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

CAPSTONE PROJECT REPORT
BUSINESS STRATEGIES OF DIC NO.4
IN TH PERIOD OF 2011 – 2020


Group: 08:
1. LE DINH THANG
2. TRAN THI DIEM PHUONG
3. HUYNH THI NGOC HOA
4. HUYNH KIM HOAN
5. LE DUC TAN
Class: GaMBA01.C05






Ho Chi Minh City, 2011


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TABLE OF CONTENTS
Page
Opening 6
Chapter 1: Literature Review 8

1.1 Overview of Business Strategy . 8
1.1.1 Definition of Strategy 8
1.1.2 Definition of Strategic Management 8
1.1.3 The role of Strategic management in company 8
1.1.4 Business strategies 9
1.2 Business Management Process. 10
1.2.1 Define orgnizational goals and missions 11
1.2.2 Analyse environment 11
1.2.2.1 Analyse external environment 11
1.2.2.2 Analyse internal environment 14
1.2.3 Develop long term goals and plan for company development 14
1.2.4 Develop action plan and implement alternatives. 14
1.2.5 Check and adjust 15
Chapter 2: Analyse the actual situation 16
2.1 Introduction of DIC No. 4 Joint Stock Company. 16
2.1.1 General infomation 16
2.1.2 Process of establishment and development 19
2.1.3 Organization chart of appratus operation 22
2.1.4 Structure of human resources management of dic no4 23
2.1.5 Quality assurance system - legal representative of contractor 25
2.2 Analyse the actual situation of DIC No. 4 Joint Stock Company in term of
strategies: 31
2.2.1 Factors influencing on strategies 31
2.2.2 External Factor Evaluation (EFE) 31


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2.2.2.1 Economic Environment 31

2.2.2.2 Cutural, social, geographical factors 32
2.2.2.3 Lawyal & polictical factors 32
2.2.2.4 Technological factor 32
2.2.3 Micro factor 33
2.2.4 Competitors 34
2.2.5 DIC No. 4 Joint Stock Internal factor (IFE) 37
2.2.5.1 Study the input supply or material control system 38
2.2.5.2 Construction activities 39
2.2.5.3 Analyse the investment activities 41
2.2.5.4 Evaluate manufacturing activities 43
2.2.5.5 Evaluate the Marketing activities 43
2.2.5.6 Evaluate the company Human resources. 44
2.2.5.7 Evaluate its financial activities. 46
2.2.5.8 Evaluate company culture . 48
2.2.6 Internal – External Factor Evaluation matrix (IE). 49

Chapter 3: Solution to brand strategy and busines expandsion at DIC no. 4
joint stock company in the period of 2011-2020
3.1 Growth forecast of company to 2016. 51
3.2 Strategy Selection 53
3.2 .1 Overall evaluation of the actual situation at DIC No. 4. 53
3.2.2 QSPM Matrix with S-O strategy . 57
3.2.3 QSPM Matrix W – O strategy 59
3.3 ALTERNATIVE TO BRAND STRATEGY 61
3.3.1 Develop brand in the construction 62
3.3.2 Develop brand in investment 63
3.3.3 Develop brand in Marketing 64
3.3.4 Develop brand in security 65

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3.4 Solution to business expansion strategy at DIC No. 4 Joint Stock Company
in the period of 2011 – 2020 66
3.4.1 Expand and integrate into construction 67
3.4.2 Expand Investment - Manufacturing 69
3.4.3 Develop Commercial Trading 71
3.4.4 Expand business territory 72
3.4.5 Prepare for Human Resources 73
3.5 Conclusion 75


LISTS OF PICTURES AND CHARTS
Graph 1.1: Business Management Process 10
Graph 1.2: Model the impact of external environment factors 12
Graph 1.3: Model of 5 competitive pressure of M.Porter 13
Graph 2.1: Organization chart 23
Graph 2.2: Building output 41
Graph 2.3: Pretax income 47
Graph 3.1: SWOT matrix 53
Graph 3.2: Brand strategy 62
Graph 3.3: DIC No. 4 plan the business expansion into following sectors 67




