Luận văn MBA chiến lược kinh doanh tại công ty cổ phần tư vấn đầu tư xây dựng hưng khánh

LUẬN VĂN THẠC SĨ – MBA
Luận văn MBA Chiến lược kinh doanh tại công ty cổ phần tư
vấn đầu tư xây dựng Hưng Khánh
THESIS TITLE
BUSINESS STRATEGY CONSULTING COMPANY STOCK
INVESTMENT IN THE CONSTRUCTION OF HUNG
KHANH

1


TABLE OF CONTENTS

Acknowledgements
Table of conntents
List of Abbreviations
List of tables
List of figures, graphs

INTRODUCTION
1. The necessity of a Business Strategy..............................................6
2. Object and scope of study ..............................................................7
3. Research Methodology ...................................................................7
4. Structure of the thesis......................................................................8
CHAPTER 1: GENERAL THEORY BUSINESS STRATEGY
1.1. Concept and the role of specific business strategies put in three
business................................................................................................9
1.1.1. Concept of business strategy.....................................................9
1.1.2. Characteristics of business strategy........................................10
1.1.3. The role of business strategy...................................................11
1.2. Process of strategic management of business............................12

1.2.1. Situation Analysis....................................................................12
1.2.2. Building strategy.....................................................................12
1.2.3. Implementation of the strategy...............................................13
1.2.4. Assessment strategies..............................................................13
1.2.5. Require the construction business strategy.............................13
1.3. Identify tasks and system strategic objectives...........................14

2


1.3.1. Strategic tasks..........................................................................14
1.3.2. System strategic objectives.....................................................15
1.3.3. Principles when determining the target..................................15
1.4. Analyze the business environment of enterprises ....................15
1.4.1. Macro environmental analysis................................................16
1.4.2. Environmental analysis sector (industrial work environment)
............................................................................................................19
1.4.3. Environmental analysis of enterprises....................................21
1.4.4. Environmental analysis of international businesses...............24
1.4.5. Matrix of opportunities and risks............................................25
1.5. Distinguish types of business strategy.......................................27
1.5.1. The overall business strategy..................................................27
1.5.2. The business strategy division ...............................................32
1.6. Methods of analysis, selection strategies...................................35
1.6.1. Market share growth matrix BCG..........................................36
1.6.2. Matrix McKinsey-GE (General Electric)...............................38
1.6.3. SWOT analysis and combined strategies...............................40
CHAPTER 2: ANALYSIS OF STRATEGIC FACTORS
COMPANY

INVESTMENT

CONSULTING

CONSTRUCTION HUNG KHANH
2.1. Analyzing and evaluating the production and trading of shares
of the Company Consultant Investment Construction Hung Khanh
............................................................................................................42
2.1.1. Process of formation and development company; Business
activities, objectives and scope of activities.....................................42

3


2.1.2. Business activities, objectives and scope of activities...........42
2.1.3. Organizational structure..........................................................43
2.1.4. Products the company is manufacturing and trading ............47
2.1.5. Evaluate performance of production and business of the
Company............................................................................................47
2.2. Analyze the business environment of the company .................51
2.2.1. Macro environment ...............................................................51
2.2.2. Industrial work environment ..................................................59
2.2.3. Internal environment ..............................................................67
2.3 . Integrated analysis environment and form matrix ...................84
2.3.1. Market share growth matrix BCG..........................................84
2.3.2. SWOT matrix .........................................................................87
2.3.3. Matrix MC Kinsey...................................................................89
CHAPTER

3:

SOME

OF

STRATEGIC

PLANS

AND

SOLUTIONS FOR BUSINESS ACTIVITIES PRODUCTION
COMPANY'S

STOCK

INVESTMENT

CONSULTING

BUILDING HUNG KHANH (PERIOD 2010-2015)
3.1. FACILITIES CONSTRUCTION STRATEGY........................92
3.1.1. Long-term goals of the company............................................92
3.1.2. The immediate objective of the company..............................94
3.2. THE STRATEGIC BUSINESS GENERAL ............................95
3.2.1. Growth strategy focused.........................................................97
3.2.2. Strategy to build high-quality products..................................99
3.3. THE DEPARTMENT OF ENERGY STRATEGY................105
3.3.1. Improve the quality of human resources..............................105
4

