Xây dựng chiến lược kinh doanh tại công ty bất động sản sông hồng

BUILDING STRATEGICAL
REAL ESTATE BUSINESS IN 2010 – 2015
FOR SONG MA COMPANY


DECLARATION

The paper is submitted in fulfillment of the requirements for the degree of Master of
Business Administration Program.
I would like to certify that this capstone project report is the result of our own research
that has not been submitted for any other degrees.

Hanoi, October 30th, 2009.

For Group 1

ii


ACKNOWLEDGEMENT
On behalf of the group, I gratefully acknowledge our deep indebtedness to all our
teachers and staff working for Master of Business Administration Program associated
by Center for Educational Technology and Career, Hanoi National University and
Griggs University, America who have provided us with useful and interesting lectures
which have help us lay the foundation for this report.
In particular, we would like to express thanks to organizations and leadership in Thanh
Hoa province as well as Department of People’s Committee, Department of
Construction, Department of Investment and Planning, Department of Finance,
Department of Statistics, etc. in Thanh Hoa city who has recommended and helped us
collect information and shape the ideas of this capstone project report.
We also wish to thank Song Ma Company for their much support, consideration and

help.
Last but not least, it is our very sincere acknowledgements to our families and friends
for their kindly helping us and their constant encouragement.

iii


TABLE OF CONTENTS
Declaration

ii

Acknowledgements

iii

Table of Contents

iv

Acronyms

viii

List of Tables and Figures

ix

INTRODUCTION

1

1. Rationale

2

2. Meanings of the Study

2

3 Aims of the Study

2

4. Methods of the Study

3

5. Expected results

3

6. Design of the Study
Chapter 1: General on Building Strategical Real Estate Business
Summary of chapter I

4

1.1. Strategy and Strategical Business

5

1.1.1. Strategy and its Role in Enterprise Development

5

1.1.2. Basic strategies

6

1.1.3. Advantages of Competition and Core Competitive Capacity

10

1.1.4. Building Strategical Business Process

13

1.2. Vision and Mission

15

1.2.1. Vision

15

1.2.2. Mission

15

1.3. Analysis of strategies

15

1.3.1. External Environment

15

iv


1.3.1.1. Macro-Environment

16

1.3.1.2. Micro-Environment

19

1.3.2. Analysis of Internal Environment in Enterprises

29

1.4. Building and Selecting strategical objectives

31

1.5. Implementation and Evaluation

32

1.5.1. Framework

32

1.5.2. Strategy Control

33

Conclusion of Chapter I

34

Chapter 2: Situation of Real Estate Business in Song Ma Company during 2010 – 2015
Summary of chapter II

36

2.1. General information of Song Ma Company, Thanh Hoa province

37

2.1.1. History of establishment and development
2.1.2. Features of production structure and management organization

38

2.1.3. Special features of Song Ma company affects real estate business strategy 40
2.2. Special features of real property business affects real property strategy building
of Song Ma company

41

2.2.1. Real estate investment

41

2.2.2. Main features of real estate

42

2.2.3. Role of real estate investment

43

2.3. Business strategy analysis of Song Ma company

43

2.3.1. Vision and mission of Song Ma Company

43

2.3.2. Macro-analysis – PEST model

44

2.3.2.1. Legal & political environment

44

2.3.2.2. Economic environment

47

2.3.2.3. Social – cultural environment analysis

48

2.3.2.4. Technical scientific – technological environment

49

2.3.3. Industrial environment analysis (micro-environment)

50

v


2.3.3.1. Existence of industrial competition within communities

51

2.3.3.2. Threats from new-comers

53

2.3.3.3. Customers

55

2.3.3.4. Suppliers

56

2.3.3.5. Alternative product

56

2.3.3.6. Matrix for assessment of external factors affecting Song Ma Company (EFE
matrix)

57

2.3.4. Internal environment analysis

58

2.3.4.1. Organization

58

2.3.4.2. Human resource

59

2.3.4.3. Accounting work

60

2.3.4.4. Sales – marketing work

61

2.3.4.5. Customer service work

62

2.3.4.6. Equipment’s technology
2.3.4.7. Construction investment project management capacity

63

2.3.4.8. Assessment against competency of Ma River Company (in comparison with
other opponents)

66

2.3.4.9. Internal factors assessment matrix

68

Chapter 3: Building Strategical Real Estate Business for Song Ma Company in 2010 – 2015
Summary of Chapter 3

