Chiến lược kinh doanh công ty cổ phần viettel cơ hội và thách thức

LUẬN VĂN THẠC SĨ
Chiến lược kinh doanh công ty cổ phaafnViettel cơ hội và thách thức
THESIS MBA
BUSINESS STRATEGY IN THE PERIOD OF 2010 - 2015 OF VIETTEL
JSC - DEMANDS AND CHALLENGES

1


CONTENTS
OPENING......................................................................................................5
CHAPTER I: FUNDAMENTAL BASIS ON STRATEGY AND
STRATEGIC MANAGEMENT..................................................................9
1.1. STRATEGY AND STRATEGIC MANAGEMENT..............................9
1.1.1. DEFINITION OF STRATEGY............................................................9
1.1.2. STRATEGICMANAGEMENT.........................................................10
1.1.2.1. DEFINITION...................................................................................10
1.1.2.2. TASKS OF STRATEGIC MANAGEMENT..................................11
1.1.2.3. BENEFITS OF STRATEGIC MANAGEMENT............................11
1.1.3. STRATEGIC MANAGEMENT MODEL..........................................12
1.1.3.1. STRATEGIC MANAGEMENT PROCESS....................................12
1.1.3.2. STRATEGIC SYSTEM IN COMPANY.........................................14
1.1.3.2.1 MIXED STRATEGIES..................................................................14
1.1.3.2.2 SPECIALLY INTENSIVE STRATEGIES...................................15
1.1.3.2.3 BUSINESS EXPANSION STRATEGIES....................................16
1.1.3.2.4 OTHER STRATEGIES.................................................................16
1.2 CONTENTS OF BUILDING BUSINESS STRATEGY........................17
1.2.1 DEFINING THE BUSINESS TARGET.............................................17
1.2.2 EXTERNAL ENVIRONMENT ANALYSIS......................................17
1.2.2.1 ECONOMIC FACTOR.....................................................................18
1.2.2.2 CULTURAL AND SOCIAL FACTOR............................................18

1.2.2.3 POLITIC AND LEGISLATION FACTOR......................................18
1.2.2.4 TECHNOLOGICAL FACTOR........................................................18
1.2.2.5. COMPETITIVE FACTOR..............................................................19
1.2.3. INTERNAL ENVIRONMENT ANALYSIS......................................19
1.2.3.1 MANAGEMENT..............................................................................19
1.2.3.2 MARKETING...................................................................................20
1.2.3.3 FINANCE AND ACCOUNTING....................................................20
1.2.3.4 INFORMATION SYSTEM..............................................................20
1.2.3.5 INTERNAL SUPERVISION............................................................20
1.2.4. PROCESS ON ANALYSIS AND STRATEGIC SELECTION........21
1.2.4.1 INPUT STAGE.................................................................................21
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1.2.4.2 COMBINATION STAGE................................................................23
1.2.4.3 DECISION STAGE..........................................................................24
1.2.5 NOTES TO THE STRATEGY DEVELOPMENT PROCESS...........24
1.2.5.1 CULTURE SIDE..............................................................................24
1.2.5.2 POLITICAL SIDE............................................................................25
CHAPTER 2: OPERATION ANALYSIS OF MILITARY TELECOM
CORPORATION (VIETTEL) POST JSC...............................................26
2.1 INTRODUCTION TO VIETTEL POST JSC.........................................26
2.1.1 GENERAL INTRODUCTION............................................................26
2.1.2 FEATURES OF POST SERVICE SECTOR.......................................29
2.1.2.1 THE POPULARITY.........................................................................29
2.1.2.2 THE ASSEMBLY.............................................................................29
2.1.23 THE DISPARITY..............................................................................29
2.1.2.4 THE STABILITY OF THE GROWTH SPEED...............................27
2.1.2.5 THE MARKET BEING A HARD SATURATION.........................30
2.1.3 SOME POINTS ON ACTIVITIES OF VIETTEL POST FROM 2006 TO

2008...............................................................................................................30
2.1.3.1 BUSINESS STATEMENT...............................................................30
2.1.3.2 SERVICE SUPPLY NETWORK.....................................................32
2.1.3.3 DELIVERY SERVICE MARKET SHARE.....................................33
2.1.4 ASSESSMENT ON PRESENT STRATEGY.....................................33
2.1.4.1 MISSION AND VISION..................................................................33
2.1.4.2 ANALYSIS ON COMPETITION PRESSURE...............................34
2.1.4.2.1 COMPETITION LEVEL I ITS INTERNAL SECTOR................34
2.1.4.2.2 RISKS OF REPLACEMENT PRODUCTS..................................35
2.1.4.2.3 POWER OF CUSTOMERS...........................................................36
2.1.4.2.4 POWER OF SUPPLIERS..............................................................36
2.1.4.2.5 ENTRY AND EXIT BARRIERS..................................................37
2.1.4.3 CURRENT STRATEGY OF VIETTEL POST................................38
2.1.4.3.1 GROWTH OBJECTIVES..............................................................38
2.1.4.3.2 STRATEGY FOCUS.....................................................................39
2.1.4.3.3 SOLUTIONS..................................................................................39
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2.1.4.4 ASSESSMENT OF CURRENT VIETTEL POST’ STRATEGY IN USE
.......................................................................................................................40
2.1.4.4.1 STRENGTHS.................................................................................40
2.1.4.4.2 WEAKNESSES.............................................................................41
2.2 BUSINESS ENVIRONMENT ANALYSIS...........................................42
2.2.1 EXTERNAL ENVIRONMENT..........................................................42
2.2.1.1 ECONOMIC FACTOR.....................................................................42
2.2.1.2 SOCIAL – CULTURAL FACTOR..................................................42
2.2.1.3 POLITICAL – LEGAL FACTOR....................................................43
2.2.1.4 TECHNOLOGICAL FACTOR........................................................43
2.2.1.5 COMPETITIVE FACTOR...............................................................44