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LISTS OF TABLES
Table 2.1: General information 19
Table 2.2: Summary finacial 26
Table 2.3: Volum of production 26
Table 2.4: General hopistal of Baria 27
Table 2.5:Cluster B3 28
Table 2.6: Office buiding 30
Table 2.7 : External Factor Evaluation Matrix of DIC 4 Joint Stock (EFE) 33
Table 2.8:Competitive image matric between Dic no. 4 & its competitors in
construction 36
Table 2.9: The criteria of construction quantity DIC No. 4 did in past years 40
Table 2.10:Compare the company profit achievd in recent years 47
Table 2.11 : Internal Factor Evaluation matrix (IFE) 49
Table 2.12: Matrix evaluates internal – External factors 50
Table 3.1: Forecast growth of company from 2011 – 2016 52
Table 3.2: QSPM Matrix with S-O strategy 58
Table 3.3: QSPM Matrix W – O strategy 59





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LISTS OF ABBREVIATIONS
EFE : External facors environment matrix
IE : Internal – External matrix.

IFE : Internal facors environment matrix
QSPM : Quantitative strategic planing matrix.
SBU : Strategic Business Unit
SWOT : Strengths - Weaknesses - Opportunities –Threatens matrix
WTO : World Trade Organization






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OPENING

WHY CHOOSE THE TOPIC:
Vietnam ecomomy has grown at high speed in recent years though Vietnam
has been in difficulty as the influence of the long lasted world economic crisis and
natural calamity. Vietnam became official 150th member of the World Trade
Organization (WTO), officially intergrated into the world economy, that is both
opportunity and challange to local economy organization, espcially to enterprises.
Tendency of economic localization and globalization gives big opportunities,
and set challenges to enterprises. Global competitiveness is more and more various
and severe, business environment, espcially technology environment keep changing
fastly The reality requires enterprises hold an organzistion proactive, flexible,
innovative so as to quickly adapt to market changes. On the other hand, enterprises
should formulate appropriate, flexible strategic plan, gain the support of
department heads and staffs so as to have strong team obtaining success.
Aware of the importance of strategy plan at companies generally, and at

the construction company in particular, we choose the thesis topic: Strategy at
DIC No. 4 company in the period of 2011 – 2020
With the limitation of knowledge and time, there may be aslo shortcomings
in our thesis. Nevertheless, we hope to get Teachers, your honorable evaluation for
us to improve; our points as well as your evaluation will be the base for us to
propose to DIC No. 4 Joint Stock company for their consideration of application to
their actual business.
Our group, we are sincerely thankful Teachers for your dedicated teaching
and transfering valuable knowledge to us in the past time. We especially would like
to send our big thanks to Teachers who enthusiastically gave us guideline to
complete this thesis.


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


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CHAPTER 1: LITERATURE REVIEW
1.1 Overview of Business Strategy
1.1.1 Definition of Strategy
Strategy is the selection of a company objective with design, policy, system and
management to compete competitors in the same sector.
According to Fred R. David: “Strategy is means to achieve long term

objectives. Business strategy may includes the development of territory,
diversification of activities, ownership, development of products, market entering,
cost cutting, liquidation, and joint-ventor”.
According to Michael E. Porter: “Strategy is the art of setting competitive
advantages to prevent business”.
1.1.2 Definition of Strategic Management
Strategic management is the process which study the enviroment currently and
in the future also, plan organizational objectives, plan, adopt, and implement, check
the implementation of such objectives currently as well as in the future.
According to Fred R. David: “Strategic management can be defined as the art
or science which sets up, implements, and asesses decisions involving many
functions in order to achieve set goals.”
1.1.3 The role of Strategic management in company:
The survival of strategy is the key to the endeavor to company development.
The fact that company recognizing the purposes and ways is to achieve its
goals, and to be aware of its positions during the implementation.


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To help company find opportunity and risk internally and externally;
strengths and weeknesses in order to maximize strengths, and minimize
weeknesses, grasp the opportunity, and set alternatives to prevent external risks.
To help company make best decisions on busniess in order to enhance its
efficiency and capability of its business acitivities.
To help company select the proper business advantages in the continously
changing business environment, realize the existing weeknesses, to strengthen its
competitives.
1.1.4 Business strategies

Business strategy may be divided into general business strategy, functional
strategy, and business factor strategy.
Overall strategy
Company define its long term goals to achieve the target of growth, for
example: brand developing strategy (construction, investment, manufacturing,
marketing, security); business expanding strategy (investment in manufacturing,
trading…)
SBU- Strategic Business Unit
There are maybe one or more business units in a company. However,
company has to orientate every business unit or multi unites together to achieve the
whole company goals; defines its business advantages of every unit compared with
competitors then to set suitable goals, for example: differentiation, low cost,
prevention to protect share, market attack. It is severely competitive, brand
development is considered as the key for business unit, and as the connection with
involving functions.