71

3.1. Directions and strategic objectives of Song Ma Company in 2010-2015

72

3.1.1. Direction of Song Ma Company of 2009-2015

72

3.1.2. Objectives and industrial structure of Song Ma Company to 2015

72

3.1.3. SWOT matrix analysis

72

3.2. Assessment of real estate business strategies

76

3.2.1. Assessment on company’s business strategies

76

vi


3.2.2. General assessment of real estate business strategy

78

3.3. Solutions for real estate business of company

80

3.3.1. Financial solution

80

3.3.2. Human resource solution

81

3.3.3. Technology and equipment solution

83

3.3.4. Marketing solution

84

3.3.5. Solutions of construction investment and land clearance

86

3.4. Suggestions and Recommendations for better strategy implementation

87

3.5. Implementation schedule

87

3.6. Shortcomings of the study

88

CONCLUSION

90

References
Appendixes
Appendix 1
Appendix 2: Form 1and Form 2

vii


ACRONYMS
SWOT

Strengths, weakness, oppotunities

PEST

Politics, Economics, Social, Technology

EFE

External factor evaluation

IFE

Internal factor evaluation

EPS

Earnings per share

ROE

Return on Equity

ME

Monitor and Evaluation

WTO

World Trade Organization

APEC

Asia-Pacific Economic Cooperation

B.A.

Bachelor of Arts

M.A.

Master of Arts

DoPC

Department of People Committee

viii


LIST OF GRAPHS, FIGURES AND TABLES
Graph 1: Vision and Mission

14

Graph 2: Elements of Macro – Environment

16

Graph 3: Competition components

21

Graph 4: Value chain

29

Graph 5: Construction Investment Project Implementation

64

Graph 6: Land Hand-over Procedures

65

Table1: EFE Matrix

28

Table 2 : IFE Matrix

30

Table 3: SWOT Matrix

32

Table 4: Assessment on competitive opponents

52

Table 5: EFE matrix

57

Table 6: IEF matrix of Ma River Company

68

Figure 1: Summary of housing demand prediction of Thanh Hoa in 2015

50

Figure 2: Data on competitive companies (2008)

51

ix


x


INTRODUCTION
1. Rationale
Vietnam is one of countries in which its GDP growth has averaged about 2.5-3%
per year since 1998. Meanwhile, its urbanization gets accelerated and needs on
housing in terms of number and design become higher and higher. That Vietnam
joined in WTO and became the 150th member in 2006 was a historical event marked
in the country's economic history as well as a lever for its economic growth in
general and its real estate business in particular.
Enterprises in Vietnam have had lots of opportunities to develop but also met
challenges in competition. In this case, building appropriate business strategies
plays a very important role in success decision.
In companion with WTO participation, the Government promulgated new
governing laws such as Enterprise Law, Real Estate Business Law, Investment Law,
Housing Law, Civil Work Law, Competition Law, Commerce Law, etc. aiming to
legal and fair environment for all enterprises. Due to more competitive
environment, enterprises need more innovative, creative and motive and find more
newly appropriate strategies to build their brand names and ensure its development.
In present, real estate business enterprises meet global complicated crisis. In one

side, the Government has implemented some solutions against inflation with the
aim of economy promotion. These actions get some active feedback but remain
instable implicit issues leading to regression and may create high risks for real
estate business sector. On the other side, the Government has reinforced the
management of land with some more policies of land and housing taxation to
prevent speculation in real estate. Hence, real estate business may not be thriving in
these economy regression days.
Song Ma Company located in Thanh Hoa city, Thanh Hoa province is one state
mother-son company established on December 29, 2005 pursuant to Decision

1


No.4076/QĐ-UBND signed by Chairman of Provincial Department of Committee.
Song Ma Company has many sectors such as real estate business, civil work, design
and consultation, hotel and restaurant business, tourism, transportation, mineral
resource exploration, etc. Following to Government policies in state enterprises
renovation and rearrangement, Song Ma Company is becoming joint- stock. Due to
its financial capacity is limited, investment into its son companies has met
difficulties. Moreover, technology and management capacity in production and
business are not still improved. Due to international integration with pressed
competition, Song Ma Company need focus more on business and production for
making its competitive position in new markets. From the mentioned-above reality
our group in which three out of five members are deputy managers in Song Ma
Company decides to study “Building Strategical Real Estate Business in 2010-2015
for Song Ma Company”. We all hope to apply our knowledge learnt in Master of
Business Administration course hold by Center for Educational Technology and
Career, Vietnam National University and Griggs University, America into analysis
and building strategical production and business in Song Ma company.
2. Meanings of the study