2.2.2 INTERNAL ENVIRONMENT ANALYSIS.......................................44
2.2.2.1 MANAGEMENT..............................................................................44
2.2.2.2 MARKETING...................................................................................45
2.2.2.3 FINANCE AND ACCOUNTING....................................................46
2.2.2.4 INFORMATICS SYSTEM...............................................................47
2.2.2.5 INTERNAL CONTROL...................................................................47
CHAPTER 3: VIETTEL POST JSC BUSINESS STRATEGY
DEVELOPMENT PERIOD 2010-2015....................................................48
3.1 PURPOSE OF THE BUSINESS STRATEGY DEVELOPMENT........48
3.1.1 STRATEGIC VISION.........................................................................48
3.1.2 COMPETITORS IDENTIFICATION.................................................48
3.1.3 MARKET TREND...............................................................................49
3.1.4 ORIENTATIONS FOR VIETTEL POST DEVELOPMENT PERIOD
2006-2008.....................................................................................................50
3.2 INPUTS FOR DEVELOPMENT OF THE BUSINESS STRATEGY...50
3.3 BUSINESS STRATEGY DEVELOPMENT.........................................51
3.3.1 BUSINESS TARGETS IDENTIFICATION.......................................51
3.3.1.1 GENERAL TARGETS.....................................................................51
3.3.1.2 TARGET OF THE SERVICE PRODUCT.......................................51
3.3.1.3 TARGETS ON DISTRIBUTION CHANNEL.................................51
3.3.1.4 TARGETS ON REVENUE AND MARKET SHARE.....................51
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3.3.1.5 TARGETS ON PROFIT...................................................................52
3.3.2 STRATEGY IDENTIFICATION........................................................52
3.3.2.1 SWOT ANALYSIS ON VIETTEL POST........................................52
3.3.2.1.1 THE STRENGTHS........................................................................52
3.3.2.1.2 THE WEAKNESSES.....................................................................52
3.3.2.1.3 THE OPPORTUNITIES................................................................53

3.3.2.1.4 THE THREATS.............................................................................53
3.3.2.2 STRATEGY ANALYSIS.................................................................54
3.3.2.2.1 STRATEGY 1 – LOW COST STRATEGY..................................54
3.3.2.2.2 STRATEGY 2 – DISTINCTION / DIFFERENTIATION STRATEGY
.......................................................................................................................55
3.3.2.2.3 STRATEGY 3 – HORIZONTAL STRATEGY............................55
3.3.2.2.4 STRATEGY 4 – RESTRUCTURE STRATEGY..........................55
3.3.2.3 STRATEGY SELECTION...............................................................56
3.3.2.4 PURPOSE OF THE STRATEGY....................................................57
3.3.3 PROCESS TO IMPLEMENT STRATEGY........................................58
3.3.3.1 PERIOD 1 (2010-2012)....................................................................58
3.3.3.2 PERIOD 2 (2013-2015)....................................................................59
3.3.4 INSPECT STRATEGY IMPLEMENTATION...................................60
3.3.5 STRATEGY ADJUSTMENT..............................................................60
3.4 IMPLEMENTATION SOLUTIONS......................................................60
3.4.1 MARKETING POLICIES...................................................................60
3.4.1.1 PRODUCT POLICY.........................................................................60
3.4.1.2 PRICE POLICY................................................................................60
3.4.1.3 DISTRIBUTION POLICY...............................................................60
3.4.1.4 PROMOTION POLICY....................................................................61
3.4.2 REVENUE SOLUTIONS....................................................................61
3.4.3 ORGANIZATION AND HUMAN RESOURCE SOLUTIONS........62
3.4.4 INFORMATION OF TECHNOLOGY APPLICATION SOLUTIONS62
3.4.5 GROUP OF COUNTERMEASURE ON COOPERATION...............63
3.5 RECOMMENDATIONS........................................................................63
3.5.1 VIETTEL CORPORATION................................................................63
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3.5.2 MINISTRY OF INFORMATION AND COMMUNICATIONS........63

3.5.3 STATE.................................................................................................63
CONCLUSION............................................................................................64
BIBLIOGRAPHY.......................................................................................65

OPENING
THE URGENCY OF THE PROJECT
THE PROJECT "BUSINESS STRATEGY IN THE PERIOD OF 2010 2015 OF VIETTEL JSC - DEMANDS AND CHALLENGES” WAS
INSPIRED DUE TO THE FOLLOWING REQUIREMENTS:
FIRSTLY: "EVERY DAY I CAN HARDLY ACHIEVE ANYTHING.
HOWEVER, THERE IS ONE JOB THAT I CAN NEVER COMPLETE,
WHICH IS TO BUILD PLANS FOR THE FUTURE." THAT SAYING OF AN
AMERICAN LARGEST CORPORATION‘S PRESIDENT – MR. GENERAL
MOTORS - HAS FIRSTLY CLARIFIED THE REASON FOR OUR STRONG
PASSION FOR THIS THESIS. THAT BUSINESS STRATEGY
CONSTRUCTION IS EVER A CONSTANT RENEWAL DEMAND FOR
EACH ENTERPRISE. EACH ENTERPRISE, IF EVER CONSIDERED A
PERSON HIKING IN THE WOODS WITHOUT A CLEAR MANDATE,
WOULD ONLY TO FIND A WAY TO GO. THE MORE HE IS GOING, THE
MORE HE IS GETTING LOST. STRATEGY MANAGEMENT HELPS
ORGANIZATIONS, ENTERPRISES CLEARLY DEFINED GOALS,
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DIRECTIONS, MAP OUT THE WAY AND REASONABLE ALLOCATION
OF RESOURCES OPTIMALLY TO ENSURE THAT THEY WOULD
TRAVEL TO THE TARGET IN A SPECIFIED TIME. VIETTEL POST JSC
IS NOT OUT OF THOSE NEEDS.
SECONDLY: VIETTEL POST JOINT-STOCK COMPANY WAS
ACTUALLY A LIMITED COMPANY WHICH IS A MEMBER OF THE
STATE POSTAL VIETTEL (VIETTEL POST), BELONGING TO THE

CORPORATION VIETTEL - DEPARTMENT OF DEFENSE (VIETTEL),
HAS BEEN EQUITIZED IN JULY 2009. DURING THIS TRANSITION,
BUILDING BUSINESS STRATEGY AFTER EQUITIZATION IS AN
URGENT REQUIREMENT FOR VIETTEL POST JSC, DECIDING THE
SURVIVAL OF THE TRANSFERRED BUSINESS OPERATING UNDER
THE NEW MECHANISM TO MEET THE DEMANDS OF
SHAREHOLDERS.
THIRDLY: THE CONSTRUCTION AND STRATEGIC
MANAGEMENT OF VIETTEL POST JSC WERE TO MEET THE
DEMANDS OF VIETTEL DEVELOPMENT. IN THE COURSE OF ITS
DEVELOPMENT, VIETTEL POST JSC STILL WAS REQUIRED TO
FOLLOW THE STRATEGIC DEVELOPMENT OF VIETTEL "BECOMING
THE LEADING POSTAL AND TELECOMMUNICATIONS ENTERPRISE
IN VIETNAM AS WELL AS IN THE WORLDWIDE MARKET. THE
CONSTRUCTION OF BUSINESS STRATEGY TO HELP VIETTEL POST
JSC REALIZE THE VISION AND MISSION OF ITSELF LYING IN
VIETTEL DEVELOPMENT DIRECTION BECAME URGENT THAN
EVER.
THE OBJECTIVES OF THE PROJECT

