The business of strategy VITECHCO company limited e

The Strategic vision, business mission of the VITECH Company Limited.. 1.3 Functions and duties of the VITECH Company Limited The main function of the company is: Organize business produ

The business of Strategy VITECHCO Company Limited

TABLE OF CONTENT

1

TABLE OF CONTENT 2

INTRODUCTION 4

RESEARCH OF CONTENT 5

1 Introduction overview of VITECH Company Limited 5

1.1 The process of formation and development VITECH Company Limited 5

1.2 Structure of apparatus of VITECH limited company 5

1.3 Functions and duties of the VITECH Company Limited 5

2 Analysis of PEST model 6

2.1 The impact of the economic environment 6

2.2 Effect of the elements of culture, society, geography and demography 6 2.3 Impact of government legislation, politics 6

2.4 The impact of technology 7

2.5 Effect of natural 7

3 Analysis of the competitive factors 8

3.1 Competitors 8

3.2 Customers 8

3.3 Supplier 9

3.4 Potential new rival 9

3.5 Substitutes 9

4 The Strategic vision, business mission of the VITECH Company Limited 10

4.1 Identify business SBU 10

4.2 Identify strategic business objectives of the VITECH Company Limited 11

5 Evaluate the success and limitations of the VITECH limited company 11 5.1 Success in business strategy of the VITECH limited company 11 5.2 The shortcomings in the business strategy of the VITECH limited company 12

5.3 The causes of the current problems in the business strategy of the VITECH limited company 12

6 Trends perfect the business strategy of the VITECH Ltd company in the near future 13 CONCLUSION 15 15

Strategic management is the science and art of the strategy to develop the direction and business objectives, implement, implement the short-term plan and long-term on the basis of available resources to help the each organization can achieve its long term goals

An effective business strategy together with excellent performance is the best guarantee for the success of every organization A business exists in a changing environment including changes in: technology, social values, consumer habits and economic conditions, policies and even in pollution norms Environmentalists may face risks and challenges as well as great opportunities Senior leaders and researchers can give reasons why businesses and other agencies should conduct business strategy The conditions of most of the business changing so fast that strategic planning is only one way to counter the difficulties and opportunities in the future

Strategic planning provides every member of the business objectives and the specific direction of the business in the future Strategic planning as a basis for control and evaluation of the management Organizations and individuals that strategic planning will be successful and effective than no plan

RESEARCH OF CONTENT

1 Introduction overview of VITECH Company Limited

1.1 The process of formation and development VITECH Company Limited

- The VITECH Company Limited was established in July 2009

- Tax code: 0104076437

- Email: Vitechpro@gmail.com

- Phone: 04 66536592

- Fax: 04 66536592

Previously, the predecessor of the company is a shop specializing in providing advertising services

Then, jointly developed with the market mechanism, has promoted the establishment of the company The company is headquartered at: No 6, lane 31/2, Phan Dinh Giot, Phuong Liet, Thanh Xuan District, Hanoi; Transaction office: No 62, Phan Dinh Giot, Thanh Xuan District, Hanoi The company now is still a small company with the initial charter capital is 1 billion VND

When first put into operation now primarily active in the field of printing products such as: billboards, calendars, cardvisite, flyers,etc, , have not paid attention

to advertising and service sectors other commercial services However, as demand for printing and advertising market, particularly businesses, stores rising up from 2010 to present the company to focus on key areas as print advertising

1.2 Structure of apparatus of VITECH limited company

The organizational structure of the company vertically, simple, compact, creating unity in command now Chart compact structure that allows businesses to save cost management

1.3 Functions and duties of the VITECH Company Limited

The main function of the company is: Organize business production and supply

of printing services and advertising business registration and incorporation purposes

The company's mission is: Provide printing services and advertising in order to best serve the needs of customers, undergoing renovation repair works of outdoor advertising, restored edition kinds rental equipment used for advertising, printing,

unceasing care and improve the material and spiritual life, fostering and improving education level, professional skills for staff members within the company