- Help to systematize theoretic knowledge learnt in the MBA course.
- Help the company with long-term appropriate strategies in new activity
models and present real conditions in market mechanism in period 2010-2015.
- Be reference for other enterprises with similar size, scale, sectors and
conditions.
3. Aims of the study
- Analyze environment effect to real estate business
- Analyze opportunities and challenges, company’s weakness and strengths.
- Apply theory of strategy building into specific enterprises to build solutions
of strategical real estate business for Song Ma Company.

2


- Develop Song Ma Company to become a leading enterprise in real estate
business.
4. Methods of the study
- Qualitative and quantitative methods combine with case study for real
situations of Song Ma Company.
- Questionnaire: We interview departments and units in Song Ma Company.
Then our collection of feedback is analyzed and finalized based on consultation of
international and national experts with their reality, practice, value and
effectiveness.
5. Expected results
The study is very close with reality of present production and business of
Song Ma Company. Although scope of the study is narrow, with scientific methods
and update knowledge on building strategical real estate business for enterprises we
believe that our study shall contribute meaningfully to company’s production and
business in renovation and integration time of the country.
6. Design of the study

The study consists of Introduction and three Chapters in development and
Conclusion
Introduction presents Rationale, Objectives and Scope of the study, Methods
applied in the study as well as expectations and design of the study.
Chapter I: General on Building Strategical Real Estate Business
Chapter II: Situation of Real Estate Business in Song Ma Company
Chapter III: Building Strategical Real Estate Business in 2010-2015 for Song Ma
Company
Conclusion
Reference and two appendixes are at the end of the study.

3


SUMMARY OF CHAPTER I
This chapter presents rationale of strategic administration of enterprises including
analysis of strategies selected by some enterprises and process of strategic
building deeply studied. This process consists of analyzing and assessing internal
and external environment, determining strategic objectives, building strategic
plans and selecting the best one. Models applied in the study are PEST, Michael
Porter and SWOT as well as Value chain, IFE and EFE matrixes.

4


CHAPTER I
GENERAL ON BUILDING STRATEGICAL REAL ESTATE BUSINESS
1.1. Strategy and Strategical Business
1.1.1. Strategy and its Role in Enterprise Development
Definition: The term ‘strategy’ has many different meanings. The most

simply meaning is ‘plans and activities planned and implemented with the specific
aims of enterprise’ (translated from Strategical Administration for Developing
Competitive Position – Education Publisher. Therefore, strategy is considered as
plans and activities in future.
Strategy shows united, comprehensive and coordinative characteristics to ensure that
those main objectives of enterprises are achieved. (Wiliam J.Glueck Business Polixy
and Strategic Management, Mc.Graw Hill, 1980). Strategy is a long-term decisive
element of any organization (Prof.Alfred D.Chandler, 1962); Strategy is a red
oriented thread through all activities of any enterprises (Prof.H.Igor Ansoff, 1965);
Strategy is models of objectives, plans to achieve tentative objectives, plans
(Prof.Kenneth L.Andrews, 1965).
Michael E.Porter, a famous professor on strategical business of Harvard University
states his consistent ideas: Developing strategical business is developing competitive
position through developing competition advantages. In 1996, he presents his new
ideas in an article named “What’s a strategy?” that strategy creates valued and special
position including various activities. Strategy is best selection, exchange in
competition and creates appropriation activities in enterprises
Strategy consists of series of objectives and policies such as plans to gain the plan
objectives. It shows what business activities enterprises are doing. Strategy does not
define specifically how to achieve planed objectives but build orientation frame for
activates.
In general, definitions of strategy are a little different but they all mean general longterm program orienting enterprise activates to planed objectives. Strategy is close
with future and present market research, forms planned enterprise objectives,
5


implement and inspect activity implementation with the aim of objective
achievement. The most important characteristic of strategical business is competitive
position. In fact, any enterprise need strategies since only aim of strategies is to
ensure that enterprises may find and achieve more stainable benefit and position than

