useful tool in life of a modern society The development 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 experts predicted this trend would continue in 2010

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

There are three reasons for this result First, in 2009, despite the impact of global crisis, Vietnam's GDP growth was still positive The second reason is the demand stimulation program of the Government has had a direct impact to the expenditure of Vietnam 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 to great demand for purchase of computers by pupils and students in the country Computer now 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 the information technology sector, averagely and annually, dozens of large and small companies are formed BEN Computer Company was formed in 2001 with a very small scale 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 has had a certain place and a certain market share for customers and partners, the board of Directors of company see that Company should have a clear business strategy planned through 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 assigned managers to study MBA program of Master of International Business Administration (GaMBA) linked to organize by Griggs University (USA) and the Center of Technology Training and Employment System of the Hanoi National University with very clear objectives to acquire knowledge in school and build business strategy for the company in five 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 to grow despite the inventory and fierce competition on the retail price Demand on desktop decrease 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 business strategy 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 is estimated to open 03 Ben Store

+ Market share of about 10 - 15% retail market share in the North; to rank No 1 on sales 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 brand with the average number of 5,000 products per year

+ To coordinate with other computer Corporate such as Acer, Toshiba, HP to build link 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 term development of enterprise

1.3 Research method

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

- Method of investigation, field surveys in the enterprise

- Analysis of the overall strategy based on planning tools according to BCG Matrix, 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

1.1.1 The concepts of strategy

There are many different definitions of strategy; each definition is more or less varied 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 most common, the strategic levels include: Company-level strategy, Business Unit level strategy and 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 the implementation 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 thinking and 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 business plans In fact, any competitor develops their own strategies because strategy is the only purpose and ensures for enterprise to search and gain their sustainable advantages before their competitors

Through access to the above definition, whether expressed, but we can generalize the 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 the document "Strategy & business policies" of the doctor Nguyen Thi Lien Diep, we can set the 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 of decisions and administrative actions set long-term performance of a company." This approach 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 the organization

•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 and supervise the implementation of decisions designed to achieve the objectives in current environment 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 makes surprises, Strategic Management helps administrators see clearly the future environment, there they can better hold and take advantage of good opportunities, and can avoid or reduce risks

Strategic Management helps managers use effectively the existing resources of enterprises and allocating them appropriately It allows the company to associate the decisions with the environmental conditions involved In addition, strategic management also 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 often achieve better results than the former results and compared with results of the Companies that do not apply strategic management

1.2.1 Environmental analysis

To build business strategies, the study of environmental factors is important, it can help businesses identify opportunities to hold and realize the risks and challenges for a precaution

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 risks allows to form SWOT matrix and the strategies enable to select

Research on operation environment of the company is focused on identifying and evaluating trends and events beyond the control of the Company The evaluation of external factors shows opportunities, challenges that the company meets, so the manager can plan out strategies, take advantages of opportunities and minimize risks We turn to analyze the operating environment of the enterprise including micro environment and macro 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 management activities but also affect the micro environment of business These factors are also the main reason to create opportunities and threats to each business in different sectors Research on macroeconomic 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 and policies of the Government, the current legal system, political and diplomatic trends with other countries, the political happenings in the country, region and world

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

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 and education 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, rivers and sea; minerals in the earth, resources of sea forest, water and air The natural conditions are important input factors for many economic sectors In many cases, the natural conditions become important factors to create competitive advantage of products and services

1.2.1.1.5 Technological factors

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

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

1.2.1.1.6 Worldwide

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

Macro environment includes interior and external factors for the Company, deciding features 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, weaknesses related 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 in the 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 of the Company Faithfulness of the customer is built by satisfaction of customers and desires for better

1.2.1.2.3 Suppliers:

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

1.2.1.2.4 Potential rivals:

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

1.2.1.2.5 Substitution product:

Substitution product is result of technological- technical explosion Pressure of substitution 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 or operate 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 and threats 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 as appropriate

Research and development are to create new products prior to competitors, raise quality of the product, control or improve production process to minimize costs Research and development can help the Company keep the vanguard position or be backward against rivals 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 punish and so on

Production and operations include all activities to transform inputs into goods or services Administration of production - operations requires five following requirements: Firstly, the process: design the physical production system Second, capacity: determines the best output Third, the inventory: management of raw materials level, work in process and 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 causes difficulties for the implementation of objectives of the enterprise Contents to be considered: the ability of capital compared with the performance requirements of plans of the 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 internally and with other units

Marketing is described as the process of identifying, forecasting, setting and meeting the 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 and promotion); 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 for the 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 environmental characteristics Therefore a strategy can help this business succeed, but not be effective in other enterprises, situations Development places the enterprise in front of the choice of business domains and markets Companies can only focus on one business area, develop under the direction of vertical integration, or diversify new business areas

