Business strategic planning for the industry of children's clothing bisiness of Hoang Vinh Quang garment embroidery pte till the year 2018

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GRIGGS UNIVERSITY
GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM

CAPSTONE PROJECT REPORT

“BUSINESS STRATEGIC PLANNING FOR THE
INDUSTRY OF CHILDREN’S CLOTHING BUSINESS OF
HOANG VINH QUANG GARMENT EMBROIDERY PTE
TILL THE YEAR 2018”


GROUP 6 MEMBER:
1. VO THI ANH DAO
2. HUYNH THI KIM XUAN
3. NGUYEN THANH TU
4. NGUYEN TUAN ANH
5. LE VAN QUANG


CLASS GaMBA.C0311

HCM City – 2013

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Table of Contents

INTRODUCTION 1
CHAPTER 1: OVERVIEW OF STRATEGIC MANAGEMENT 3
1.1 The Definition and Concept of Strategy and Strategic Management 3
1.1.1 Definition 3
1.1.2 The Concept of Strategic Management 3
1.2 Types of Strategy 4
1.2.1 Corporate Strategy 4
1.2.2 Strategic Business Unit (SBU) 4
1.2.3 Functional Strategy 4
1.3 Practical Business Strategies in Business Activities 4
1.3.1 Product Diversification Strategy 4
1.3.2 Strategy to Expand the Distribution Network 4
1.3.3 Strategy to Strengthen the Market Share 4
1.3.4 Focus Strategy 5
1.3.5. Integrated strategy along the front and rear 5
1.4 Strategic Management Process 5
1.4.1 Strategy Formulation Process 5
1.4.2 The Combined Stage 8
1.4.3 Strategic Choices Stage 9
1.4.4 Strategic Implementation Process 11
1.4.5 Strategic Assessment 11
CHAPTER 2: BUSINESS SITUATION OF HOANG VINH QUANG 14
GARMENT PRIVATE ENTERPRISES 14

2.1. Overview 14
2.1.1. Formation and development process 14
2.1.2. Main function and task 15
2.1.3. Organizational structure 16
2.2. Business activities 17
2.2.1. Business field 17
2.2.2. Production process 18
2.3. Size of company 19
2.4. Enterprise Market 19
2.5.Hoang Vinh Quang Brand 19
2.6. Analysis of external environment factors impact on business activities 20
2.6.1. Macro environment 20
2.6.2. The Micro Environment 26
2.6.3. Competitive matrix image of HVQ 30
2.6.4. External factor evaluating matrix (EFE) 32
2.7. Internal environment of HVQ 35
2.7.1. Manufacturing process technology 35
2.7.2. Financial factors of HVQ 36
2.7.3 Corporate Assets and Cash Flows 39
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2.7.4 Cash Flows 40
2.7.5. Human resources 41
2.7.6 Raw Materials 45
2.7.7. Business Capacity 45
2.7.8. Marketing Activities 47
2.8. Identify Opportunities - Challenges - Strengths - Weaknesses of Hoang Vinh
Quang Garment Embroidery PTE 50
2.8.1 Opportunities 50

2.8.2 Challenges 50
2.8.3 Strengths 51
2.8.4 Weaknesses 51
2.8.5 Internal Factors Environment Matrix of Hoang Vinh Quang 52
2.9. Summary of Chapter 2 54
CHAPTER 3:STRATEGIC PLANNING BUSINESS BUSINESS STRATEGIC
PLANNING FOR THE INDUSTRY OF CHILDREN’S CLOTHING
BUSINESS OF HOANG VINH QUANG GARMENT EMBROIDERY PTE
TILL THE YEAR 2018 55
3.1. The purpose and mission of HVQ 55
3.2. Pursuant to 55
3.3. The strategic planning of HVQ to 2018 55
3.3.1. The objective of the main targets 55
3.3.2. The analysis of strategic planning 56
3.4. Main strategies and alternative strategies capable 57
3.5. Proposed route deployment 59
3.6. Propose solutions for strategic deployment 59
3.6.1. Solutions related to human resources 59
3.6.2. Solutions related to governance and organizational structure 60
3.6.3. Capital solutions 60
3.6.4 Technology Solutions 61
3.6.5. Source materials solutions for businesses 62
3.6.6 Management solutions for business 63
3.6.7. Expand solutions and market development 64
3.6.8.Branding solutions of HVQ 65
3.6.8. Marketing solutions 65
3.3. Recommendations to government 68
3.3.1. Create a healthy competitive environment 68
3.3.2. - Policies to support the development of textile materials 68
3.8. Summarize in Chapter 3 69