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FACING THE URGENT DEMANDS MENTIONED ABOVE, OUR
IMPLEMENTATION OF THE PROJECT AIMS TO THE FOLLOWING
PURPOSES:
FIRSTLY: TO CLARIFY THE MATTERS RELATING TO
STRATEGY AND STRATEGIC MANAGEMENT IN PRODUCTION AND
BUSINESS ACTIVITIES. IN ADDITION, TOGETHER WITH
SYSTEMATIZING KNOWLEDGE OF STRATEGIC MANAGEMENT, OUR

THESIS IS ALSO DOING RESEARCH ON THE INFLUENCE OF
POLITICAL AND CULTURAL FACTORS UPON THE CONSTRUCTION
AND IMPLEMENTATION OF BUSINESS STRATEGY.
SECONDLY: BASING ON THE SCIENCE OF STRATEGIC
MANAGEMENT WHICH HAS BEEN STUDIED, THE THESIS IS
FOCUSING ON THE COMPLETE ANALYSIS OF A COMPREHENSIVE
BUSINESS ASPECT OF VIETTEL POST JSC FROM 2006 TO 2008 TO
DETERMINE BUSINESS OBJECTIVES AND DEVELOPMENT
STRATEGIES APPROPRIATE FOR THESE ENTERPRISES AFTER
EQUITIZATION.

RESEARCH METHODOLOGY
TO IMPLEMENT THE OBJECTIVES OF THE THESIS SET OUT:
IN TERMS OF METHODOLOGY, WE, AUTHORS, MAINLY BASED ON
THE THEORY OF STRATEGIC MANAGEMENT AND STRATEGIC
MANAGEMENT EXPERIENCE IN VIETTEL CORPORATION (VIETTEL)
AND VIETTEL JOINT STOCK COMPANY IN TIMEBEING. ON THAT
BASIS, COMBINING WITH SPECIFIC BUSINESS ENVIRONMENT, THE
WRITERS HAVE BUILT BUSINESS STRATEGY IN THE PERIOD OF 2010
– 2015 FOR VIETTEL POSTAL CORPORATION AS WELL AS SET OUT A
SYSTEM OF SOLUTIONS TO SUCCESSFULLY IMPLEMENT THE
STRATEGY.
WITH LOGICAL SOLUTION AS SUCH, AUTHORS MAINLY USE
STATISTICAL AND ANALYSIS METHODS, WHICH IS TO EVALUATE
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THE OPERATION OF VIETTEL POST JSC IN THE PERIOD OF 2006-2008
AND TO ANALYZE THE STRENGTHS, THE WEAKNESSES, THE
OPPORTUNITIES AND THE CHALLENGES OF THIS ENTERPRISE,

FROM WHICH LATER ON TO SET OUT APPROPRIATE STRATEGY FOR
THE PERIOD OF 2010-2015.
THE STRUCTURE OF THE PROJECT
CONSISTENT WITH THE MEANING, PURPOSE AND RESEARCH
MENTIONED ABOVE, THE PROJECT IS STRUCTURED INTO 03
CHAPTERS WITH THE MAIN CONTENTS AS FOLLOWS:
CHAPTER 1: THE SCIENTIFIC BASIS OF STRATEGIES AND
STRATEGIC MANAGEMENT IN BUSINESS ACTIVITIES OF
ENTERPRISES
CHAPTER 2: STATUS OF THE STRATEGIC MANAGEMENT OF
VIETTEL POST JSC IN THE PHASE OF 2006-2008. THE EXISTENCES
AND REQUIREMENTS FOR A RENOVATION.
CHAPTER 3: SOME SOLUTIONS IMPROVING MANAGEMENT
STRATEGIES AND BUILDING BUSINESS STRATEGIES IN THE PHASE
OF 2010-2015 OF VIETTEL POST JSC.
SYMBOLS AND ABBREVIATION LIST
EFE

: EXTERNAL FACTOR EVALUATION

GDP

: GROSS DOMESTIC PRODUCT

HACCP

: HAZARD ANALYSIS AND CRITICAL CONTROL POINT
SYSTEM

IFE

: INTERNAL FACTOR EVALUATION

R&D

: RESEARCH AND DEVELOPMENT

SWOT

: STRENGTHS, WEAKS, OPPORTUNITIES, THREATS

VOIP

: VOICE OVER INTERNET PROTOCOL

WTO

: WORLD TRADE ORGANIZATION
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VIETTEL
POST

: VIETTEL POST JSC
CHAPTER 1

FUNDAMENTAL BASIS ON STRATEGY AND STRATEGIC
MANAGEMENT
1.1.

STRATEGY AND STRATEGIC MANAGEMENT
1.1.1. DEFINITION ON STRATEGY

THE MOST COMMON THING FOR ANY BUSINESS TO DO WHEN
STARTING UP THEIR BUSINESS IS SETTING GOALS TO ACHIEVE IN
THE LONG TERM. HOWEVER, IN ORDER TO ACHIEVE THAT GOAL,
MANAGERS NEED TO SET UP VARIETY OF MEASURES AND
ACTIONS, IN OTHER WORD, MANAGERS MUST BUILD A SPECIFIC
BUSINESS STRATEGY.
CURRENTLY, THERE ARE MANY DEFINITIONS ON STRATEGY,
AND BASED ON DIFFERENT PERSON’S POINT OF VIEW, THERE ARE
SOMEWHAT DIFFERENT IN DEFINITIONS.
ACCORDING TO CHANDLER, ONE OF THOSE WHO INITIATED
THE FIRST STRATEGIC MANAGEMENT THEORY, STRATEGY IS "TO
IDENTIFY GOALS, LONG-TERM BASIC PURPOSE OF THE BUSINESS
AND APPLYING A SEQUENCE OF ACTIONS AS WELL AS THE
DISTRIBUTION OF RESOURCES NECESSARY TO IMPLEMENT THIS
GOAL”1.
IN 1980, QUINN GLASS HAS INTRODUCED A MORE GENERAL
CONCEPT: "STRATEGY IS A PATTERN OR PLAN INTEGRATES MAJOR

1

Chandler, A. (1962). Strategy and Structure. Cambrige, Massacchusettes. MIT Press.