their competitors.
Role of Strategical Business for Enterprises
Strategical Business plays a very important role in production and business activities
of enterprises. Strategies make enterprises more active in forecast of environment
changes therefore they may control activities in market economy and international
integration.
Strategical Business helps enterprises with longer line of vision and to avoid cope
with stress of short-term mistakes in business.
Strategical Business is basis for giving appropriate decisions timely and precisely
even decisions to prevent enterprise from bankrupt. Due to Strategical Business,
enterprises need take full of available advantages, strength and opportunities and cope
with challenges and surmount weakness, develop their enterprise label.
Strategical Business helps everyone to aware of that objectives of this process mainly
is thoroughly understanding and committee to implement among leadership and staff.
These are most important advantages in Strategical Business.
Firmly, Strategical Business always plays a very important role in deciding success or
failure of any enterprises. Hence it is really necessary to build long-term and highly
practical Strategical Business.
1.1.2 Basic strategies
One enterprise needs pursue some strategies appropriate with its model, size, etc so
strategies become different between a mother company and its son company not
only in terms of scope and model.
Strategies for mother company consist of overall orientation on development,
management and list of products. Tasks of Strategies are to define mission for the
6


mother company, to define what sector the mother company should develop, to
regulate finacial resource and other resources, control relationships with concerned
partners. Thereforce mother compnay may select the following strategies:

Growing Strategies are implemented by merging, annexation, association or joint
stock. Growing is spontaneous combination of two or more units with the aim to
reinforce a company . Then the company can cope with challenges and take full
advantages in development. Annexation means that big companies or enterprises
annex smaller ones to develop bigger and more powerful ones. Association means
that two or more associated companies gather all endeavour and sources to develop
some activities with the aims of raising competitive capacity, reducing risks.
This strategy may be hostile or agreeable, full or partly. Agreeable association
means that enterprises implement activities of outcome by merging firms, providing
partners or organizing its supply network. Hostile association means that enterprises
produce and provide itself income materials by merging, buying products of
suppliers or establishing its own suppliers. Full association means that enterprises
produce, provide total incomes for its production and self-comsume. On partly
association, enterprises partly supply incomes and buy products from different
supllier or sell products in its distribution channel.
One enterprise applying association strategy may improve its competitive position
in business by following elements. Firstly, this limits competion in internal business
and permit enterprises quoting higher prices and getting more benefit. For instance,
in 1930s, Alcoa Company and Alcan Company in America implemented contrastive
unification strategy to explore Bolxite mines in an island of Caribe, in Jamaica.
Using contrastive unification strategy, the asssociation of two companies defeated
competitors because they met more disadvantaged conditions. Secondly, this also
makes enterprises ensure quality of products. Duc Viet sausage company is an
example applying this type of strategy. The company has a farm supplying fresh
meat for making sausages so quality of its products is always ensured and high.
Thirdly, enterprises applying unification strategy may implement, cooperate and

7

plan more initiatively and appropriatively in activity succession from materials
preparation to delivery to users. The aim of applying cascade unification strategy is
to get low expenses. However, enterprises may meet difficulties if their soncompanies supply lower-quality income products than those of outside companies.
An outstanding example is General Motors Company which produces 68 percent of
car spare parts for its mother-company. Price of General Motors Company's
products is evaluated highest over the world. This means that cascade unification
strategy makes enterprises' products out-of-date when technology changes quickly
everyday. Enterprises meet disadvantages in product distribution if they do not
change sullpiers timely.
Diversification Strategy is to invest surpus into different sectors after enterprises get
advantaged in competition. Some basis diversification types are namely. Consensus
diversification ( participation in a new activity relating to present activity because of
similarity among function units in enterprises. For example, Philip Morris Tobacco
Company diversified by purchasing Miller Beer Company); Corsortium
diversification ( participation in a new activity differnt from present activities);
width diversification (developing one or more products for present users)
Diversification Strategy is applied by many enterprises when they make much more
benefit than neccessary for remaining competition position in traditional business.
This strategy helps enterprise get benefits by following activities. Firstly, purchase
and rearrange companies makes these new companies more effective. Secondly, it
appears better capacity tranfer among staff of companies. Enterprises maybe hope
that their special capacity in some sectors will be applied successfully in new
companies. This helps enterprises to improve their competition position. That Philip
Morris Tobacco Company purchased Miller Beer Company helped Miller Beer
Company promote itself from Position 6 up to Position 2 in the world market.
However, number of son-companies should be not too many. This leads whole
enterprises to ineffective implementation and expense increase. In 1970s, General
Motor Company had 40 son-companies but this number was less after an