3.3.2. Promote marketing activities................................................113
3.3.3. Improving sales performance................................................121
3.3.4. Strengthening research and development ............................122
3.3.5. Investment in technology renovation...................................123
3.3.6. Enhance the ability to mobilize capital in production and
business ...........................................................................................124
CONCLUSION................................................................................125
REFERENCES................................................................................127

5


LIST OF ABBREVIATIONS

Abbreviation
SE
Co Ltd
Soc
Sto
Busi
GAS

Write full
Staff employees
Company Limited
Socialism
Stock
Business

General Assembly of

Corp
Comme
Pec
VN
ImEx
Const
GAOS

Shareholders
Corporation
Commercial
People's Committee
Vietnam
Import Export
Construction
General Assembly of
Shareholders

6


LIST OF TABLES
1. Table 1.1: The variables measuring competitive strength
2. Table 1.2: Variables measuring the attractiveness of the market
3. Table 2.1: The works of some of the 2008
4. Table 2.2: Results of business of the Company period 2004-2008
5. Table 2.3: Total of business environment
6. Table 2.4: Total of opportunities and challenges

7. Table 2.5: the situation of labor structure of the company
8. Table 2.6: Effective use of capital of the Company
9. Table 2.7: The key financial indicators
10.Table 2.8: Structure of machinery and equipment of the
Company
11.Table 2.9: Total of strengths, weaknesses of the company
12.Table 2:10: The rate of growth and market share relative
products business of the Company
13.Table 2:11: The power business of the Company
14.Table 2:12: attraction of industry
15.Table 3.1: Standard staff and senior management of the
Company 2015
16.Table 3.2: Objective quality labor structure of the company
Cogng 2015
17.Table 3.3: Project open more business agent supplies in some
areas.
LIST OF FIGURES, GRAPHS
1. Map 1.1: Simulation of the business environment of the business
2. Map 1.2: Model of five forces of M. Porter

7


3. Map 1.3: Matrix opportunity
4. Map 1.4: Matrix risk
5. Map 1.5: Matrix market share growth BCG
6. Map 1.6: Matrix strategic Mc. Kinsey
7. Map 1.7: SWOT Matrix
8. Map 1.8: Establishments selected business strategy
9. Map 2.1: Structure of Production Joint Stock Company

Consultant Investment Construction Hung Khanh
10.Map 2.2: Matrix BCG growth share of the company
11.Map 2.3: Matrix Mc. Kinsey apply to companies

8


INTRODUCTION
1. The necessity of a Business Strategy
In terms of our economy transition to a market economy,
businesses have a polarized, competition occurs increasingly bitter
and more fiercely. To survive and thrive, businesses need to
determine for themselves the right strategy, because if there is no
strategy or strategic mistakes are sure to get the failure.
Operation of enterprises in market economy is to invest and use the resources to win war with the rival
demands of the market. The purpose of the business activities in the market economy is to achieve high
efficiency as possible a long way. Performance of the enterprise is the result of correlation, comparison
between the benefits derived from activities of the enterprise with the resources mobilized, used for the
benefit. For business, develop strategies appropriate means is especially important, the strategic direction and
adjust the strategy is timely basis to bring huge benefits for enterprises.
In the context of globalization market, ever-changing technology, competition increasingly fierce, more
than ever the strategy increasingly become a crucial factor. With the scarcity of resources is increasing, the
needs and tastes of the consumer society makes changing business environment of enterprises increasingly
complex and contains many risks. To survive and thrive, businesses need to build yourself a strategy.