The objective of the analysis of business structure is to choose a set of appropriate products (services) through the review of future prospects of each business area To determine 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 areas possibly 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 of businesses 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 certain criteria such as growth of revenue, capital or market share So the timeframe for objectives and 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, identifying long-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 the following aspects:

- The strength or relative position of the company compared to competitors

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

- Analyze the value chain of customers, the Company and its competitors

• Second, goals: Strategies selected for achieving goals

• Third, resources, financial conditions

• Fourth, qualifications, abilities of the Company: depending on the quality and level of ability, different capacities of the company to choose 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 are rooted in the economic nature and technology of the industry should be particularly paid attention, much different to short-term factors which temporarily affect competition and short-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 in the selection of strategy

Through the process of environmental analysis, the strategic makers have subjective judgments based on objective information about politics, culture, morals and social responsibility; they set out the strategy combination and analysis of feasible capabilities and select process of particular action Under organizational structure of enterprises, the extent and 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 This strategy focuses on the problems: how to overcome the competitive forces? Defensive or offensive? Based on low cost or product differentiation, main-point concentration? This is also 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 and company 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 businesses has no strategic business divisions, strategic business tasks is also considered and settled by the 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 The formation consists of analyzing the external and internal environment The strategic management techniques such as matrix evaluating external factors EFE, matrix valuating elements 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 by arrangement, combination of important factors inside and outside The techniques which can be used in this phase include: SWOT Matrix, strategic location Matrix and action analysis (SPACE), BCG Matrix, internal and external elements Matrix (IE), key strategic Matrix

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

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

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

• Ensure to achieve the objectives of the Company

• The effectiveness of enforcement of strategies

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

All the techniques in strategy formulation processes require a combination of intuition 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 the method 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 for the 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 the Company 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 elements for success in the business of the Company Appropriate level of classification can be determined by comparing successful and unsuccessful companies in the industry Total levels 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 of the highest important points that a company can have is 4.0, average is 2.5 and the lowest is 1.0 If the total important points is 4, indicating that the Company reacts very well to the existing 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 and avoid the external challenges

1.2.7.1.2 Competitive image matrix

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

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

How to build competitive image matrix is similar to how to build the external factor evaluation

Classification level shows the Company's strategies response to each factor: 4 is good, 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 functional business divisions and it provides the basis for determining and assessing the relationship between 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 factors for 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 the biggest 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 highest important 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 less than 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 to decide which strategy is best Therefore, in the strategy to set out SWOT matrix, only a few best 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 and threats are external factors of SWOT to help analyze different factors which have relative influence on the competitiveness of the company SWOT is often associated with PEST (Political, Economic, Social, Technological analysis), model of market analysis and evaluation of potential through external factors in terms of political, economic, social and technological 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 the decision-making easier

SWOT analysis is a subjective evaluation of the data arranged in a SWOT format in logical order and easy to understand and present, discuss and make decisions, which can be used in all decision-making process SWOT samples enable to stimulate thinking rather than based on the reactions of habit or instinct SWOT analysis sample is presented as a matrix of 2 rows 2 columns, divided into four sections: Strengths, Weaknesses, Opportunities, and threats Therefore it is necessary to clarify the subject of analysis because 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 the following strategies:

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

- Weaknesses - Opportunities Strategy (WO): The strategies are to improve internal weaknesses to the business to take advantage of external opportunities

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

- Weaknesses - Threats Strategy (WO): The strategies are to improve internal weaknesses 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 strategies will not bring the desired results The construction of SWOT matrix is carried out through eight 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 strategic matrix This Matrix assesses the position of the company based on two aspects: competitive position and market growth Strategies appropriate to the Company are listed in attractive order 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 IFE matrix, EFE matrix, competitive image matrix, SWOT matrix and key static matrix to objectively evaluate the best alternative Six steps to develop a quantitative strategic planning 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 matrix includes a minimum of 10 external important success factors and 10 internal important success 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 strategies within 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 very attractive 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 strategies should be implemented continuously

Every company does not exist independently but is often influenced by environmental factors When environmental factors change, they may create opportunities or challenges threatening 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 carried out regularly Results of the research of business environment will provide managers the important 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 formulating strategies 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 BEN trademark issued Certificate no 42378 dated July 25th 2002 by Ministry of Science and Technology Ben Computer is a company operating in the field of trading Notebook, PC units, 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 and became 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 benefits for 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 is estimated at $ 1,160