8

implementation period for expense reduce and effectiveness increase on
management among partners.
Besides, in some cases enterprises may pursue strategies stainablely or stop
applying them to prevent risks with opinion “one step back, three steps forwards”
In pursuing these mentioned-above strategies, enterprises may divide one general
strategies into specific strategies (these specific strategies are applied in soncompanies). These strategies focus on improving competition position for products
in one sector based users' need and differences on products, need of groups of
customers, markets and company capacity.
Strategy on price leading
Enterprises produce products with lower expense than other competitors hence their
products are sold at lower prices. Applying this strategy enterprises need ignore
different markets but pay their attention to supply for customers at medium class.
Necessary capacity for applying this strategy is special capacity in process of
incomes supply and process of production. Advantage of the strategy is that
enterprises may get as much benefit as other competitors meanwhile they quote
lower prices or may get more benefit while their prices are as much as other
competitors’. Moreover, if there were wars, these enterprises would be still better
than competitors. However, in some cases enterprises may focus on reducing
expense so much that their products become lower qualified. In addition to this,
some enterprises trend “illusion of majority” with slogan “one for all”. It is really
difficult to level need of customers.
Strategy of difference
Enterprises should mark difference between their product and other competitors’ to
satisfy customers’ need. This leads to higher expenses for enterprises and their
products must be sold at higher prices. Applying this strategy, enterprises should
select markets and supply products appropriately to different markets. Necessary
capacity and qualification for applying this strategy is special capacity in market
research and development. Enterprises may select differences in terms of quality,

9


innovation, customer satisfaction. Applying this strategy helps enterprises prevent
competitors and control prices in their markets. However, enterprises should pay
attention to prevent outside companies from imitation or copying and to control
expenses because of high cost in applying this strategy.
Strategy of concentration
In fact, enterprises applying this strategy are professional with small- scale in
making difference of products or leading on prices in selected markets. Enterprises
supply for groups of customers or selected markets. Markets may be selected in
terms of geography or product supply. Applying this strategy, enterprises pay
attention to qualification on reducing expenses or making differences. Enterprises
may focus on one selected market with expert on marketing or production. Due to
small-scale enterprises they may apply strategy leading on price and strategy of
difference at the same time. If that enterprises apply Strategy leading on price
means these enterprises compete with other enterprises which are leading on price
in selected markets. If enterprises apply strategy of difference, there are many
chances for them to make their products different from others. Applying this
strategy helps enterprises ensure them in competition to some a certain extent of
difference. Differences of products for usual customers also create barrie for other
competitors and reduce risks of product changing. One disadvantage in this strategy
happens when technology changing leads to changing needs of customers. For
instance, technology of black and white television were changed quickly into
colored television.
These mentioned-above competitive strategies all mention to enterprises and
dicisions relating to products, markets, company qualification, competition
advantages.
1.1.3 Advantages of Competition and Core Competitive Capacity
To build and select appropriate strategy, enterprise need define their competition

advantages, specify their core competitive capacity.

10


Competition advantage consists of elements of qualification, resources used to
implement activities more effectively than their competitors. Elements for success
in competition are effectiveness, innovation, need sastifaction. These four elements
have close mutual relation shown in four basis ways to reduce cost and create
differences for getting competition advantages.
To gain much effectiveness, it is necessary to use most effectively incomes in which
productivity increase plays a very important role. If other elements unchange,
enterprises which have high productivity shall get more advantaged in cost
competition. Mark & Spensor (M&S) Company is a retail enterprise in England
which has close relation with suppliers. Moreover, the company does not need
advertisements. It has source of active staff with high productivity due to its
committee on welfare for its employee. These elements create competition
advantages with low expense in Mark & Spensor (M&S) Company
Product quality always shows implementation result following to product design.
High quality products may present differences and low expense in comparison with
others. Qualiy of products plays an important role in getting advantages in
competition time. In fact, quality is not only the way to gain competition advantages
but also the most important element for being and developing enterprises.
Mercedes-Benz produces and assembles high quality cars with higher price than its
competitors.
Innovation may consist of product amelioration, production process, management
system, enterprise mechanism and strategies applied at present. Innovation is the
most important element to create competition advantages. Many companies launch
new products and get benefits from its innovation. Examples of new products are
new printers of Hewlett Packard Company, high-technology shoes of Nike

