Some solutions of business development strategy in Bim Son Cement Joint Stock Company period 2016 2020

2.1. Objectives of the study Develop business strategies in developing new business phase to ensure adaptation to the conditions of evolution, new trends of the industry environment, macro environment at home and abroad, and proposed solutions implementing business strategies to deliver the highest business performance for BCC 2.2. Research questions (i) The theoretical problems of business building strategies have been like? Applications for industries like cement in the current crisis? (ii) There are the basic elements of the business environment can greatly affect BCC (iii) The elements of the business environment? How does it work to BCC? Ability to adapt and respond to the strength and weaknesses of the company. (iv) The trend of economic developments at home and abroad, the real estate industry and construction materials will turn out in the period from 2016 to 2020, BCC should do in response? (v) How orientation business strategy for BCC? Are there any measures to support the construction and implementation of the strategy?

Essay title: “Some solutions of business development strategy in Bim Son Cement Joint

Stock Company - period 2016 - 2020"

Name of student:

Course’s name:

THANKS

INDEX

THANKS 1

INTRODUCTION 3

1 Urgency of topics 3

2 Objectives of the study 5

2.1 Objectives of the study 5

2.2 Research questions 5

2.3 Research mission 6

3 Subjects and scope of research 6

3.1 Study subjects 6

3.2 Study period 6

4 Rationable orientation for building business strategies in cement industy 6

4 1 Some basic concepts of strategy 6

4.1.1 The concept of strategy and strategic management 6

4.2 Process management business strategy 7

4.3 The process of developing and implementing strategies 8

4.4 Some of the tools used to serve in strategic management research 8

4.4.1 Delta project model 8

4.4.2 Strategic map 9

4.4.3 SWOT matrix composite 9

4.4.2 PESTNG model analyzes the business environment 10

4.4.3 5 forces model analysis M.Porter competitive industry environment 10

4.4.4 Value chain model M Porter-enterprise internal rating 10

5 Market overview of domestic and international cement 11

5.1 On the international market 11

5.2 Vietnam market 12

RESEARCH METHOD 13

1 Research Methodology 13

2.Contributions of topic 13

RESEARCH RESULTS 14

1.Overview of Bim Son Cement Join Stock Company 14

1.1 Overview of Bim Son Cement Joint Stock Company 14

1.2 The impact from the macro environment (model PESTNG) 15

1.2.1 Economic Environment 15

1.2.2 Environmental government, law and politics 15

1.2.3 Social and cultural environment 16

1.2.4 Environmental technology 16

1.3 The environmental impacts from industry 16

1.3.1 Current competitors 16

1.3.2 Potential competitors 17

1.3.3 Substitutes 17

1.3.4 Pressure from suppliers 18

1.3.5 Pressure client 18

2 Strategic objectives for the period 2016-2020 18

2.1 Creating value for shareholders 18

2.2 Creating value for customers 19

2.3 Create value for employees 19

2.4 Creating value for society, community 19

3 Strategic direction for Bim Sơn Cement Joint Stock Company for the period 2016-2020 19

3.1 The strategy group SO 21

3.2 The ST group strategy 22

3.3 The WO strategy group 23

3.4 The WT group strategy 23

4 Selection of the optimal strategy 24

5 Solutions and recommendations of business strategy implementation for Bim Son cement Joint Stock Company in theo period 2016-2020 26

5.1 Some solutions of implementing business strategy for the Company in the period 2016 - 2020 26

5.1.1 Product solutions 26

5.1.2 Marketting solutions 26

5.1.3 Research solutions - development 27

5.1.4 Quality Management Solution 28

5.1.5 Financial Solutions - Accounting 28

5.2 A number of suggestions and recommendations 29

5.2.1 Recommendations for Cement 29

5.2.2 Recommendations and government ministries, departments and branches 29

CONCLUSION 30

REFERENCES LIST ……… 32

On the other hand, due to the inputs of the cement industry, such as rising coal prices,electricity prices have increased by 19%, which makes cement industry meet many difficulties,among them, the biggest difficulty is financial problem Most of the equity of the cementbusiness is very low, so the capital to produce business depends mainly on bank loans.