Economic recovery is an important cause of promoting investment and development 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, increasing 12.9% compared to 2009 and equal to 41% of GDP In which, capital sources from private forces and population led, by the 31.2% investment capital for whole society, state investment 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 mobilized more actively Capital of foreign direct investment (FDI), up to November, the country has 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 $ 10 billion, up 9.9% Although the registered FDI capital is much lower than in 2009 but the rate 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 of foreign investors in Vietnam market The high and rapid growth rate of investment, on the one hand, shows that the accumulation and consumption relationship is transferring positive direction, but on the other hand, shows the limitations of the investment efficiency

There have been positive changes in Vietnam's legal system in recent years Many laws, circulars and decrees related to the production and business activities are promulgated to create a basic legal framework for business activities such as Law on Enterprise, Commercial Law, and Law on Competition Besides, Vietnam has officially joined 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 economic integration because of tariff reduction and investment expansion for foreign investors in Vietnam

Information technology industry, in general, and the activities of the BEN, in particular, is area with investment incentives under the Law on Domestic Investment Promotion In addition, the Government has also built the technology information development strategy by 2020, with resources sufficient to perform This is a huge opportunity for development of IT enterprises

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

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

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

Government promulgated and continues to improve laws such as the Law on Foreign Investment, Commercial Law, Law on Public Investment, Law on Price Management, Law on High Technology, Law on Information Technology, etc to accelerate the economic reform The open economic policies to encourage the development of economic sectors have created a favorable, healthy and stable and business environment

State’s policies to encourage foreign investment into Vietnam have been calling for many investors, opening up prospects for many sectors, especially the strong opening for the 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 and stricter than before However, that there are still many inconsistent, changeable points and lack of consistency in the enforcement among authority levels, the localities have also adversely 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 also for 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 many opportunities and challenges for enterprises in this process of integration

• Political and external trends

Currently, Vietnam is considered as a country with highly stable political environment This is important condition for enterprise to feel secured to invest and expand production scale

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

These are political and legal factors with strong impact to business operations of the Company It can be said that the political system, the law of Vietnam have been continuously improved in order to create the best conditions for the operation of enterprises, however, in some areas, in a number of policies, there have still been inadequacies 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 and Development program, by 2020, with IT as a core, Vietnam quickly switch Socio-economic structure, basically become an industrialized country and is one of the countries with the advanced level of information society development in the ASEAN region

By 2010, on the basis of the strong IT development and application, Vietnam reaches 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 and develop an electronic Vietnam with the electronic citizens, the electronic government, the electronic enterprises, and the electronic transactions and commerce, etc over 50% of the employees, 80% of young people who can use IT applications 100% of communes have post offices and community education center with the Internet connection 80% of public administrative services are basically provided by online services Over 50% of basic public services is provided information and transmitted by online transactions 90 to 100% enterprises apply IT in business management, administration and force development, branding diffusion, marketing and market expansion 50 to 60% enterprises use IT applications in monitor, improvement and automation of production processes, design, test and evaluation of product quality 25 to 30% of the total transactions of industries are made through electronic transactions

- Development of telecommunications and Internet infrastructure

Telecommunications and Internet infrastructure in Vietnam has the modern technology, rapid growth, diversification and supply of high-qualified services, information security, low cost Internet subscriber density is 8 to 12 subscribers per 100 people (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 secondary schools and hospitals are connected to the Internet, etc

- IT Human resources development

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

Education and Training have their own electronic information pages Most officials and public servants, teachers at all levels, doctors, physicians, college and university students and 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 information management who are complemented, and trained IT management programs with level equivalent to the region

- IT Industry Development

Vietnam has become an attractive and reliable investment location of international partners, especially the large IT corporations Vietnam becomes a regional center for assembly of electronic devices, telecommunications and computer, production of some categories of components, accessories, and design and manufacture of new equipment IT industry 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 Personal computers, mobile phones and software with Vietnam brand occupy the maximum market share of the country and export not less than $ 1 billion per year

Different form consumption product industries, the Company's operations are less affected than by social factors Perhaps the social issue affecting the business environment of company is social awareness as well as concern of the field of information technology that Company operates and orients to

Natural conditions are factors affecting the Company's operations, with the difficult conditions of geography, transport systems, weak infrastructure, and limitation in information technology Therefore, expansion of business activities to the upland province still faces many difficulties

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

Technology is the key issue affecting decisively the business environment of the Company The strong development of Science and Technology is very good conditions for 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, strengthening the development of information technology is critical to the success of the system of organizations in the world, from the state administration agencies, economic and social

organizations, and to the population community Thus, the application of modern technology elements into operation and the company is inevitable Technology helps companies improve the management and administration, development of Marketing and online sales system, online exchange system with customers, help the company towards the 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 economic organizations and associations such as WTO, APTA, etc is a factor largely influencing on Vietnamese enterprises, in general and BEN, in particular In the context of globalization and international integration, the company is more likely to approach the modernly scientific and technological achievements of the world, to receive appropriate technologies which can not be done in the country, to improve technological level, to strengthen cooperation, partnership, association and expanded investment