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1.2 Business Management Process





.

Graph 1.1: Business Management Process

Set organizational goals
and mission
Analyze external
environment
Analyze internal
environment
Set strategic
objectives
Objectives:
- Company
- Business
- Functions
- International
Business

Plan and distribute
resources
Adopt and implement
strategy, and advance to
international
Organization
structure and control


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The process of building and implementing strategy is considered as a
continuous process. It starts with the announcement of business goals, the reason
why and how long we have goals, what we desire from such goals.
1.2.1 Define organizational goals and missions
Missions is understood why there should be strategy, the meaning of the
company birth and operation. Company missions are the company manifesto to
society. Most of the times, mission includes criteria of clients, product or services,
market, technology, philosophy, community, staff…Missions show a future picture
of company. Mission is the primary base for selection of company goals.
Clarify company goals: Goals is the specification of content, the means of
implementing successfully the company manifesto’s mission.
1.2.2 Analyze environment
Company environment includes internal and external one which affects
directly or indirectly the company survival and development. Hence, study internal
& external environment is very important to develop plans.
1.2.2.1 Analyze external environment:
The analysis of external environment helps us realize chances and challenges
so that company can make decision on things. The analysis is conduct on the macro

and micro basis.









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Graph 1.2: Model the impact of external environment factors

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

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


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

Potential competitors: the new competitors enter the market will take a part
of market share and profits. To protect its competitiveness, company must increase
the barriers such as diversifying its product units, scales.
Replaced product: Replacement will lower company potential profit, and
share.
Clients: clients’ interest is very important to company. However, if clients is
in higher position, they will influence company for example they require price
reduction and late payment…
Suppliers: include companies who supply input such as material, machinery,
equipment, finance, labor,…If supplier is in higher position, they will make
disadvantage influence on company such as: selling higher price, early payment ….
Competitors: this is the usual & direct threat against company when
increasing competitiveness and it threatens business position and survival.


Internal competition

Competition between
enterprises in the

market
Clients

Replaced Products
Threat of potential
competitors
Challenge of the subtitude
product / service
Potential competitors
Suppliers
Negotiating
power
Negotiating
power



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

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

survive and develop.
It is business strategy which sets objectives reflecting current existence,
thought about ways to reach such goals. Besides, company should define its current
position; and its strength & weeknesses as well so that company can maximize its
strengths and improve weeknesses. (depend on condidtions, sectors)
Clarify objectives is the process of forecast product demands as well as
revenues, through which, managers makes decision on manufacturing, business.
This will be also the base to forest finance, human resources, …
Objectives set properly, will be the motives and measures for implementation.

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



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

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CHAPTER 2: ANALYSE THE ACTUAL SITUATION

2.1 Introduction of DIC No. 4 Joint Stock Company
2.1.1 GENERAL INFORMATION:
1. Company name

- English name
- Brief name
DIC No. 4 JOINT STOCK COMPANY (Member of DIC
Group)
DIC No4 Joint Stock Company
DIC-No4
2. Head office

- Tel
- Fax
- Email
- Website
No. 4, No. 6 Road, Chi Linh Urban Centre, Ward Thang
Nhat, Vung Tau City, Ba Ria Vung Tau Province
064.3613.518
064.3585.070

www.dic4.vn
3. Ho Chi Minh City
Branch
- Tel
- Fax
Floor 4, Bach Viet Building, No. 65 Tran Quoc Hoan, Ward
4, Tan Binh District – Ho Chi Minh City.
08.68.106 338
08.39.487 098
4. Bank Account
760 01 0000 33857
At Bank of Investment and Development of Viet Nam