One of the causes of the problems is, oversupply situation of cement industry today, due

to the investment spread and fragmentation of the industry, and in recent years, developmentplanning for cement industry in 2011-2020 and orientation to 2030 has been built on demandgrowth of 10-15% / year from 2006 to 2010 was the time made a big mistake for the wholeindustry

Moreover, the time of 2015, 2016 and the next few years is the culmination of therepayment period of investment Interest rates are too high, the difference in exchange rateschange, access to credit sources have made difficulty because the total financial costs accountfor between 25% - 30% of the product price Meanwhile, the real estate market freezes, delaysconstruction, purchasing power in the economy should reduce cement consumption and sellingprices also declined

For Bim Son Cement (BCC) JSC before the general evolution of the industry is notimmune from the impact The financial situation of the company rather difficult: short-termassets 1,370 billion (though it has fallen 11.8% decrease compared to the early balance) while

short-term debt 1,496 billion Despite efforts to liberate 552 billion of inventory is fastsolvency of BCC remains tight Coefficient of short-term solvency of the BCC is at 0.92 times.Besides, according to BCC (2016), the cement mill No 4 after 10 years of operation hasmany cracks appear unsafe, does not guarantee productivity, more power consumption Toremedy this situation, the body utilize BCC cement mill No 1 line 1 does not work, to replacethe mill 4 The process of removing the mill number 1 just finished, awaiting the right time tomount the mill instead of 4.

And according to the resolutions of the board BCC (2016), the company will shift todiversify products, the introduction of new products such as SC40, Sustainable TypeII sulfate,dry mortar plastering appropriate to customer segments, respond to the user Plaster dry mortarproducts, here is a new product for plaster wet areas indoor and outdoor advantages is thesecond episode, durable, environmentally friendly This new product promises to bringcompetitive advantage and improve business performance for BCC

Industry is exploring many uncertainties and risks in unfavorable macroeconomicdevelopments, while many internal problems remaining BCC while limiting the enterprisesimplementing new products for the existing market areas The problem requires seriousconsideration of the evolution of the business environment; look back the internal problemsand find a solid direction for future BCC

Stems from the perception that the author has developed the topic "Some strategicsolutions in business development company Bim Son Cement Joint period 2016 - 2020"

2 Objectives of the study

2.1 Objectives of the study

Develop business strategies in developing new business phase to ensure adaptation to theconditions of evolution, new trends of the industry environment, macro environment at homeand abroad, and proposed solutions implementing business strategies to deliver the highestbusiness performance for BCC

(iv) The trend of economic developments at home and abroad, the real estate industryand construction materials will turn out in the period from 2016 to 2020, BCC should do inresponse?

(v) How orientation business strategy for BCC? Are there any measures to support theconstruction and implementation of the strategy?

4 Rationable orientation for building business strategies in cement industy

4 1 Some basic concepts of strategy

4.1.1 The concept of strategy and strategic management

There are many definitions of business strategy, however, they can be understood as thestrategic direction and scope of an organization's actions in the long term aiming to achievebusiness advantage through the identification of resources currently can be used in businessenvironment to identify and satisfy the needs of the market and to ensure the interests of allrelevant stakeholders (stakeholder)

Therefore a business strategy has a very important role in determining the development

of the business Business strategies are developed, selected and implemented based on thecomparative advantages of the business, which require businesses to assess the true state oftheir activities as strategic planning and also put business in such a situation to developbusiness strategies with careful preparation and continuous updating

Strategic Management:

The goal of profound strategic management is now placed in the best position on thetarget market, to maximize long-term value of the business A more specific strategy is toachieve a number of objectives:

• Achieve business goals in the long term (business & corporate social responsibility) in asustainable way (Sustainable)

• The market or market segment that the company business, business strategies will beapplied.