Company, Walkman of Sony, etc.
Satisfying customer needs is to supply products which they want timely. More
effectiveness, higher quality and innovation are all for better customer need
satisfaction. This allows enterprises create differences and ability of higer price for
11


their products. For instance, General Motor Company has a branch for individual
orders and let customers select car design at ease.
To gain more effective, qualified, innovative or to satisfy customers better,
enterprises need core qualification. Their core qualification of enterprises rise from
mutual elements namely sources and capacity.
Sources of enterprises consist of financial source, material source, labor source,
technology and company culture. These sources are both visible and invisible types.
Visible sources include land, stores, shops and equipments, furniture, staff and
partners, etc. while invisible sources are prestige, copyrights, success secret,
marketing arts, relationship with authorities, etc. Abilities are skills of enterprises in
combine and use sources most effectively. These skills belong to modes of decisionmaking and internal management to gain objectives for the enterprises. More
generally, skills are results of their personnel mechanism, observe and mornitor
system in enterprises. The skills show how decisions are given, what enterprises’
standard culture and norms are.
To gain core abilities, all sources of enterprises are both unique and worth to
explore or manage and use. It is certain that core abilities become stronger as
enterprises have both unique and value sources. Unique sources are ones that other
enterprises do not have. For instance, one of core abilities in Polaroid Company is
technology of instant film development. Core ability becomes worth if an enterprise
may create large amount of needs for its products.
To achieve leading competition position, an enterprise needs implement strategies
based on its present sources and capacities (present ones) and build strategies for
improve sources and capacities (new ones). History of Disney Company is an

example. In 1980, it met a very disadvantage relating to finance. Luckily, a new
director was in charge of the company in 1984, and the company could raise its
turnover from US$ 1.66 bullion to US$ 3.5 billion after only one year. This success
was created by biggest efforts in exploring present sources and capacity including a
very large Disney library, technologies in making films. Meanwhile, its company
12


staff was improved and developed. They could make special films with lively views
that other companies could not do at that time.
However, core abilities are imitated easily. Capacity of enterprises is more difficult
to copy because it is not visible. Hence, core abilities based on unique capacity is
most stainable. Three basic issues need more attention to remain long-term
competition advantages namely: (i) elements effect competition advantages
(effectiveness, quality, customer satisfaction, unique capacity development); (2)
Benchmarking practice (learning period and pursuing standards of goods and
services, business of enterprises with most effective all over the world); (3) decrease
of slackness (break the fence against innovation)
In conclusion, enterprises need consider to building strategical business based on
their competition advantages i.e. their core competition capacity.
1.1.4. Building Strategical Business Process
(1)

Define vision and mission meanwhile understand differences in comparison

with other enterprises.
(2)

Plan activities and strategies

(3)

Research and analyze external business market to specify opportunities and

risks for enterprise
(4)

Analyze internal environment to define strengths and weakness

(5)

Define long-term objectives

(6)

Select strategies

(7)

Define short-term objectives

(8)

Plan policies

(9)

Combine different sources

(10)

Measure and evaluate implementation results and adjust business strategies

(if any)

13


Graph 1: Vision and Mission

Vision , Mission
Anlysis of External
Environment
Macroscopic Analysis
PEST/SLEPT model
Microcosmic Analysis
M.Porter model
 Opportunities &
c h a lle n g e s

Strategical Business Building and Selecting
SWOT model

Analysis of Internal
Environment
Value chain model
Process of Understanding
Long-term Competition
Advantages
=> Strength and Weakness

Business Strategies

Strategies on Products

Strategies on Price

Strategies on Supply Channel

Strategies on Support
Organization Mechanism
appropriate with selected
Strategies

Implement and Adjust

14

Monitoring and
Evaluating


1.2. Vision and Mission
1.2.1. Vision.
Vision of enterprises shows their principal objectives. It also presents enterprises’
hope in business.
Mr. James Collins and Mr. Jerry Porras agreed that structure of Vision includes two
main parts namely Core Ideas and Future Vision.
- Core Ideas include two parts:
+ Core value: Basic and stainable principles of enterprises. These

have internal value and importance in enterprises.
+ Core purpose: enterprise existing.
- Future vision: Objectives in time period from 10 to 30 years and
description of expected implementation results
1.2.2. Mission.
Mission Declaration is one key order on requirements for relating units.
Mission also considered as basis for Vision. Mission is focus and order to use
capacity and potentiality, but it also shows what enterprises gain. Mission
declaration creates basis for planning and are reference for evaluating objectives
and strategies.
1.3. Analysis of strategies
1.3.1. External Environment

15