IN CONCLUSION 70
LIST OF REFERENCES 72

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LIST OF MAP AND CHART
process diagram 1.1: Business Strategy Evaluation Process 16
Figure 2.6.1.3: GDP of Vietnam over years 31
Chart 2.6.1.4: Tower Vietnamese population 33
Diagram 2.6.2.1: Competition 40
Chart 2.7.5.1: Labour quantity and income of Hoang Vinh Quang 62
Chart 2.7.7.2: proportion of wholesale revenue 2012 67
LIST OF TABLE
Table 2.5.1: Logo of Hoang Vinh Quang Garment Embroidery PTE 26
Table 2.6.1.3.1: GDP of Vietnam in recent years 32
Table 2.6.1.4.1: Distribution of population divided by sex and sex ratio distributed
by age 25
Table 2.6.3: Competitive matrix image of HVQ 41
Table 2.6.4.1: EFE of Hoang Vinh Quang 43
Table 2.7.2:Activity indicators: 52
Table 2.7.5.1: Human Resources 59
Table 2.7.5.2: Statistics of labor and income of Hoang Vinh Quang 61
Table 2.7.7.1: Sales over the Years 65
Table 2.7.7.2 : proportion of wholesale revenue 66
Table 2.8.5: IFE of Hoang Vinh Quang 74
Table 3.3.1.1: The objective of the main targets 79
Table 3.3.2.2: Matrix Space of Hoang Vinh Quang 80

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LIST OF APPENDIX
Appendix 1: organization structure Hoang Vinh Quang Pte 81
Appendix 2: Matrix SWOT 82
Appendix 3: Matrix QSPM (Strategy 1+ Strategy 2) 90
Appendix 4: Matrix QSPM (Strategy 2+ Strategy 3) 98
Appendix 5: Cash flow statement 2010 100
Appendix 6: Cash flow statement 2011 103
Appendix 7: cash flow statement 2012 106
Appendix 8: REPORT ON RESULT OF BUSINESS ACTIVITIES 2010 109
Appendix 9: REPORT ON RESULT OF BUSINESS ACTIVITIES 2011 111
Appendix 10: REPORT ON RESULT OF BUSINESS ACTIVITIES 2012 113
Appendix 11: BALANCE SHEET 2010 115
Appendix 12: BALANCE SHEET 2011 121
Appendix 13: Balance sheet 2012 127

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LIST OF ABBREVIATIONS
CPI: Consumer Price Index
EFE : External Factors Evaluation matrix
FDI : Foreign Direct Investment
GDP : Gross Domestic Product
IFE : Internal Factors Evaluation matrix
NPL : Nonperforming Loan
ODA: Official Development Assistance
SWOT : Strengths – Weaknesses – Opportunities – Threatens
S/O : Strategy to use Opportunities by using strengths

S/T : Strategy to use strengths to overcome Threats
W/O : Strategy to use opportunity to fix Weaknesses
W/T : Minimize weaknesses to avoid Threats
ROA : Return On Assets
ROE : Return On Equity
USD : United States Dollar
VND : Vietnam currency
WTO : World Trade Organization
HVQ: Hoang Vinh Quang
DNTN: Private Enterprise





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INTRODUCTION
1. Reasons for Choosing the Topic
Vietnam has become a member of the World Trade Organization (WTO).
The pressure of integration is becoming more clear and powerful for industries,
services, etc. For textiles, this is also an enormous challenge, because most
businesses are not ready for the stage of a free global competition.
In the context of continuous integration as at present, the competition issue
has always been a big question for businesses. Improving the competitiveness of a
business is very essential. It requires full awareness, authentic situational analysis,
and the active edge when making timely solutions. Hoang Vinh Quang Garment
Embroidery PTE is one of the leading enterprises in the textile children‟s clothing.
The PTE has faced many competitive difficulties from rivals so its business

effectiveness in manufacturing is not high. From the impact of the internal and
external environments, “BUSINESS STRATEGIC PLANNING FOR THE INDUSTRY OF
CHILDREN’S CLOTHING BUSINESS OF HOANG VINH QUANG GARMENT
EMBROIDERY PTE TILL THE YEAR 2018” is important and really essential.
2. Research Targets
On the basis of putting the theory of competition and competitive strategy
into practice as well as researching for the operational activities of Hoang Vinh
Quang Garment Embroidery, from which to build a complete strategy to improve
the company's competitiveness in the market.
3. Research Objectives
Study the environmental impact of the activities of Hoang Vinh Quang
Garment Embroidery PTE.
Study the production and business activities of the company in the past and
present, and the development direction in the future.
4. Scope of Research
The topic focuses on researching the internal and external environments of
Hoang Vinh Quang Garment Embroidery PTE to do strategic planning for business
development of the Enterprise until 2018.
5. Research Methods
Using these basic research methods:
 Statistical Analysis Method
 Expert Method
 Aggregating and Comparing Data to Analyze Method
 Forecasting Method
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6. The Structure of the Assignment
Besides the introduction and conclusion, the assignment includes three
chapters:

 Chapter 1: Rationale of Competition and Competitive Strategy
 Chapter 2: The business state of Hoang Vinh Quang Garment Embroidery PTE
 Chapter 3: Business Strategic Planning for Hoang Vinh Quang Garment
Embroidery till 2018
7. The Significance of the Research Topic
Textile Industry is identified as a key economic sector of Vietnam during the
period of industrialization and modernization. To fulfill the task, the whole industry
in general and businesses in particular should have strategies to improve the
competitiveness and development in the context of globalization. This topic can
help Hoang Vinh Quang Garment Embroidery PTE complete and develop business
activities and increasingly strengthen its reputation and competitiveness in the
domestic market, and also provide a good example for business studies, drawing
experiences to build its own solutions.
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CHAPTER 1: OVERVIEW OF STRATEGIC MANAGEMENT

1.1 The Definition and Concept of Strategy and Strategic Management
1.1.1 Definition
The market economy, the trend of business activity internationalization, and
the increasingly fierce competitive environment are gradually pushed back the
thinking forward luck in business. Instead, success only comes to those who have
wisdom, knowing how to apply professional knowledge, knowledge management,
strategic planning and management in a proper way. Understanding and applying
effective strategies in practical production and business activities requires
administrators and business owners to know there is a thorough study of traditional
and modern concepts of strategic management.
1.1.2 The Concept of Strategic Management
The concept of strategy: Strategic management has a lot of materials and is

assessed by a variety of different angles. In this assignment, our group only
mentions about the most common and accessible concepts.
1.1.2.1 The Concept of Strategy
According to Fred David, strategy is the means to reach long-term goals.
Business strategy may include: territorial development, diversification of activities,
ownership of goods, product development, market penetration, cost reduction,
liquidation and joint ventures.
According to Michael Porter, strategy creates a unique and valuable position,
including differentiation, the choice of exchange, in order to focus on resources,
thus creating strengths for the firm.
According to John Thompson, strategy is a combination of resources, the
environment, and the values to be achieved.
According to William J. Glueck, strategy is a plan which is consistent,
comprehensive, and coordinated, designed to ensure that the basic objectives of the
business will be achieved.
Group 6: Strategy is a system of identical and long-term measures and
methods that a business tries to put into effect to get clear differences than
competitors in order to achieve specific objectives set.
1.1.2.2 The Concept of Strategic Management
According to Alfred Chandler, strategic management is the process of
determining the basic long-term goals of the business, choosing ways or methods,
and allocating of resources necessary to accomplish that those goals.
According to John Pearce and Richard B. Robinson, strategic management is
a system of decision-making activities, forming and implementing action plans to
achieve corporate objectives.
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Group 6: Strategic management is a systematic process of developing,
implementing, evaluating, and controlling strategies in order to achieve business

objectives set.
1.2 Types of Strategy
There are many types of strategies used in the production process, but
generally, there are three most common types of strategies businesses are using
today.
1.2.1 Corporate Strategy
Corporate strategy is a long-term strategy related to the overall mission,
objectives, and the size of the business in order to meet the expectations, and the
will of the owner and the senior managers in the organization. Long-term
organizational strategy, with a panoramic vision, dominates all other strategies, such
as Business Strategies and Functional Strategies.
1.2.2 Strategic Business Unit (SBU)
Business Strategy Unit (SBU) is related to how businesses can compete
successfully in a particular market, related to the strategic decisions on the selection
of products to meet customer needs, looking for a competitive advantage over
competitors, exploiting and creating new opportunities.
1.2.3 Functional Strategy
Functional Strategy is an operational strategy related to how an organization
will organize, implement, and evaluate to implement its business and corporate
strategies. Functional strategy addresses the problems of resources and implements
specific strategies, such as: Product Strategy, Pricing Strategy, Distribution
Strategy, Market Entry Strategy, Technology Strategy, etc.
1.3 Practical Business Strategies in Business Activities
In the practical operation of the business, we are able to cover the following
strategies:
1.3.1 Product Diversification Strategy
Product Diversification Strategy aims to diversify products in order to satisfy
the needs of customers to develop the customer field and increase profits. This
strategy is often applied in the stage of high-growth business.
1.3.2 Strategy to Expand the Distribution Network