• Enterprise how to dominate the competition in those markets with specific customers?

• Need to use what resources (people, skills, assets, finance, trade secret, ) to be able toachieve that goal

• The potential threat from outside can influence the implementation strategies:environmental, competitive, political, resources, individual risk prevention plan?

• The values which will bring business owners and business society which is member

In terms of process, strategic management is seen as a management process involves theformation of a strategic vision (Strategic Vision), set goals and prepare a strategy andimplement that strategy , and from time to time to adjust the strategy to suit the circumstances

4.2 Process management business strategy

The process of strategic planning business can be divided into four main steps:

- Step 1: Select the mission and main objectives of the company

- Step 2: Analyze and forecast business environment To sum up results of the analysisand forecasting in two directions:

Identify opportunities, opportunities and favorable business environment

Identify the risks, threats and pitfalls of the market for business operations

- Step 3: Analyze and assess the status of the company to identify strengths andweaknesses

+ Financial situation

+ The number, quality and structure of the workforce

+ Review the organizational structure of the company and the adaptability of thestructure before the environment changes and new business conditions

- Step 4: Selection strategies based search resources, capabilities and core competencies.Develop it to neutralize the risk inside and take advantage of external opportunities

4.3 The process of developing and implementing strategies

- Step 1: Gather information, analyze the outside, inside

- Step 2: Develop plans, strategic options

- Step 3: Implement and control

4.4 Some of the tools used to serve in strategic management research

4.4.1 Delta project model

Delta is a model-based approach to customer management strategy compared to focusing

on the characteristics of the product, this model is based on customer economics Customermodel is this center was developed by Dean Wilde and Arnolda Hax, the focus of Delta'smodel-based competition binding values rather than directly competitive strategy Delta modelhas 3 basic core components: system optimization, customers optimal and best products

4.4.2 Strategic map

The strategy is often documented, to the top of the leader in business or just write out themain points of the strategy To share with everyone in the business is easy, there is a draw themost intuitive way, which is most easily understood strategy map Kaplan & Norton in theprocess of building multiple versions, the map shows that the more important strategy, because

it is very intuitive to express the business strategy

From the Balanced Scorecard, which helps businesses identify the objectives, measuresand finally go to the individual engaged in business, people identify personal goals.Strategy maps help us understand the process of implementation and deployment strategies in

an organization This model is a step forward from the model evaluation table with four pointsbalance This model explains the process of implementing the company's strategy in thefollowing directions: financial orientation, customer orientation, process orientation andorientation within the learning and growth

4.4.3 SWOT matrix composite

On the basis of identified opportunities and challenges from the external environment aswell as the strengths and weaknesses of the business, SWOT offer 4 basic strategies:

(1) SO (Strengths - Opportunities): the dominant strategy is based on the company totake advantage of market opportunities.

(2) WO (Weaks - Opportunities): the strategy based on the ability to overcome theweaknesses of the company to take advantage of market opportunities

(3) ST (Strengths - Threats): strategies based on the company's advantage to avoid therisk of the market

(4) WT (Weaks - Threats): the strategy based on the ability to overcome or minimize theweaknesses of the company to avoid the risk of the market

4.4.2 PESTNG model analyzes the business environment

The model analyzes the external environment PEST identified four basic elements of theexternal environment affecting business operations of the business and evaluate the influence

of environmental factors there Although PEST model just to mention the most basic elementsbut in fact today may include more analysis of a number of other factors thought to beimportant for the operation of the business and is regarded as a model PEST expand as naturalfactors or issues of globalization

4.4.3 5 forces model analysis M.Porter competitive industry environment

Five forces model M.Porter competitive analysis focused on five areas of thecompetitiveness of enterprises include:

- Analysis of customer pressure

- Analysis of the supply pressure

- Analyze current competitors

- Analysis of potential competition

- Analysis of the risk of substitute products

4.4.4 Value chain model M Porter-enterprise internal rating

Value chain model is a creation of scholarly M Porter analysis helps a systematic way ofbusiness activities In this value chain, assuming that the economic activity of enterprises arecreating value Operation of the business is divided into different sections including twogroups: primary activities and supporting activities In total, there are nine kinds of activitiesthroughout the value creation chain Group activities include suites in the main types ofactivities: bringing materials to production operation and production - business outboundshipping, marketing and sales; provide related services Supplementary Group include:infrastructure, human resource management, technology and procurement The complementaryactivities occurring within each main activity

5 Market overview of domestic and international cement

5.1 On the international market

Cement currently remains one of the elements required in the construction industry ingeneral, therefore, the demand for cement is expected to sell around the world will continue toincrease in the near future Production of the world's cement consumption will increase from4,223 million tons to about 2020 and then rise to around 5,901 million tonnes in 2025

In total 2,589 million tonnes of cement consumption is expected to increase worldwide,more than 76% of the Asian market consumption volumes increased by 1,561 million tons inEast Asia, 285 million tons in Southwest Asia and 139 million tons in Southeast Asia Middle

East will achieve record power consumption increased by nearly 150 tons ironically, with acapacity of approximately 137 million tons expansion in Africa and 108 million tons in Southand Central America.

Total consumption of 27 countries in the EU is expected to increase to approximately68.6 million tonnes with 15 EU countries contributed 54.8 million tons The Europeancountries not EU will contribute 72 million tonnes, while countries in Oceania are expected torise by about 4 million tons Total consumption in 2025 of North America is expected to reach

63 million tons higher than achieved in 2020

The expanded capacity reached approximately 27.5% in the period from 2010 to 2015,and is expected to decrease 20% in the period from 2015 to 2020 and decreased further to 16%

in the period 2020 and 2025

5.2 Vietnam market

Northern market with abundant raw materials and large cement factories focused moresouthern thus cement market in the North met quite a lot of competition, because transportcosts account for a large proportion of the sale price cement, cement prices in the North areabout 10-15% lower than the South

In the first 9 months of 2016, the price of cement plant remained stable In the Northfrom 1,300,000-1,500,000 / ton, in the South from 1,600,000-1,800,000 / ton Retail cementprices on the market an average increase of 2,000 VND / bag on the end of the month 3/2013when gasoline prices adjusted

Production and consumption of cement

Production of cement in the whole industry May 8, 2016 reached 33.32 million tons, with59.5% of the plan year Domestic consumption reached 30.57 million tons, an increase of 8%compared to the same period last year Inventory as of the date 12.08.2016 cement to about 2.6million tonnes, mainly clinker This inventory is not worrisome because of the amount ofmaterial equivalent to 12-14 days for production

Cement export market solution when domestic consumption in order to reduce thedifficulty of cement excess pressure in water, but the situation appeared exporters selling

cement floor under prices Therefore, when exporting cement for 40-45 USD / ton, thebusiness loss from 8-10 USD / ton In the first 8 months of 2016, the cement business hasexported 2.3 million tons and 4.4 million tons of cement clinker to the Middle East, Africa andsome countries in Southeast Asia, exports increased by 50% compared to the same period lastyear.

Domestic cement market has change: In which Vicem (Corporation Vietnam CementIndustry) from 34% market share of the domestic cement III/2015 quarter increased to 36% inthe third quarter / 2016, an increase of 2% compared to the same period last year Remainder

of the cement business venture accounted for 31% and other cement companies accounting for33%

Currently the highest clinker export price is around 78 USD / ton and the price of cement

in the country on an average of 1.3 million/ton, lower than the average sale price in the world,approximately 100 USD/ton The increase electricity prices caused the cement business wasmore difficult as things stand

RESEARCH METHOD

1 Research Methodology

Method comparison and analysis methods of synthesis methods combined withqualitative research and quantitative survey data of actual statistics, comparative analysis,systems approach, the optimal choice, the legal experts

Methods of collecting secondary data

Data is taken from sources such as BCC Company, other companies in the sector, theGSO, newspapers, magazines and the internet

Methods of collecting primary data

To collect the data, the author interviewed a number of members of the company,including: Board of Directors-Board of Director (General Director, Deputy General Director in

charge of engineering, deputy general manager in charge business), the head (Organizationand Administration, Finance and Accounting) and a number of staff involved BCC.