Strategy is a special plan

, all organizations will need to plan activities. For businesses,

planning is the first functional system of management functions to achieve the goals set out by the

organization.
Strategic planning must consider many factors outside objectivity and subjectivity within the enterprise,
analyzing system information can be used for planning activities of the enterprises in the short term and longterm focus all efforts and resources on the target so that the most effective, cope with real situations to, adapt
to change.
Corporation Consultant Investment Construction

Hung Khanh (The company) is a unit in the

construction industry; the first year of operation, the company has undergone several tests, there are
successes and failures also; to present the company has achieved certain achievements. Reality has proven, if
not determine a correct development strategy, enterprises can themselves are working on the pitfalls can not
be drawn, leading to business sa situation worse and even bankruptcy. So to continue to stand firm in the
market and adapt to the changes constantly happening in the business environment requires companies to
build

yourself

an

appropriate

strategy.

Derived from the importance of building strategic business with the needs of JSC Consulting

9


Constructing Hung Khanh in strategic planning; Group 7 we learn and choose topics "Building strategic
Corporation Advisory Constructing Hung Khanh period 2010-2015" who wish to choose a company with the

right directions in the next stage in the future.

2. Object and scope of research
Manipulate the theory and methodology of the business strategy ,
essay shows the argument to develop strategies for the Corporation
Consultant Investment Construction Hung Khanh period 2010-2015.
Subjects of Research: Topics to deep analysis, evaluation and give strategic direction to build the
company based on the general theoretical construct of the business strategy

Scope of research:
- The problem of strategic reasoning of the business
- The base formed a strategic business
- Develop strategies for companies in the short term and long-term
and solutions, specific measures to implement strategy
3. Method Research
The group made research topics based on the knowledge learned,
based on primary data collected in the company for analysis,
evaluate the entire process of production and business activities of
the Company Stock Investment Consultancy Construction Hung Khanh.
Also use methods such as : statistics, synthesis, analysis, comparison, forecasting for analysis and make
assessment strategies of the company; but mostly analytical methods based on primary data collected in the
company.

4. Structure of thesis
Besides the introduction, conclusion and list of references of the
thesis contents of 3 chapter:
Chapter I: General Theory of business strategy.
Chapter II: Analysis of strategic factors Corporation Consultant Investment Construction Hung Khánh

10

Chapter III: Some oriented strategies and solutions for production and business activities of the
Company Stock Investment Consultancy Construction Hung Khanh (Period 2010-2015).

11


CHAPTER 1
GENERAL THEORY OF BUSINESS STRATEGY

1.1. Concepts, characteristics and role of business strategy in the enterprise
1.1.1. Concept of business strategy
Business strategy is more interested economists and researchers have come up with many different
definitions

of

the

term

"business

strategy",

such

as:

- The decisions, actions or plans associated with each other, is designed to draw out and implement the
objectives of the organization.

- As a result of the process of building strategies.
- The art of building competitive advantage.
- A set of decisions and actions toward the goal to the capabilities
and resources of the organization to meet the opportunities and
challenges

from

the

outside

- By Alfred Chandker "strategy encompasses the objectives assigned to the basic long-term industry, and
how the selection process of action and allocate resources necessary to carry out that goal"

- Source Wiliam.J.Gluech: "Strategy is a plan to bring uniformity,
comprehensiveness and coordination designed to ensure the
fundamental goals of the business is done."
Also business strategy or competitive strategy also defined the following six elements:
- Market products: business opportunities depends on its products, markets it serves, the competition that it
can

confront

or

evade,

and

its

level

of

integration.

- The level of investment: the ability to choose the following options: either invest or expand investment
market entry product, or invest to maintain the current position or reduce the investment to withdraw or
liquidation

to

close

a

business.

- Strategy functions: how competition might accrue to one or more of the following functions: product
strategy, strategic position, pricing strategy, distribution strategy, manufacturing strategy, strategic public
information technology, strategic segmentation, global strategy.