Aims to diversify and expand the company's distribution channels to provide
customers the most convenience when shopping for products and services. This
strategy is often applied in the stage of acceleration to compete.
1.3.3 Strategy to Strengthen the Market Share
Aims to strengthen the position and image of the company by improving the
managerial model, reviewing and completing the control system, and improving the
quality of products. This strategy is usually applied in a period of prestige crisis.
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1.3.4 Focus Strategy
Focus Strategy identifies market segments, products and services that the
firm has strengths from which to focus all resources of the company to achieve
growth and efficiency objectives. This strategy determines and establishes the
company's own products, distribution, pricing, promotion policies, to achieve
business goals.
1.3.5. Integrated strategy along the front and rear
Integrated strategy along the front and rear is a activity of the company's
acquisition or investment or control increasingly on the input supply (eg. raw
materials for garment). And the firm of acquisition or invest or increase the control
on distributors / agents for its products.
1.4 Strategic Management Process
1.4.1 Strategy Formulation Process
1.4.1.1 Define Vision - Mission - Organizational Goals
Defining vision and mission helps the firm determines what the organization
is, which position it will be in in the future, which position is desired in the future,
what the long-term goals are, etc. The determination of the mission and objectives
has important implications in the formulation of strategies, helping planning to
gather resources needed to be collected.
1.4.1.2 Collection of Information

Collection of Information is the most important section as well as the first
step of the construction process and strategic management, playing a big role
determining the success or failure of the strategy.
1.4.1.3 Data Collection and Information Processing
The collection and processing of information is the most important
requirement in the strategic planning process. If the collection of information is
incorrectly, it will lead to a wrong strategy. When the strategy is put into effect, it
will not only be effective but also result to a negative impact on the business
operations of the organization. To collect information efficiently and to ensure
accuracy, it is necessary to limit the scope of the information required for the
formulation of strategies to figure out measures to collect information effectively
and efficiently. The information needed for strategic planning process includes:

Gathering Information about the External Environment: is the
collection of information outside the enterprise, yet affects the organization. The
external environment information to be collected includes:
The Political Environment in which the organization is currently
working or will work to understand the situation of political institutions,
political parties, legal system, political risks, etc.
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The Economic Environment in which the organization is currently
working or will work to understand the economic situation in the market
such as GDP per capita, wage policy, unemployment situation, insurance,
etc.
The Legal Environment in which the organization is working:
understanding the legal system to consider the appropriate possibility that the
organization may accept when trading. For example, the regulatory
environment in Vietnam, with the policies and laws constantly changing,

lacking of consistency, has made a lot of foreign investors reluctant to invest
in Vietnam.
The Service and Infrastructure Environment in which the
organization is working to understand the situation of infrastructure,
engineering, financial services at the place of business
The Cultural Environment in which the organization is working to
understand the cultural characteristics of the consumers in the market
regarding the products and services that the company is offering.
The Population Environment in which the organization is working to
have a thorough understanding of the population, age, marital status,
ethnicity, thereby determining the size of the market.
The Technological Environment in which the organization is
working to find the possibility of technology in the field where the
organization is doing or will do its business.
The Industrial Environment in which the organization is working:
How do they work? Do they support the business?
The Supplier Environment in which the organization is working to
understand supplier capabilities, reputation, resources, etc.
The consumer trends to understand the consumption trends of
customers.
The competitors, the strategies and SWOT of the main competitors
(if can be collected) in order to understand the main competitors, potential
competitors, financial capacity, human resources, organizational structure,
strengths, weaknesses, opportunities and challenges of the competitors;
strategies that rivals will apply.
Gathering information about the internal environment: is the collection of
information within the enterprise, including:
The Structure and Governance Model of the Organization: to clearly
define the management structure of the business.
Business Process and Internal Control: to understand regulations,

business processes and internal controls.
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Management Information Systems (MIS): to understand the
management information system of the business.
Resources in Technology: to understand the technological
capabilities of the enterprise.
Human Resources: the qualifications and skills of the staff and
employees of the business.
Financial Resources: the financial capacity of the business.
Strengths: the strengths of the business.
Weaknesses: the weaknesses of the business.
Opportunities: business opportunities.
Challenges: current and future challenges.

The collection of the information above is done in various forms such as
reports and feedback from the departments, financial statements, from newspapers,
from governmental management agencies, from counselors, from audit firms, from
market survey companies, from associations, and from market surveys.
1.4.1.4 Data Processing and Strategy Set
From the data collected, strategy makers will take steps to process, analyze,
and propose strategies from which to choose one or a few of the most appropriate
strategies to put into practice. In the process of analyzing the data collected to form
a strategy, the following contents should be done:
1.4.1.5 The Input Stage of the Strategy Formulation Process
1.4.1.5.1 Analysis of the External Environment through the EFE Matrix
Through the External Factor Evaluation Matrix: the goal is to control the
external factors and to develop a limited list of opportunities that the external
environment can bring about threats of the environment in which the firm should