For other subjects, author interviewed and discussed with a number of experts in buildingstrategic issues to refer to their opinions

(iv) The theme is also a valuable resource to serve researchers and interested readerssole strategic areas and cement industries

RESEARCH RESULTS

1.Overview of Bim Son Cement Join Stock Company

1.1 Overview of Bim Son Cement Joint Stock Company

Company’s Name: Bim Son Cement Joint Stock Company

Headquarters: Ba Dinh Ward, Bim Son town, Thanh Hoa province

Phone Number: (84-37) 824.242 Fax: (84-37) 824.046

Logo:

Bim Son Cement Joint Stock Company was established in 1980, with the largest reserves

of raw materials Technology including dry and wet During operation, the company hasgradually improved and matured, becoming one of the leading enterprises, occupying arelatively large market share The Company's markets stretch from Son La to Khanh Hoaprovinces

Lines of business: Manufacture of cement, clinker, production of building materials andcement additives; Business cement, clinker and other building materials; Export cement,clinker; Extraction of minerals for cement production, maintenance and repair of cars andother motor vehicles to transport of goods by road, unloading port waterways

1.2 The impact from the macro environment (model PESTNG)

1.2.1 Economic Environment

As a business activity that the market is mainly domestic, Bim Son Cement JSC alsoaffected by the economic environment in the country In recent years, the domestic economystrongly affected by the financial crisis and global recession Besides, it is a developingcountry, so the structure of many lines in the economy unreasonable Macro economy aremore difficult to predict change

1.2.2 Environmental government, law and politics

Vietnam joined the WTO between 2007 and create more opportunities for enterprisedevelopment in the country Beside that, participation in negotiations and going forward TPPagreement will create many new opportunities, including the cement manufacturingindustry.However, which is accompanied by challenges and little competition from foreignenterprises

One of the advantages of the country thought the environment was stable politicalsituation To meet the increasing demands of the market economy, the government haspromulgated many new laws and amend old laws, to create a favorable investmentenvironment for enterprises

Table 1: The political factor - the basic laws affecting BCC

Factors Describe Impact assessment to BCC

Political

institutions Political stability and the absoluteleadership of the Communist Party Stable production and businessof enterprises

Viet Nam Law

system Tends to improve, many laws bornof transparency and contributes to a

healthy economy

Having a positive impact onbusiness activity in the mediumand long term BCC

At first there is a positiveimpact on the enterprise;however in the long term make

it difficult to operate due to animbalance between supply anddemand and competition

The support of the

Positive impact on the business,but now VICEM not kept goodcoordination role between themembers should have createdobstructions and difficulties inthe operation of BCC

1.2.3 Social and cultural environment

Social Environment: Population national average in 2015 estimated 90 million people,the urban population is 26.88 million, accounting for 30.6% of the total national population.Vietnam's population is a young population, the proportion of people aged private housingdemand, married (20-30) is quite high The rate of migration to urban areas tend to beincreasing, the average annual migration of about 1.4% today

Cultural Environment: Consumer behavior based on cognitive thinking, what theirconsumers know, I know, gather full information of the product, the enterprise to make theright decisions, not affected by other consumers to protect their personal interests, communityand society

1.2.4 Environmental technology

As a growing, so the government and the investors always focus ngah development ofhigh technology industries such as nanotechnology, biotechnology, information technology