According to the common development strategy of information technology industry, the development of BEN is placed in the general direction of the integrated economy Development of the portal systems, modern IT equipment in all provinces and cities throughout the country, with huge demand of residential communities in this country, grasping carefully the development orientation and growth characteristics will be applied flexibly by BEN to for effect of Company’s business operation

From the above analysis of the macro environment, we have confirmed that opportunity (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 trend that 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 : information technology products: laptops, computers, computer components, servers, software, office equipment and other related products Hanoi Computer Company is one of the leading businesses 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 of operation, 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, Mai Hoang 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 business locations including area of 7000m2 After a time of confirming the name on the business

PC - accessories, digital entertainment equipment, office equipment and mobile phone, on 10/10/2009, Tran Anh has expanded into the field of Electronics and electrical refrigeration, household equipment with media mart - IT Tran Anh has open space, scientific style of decoration for pavilions, this facilitates for customers to visit and select product Tran Anh Company has a strong staff with high professional level (more than 50% 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 genuine products 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 also cooperates with the two leading computer maker in the world as Dell and Lenovo to build two shops specializing in technology products Dell and Lenovo Store initially affirmed the 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 to Hue

2.2.2.2.3 Online Sales

Call centre system involves 30 salesmen and customer care staff working continuously 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 the most interested sites in the field of information technology, counter up to thousands of access every day

In the trend of integration and globalization, with strong growth of technology, the participation of new competitors, potential competitors is a necessity Currently, potential competitors that BEN should take interest in are suppliers of equipment and computer software, they are encroaching the supply of computer equipment market, in addition to the 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 overcome competitors 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, the opportunities (O) and threats (T) of BEN are drawn in the business operation of the Company as follows:

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

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

3 Natural conditions favorable for the information technology industry are the need on technology that is indispensable conditions for the development of each nation and people

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

5 In the trend of globalization and integration, the company has the opportunity to implement the partnership, association with various economic groups, and many companies 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 has also built a great brand in the market north.

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

1 The process of economic integration in the region and in the world proposes many difficulties and threats for the BEN Company The companies will compete with domestic and foreign companies, especially strong potential enterprises of the current northern region and the invasion of southern enterprises

2 Tight monetary policy, interest rates increase, inflation decrease and the trend to devalue 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 deal with competitors at home and abroad, the company also faces the potential competitors due to barriers to entry in this field and negatives in the bidding equipment (running for bidding 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 and direct interviews of the Economist, combined with analysis of data collected, the research team 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, the development strategy of the company must focus on improving the reaction of the Company for this threat.

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

From the information collected regarding companies trading in technology, the research team analyzed the strength and weakness of the BEN’s competitors, including Mai Hoang company, Tran Anh Company; Pico Company These are companies operating in the field of information technology, located mainly in Hanoi and some northern provinces

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

To estimate the weight, researchers have conducted surveys in the business and analyzed 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 scattered throughout in Hanoi Scale of retail stores is equivalent of BEN with 4 stores The area of operations: 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 a series 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 with presentation 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 not only in Vietnam but also the whole Southeast Asia The year 2008 marked the strong development of Pico when the its second supermarket at 35 Hai Ba Trung, Hanoi was opened in April of 2008, which led Pico officially become the leading-scaled media mart chain 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 total use area of the 3 supermarkets up to 25.000m2 Concurrently, this period marked the event that Pico changed to a new logo and officially announced that Pico activity has expanded 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 to the product group such as Notebook and PC of BEN We can say this is a worrying opponent 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 for stable operation and sustainable development, BEN need to focus on building the appropriate strategy to limit the opponent's strengths such as experience, market share and the staff, faithful staff with high skills and level of competitors, continuing to improve their weaknesses in finance, market share, concurrently preparing defense carefully for potential competitors

2.3.1 Human Resources:

Out of total 180 cadres and staffs working permanently in the company, there are two with doctor degree, 05 with economic Master degree, 30 with University degree, 40 with college degree, and the rest are graduated from vocational training school serving as the service staffs, marketing staff and other unskilled laborers When the company organize other activities to do the market survey, the company will employ seasonal laborers 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

Office staffs 30 16,67%

Business Staffs, Salesman,

Installation and Design

staffs

Table 4: Human resources Structure basing on Age:

Table 5: Qualification of the Human Resources

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 of professional staffs 88,9% of human resources holds high technical qualifications of which 20,4% are having university or higher education degree, 22,22% are having college degree and the technical staff, salesman trained in vocational school with basic skills accounts for 46,1 In summary, the Human resources 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 the BEN Company to learn new technology to integrate into the market economy