avoid.
There are five steps to build External Factor Evaluation
Environment:
1. Make lists of factors that play decisive roles in the industries in which the
organization is working.
2. Classify the levels of importance from 0.0 (not important) to 1.0 (very
important).
3. Classify the levels of importance from 1 to 4 for each determinant of
success to see how the current strategy of the business responses to these factors. In
particular, 4 means good, 3 means fair, 2 means average, and 1 means less reactive.
4. Evaluate the importance of each variable to determine the number of points
of importance.
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5. Plus the total score of the importance for each variable to determine the
total number of points of importance for the organization. The higher the score is,
the better the organization responses to external factors.
1.4.1.5.2 Competitive Image Matrix
Competitive Image Matrix is a tool to identify the advantages and
disadvantages of the organization compared to the main competitors.
Matrix evaluates external factors and image matrix can help strategists assess
the environment. However, these tools need to be accompanied with good intuitive
judgment.
1.4.1.5.3 Analysis of the Internal Environment through the IFE Matrix
Analysis of the internal factors through the Internal Factor Evaluation Matrix
helps to understand the internal resources of the enterprise. It assesses the strengths
and weaknesses of the organization, such as Models, Organizational Structure and
Management, Marketing, Finance, Accounting, Production/Business, Research and
Development, Training Resources, Information Systems, etc. No business is equally

strong or weak in all aspects. Internal strengths or weaknesses with the external
opportunities or risks and clear mission the basic points to be concerned about when
strategies are set.
The common method used to analyze the IFE matrix is the gap-
analyzing techniques of the following steps:
1. List the critical success factors as identified in the internal control process.
2. Assign the level of importance by sorting from 0.0 (not important) to 1.0
(most important) for each factor. The total score of these levels of importance must
be 1.0.
3. Classify from 1 to 4 for each element to denote elements which represent
the largest point.
4. Multiply each level of importance of each element with its type to
determine the score of importance of each variable.
5. Plus all the points of importance for each variable to determine the score of
importance of the organization.
6. Excluding how many factors the IFE matrix have, the total points of
importance can be categorized from low to high. The average is the score of
importance, showing the strengths and weaknesses of the organization.
1.4.2 The Combined Stage
This is a basic yet important stage of the strategy formation process. This
stage includes all the data collected, analyzed at the input stage, developed further
through the establishment of more complex matrices.
1.4.2.1 SWOT Matrix
Analysis and Assessment SWOT Matrix identify the Strengths and
Weakness, Opportunities, and Threats from the effects of environmental regarding
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enterprises in order to offer strategies and solutions to develop strengths, overcome
weaknesses, taking advantages, constraints, and control challenges.

SO Strategy: to use internal strengths to take advantages and exploit
business opportunities derived from the external environment.
WO Strategy: to take advantages of opportunities from the external
environment to limit the weaknesses of the business.
WT Strategy: to overcome internal weaknesses to limit the threats
from the external environment.
ST Strategy: to take advantages and enhance the internal strength of
the business in order to overcome or reduce the impact of the threats from the
external environment.
1.4.3 Strategic Choices Stage
In this stage, based on the results analyzed from the input stage, strategists
will deploy into practice some optimal strategies. There are many methods and tools
to support the stage of strategic evaluation and selection. However, Group 6 only
mentions about one tool supporting the process of effective strategic selection,
which is the QSPM matrix.
1.4.3.1 BCG Matrix
BCG Matrix analysis of the overall enterprise products and services
determines the market share of the business in relation to the overall growth of the
market for products and services, thereby determining position of the products and
services of the business in order to contribute to make decisions such as investment
restrictions, investment promotions, market withdrawals, etc. Specifically:
Dog: Products and services of the business are in a bad state, having
a low rate of market share in a low growth market. In this state, wise
decisions cannot be able to overcome the weaknesses of the business, or the
business without strengths usually withdraws from the market.
Cow: Products and services of the business have a high rate of
market share in a low growth market. Enterprises can continue to do
business, but they must continue to maintain and develop strengths.
Question Mark: Products and services of the business have a low
rate of market share in a high growth market. Businesses need to overcome