10


GOALS, POLICIES, AND ACTION SEQUENCES INTO A COHESIVE

STRUCTURE” 2.
THEN, IN 1999, JOHNSON AND SCHOLES REDEFINED
STRATEGY IN AN DYNAMIC ENVIRONMENT "STRATEGY IS THE
ORIENTATION AND SCOPE OF AN ORGANIZATION TO GAIN LONGTERM COMPETITIVE ADVANTAGE FOR ORGANIZATIONS THROUGH
MOBILIZATION OF RESOURCES IN THE CHANGING
ENVIRONMENT, TO MEET MARKET NEEDS AND EXPECTATIONS OF
STAKEHOLDERS”3..
TO HAVE A MULTI-FACET DEFINITION ON
STRATEGY, MINTZBERG HAD GENERALIZED ASPECTS OF
STRATEGIC MANAGEMENT INTO FIVE PS, INCLUDING:
- PLAN: THE ACTION SEQUENCES HAVE A CONSISTENT PLAN;
- PARTERN: BEING CONSISTENT BEHAVIOR OVER TIME, MAY
BE INTENDED OR NOT INTENDED;
- POSITION: MATCH BETWEEN THE ORGANIZATION AND ITS
ENVIRONMENT;
- PERSPECTIVE: WAYS TO VIEW THE WORLD;
- PLOY: SPECIFIC WAY TO DECEIVE OPPONENTS.
IN ADDITION, THE STRATEGY IS DEFINED BY NATURE, OF THREE
LEVEL STRATEGIES: CORPORATE LEVEL, BUSINESS LEVEL AND
FUNCTIONAL LEVEL. CURRENTLY, WITH THE TREND OF
GLOBALIZATION, COMPANIES ARE FAST DIVERSIFYING THEIR
ACTIVITIES BEYOND NATIONAL BORDERS, THUS GLOBAL
STRATEGY ALWAYS BE THE FIRST ECONOMIC CHOICE UPON
INTERNATIONALIZE.

2

Quinn, J., B. (1980). Strategy and Change: Logical Inscrementalism. Homewood, Illinois, Irwin.

3

Johnson, G., Scholes, K. (1999). Exploring Corporate Strategy, 5th Ed.Prentice Hall Europe.

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HOWEVER, IN OUR OPINION, STRATEGIES SHOULD BE
DEFINED AS MEANS OR AS AN EXPLANATION ABOUT THE
DIRECTION FOR BUSINESS TO MEET ITS OBJECTIVES IN THE
LONG TERM.
1.1.2. STRATEGIC MANAGEMENT
1.1.2.1. DEFINITION
STRATEGIC MANAGEMENT IS THE PROCESS OF IDENTIFYING
THE STRATEGIC OBJECTIVES OF THE ORGANIZATION, BUILDING
POLICIES AND PLANS TO ACHIEVE ITS GOALS, AND ALLOCATING
RESOURCES FOR THE ORGANIZATION TO CARRY OUT THOSE
POLICIES AND PLANS.
STRATEGIC MANAGEMENT IS NOT ONLY A SCIENCE BUT
ALSO AN ART, THROUGH WHICH MANAGERS PLAN, ORGANIZE THE
IMPLEMENTATION, CONTROL AND EVALUATE BUSINESS
DECISIONS IN ORDER TO ACHIEVE LONG-TERM BUSINESS GOALS.
WITH THIS CONCEPT, STRATEGIC MANAGEMENT INCLUDING
CONTINUOUS ACTIONS: ENVIRONMENTAL ANALYSIS (INTERNAL
AND EXTERNAL); STRATEGIC BUILDING; STRATEGY
IMPLEMENTATION; AND STRATEGY TESTING AND EVALUATION.
STRATEGIC MANAGEMENT IS THE ORIGIN OF BUSINESS
POLICY, STRATEGIC MANAGEMENT AND MUST INTEGRATED WITH
LONG-TERM PLANNING STRATEGY. HOWEVER STRATEGIC
MANAGEMENT IS NOT ONLY INTERESTED IN THE INTEGRATED
FUNCTIONS WITHIN THE SAME POLICY BUT ALSO FOCUS MORE ON

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THE ENVIRONMENT AND STRATEGY.” THEREFORE, THE TERM
STRATEGIC IS USED RATHER THAN BUSINESS POLICY."4.
1.1.2.2. TASKS OF STRATEGIC MANAGEMENT:
STRATEGIC MANAGEMENT HAS 5 CLOSELY INTER-RELATED WITH
EACH OTHER, INCLUDING:
BUILDING SCENARIOS OF THE FUTURE BUSINESS, STATING WHERE
A BUSINESS IS HEADING AND WHERE IT WANTS TO BE?
SET GOALS – TURN SCENARIOS INTO CONCRETE RESULTS THAT
BUSINESSES MUST ACHIEVE;
BUILDING STRATEGIES TO ACHIEVE DESIRED GOALS;
IMPLEMENTING AND MANAGING STRATEGY EFFECTIVELY AND
EFFICIENTLY;
EVALUATE PERFORMANCE AND INITIATE ADJUSTMENTS ON
SCENARIOS, LONG-TERM DIRECTION, GOALS, STRATEGIES OR
IMPLEMENTATION BASED ON EXPERIENCE, CONDITIONS FOR
CHANGE, IDEAS AND NEW OPPORTUNITIES.
1.1.2.3. BENEFITS OF STRATEGIC MANAGEMENT:
MANY STUDIES SHOWED THAT, IF APPLIED STRATEGIC
MANAGEMENT, BUSINESS WILL ACHIEVE BETTER PERFORMANCE
COMPARED TO FIRMS NOT IMPLEMENTING THIS PROCESS5. IF
ACHIEVE THE APPROPRIATE ENVIRONMENT FOR BUSINESS
4

R.E. Hoskisson, M.A. Hill, W.P.Wan, and D.Yiu, (1982), “Theory an Research in Strategic Management:

Swing of the Pendulum”, Journal of Business. Vol25, No.3, pp 417 – 456.

5

T.J. Andersen (2000), “Strategic Planning, Autonomous Actions an Corporate Performance”, Long Range

Planning (4-2000), pp 184 – 200.