- Property strategy and capability strategic capacity strategy is remarkable aspects
of the business. Strategic assets, the strength of the business resources in comparison with other competitors.

12


When the strategy should pay attention to costs as well as can create / maintain assets and capabilities as the
basis for long-term competitive advantages of enterprises.

- The allocation of resources:

financial resources and non-financial resources such as

factories, equipment, people all have to be allocated. Decided to allocate a key element for the strategy.

- Effects between the United business: only those companies achieve the same effect
United have remarkable advantages in comparison with those companies to ignore or exploit the effects of
this same half.

Overall, the strategy is a set of actions and decisions related
closely to help organizations achieve the objectives set out, and it
should be built so take advantage of the strengths of the

including the

resources and capacity of the organization as well as to consider opportunities and challenges of the
environment.

Business strategy is seen as a principle, the guiding principles
in business. So businesses want to succeed in business, a
prerequisite to have business strategies or organization make good
strategies.
1.1.2 Characteristics of business strategy

Although there are many concepts and approaches of different
categories of strategies song features basic business strategy is the
concept of relatively uniform. The basic characteristics which are:
+

Strategy + business is computer oriented in a long time, it made the target, the direction of

business for each industry specific product the same time clearly defining the basic tasks, solutions and each
steps

to

+

achieve

objectives.

Strategy + business flexibility, flexible, because business strategy is built on the basis of the

market predicts that the future market is always fluctuating. For appropriate strategy, right, helps businesses
achieve objectives, the strategy must be versatile, flexible front fluctuation of the market.

+ Strategy + business is built by long time (5 years or 10 years) so take calculated business strategy
and roadmap as a long-term strategies will often be concretized by the short-term strategy than , which also
called the plan.

13

+ Strategy + business is a continuous process from stage to stage of construction implementation,
inspection and supervision.

+

Strategy + business is always with the thought process to win victory in the competition.

Business strategy formulation and implementation is based on the findings and take advantage of business
opportunities, the comparative advantage of the business to achieve higher business performance.

+ All important strategic decisions in the process of building
and organizing the implementation, evaluation and control strategies
are focused on senior management team to ensure the standards of
long-term decisions, the confidential information in competition.
Thus from the concept and characteristics, we can understand
a simple and specific: "Business strategy is the process of
determining the overall target enterprise development and use of
synthetic technical factors, economic organizations and business to
win the competition and achieve objectives " .
1.1.3 The role of business strategy
Market economy is always fluctuations , to survival and development require companies to adapt to
such fluctuations. Modern business management that can not survive is with the market change if businesses
do not have a business strategy and develop existing properties and can attack. Only on that basis, enterprises
discovered the need to take advantage of opportunities or threats may occur for a book to suit you. Lack of a
proper business strategy may lack the initiative and attack, lack of take care of construction and development
strategy, the enterprise can not operate production business and the economic efficiency even in many cases
led to the bankruptcy.

Business strategy to help businesses identify future directions
to reach by his own efforts; help enterprises determine the

fundamental goals should be achieved in each period and should be
thoroughly consistent in all levels, all areas in business activities, in
order to exploit and optimize use of resources, promote the

14


advantages and seize opportunities to gain advantage in
competition.
Besides , the process of developing business strategies on the basis of a continuous monitoring
events occurring both inside and outside the enterprise understand the trends of the market transformation;
along with developing implementation of business strategies will help companies adapt to the market, and
even change the operating environment to dominate the competitive positions, achieve higher profit,
increased labor productivity, improved of the environment, improve the image of the enterprise market.

1.2. Process of strategic management business
In the process of strategic management, the management made a series of activities as follows:

1.2.1 Situation Analysis
Before deciding on the direction or appropriate response
strategies need to analyze the current situation. Analyze the
situation requires consideration of organizational context, the
environmental perspective outside and inside the organization:
- The body of internal factors within the enterprise: strong or weak.
-

The

environmental

factors

outside

the

business:

opportunity

or

risk

to

the

enterprise.