the weaknesses, creating strengths to develop the market share.
Star: Products and services of the business are in a great state,
having a high rate of market share in a high growth market. Businesses need
to promote investment to increase business effectiveness.
1.4.3.2 SPACE Matrix
Space Matrix is a useful tool to identify the determinants of the strategic
position of the organization. These factors include:
 Financial Strengths (FS)
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 Competitive Advantage (CA)
 Environmental Stability (ES)
 Industry Strength (IS)
The Building Process of Space Matrix includes the following steps:
1. Choose variables to represent FS, CA, ES, and IS.
2. Determine the value of FS and CA variables, whereas 1 means the worst
and 6 means the best.
3. Determine the value of ES and IS variables, whereas -1 means the best and
-6 means the worst.
4. Calculate the average score for FS, CA, ES, and IS.
5. Plus the points on the horizontal axis and mark the results, plus the points
on the vertical axis and check the results.
6. Draw a vector from the origin to these points.
7. State the result is Aggressive, Defensive, Competitive, or Conservative
Strategy.
Aggressive Strategy: take advantage of strengths and opportunities,
overcome weaknesses and challenges, use the maximum of resources to
promote growth.
Defensive Strategy: focus and specialize resources to overcome

weaknesses, limit the impact of challenges.
Competitive Strategy: promote growth of products and services
aiming to penetrate the market.
Conservative Strategy: cautious growth, focus sufficient resources
to maintain proper growth.

1.4.3.3 QSPM Matrix
QSPM Matrix is a tool of evaluating and analyzing the information that
strategists have completed in the processes of EFE, IFE, SWOT, BCG matrices to
review and determine the optimal strategy to deploy into practice.
QSPM Matrix is built based on the following six basic steps:
1. List the strengths, weaknesses, opportunities, and challenges from the
matrix, analyzing the internal and external factors.
2. Classify and evaluate each element regarding to the matrix, analyzing the
internal and external factors.
3. Analyze and evaluate matrices set such as EFE, IFE, SWOT, BCG
matrices.
4. Establish the total score of attraction for each factor by the ascending
method, on a rating scale from 1 to 4. l is not attractive, 2 is somewhat attractive, 3
is quite attractive, 4 is very attractive.
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5. Establish the total score of attraction according to rows by multiplying the
number of points in step 2 with the score of AS fourth step.
6. Select strategies on the basis of the higher the score of attraction is, the
more the strategy is prioritized.
In short, after having built up some basic strategies based on the analysis
results from QSPM Matrix, the most appropriate will be selected.
1.4.4 Strategic Implementation Process

Strategic Implementation Process is a very important deployment step in the
whole process of strategic management. Many companies set up good strategies,
but the deployment is slow, time-consuming, inefficient, or even not able to be
deployed. Therefore, to have the Strategic Implementation Process well-organized
and effective, organizations should perform the following tasks:
 Establish Annual Goals: from the overall strategy, organizations
need to identify specific objectives to be achieved over the years.
 Clearly and Thoroughly Disseminate Strategies to every level of
management and staff, who directly implement the tasks of strategies. The
properly the strategy is implemented, the effectively the strategic
implementation is put into effect.
 Strategic Implementation Policies: have a clear policy in the
distribution of resources in the strategic implementation development, clearly
disseminating policies to use human resources, financial resources,
technological resources to all levels, and resolutely implementing correctly
as identified.
 Managing Conflict and Change: proactively plan and manage
changes during the strategic implementation process. The conflict between
classes during the process of planning implementation needs to be promptly
and decisively addressed.
1.4.5 Strategic Assessment
Strategic assessment is conducted regularly and continuously during the
process of strategic implementation in order to timely detect limitations, required
and adjusted changes to take timely actions. Strategic assessment can be performed
through the following ways:
 Reviewing, evaluating and adjusting strategies.
 Developing strategic evaluation information.
 Planning for unexpected situations.
 Using computer skills to evaluate strategies.
 Audit and review of planned strategic objectives.

 Considering the reaction of competitors, researching the ability to
adjust the strategies of competitors.

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Process diagram 1.1: Business Strategy Evaluation Process

Activity One:
Considering the Basic Components of the Strategy
IFE Matrix preparation
has been adjusted.
EFE Matrix preparation
has been adjusted.

IFE existing contrast Matrix
comparison has been adjusted.

Do major differences occur?
yes
No
Activity Three:

Adjusted activities
Activity Two:
Calculate the implementation process of the organization
Compare the actual and planned process
Do major differences occur?

No
Continue to implement following the
current direction
Yes
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Conclusion of chapter 1

This chapter provide the principles and strategic therories to set up
enterprise strategy.
To effectively and efficiently establish and deploy strategies, collecting data,
analyzing the activity status of the business in the past, anticipating the external
environmental changes and the internal capabilities of the business in the future are
the key factors. On that basis, the Content of Chapter 2 will focus on analyzing the
business situation of Hoang Vinh Quang Garment Embroidery PTE, the strengths,
weaknesses, opportunities, and challenges in the past and present, from which it
determines the orientation of Hoang Vinh Quang Enterprise in the future, and
builds the most appropriate business strategy for the new period.