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STRATEGY, STRUCTURE AND PROCESSES THEN IT WILL CREATE
POSITIVE EFFECTS ON PERFORMANCE OF THE
BUSINESS6. PRACTICALLY THE BENEFIT OF STRATEGIC
MANAGEMENT HAS BEEN TESTED EXTENSIVELY AND CAN BE
SUMMARIZED INTO THE MOST BASIC POINTS AS FOLLOWING:
- MAKE CLEARER VISION OF BUSINESS STRATEGY;
- FOCUS MORE ON THE SIGNIFICANCE OF THE STRATEGY;
- IMPROVE AWARENESS OF THE RAPID CHANGES OF THE
ENVIRONMENT.7
HOWEVER, TO HAVE EFFECTIVE MANAGEMENT STRATEGIES,
THERE WILL ALWAYS BE A PROCESS OF ANSWERING THREE
QUESTIONS: WHERE ARE THE ENTERPRISE?, WHERE IS IT
HEADING? HOW TO GET THERE?
1.1.3. STRATEGIC MANAGEMENT MODEL
1.1.3.1. STRATEGIC MANAGEMENT PROCESS
UNTIL NOW, SCIENTISTS AND MANAGERS HAVE PROPOSED
SEVERAL STRATEGIC PLANNING MODELS. HOWEVER, IN GENERAL,
STRATEGIC PLANNING PROCESS CAN BE DIVIDED INTO FIVE
STEPS, INCLUDING:
STEP 1. SELECTED MISSION AND MAIN OBJECTIVES OF THE
ENTERPRISE:

MISSION PRESENTED BY THE EXISTING MANAGEMENT OF THE
BUSINESS AND DIRECTION TO WHAT IT WILL DO. THE MAIN
OBJECTIVES DETERMINE WHAT COMPANIES HOPE TO MEET
WITHIN THE MEDIUM AND LONG TERM.

6

E.J Zajac, M.S Kraatz, R.F. Bresser. “Modeling of Dynamics of Strategic Fit: A Normative Approach to

Strategic Change, “Strategic Management Journal (4-2000), pp 429 – 453.
7

Wilson, (1994) “Strategic Planning Isn’t Dead – It Changed”, Long Range Planning (8 – 1994), p.20.

14


STEP 2. EXTERNAL ENVIRONMENT ANALYSIS TO IDENTIFY
OPPORTUNITIES AND CHALLENGES:
EXTERNAL ENVIRONMENT HAS THREE TYPES OF RELATIONSHIPS
CLOSELY LINK TOGETHER: THE INDUSTRY, THE COUNTRY
ENVIRONMENT AND MACRO ENVIRONMENT.
INDUSTRY ANALYSIS IS EVALUATING THE COMPETITIVE
STRUCTURE OF INDUSTRIES, INCLUDING THE COMPETITIVE
POSITION OF THE BUSINESS FOCUS, THE MAIN COMPETITOR AS
WELL AS THE DEVELOPMENT STAGE OF THE INDUSTRY.
COUNTRY ANALYSIS TO EXAMINE THE NATIONAL CONTEXT
OF THE COUNTRY IN WHICH ENTERPRISES ARE OPERATING, AND
ITS FAVORABLE CONDITIONS AS WELL AS DIFFICULTIES
AFFECTING THE OPERATION OF ENTERPRISES.

MACRO-ENVIRONMENT ANALYSIS INCLUDES EXAMINING
THE MACROECONOMIC, SOCIAL, GOVERNMENTAL, LEGAL,
INTERNATIONAL AND TECHNOLOGICAL FACTORS THAT CAN
IMPACT BUSINESS.
STEP 3. ENVIRONMENTAL ANALYSIS IS TO IDENTIFY THE
STRENGTHS AND WEAKNESSES OF THE ENTERPRISE:
THE ENVIRONMENTAL ANALYSIS WILL FIND HOW TO
ACHIEVE BUSINESS COMPETITIVE ADVANTAGE, AND THE ROLE OF
DIFFERENT CAPACITIES, RESOURCES AND ABILITY TO CREATE
AND MAINTAIN SUSTAINABLE COMPETITIVE ADVANTAGE FOR
BUSINESS.
STEP 4. SELECTION STRATEGIES BASED ON THE SEARCH FOR
RESOURCES, CAPABILITIES AND CORE CAPABILITIES AND
15


DEVELOP IT TO TAKE ADVANTAGE OF THE OPPORTUNITIES AND
STRENGTHS, SOLVING THE CHALLENGES AND WEAKNESSES;
STEP 5. IMPLEMENTATION STRATEGY
WHEN COMPANIES HAVE CHOSEN TO ACHIEVE STRATEGIC
OBJECTIVES, THE STRATEGIES THAT NEED TO BE PUT INTO
EXECUTION. WITHIN THIS TOPIC, THE IMPLEMENTATION OF
STRATEGIES IS DIVIDED INTO FOUR PARTS, INCLUDING: (1)
BUILDING APPROPRIATE BUSINESS STRUCTURE, (2) BUILDING
CONTROL SYSTEM; (3) CREATE A MATCH BETWEEN STRATEGY,
BUSINESS STRUCTURE, AND CONTROL SYSTEMS, (4) CONTROL
CONFLICT AND CHANGE.
Vision and Mission

External Analysis

Strategies selection and

Internal Analysis

building
Functional strategy
Business strategy
Global strategy
Corporate strategy

Organizational

Matching strategy,

structure

structure and control
Strategic adjustment
16

Control building


FIGURE: 1.1. STRATEGIC PLANNING MODEL
1.1.3.2. STRATEGIC SYSTEM IN COMPANY
1.1.3.2.1. MIXED STRATEGIES
MIXED STRATEGY ALLOWS COMPANIES TO INCREASE CONTROL
OVER THE DISTRIBUTORS, SUPPLIERS OR COMPETITORS.
THE STRATEGIC COMBINATION INCLUDES:

(1) FORWARD MIXED STRATEGY: A STRATEGIC INCREASE
OWNERSHIP OR CONTROL OVER THE DISTRIBUTORS OR
RETAILERS (FRANCHISES TO EXPAND PRODUCT DISTRIBUTION
AND SERVICES).
THIS STRATEGY IS USED WHEN CURRENT DISTRIBUTION SYSTEM
HAS LOW CONFIDENCE OR WEAK TO ENJOY THE ADVANTAGES OF
ECONOMIC SCALE; HIGH PROFIT RATE FROM THE DISTRIBUTION
OPERATION.
(2) BACKWARD COMBINATION STRATEGY: IS THE STRATEGY
TO INCREASE THE POSSESSION OR CONTROLLING OVER SUPPLIERS
AIMING TO SOURCING STABLE, COMPETITIVE PRICE INPUT… THIS
STRATEGY IS APPLIED WHEN CURRENT SUPPLIERS ARE TOO
WEAK, UNRELIABLE, INABILITY TO MEET THE PRODUCTION
DEMAND OF THE BUSINESS AND THE PROFIT RATE FROM THE
INTENSIVE SUPPLY.
(3) HORIZONTAL COMBINATION STRATEGY: IS THE
STRATEGY TO SEEK FOR THE POSSESSION OR CONTROLLING OVER
COMPETITORS THROUGH A&M, BUY-BACK…IN ORDER TO
ACHIEVE PROFIT FROM THE MASSIVE SCALE. THIS STRATEGY
WORKS WHEN THE ENTERPRISE IS ABLE TO MONOPOLIZE AN
INDUSTRY OR A BUSINESS SECTOR; OR IN A HARD COMPETITION
AND THE INDUSTRY IS AGGRESSIVELY DEVELOPING; OR WHEN
THE COMPETITOR FACES DIFFICULTIES OF WEAK MANAGEMENT,
17