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(BIDV) - Ba Ria Vung Tau Branch
5. Tax code
3500 68 69 78
6.Authorized
Capital
50 Billion VNĐ
7. Stock code
DC4 (at Ha Noi Stock Exchange - HASTC)
8. Registration No.
3500 68 69 78 at Department of Planning and Investment
of Ba Ria Vung Tau Province.
- 1
st
Registration: 28/1/2005
- 8
th
Registration: 7/6/2010
- Date of changing registration no : 12/11/2008
9.Scope of Business
- Investment in construction of industrial zones, urban areas,
construction of houses for sale, office for rent;
- Civil construction, industry, buildings, construction of urban
infrastructure, roads;
- Building water supply systems, bridges, transmission line
and transformer stations;
- Construction works of fire prevention, fire fighting for civil

and industrial projects;
- Designing to build irrigation works, architectural design
civil engineering and industrial projects;
- Supervision of civil and industrial works;
- Establishment and evaluation of projects;


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- Dredge channels;
- PC Steel strand construction ;
- Installation of the mechanical construction products;
- Galvanized, painted, powder coated;
- Trading building materials and equipment for construction
investment;
- Warehouse for rent, machinery, construction equipment,
Road Transportation;
- Exploitation of soil, sand for leveling for civil, industrial
projects and road base;
- Manufacture of plastic doors and windows uPVC;
production of high-grade wood doors.
10. Legal basic
- No. 25/QĐ decision dated 18/3/1994 of Director of The
Investment Construction and Tourism Services Company
(Now is The Development Investment Construction
Corporation) to re-arrange and re-establish the Material
Construction Trading Enterprise of No.4.
- No. 162/2000-TCLĐ decision dated 30/8/2000 of Director
of The Investment Construction and Tourism Services (Now

is The Development Investment Construction Company
Corporation) to change the name and scope of business of the
Material Construction Trading Enterprise of No.4. (Change to
the No.4 Construction Enterprise).
- No. 1980/QĐ-BXD decision dated 09/12/2004 of The


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Minister of The Construction Ministry to change The
Construction Enterprise of No.4 to The No.4 Joint stock
Company (DIC_No.4) which is a subsidiary company of DIC
Group (Parent Company is The Development Investment
Construction Corporation).
Table 2.1: General information
2.1.2 PROCESS OF ESTABLISHMENT AND DEVELOPMENT:
DIC No. 4 Joint Stock Company was established in 1994 with the first name as
a Trading Construction Material Enterprise a subsidiary of Development Investment
Construction Corporation - Ministry of Construction, the scope business is to
provide materials for construction. Then switch the name to Construction No. 4
Enterprise, with the main task is construction and installation of civil, industrial,
buildings projects, constuction of technical infrastructure, transport, irrigation ; the
transmission line and transformer stations, fire protection; trading of construction
materials, supplies and equipment,
In 2004, the Enterprise Construction No. 4 was decided to change his name into
DIC No. 4 Joint Stock Company (DIC-No4) which is a member of the combined
parent company - subsidiary DIC Group by the Ministry of Construction. Since
then, the company continuously improve quality, scale, field operations. Company's
activities have contributed significantly to the socio-economic development of

localities in the country, and contribute significantly to the construction industry in
urban renovation, infrastructure development, economic and construction of urban
civilization and modernity.
Over the course of striving, growth, DIC-No4 has gradually affirmed its brand
as a professional contractor in the construction and installation of high buildings,
and effective investment projects on residential, urban, industrial, mining fill
materials in the manufacturing sector has provided products to market high quality


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plastic uPVC doors brand VINAWINDOW, production standards provided by ISO
9001 - 2000, the product was awarded Vietnam Gold Star Award in 2008. The staff
and workers of the company to over 500 people, property and means of machines
are equipped with modern and increasing; technical staff and workers are trained,
professional willing to invest, execute projects and works which are large scale,
complex.
The scope of activities of DIC-No4 is in the Ba Ria-Vung Tau Province, Ho
Chi Minh city, and South-Eastern provinces.
Achievements that the company has got is construction of hundreds high
quality, large and small construction projects, is rated by investors and contractors
as capable, experienced contractor, always hand-work schedule and quality
assurance, labor safety. Follow are the projects that DIC-No4 has been constructed:
- D2 – 21 floor apartment in Chi Linh District Centre – Vung Tau City (21
floors + 1 basement).
- Van Anh Hotel - Vung Tau back beach (14 floors + 1 basement).
- An Sinh General Hospital – Ho Chi Minh City.
- Office Building, 179 Nguyen Cu Trinh, Ho Chi Minh City (11 floors + 2
basements).