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CHAPTER 2: BUSINESS SITUATION OF HOANG VINH QUANG
GARMENT PRIVATE ENTERPRISES

2.1. Overview
Name of company : HOANG VINH QUANG PRIVATE ENTERPRISES
Name in short : HVQ
International name : HOANG VINH QUANG Company
Head office : 116 A Pham Phu Thu, Ward 3, District 6, HCMC
Tel : 84 48276923
Fax : 84 48276925
Email :
Website : http: www.hoangvinhquang.com
2.1.1. Formation and development process
The company has formed more than 10 years. At first it was small garment
workshop with rudimentary tools and machines and now Hoang Vinh Quang
becomes a leading company in the field of children fashion with modern equipment.
Hoang Vinh Quang Company has been a trusted brand of many domestic and
international customers.
2.1.1.1. Formation process
Forerunner of Hoang Vinh Quang Company is garment workshop for dealers
at An Dong Trade Service Center in the 1990s. After economy open and integrate,
supermarket shopping cultural is formed through Cong Quynh market is
established. This is the first supermarket with popular price and quality products.
Hoang Vinh Quang is boned as a professional supplier of children fashion for the
young market.
2.1.1.2. Development process
In 2001, Hoang Vinh Quang is approved to be formed at 116 A Pham Phu

Thu, Ward 3, District 6, HCMC. At the first time, the company has 10 workers with
rudimental machines and work manually. About embroidering, the company hired
another partner to do it according to their orders.
In 2002, the company opened showroom at B24- B25 at An Dong Plaza to
introduce products to customers and distribute directly by wholesale channel
(traditional channel).
In 2003, Hoang Vinh Quang invested industrial embroidery equipment with 1
system of 7 needles 10 heads and 1 system of 9 needle 20 heads, meet sales
requirement of children garment.
In 2003, Hoang Vinh Quang continued to open the 2
nd
showroom at An Dong
Plaza to expand product introduction.
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In 2004, Hoang Vinh Quang expanded production capacity and modern
sewing equipment is used to provide efficiency and reduce cost, improve
competitiveness.
In 2005, the company opened garment factory by investing of 3 machines of
9 needles 20 heads, total 5 machines operate 24/24 with 2 shifts.
In 2007, the company continued to open more showrooms to improve sales.
So far, Hoang Vinh Quang has closed production system to maximize profits
and reduce cost and they have 3 showrooms at An Dong, professional workshop
and technical room, build more satellite for processing to meet sales demand.
Although this is private enterprise, the company has been developed in modern
model and gradually stands on children garment market in domestic market with
strong competition.
2.1.2. Main function and task
2.1.2.1. Function

Hoang Vinh Quang Company have main function is produce and sell
garment such as: T-short for little girl, pant for little boy, jean paint for kid, jean T-
shirt… and especially key products are Men‟shirt and Caro shirt for little boy.
Business activity is conducted:
-Domestic production: the company does whole process from the beginning
to production, to consumption to meet domestic demand.
2.1.2.2. Task, right of the company
*Task: in the current period, there are major tasks as below:
- To ensure effective business and fulfill obligations with Government.
- Product diversification, promote development of key products, expand
production capacity on the ability of business and market needs, continuously
improve product quality and quality management systems
-Develop Hoang Vinh Quang into a children fashion garment enterprises of
great stature in the country and in the region
- Improve domestic market share, stable and expand export markets.
- Protect business, environment, preserve social order and safety in
accordance with the law and the State.
- Ensure stable jobs, continuous improvement and improve working
conditions, improve employee‟s lives in the enterprise. Implement rights for
employees in accordance with law.
- Comply with the laws and policies of the Government such as: audit,
obligation to pay taxes…
*Task:
 The company have autonomy in production, business activities and
financial.
 The company can hire, train and use employees as prescribed by law.
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 The company has right to use, capital management, land and other

resources. But this must be ensured that they are efficiently used, conserved and
developed.
 Enterprises have right to have office, branch in or out country according to
Vinatex. The company may also invest in joint ventures, associate with domestic
and foreign institutions.
 The company have right to expand business if they are consistent with
objectives and tasks of the business.
2.1.3. Organizational structure
2.1.3.1. Organizational structure of management
Management model of Hoang Vinh Quang is held on direct function, with
two levels of management are enterprise and factory. Functional departments which
not make decision directly to under sections, they have mainly functioned as
advisor for BOM (see the chart in next page).
*Management department function:
Board of management: is the most responsible agency and the
highest authority in the company.
Director: is the highest leader of the company. The director have
responsible of overall management of all activities of the functional
departments, responsible to the Government, development strategy in short-
term and long-term.
Vice director: assistant to the director, is authorized on behalf of
director when he/she are absent, responsible to the director on his/her
decisions.
Head of sections: There are 3 heads: (1) head of environment field,
safety, health and admin management; (2) head of technical; (3) head of local
factories, warehouses and training
*Functional department:
Planning department: to advise BOM to manage planning, import and
export, supply materials for production, business organizations (FOB)
Trading department: organize advertising, negotiate on contracts with