SHORT OF RESOURCES WHICH THE ENTERPRISE HAS CURRENTLY
BEEN POSSESSING.
1.1.3.2.2. SPECIALLY INTENSIVE STRATEGIES
SPECIALLY INTENSIVE STRATEGIES ARE THOSE TO STRENGTHEN

THE POSITION OF THE ENTERPRISE WITH THE CURRENT PRODUCTS
SPECIALLY INTENSIVE STRATEGIES INCLUDING:
(1) MARKET PENETRATION STRATEGY: THIS STRATEGY WORKS
THROUGH MEASURES LIKE INCREASING SALES STAFF,
ADVERTISING COST AND PROMOTION… AIMING TO ENHANCE THE
MARKET SHARE OF A CURRENT PRODUCT OR SERVICE WITHIN A
DEFINED MARKET. THIS STRATEGY IS APPLICABLE WHEN THE
DEFINED MARKET CAPACITY HAS NOT BEEN REACHED THE
SATURATION AND THE ROOM FOR PRODUCT OR SERVICE IS STILL
AVAILABLE; MARKET SHARE OF COMPETITORS GO DOWN BUT THE
TOTAL INDUSTRY SALES GOES UP.
(2) MARKET DEVELOPMENT STRATEGY: THE STRATEGY
RELATED TO DEPLOYMENT OF A CURRENT PRODUCT OR SERVICE
INTO A NEW MARKET OR GEOGRAPHICAL AREA. THE STRATEGY
APPLICATION IS WHEN THE ENTERPRISE IS ABLE TO RESEARCH
AND PENETRATE THE MARKET, ESPECIALLY, OVERSEA ONES; THE
PRODUCTION CAPACITY OF ENTERPRISE HAS NOT BEEN FULLY
PUT INTO OPERATION AND THE DISTRIBUTION CHANNEL IN THE
NEW MARKET IS RELIABLE, GOOD QUALITY, AT A DUE COST.
(3) PRODUCT DEVELOPMENT STRATEGY: THROUGH
INVESTMENT FOR RESEARCH AND DEVELOPING ACTIVITIES, THE
ENTERPRISE IS CAPABLE TO LAUNCH NEWLY IMPROVED
PRODUCTS FROM CURRENT ONES. THIS STRATEGY IS USED WHEN
PRODUCT IS ABOUT OR IN THE SATURATION PHASE (THE PRODUCT
IS REACHING TO THE END OF PRODUCT LIFE CYCLE); ENTERPRISE
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IS OPERATING IN FAST GROWING INDUSTRY WITH HIGH RATE OF
TECHNOLOGICAL APPLICATION AND HARD COMPETITION.

1.1.3.2.3. BUSINESS EXPANSION STRATEGIES
BUSINESS EXPANSION STRATEGY IS THE ACTIVITIES OF
ENTERPRISE TO DIVERSIFY ITS BUSINESS INCLUDING THE
FOLLOWING:
(1) DIVERSIFIED UNANIMOUS ACTIVITY STRATEGY: IS THE
STRATEGY TO ADD MORE RELATIVE OR INTERACTIVE PRODUCTS
OR SERVICE TO CURRENT ONES OF THE ENTERPRISE. THIS
STRATEGY IS APPLIED WHEN PRODUCT REACH THE END OF ITS
LIFE CYCLE AND THE INDUSTRY GROWTH RATE IS LOW; THE NEW
RELATIVE PRODUCT WHICH IS INCORPORATED WITH OLD ONE IS
SUPPOSED TO IMPROVE THE SALES OF ENTERPRISE.
(2) HORIZONTALLY DIVERSIFIED ACTIVITIES STRATEGY: IS
THE STRATEGY TO EXPLORE FROM CURRENT CUSTOMERS
THROUGH PROVIDING NEW AND SEPARATED SERVICES OR
PRODUCTS. THIS STRATEGY IS APPLICABLE WHEN THE TURNOVER
FROM CURRENT PRODUCT DRAMATICALLY INCREASES WITH THE
PRESENCE OF NEWLY SEPARATED PRODUCT; THE COMPETITION IN
INDUSTRY IS HIGH AND ALONG WITH LOW RATE OF GROWTH OR
EVEN ZERO; THE CURRENT DISTRIBUTION CHANNEL IS ABLE TO
SERVE CURRENT CUSTOMERS.
(3) MIXED DIVERSIFIED ACTIVITIES STRATEGY: IS TO
PROMOTE NEW AND SEPARATED PRODUCTS OR SERVICES. THIS IS
USED WHEN THE INDUSTRY GROWTH RATE IS ZERO OR
DOWNWARD; THE MARKET IS SATURATED WITH PRODUCT OR
SERVICE PROVIDED BY ENTERPRISE; ENTERPRISE IS AFFORDABLE
AND MANPOWER-CAPABLE TO BUY-BACK OR INTRUDE INTO A
NEW INDUSTRY.
1.1.3.2.4. OTHER STRATEGIES
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IN PRACTICE, THE ENTERPRISES CAN DEFINE SOME SPECIAL
STRATEGIES AS FOLLOWING:
(1) JOINT VENTURE: IS THE STRATEGY TO BUILD UP A NEW
BUSINESS OR AN ASSOCIATION FROM 2 OR MORE ORIGIN
ENTERPRISES TO INCREASE THE CAPITAL, INVESTMENT
OPPORTUNITY, NEW MARKET PENETRATION, RISK
DISSEMINATION… SOME POPULAR JOINT VENTURE TYPES ARE:
RESEARCH AND DEVELOPMENT JOINT VENTURE, CROSSED
PRODUCT DISTRIBUTION CONTRACT, CROSSED FRANCHISE
CONTRACT. THIS STRATEGY IS APPLIED IN HIGHLY RETURN
PROJECTS REQUIRING HUGE CAPITAL, MANAGEMENT AND OTHER
RESOURCES THAT A SINGLE ENTERPRISE CANNOT AFFORD;
ENTERPRISES ARE CONFRONTING DIFFICULT COMPETITION OR
RISK DISSEMINATION (ESPECIALLY FOR JOINT VENTURE BETWEEN
LOCAL AND INTERNATIONAL COMPANY); DEPLOYING OR
INTRODUCING A NEW TECHNOLOGY.
(2) OPERATION REDUCTION: IS THE APPLICABLE STRATEGY
IN CASE OF REDUCTION OF PROFIT AND SALES DUE TO THE WEAK
OPERATION OF ONE OR MORE AFFILIATES. THE ENTERPRISES
USUALLY USE SOME OF THE FOLLOWING METHODS:
CONTROLLING AND CUTTING COST, ELIMINATING UNPROFITABLE
BUSINESS, AUTOMATING PRODUCTION LINE… THIS STRATEGY IS
USED BY THE LEAST COMPETITIVE ENTERPRISE OF AN INDUSTRY;
ENTERPRISE THAT USE OVER-SPEED STRATEGY WHICH CANNOT
BE CURBED AND INEFFECTIVE SO THEY NEED TO BE
RESTRUCTURED.
(3) OPERATION PARTIAL CUT: IT CAN BE CONSIDERED AS A
PART OF OPERATION REDUCTION. THIS STRATEGY’S PURPOSE IS
TO ELIMINATE UNPROFITABLE OR UNSUITABLE BUSINESS FOR