2 Analysis of PEST model

2.1 The impact of the economic environment

Economic factors are often primarily interested businesses is the bank interest rate, stage of economic cycle Since early in March 2014 to the present, deposit rates

of commercial banks has decreased significantly, musty deep backward 7%/year maturities less than 6 months and less than 8%/year terms from 6 - 12 months,etc, Raise interest rates further decrease is also a condition to contribute can further reduce lending rates In 2014, leaders of the State Bank estimated in favorable conditions, lending rates may fall further VND from 1-2% /year

This will help businesses reduce cost of capital for production and business Another factor to consider is the economic cycle Economic cycle makes business plans of the private sector and economic plan of the state in trouble Economic cycle, non-volatile rule, often iterate over the period from nine to ten years Currently, we are

in the period of economic recession, so this is difficult requiring businesses must have the appropriate business strategy to step through this period

2.2 Effect of the elements of culture, society, geography and demography

Like other Eastern countries, most Vietnamese people enjoyed the bold colors, bright and red as the color of good luck So businesses need special attention to color when printing advertising design Currently, the exchange between the cultural domain extension is increasingly leading to a change in color preference of some Vietnamese people, especially the youth This is what requires businesses to capture the preferences of different customers Another encouraging factor for businesses is present, Vietnam's population increased, up to 90 million people (according to the General Department of the population) This will make all businesses generally as well as print advertising business in particular will have the opportunity to sell more products

2.3 Impact of government legislation, politics

Vietnam is a country with a stable political regime it very favorable for all enterprise production and business activities on the territory of Vietnam Before the advent advertising rules, Vietnam has many circulars, decree laws regulate the

advertisement as: 116/2005/ND-CP on September 15, 2005, 20/2005/ND-CP, on September 30,2005,21/2006/ND-CP, Circular 78/2008/TT- Ministry of Culture, Sports and Tourism, Advertisement Ordinance 2001 Ordinance on Consumer Protection 1999 Trade Act 1997,etc,… However, on June 21, 2012 the new parliament formally enacted legislation to regulate advertising of the business scope of activities related to advertising Advertising Law is applicable since January 1, 2013 This requires businesses related to promotional activities must fully comply, or they would be punished An important element in the law have direct influence on any particular business is tax policy

Currently, we are the government policies stimulate development enterprise with tax rates According to Clause 6 of Article 1 of Act No 32/2013 / QH13, the income tax rate is 22% of its business from January 1, 2014 and only 20% on January

1, 2016 In addition, for those enterprises with total revenue in the preceding does not exceed 20 billion will be subject to 20% tax This is an advantage for the VITECH Company Limited for now the company is a small business

2.4 The impact of technology

Currently, the progress of science and technology, the technology transfer that allows the introduction of modern printing technologies such as laser printing technology, dot matrix, inkjet printing, 3D printing increasingly better meet demand consumer 3D printing technology which is new printing technology has been launched not long, but has received a lot of enthusiastic responses from consumers

However, their prices are very expensive so overall it has virtually no advertising printing enterprises of Vietnam has been the technology The improvements in printing technology in the world in general and Vietnam in particular has shaped many methods in increasing productivity and better quality: typo printing method, flexo printing, gravure printing, screen printing, offset Offset printing method is a method of printing businesses in Vietnam used the most because it gives the yield and quality than other printing methods The printing technology and methods in increasingly improved, this requires VITECH limited company quick to grasp market trends and updated methods and technologies in a timely manner so that

in order to not be left behind compared to other businesses

2.5 Effect of natural

The tropical climate countries like Vietnam are characteristic of high air humidity, creating favorable conditions for mold growth can therefore negatively affect the preservation and display of printed products an advertisement In addition, Vietnam is also one of frequent storms, floods,etc, Annual collapsed, faded many billboards This requires the advertising printing business must have products that can stand in good climatic and natural conditions in Vietnam

The impact of natural conditions to the decision of the print ad business has long been recognized The majority of printed products and advertising, the quality and reliability of it depends on the climate and weather Therefore, theVITECH limited company well as enterprises in the sector have studied the effects of nature, especially the weather to have the initiative in business