- Thuy Van Building - Vung Tau City (18 floors + 1 basement).
- 15th floor apartment - The Chi Linh Centre – Vung Tau City (15 floors + 1
basement).
- Office Building 193 Dinh Tien Hoang - Ho Chi Minh City (14 floors + 1
basement).
- Cluster works B3 – The Administrative and Political center of Ba Ria - Vung
Tau Province (26554.8 m
2
floor area).


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- General Hospital of Ba Ria, Ba Ria - Vung Tau Province (700 beds for
patients, 17-storey height, total construction area of 1,755,669 m
2
).
- Construction pile at Ho Tram Osaka.
- Bank for Agriculture and Rural Development - Tan Phu branch, Ho Chi Minh
city.
- Expanding University of Baria - Vung Tau (7 floors).
- Office Building 506 Nguyen Dinh Chieu St., Ward 4, District 3, Ho Chi Minh
City.
- Leveling the Dai Phuoc Ecological Tourism Zone.
- Residental of Go Cat Project – .
- Tam Phuoc I Industrial clusters project.
- First step of leveling - Phase I - Lot No. 1 of the Urban Eco-Tourism Dai
Phuoc project in Nhon Trach District - Dong Nai province.
- Sand supply for connection Road from Highway 51 in Cai Mep works, Tan

Thanh district, Ba Ria Vung Tau province.
- Provide sand for Thi Vai port project in Phu My I Industrial Zone, Tan Thanh
district, Ba Ria Vung Tau province.
- Supply and construction of strand for prestressed concrete - batch B + C - 15
storey apartment Bau Trung - Chi Linh Urban centre - Vung Tau city.
- Supply and construction of of strand for prestressed concrete - block A –
International Exhibition Conference Center of Vung Tau city
- Simultaneously, the company is also the owner of important projects like
residential projects Go Cat Ba Ria town, sand mine project in Tan Thanh, Ba Ria


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Vung Tau Province, Tam Phuoc 1 Industrial Zone and many other important
projects in the South East region.
All construction works are applied in process quality standards ISO 9001-
2000.
With the experience and results have been achieved in 17 years by the
technical staff, professional management, modern vehicle. DIC-No4 willing to work
stable, long-term with investors in all sectors of investment, construction, and
manufacturing with the motto: Prestige, quality and efficiency.
2.1.3 ORGANIZATION CHART OF APPRATUS OPERATION


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Graph 2.1: Organization chart

2.1.4. STRUCTURE OF HUMAN RESOURCES MANAGEMENT OF DIC
No4
* Board of Directors:
- Mr. Bui Van Chi - Chairman
- Mr. Le Dinh Thang - Vice Chairman


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- Mr. Khuong Manh Tan - Member
- Mr. Hoang Thanh Minh - Member
- Mr. Ho Xuan Dung - Member
* Control Board:
- Mr. Nguyen Quang Tin - Chief
- Mr. Nguyen Van Tuyen - Member
- Ms. Tran Thi Thu Tam - Member
* Board of Director:
- Mr. Le Dinh Thang - General Director.
- Mr. Nguyen Van Da - Deputy Director of engineering
- Mr. Nguyen Van Tan - Deputy Director of economic
* Other departments:
- Finance – Accounting Department: chief accountant: Ms. Nguyen Tuyet Hoa
- Technical Department : Manager : Mr. Tran Gia Phuc
- Personnel Department : Manager : Ms. Nguyen Hong Minh
- Planning Department : Manager : Mr. Bui Dinh Phong
- Business Department : Manager : Mr. Vu Khac Hien.
- Management Projects : Deputy Manager : Mr. Nguyen Van Duong
- Ho Chi Minh city Branch : Branch Director : Mr. Nguyen Huu Tiep

- VINAWINDOW factory : Factory manager : Mr. Nguyen Van Manh
* Teams:
- No.1 Construction team : Team leader : Mr. Pham Nhu Phong
- No.2 Construction team : Team leader : Mr. Le Van Trong