ENTERPRISE’S OPERATION. THIS STRATEGY IS APPLIED WHEN
ENTERPRISE PURSUES OPERATION REDUCTION STRATEGY BUT
THE IMPROVEMENT PROCESS FAILS AND NO POSITIVE RESULT;
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THE ENTERPRISE HAS SELECTED THE CORE BUSINESS; ENTERPRISE
NEEDS CAPITAL BUT NO OTHER SOURCE IS AVAILABLE.
(4) LIQUIDATION: IS THE RECOGNITION OF FAILURE
THROUGH SELLING ALL ENTERPRISE’S PROPERTY AT ITS REAL
PRICE AIMING TO STOP THE PERSISTENTLY IRRESISTIBLE LOST.
THIS STRATEGY IS USED WHEN BOTH OPERATION REDUCTION
AND OPERATION PARTIAL CUT DO NOT WORK; ENTERPRISE GOES
BANKRUPT.
(5) GENERAL STRATEGY: IS THE METHOD TO COMBINE 2 OR
MORE ABOVE MENTIONED STRATEGIES. WITH THE LIMITED
RESOURCES, PURSUING MANY STRATEGIES AT THE SAME TIME
MAY BRING BACK DIFFICULTY FOR BUSINESS SINCE RESOURCES
ARE SHARED FOR MANY GOALS. ON THE OTHER HAND, THE
MOMENT ENTERPRISE STARTS TO SHARE ITS RESOURCES TO
MANY GOAL IS THE BEST TIME FOR THE ATTACK OF OTHER
COMPETITORS.
1.2.

CONTENTS OF BUILDING BUSINESS STRATEGY
1.2.1. DEFINING THE BUSINESS TARGET

ALL ENTERPRISES HAS TO DEFINE THEIR OWN BUSINESS
TARGET, IN OTHER WORD, THEY HAVE TO FIND OUT THEIR OWN
TARGET FOR EXISTENCE. A GOOD BUSINESS MUST BE BUILT ON

THE BASIS OF RESEARCH, FACTOR ANALSYS (INTERNAL AND
EXTERNAL FACTORS), AND EFFECTS (DIRECT AND INDIRECT) TO
BUSINESS OPERATION. A BUSINESS TARGET MUST COVER
FOLLOWING CONTENTS: DEVELOPMENT STRATEGY, BUSINESS
PHILOSOPHY, TARGET CUSTOMERS AND MARKET, CORE
PRODUCTS AND SERVICE, APPLICABLE TECHNOLOGY,
PROFITABILITY, COMPETITIVENESS, SOCIAL RESPONSIBILITY,
NECESSARY RESOURCES TO ACHIVE TARGET.
1.2.2. EXTERNAL ENVIRONMENT ANALYSIS
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IN ORDER TO KEEP THE BUSINESS STRATEGY HIGHLY
FEASIBLE, AFTER EVALUATING THE BUSINESS TARGET, THE
ENTERPRISE MUST ANALYZE, EVALUATE THE EFFECTS FROM
OUTSIDE TO DEFINED TARGET. THE FOLLOWING FEATURES OF
THE OUTSIDE FACTORS SHOULD BE CONSIDERED:
- THESE FACTORS HAVE A STRONG AND LONG-TERM EFFECT
ON BUSINESS OPERATION WHILE THE ENTERPRISE CANNOT
MANAGE THEM;
- THESE FACTORS GIVE DIFFERENT DIRECTION AND EFFECT
FROM BUSINESS TO BUSINESS, INDUSTRY TO INDUSTRY;
- ANY CHANGE AMONG THESE FACTORS MAY AFFECT
BUSINESS’S INTERNAL ENVIRONMENT FACTOR.
- THESE FACTORS CAN PROVIDE DIRECT OR INDIRECT
EFFECT TO BUSINESS’S OPERATION THROUGH RELATIONSHIP
WITH OTHER OUTSIDE FACTORS.
1.2.2.1. ECONOMIC FACTOR
THE MACRO ECONOMIC FACTORS IN WHICH BUSINESS
OPERATES, EVEN IN OTHER NATION GLOBAL WIDE SUCH AS