3 Analysis of the competitive factors

3.1 Competitors

Currently, due to the demand for printing products increasing advertising has led to many companies involved in this business sector According to the association

in Vietnam, only less than 10 years after the law is now in force and the provisions on the establishment of printing houses are easing, the printing company in Vietnam has increased 6 times, up to 3000 enterprises

Currently, intensive direct competitors of the company is the printing business advertising on the city of Hanoi as: Travel - Commerce - Advertising Ha Viet Corporate, Advertising agency Young Hanoi, Advertising Capital company, commercials Hanoi Capital printing Limited company, Tan Viet An Development Joint Stock Company,etc, Consequently, competition among companies dealing in printing products increasingly fierce advertising affect sales of other businesses as well as VITECH limited company

3.2 Customers

Regular customers of the company's stores VITECH Limited company, companies such as: Duc Phuong production and commercial company, Vietnam JapFacomFeed company, North Cotton joint-stock company,etc, Each client has a need different needs and characteristics require advertising printing enterprises should grasp this need to attract customers

Moreover, today, customers are increasingly demanding and have more information about the market Consequently, only those companies that have the ability to meet customer demand, the new best stand in the market

3.3 Supplier

The main suppliers are very lontoi affect business operations of enterprises There are good relationships with suppliers will help businesses reduce purchase costs, ordering costs and actively in business If no good supplier will be able to make business fell into disruption of production and business activities Therefore, to ensure that the manufacturing process is happening stable, ongoing businesses need to have a good relationship with suppliers and selected reputable suppliers When a new vendor offerings, enterprises have researched the possibility of financing, availability of materials,etc, Before signing the contract The main suppliers of VITECH limited company is:

Table 1: The main supplier for VITECH limited company

1

The Southern printing ink trade investment joint-stock

company, The Vietnam ink trade and export joint-stock

company,etc,

The printing inks

2

Minh Chau paper Trading and Producing Joint Stock

Company, Hoang Ha Counseling and Producing paper

Company Limited,etc,

Printing papers

3

LALA building and commercial Limited Company, Dong

Phuong Manufacturing and commercial construction

limited company,etc,

Supplying steel frame types

4 Xuan Thuy Dai Duong Joint Stock Company Supply tarpaulin

hiflex

(Source: Business Department) 3.4 Potential new rival

New competitors to enter the business in the business of advertising printed products are factors that reduce industry profits Therefore the research to protect the competitive position of enterprises in this industry include maintaining legal barriers prevent intrusion from outside is important

3.5 Substitutes

The strong development of electronic communication with the explosion of the internet and digital media for many diverse advertising methods without resorting to printing technology, such as: Electronic billboards, advertising through web pages, through radio, television,etc, is becoming a threat to print advertising industry Many businesses now use this new form of advertising revenue thereby printing advertising industry affected Therefore, businesses in the print industry as advertising supply the VITECH Company Limited need continuous research, monitoring of potential substitutes and improved printing technology as well as design

4 The Strategic vision, business mission of the VITECH Company Limited.

According to a survey interviewed senior executives in the company, the only existing company business strategy for the company that's best business print on canvas Hiflex billboard for Beach tents are a form of advertising is most commonly used today, many businesses, shops selected by the advantages of cost saving, printing simple, quick Material suitable for advertising promotions on many small areas from the sign company, shop, showroom by the ability to print on large areas, after the print image quality is guaranteed, no blurry pictures, cracks form durable and can withstand sun and rain, good elasticity Through interviews with company executives in the strategic vision of the company is "always eager muontro a leading company in printing advertising industry by offering products beautifully designed, affordable reasonable, good quality to satisfy the needs of customers' business and mission of the company is: "Focus on the most advantageous areas to improve the position in the industry"

When investigators tested 10 employees in the company about the level of awareness strategic vision and business mission of the company, found that 70% of staff in the company is not aware of a strategic goal comb This is because the company leaders clearly not common to all staff This may be the reason that companies do not achieve the desired results in strategic planning

4.1 Identify business SBU

Currently, the company has five product business groups are: billboards, brochue, visde cards, calendars, books circulated internally These products are consumed in the Hanoi market and customers are small and medium enterprises The competitive advantage of the company's products are uniquely designed, beautifully