customers, order with planning, hold network on garment marketing and other
goods in the domestic and overseas market in accordance with company rules in
order to meet business requirements.
Technical department: to advise BOM to manage technology, mechanical
and electrical engineering.
Financial department: to advise BOM about financial issues.
QA department: to assist on quality control system, maintain and ensure
the system run effectively.
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Logistic: to manage import and export raw materials, semi-products and
finished products, to manage transportation to sales channels such as shop,
supermarket…
2.1.3.2. Structure of production department
Hoang Vinh Quang is a strong company on manufacturing so the factory is
structured and arranged various functions and tasks:
Electro mechanic section: have function to supply power, maintenance,
repair equipment, manufacture tools, new equipment and other issues related to the
production process and other activities of company
Embroidery – printing- washing - ironing section: do steps: embroidery,
printing, washing and implementing activities woven labels, product labels.
Sewing section and finished products: manufacturing and product
packaging
2.2. Business activities
2.2.1. Business field
Hoang Vinh Quang produces mainly children fashion as below:
-T-shirt
-Baby suit: (1 year – 6 year)
-Kaki pant

-Jean pant
-Dress
-Student uniform


















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Girl fashion
















In that, boy T-shirts and girl & boy T-shirt, girl kaki T-shirt, jean pants are
key products, providing a large of revenue yearly. Products of Hoang Vinh Quang
are well-known of quality, various designs, especially men's shirts products for a
long time. Each product has more label types, representing quality, in accordance
with predilection for consumers.
2.2.2. Production process
To create a finished product, there are many different steps in a vertical line
in combination with fish bone. Every stage, products are tested. If the step does not
meet the requirements, the products will not be taken further to the next stage. The
advantage of this manufacturing technology is continuous, highly specialized,

bringing high productivity, product quality assurance. But if production is not well
organized, it will lead to congestion in the line, causing delays in production.
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2.3. Size of company
Production scale of company in recent years has been constantly expanded as
above described. We can withdraw some comments about the scale of production of
Hoang Vinh Quang in the last four years (from 2008 to 2012) as follows:
In 2010, compared to 2009, the production size increased by 25.97%
(corresponding to an increase of 7.360 million): this is the global financial crisis but
the net growth value increased despite the crisis.
In 2011, compared to 2010, increased 22.63% (equivalent to 8.034 million).
In 2012 compared to 2011, increased 21.88% (eq. to 7.614 million).
On the number of products: increased in the last four years.
In 2010, increased 12.7% compared to 2009 (corresponding to an increase of
1,293,266 units).
In 2011 increased by 14.18% compared with 2010 (eq. to 1,626,785 units
respectively).
In 2012 increased 15.33% compared to 2011 (equivalent by 1.1589177
units).
we also found that the increase in the number of products of following year is
higher than the previous year, but the equivalent increase of value is reduced. This
shows that although the product quality has improved but this is not proper, and has
no high-value products. Also showed that the market size is not really large, the
ability of dominating market is not high. In the next time, the company should have
effective measures to further improve product quality, actively expand market both
domestic and oversea, to create the position of enterprises in the market.
2.4. Enterprise Market
The main market of the enterprise is the domestic market of Vietnam. The

enterprise is the strategic business partner of Saigon Coop in the supply of
children's clothing products nationally (according to the expansion of Coop Mart).
Until now, all the supermarkets in Saigon Co-op system located in most of the
provinces and cities such as Hanoi, Hai Phong, Quang Binh and Thanh Hoa are
offering products of the company. Besides, Hoang Vinh Quang also provides for
fashion shops and traditional markets in the provinces and cities: Ho Chi Minh City,
Hanoi, Can Tho, Da Nang, Vinh, Hai Phong, Hue, Binh Duong, Long An, Tien
Giang, Dong Thap, Kien Giang, An Giang, Ca Mau, Soc Trang, Vinh Long, Tay
Ninh, Khanh Hoa, Gia Lai, Kon Tum, Quang Nam, Quang Ngai, Thai Binh, Bac
Ninh, etc. on the basis of franchise and business operation. The enterprise invests on
the display and decoration of fashion shop, whereas its customers concentrate on
sales.
2.5.Hoang Vinh Quang Brand
Hoang Vinh Quang Garment Embroidery PTE products called Hoang Vinh
Quang Children‟s Fashion (Hoang Vinh Quang Three-Doll Brand). Over the past 11