GROWTH RATE, INFLATION, UNEMPLOYMENT, EXCHANGE
RATES… PUT A GREAT EFFECT ON THE DECISION OF BUSINESS
STRATEGY AS WELL AS THE ABILITY TO ACHIEVE EXPECTED
RESULTS
1.2.2.2 CULTURAL AND SOCIAL FACTOR
CULTURAL AND SOCIAL ENVIRONMENT INCLUDES THE
STANDARDS AND VALUES ACCEPTABLE TO A SPECIFIC
GEOGRAPHY, COUNTRY OR CIVILIZATION. IN GENERAL, THE
SOCIAL AND CULTURAL TRANSFORMATION IS LATER THAN
OTHER FACTOR GROUPS AND INFLUENCED BY OTHER FACTORS
FROM THE EXTERNAL ENVIRONMENT.
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1.2.2.3 POLITIC AND LEGISLATION FACTOR
THIS GROUP INCLUDES POLITIC INSTITUTION, VIEWPOINT,
POLICY DOMINATED BY THE CURRENT ADMINISTRATION
MACHINERY, LEGAL SYSTEM, POLITIC AND EXTERNAL RELATIONS
TREND ETC…A SWITCH BY THIS GROUP IS FULLY CAPABLE TO
BRING ABOUT POTENTIAL OPPORTUNITIES TO ENTREPRENEUR,
ALSO IMPOSED CHALLENGES TO THE IMPLEMENTATION OF THE
SET FORTH BUSINESS TARGETS
1.2.2.4 TECHNOLOGICAL FACTOR
AMIDST THE RAPID EVOLUTION OF SCIENCE AND
TECHNOLOGY, THE TECHNOLOGICAL FACTOR IS CONSIDERED AS
THE MOST DYNAMIC AS WELL AS THE MOST UNSTABLE AMONG
THE AFFECTED FACTORS FROM THE EXTERNAL ENVIRONMENT.
THE PROGRESS OF SCIENCE AND TECHNOLOGY WILL DECIDE
SERVICES, PRODUCTS’ RECYCLE, BUSINESS STRATEGY AND THE
IMPLEMENTATION OF LONG TERM TARGETS SET FORTH BY

ENTREPRENEUR.
1.2.2.5 COMPETITIVE FACTOR
BASE ON THE PUBLIC BENEFIT ASSESSMENT, THE
COMPETITION IS A DRIVING FORCE TOWARD THE DEVELOPMENT.
HOWEVER, THIS FACTOR IS ALSO A BIGGEST CHALLENGE FOR ANY
ENTREPRENEUR TO OVERCOME EVERYDAY. TO SUSTAIN
COMPETITIVE ADVANTAGE, NECESSARY CLASSIFICATIONS OF
COMPETITORS ARE TO BE CONDUCTED BY MANAGER FOLLOWING
DIFFERENT DISPLAYS AS INFLUENCE AND COMPETITIVE LEVEL
ETC…BY THE WAY, AN APPROPRIATE COMPETITIVE STRATEGY IS
DRAW UP. THOUGH OF CONDUCTING DIFFERENT CLASSIFICATION,

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MANAGERS HAVE TO IDENTIFY AND UNDERSTAND THEIR
COMPETITORS BEFORE THE COMPETITIVE STRATEGY TO BE MADE.
1.2.3 INTERNAL ENVIRONMENT ANALYSIS
EACH ENTREPRENEUR HAS ITS OWN STRENGTHS AND
WEAKNESSES DUE TO ITS ESSENTIAL FEATURES. THE ANALYSIS
PROCESS OF THE STRENGTHS AND WEAKNESSES WILL HELP
MANAGERS EVALUATE PRECISELY ENTREPRENEUR IN TERM OF
QUANTITIVE AND QUALITATIVE RESOURCES. SO, THEY CAN WORK
OUT PLAN TO MOBILIZE, DISTRIBUTE AND UTILIZE EFFICIENTLY
THESE RESOURCES IN IMPLEMENTING THE SET FORTH BUSINESS
TARGETS.
1.2.3.1 MANAGEMENT
PLANNING WORK IS ASSOCIATED WITH ESTIMATION WORK,
TARGET DESIGN, STRATEGY DEVELOPMENT AND APPROPRIATE
STRATEGY SELECTION. IT IS A FUNDAMENTAL TO DEVELOP A

STRATEGY, ALSO A DIRECTION FOR THE IMPLEMENTATION AND
EVALUATION OF THE STRATEGY.
ORGANIZING IS UNDERSTOOD OF A PROCESS TO DISTRIBUTE
WORK IN APPROPRIATE PARTS, SECTIONS AND ARRANGE
PERSONNEL TO POSITIONS THROUGH THE IDENTIFICATION OF THE
LINK BETWEEN RESPONSIBILITIES AND OBLIGATIONS TOWARD
THE EFFECTIVE COOPERATION.
SUPERVISION IS A FINAL FUNCTION OF THE MANAGEMENT WORK.
THE SUPERVISION IS MAINLY INVOLVED IN THE PHASE OF
STRATEGY EVALUATION WITHIN THE OVERALL PROCESS OF THE
STRATEGY MANAGEMENT.

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PROMOTION INCLUDES BOTH SCIENTIFIC AND ARTISTIC FEATURE
THAT MANAGER CAN AFFECT ON THE OVERALL SYSTEM TO
ACHIEVE THE SET FORTH TARGETS.

1.2.3.2 MARKETING
MARKETING IS DESCRIBED AS A PROCESS OF
IDENTIFICATION, ESTIMATION, DEVELOPMENT AND
SATISFACTION TOWARD MEETING MAXIMUM THE NEED OF
CUSTOMERS. THIS ALSO MEANS THAT ALL WORKS INCLUDE
PRODUCT, PRICE, DISTRIBUTION CHANNEL, PROMOTION,
CUSTOMER, COMPETITOR AND INTERNAL EVALUATION ARE
CLOSELY LINKED WITH MARKETING. IN OTHER WORDS, GOOD
MARKETING ALSO MEANS THERE ARE POTENTIAL OPPORTUNITIES
FOR ENTREPRENEUR TO IMPLEMENT AND DEVELOP WELL THE SET
FORTH BUSINESS STRATEGY.

1.2.3.3 FINANCE AND ACCOUNTING
FINANCIAL FACTOR IS PRESENTED ON FINANCIAL
INDICATORS THAT ARE CONSIDERED AS A BEST SOLUTION ON
COMPETITIVE ASSESSMENT, ALSO A FUNDAMENTAL TO WORK
OUT INVESTMENT DECISION BY INVESTOR AND ENTREPRENEUR
AS WELL. FINANCIAL INDICATORS PRESENT ENTREPRENEUR’S
READINESS LEVEL AND FINANCIAL CAPACITY TO PROJECTS TO BE
INVESTED FOLLOWING THE BUSINESS STRATEGY. ON THE OTHER
HAND, THESE FACTORS ALSO REFLECT ENTREPRENEUR’S POWER
TO OTHER ENTREPRENEUR AND COMPETITOR.
1.2.3.4. INFORMATION SYSTEM
INFORMATION SYSTEM PLAYS A KEY ROLE IN THE WHOLE
STRATEGIC MANAGEMENT PROCESS. AT DIFFERENT STAGES OF
THE STRATEGIC MANAGEMENT, INFORMATION SOURCES ARE
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