- Willingness of leadership: corporate value, reputation and competitive advantage

1.2.2 Building strategies
Building strategies include the design and selection of appropriate strategy for the organization. To
accomplish this should be considered from many different organizations and levels set out the types of
strategies:

- Strategy Company: interested in the large and long-term issues
such as how activities, participate in any business, doing in the
business. Any changes in the structure of the business of the

organization

can

change

the

strategic

companies.

- Strategy functions: the decisions and actions target the short-term
construction of parts of different functions within an organization

15


such as parts production (manufacturing), marketing, research and
development, human resources, financial accounting, information
technology.
- Competitive Strategy: the strategy of competitive research
competitive advantage that organizations are or want, and look to
the organization that conducted compete in any business or industry
certain.

1.2.3 Implementation Strategy
Formation or construction strategy is not enough for
employees of organizations that need to implement the strategy.
Implementation of the strategy is the process to the different

strategies of the organization to implement. Measures to make the
different levels of strategy are bonding with the construction
strategies.
1.2.4 Review strategies
Final phase of strategic management is the evaluation strategy.
All strategies are subject to change future because of factors inside
and outside changes regularly. Three major activities of this phase
are: (1) Review the factors is the basis of current strategies.

(2)

Measurement of achievement. (3) Perform the operation control. Stage assessment strategy is needed because
the current success does not guarantee success in the future. Success always creates new problems more,
organizations have thought meet to pay for the decline.

1.2.5 Requirements when developing business strategies
In the construction business strategy should note the following:

- Business strategy must be linked to the market:

16


Businesses build business strategies on the basis of investigation
and research of market demand and make the most of opportunities,
the advantages and resources to produce products with quantity,
quality number, types and duration appropriate. Can be considered "strategy must reflect the market to
do business" is our motto, is the principle of strategic management of the business.
+ The construction business strategy to increase the strength of the business, gain competitive advantage in
the market.

+ Strategy must show flexibility and thus develop strategies
mentioned only general issues, not specific.
- When building business strategy must consider the safety of
business, limiting risk to a minimum.
- The business strategy should identify key objectives, the business
strategy and the basic conditions for achieving that goal.
- Business strategy must reflect a combination of harmony between
the two strategic business strategy includes general issues covering
general, an organized and most decisive and strategic business
division includes nature of the problem parts as product strategy,
pricing strategy, marketing strategy, promote strategic ...
- Strategic business is not a general presentation, which must reflect the goals specific, feasible for the
purpose of achieving maximum efficiency in production and business.
A very important problem if only to build business strategy is not enough because even though the
strategy is to first build a perfect if not implemented well, do not turn it into programs and policies consistent
business with each stage of development will become useless, absolutely no value to increase business
efficiency and still suffer the cost of business for this work.

1.3. Identify tasks and system strategic goals
1.3.1 Strategic tasks
This is a statement with fixed long-term nature and purpose of
the enterprise, it distinguishes companies with other businesses. The

17


statement may be the principle business objectives, business
philosophy since then identify business products and services,
market demand.

Content of the strategic tasks that only general issues, thereby
determining the scope of business activities in the field of product
and market. As set out strategic tasks necessary to pay attention to
these factors: a history of formation and desire of the board, the
environmental conditions of business, resources available and the
ability of the business school facilities. Strategic tasks to help
leaders identify targets more easily, more specifically, it determines
priorities of the business to assess the potential of each business unit
and outlines future directions of the business .
1.3.2 System strategic goals
Strategic objective: is to target only specific businesses want to achieve, be derived directly from the
function of the specific tasks and more clearly, the weight into the numbers: growth, income level profit,
sales, market share. There are two types of goals: short-term and long term.

+ Long-term goal: the overall desired results last thing businesses want to achieve in a longer
period than one year, with specific content: the benefit received, productivity, competitive position, has
development work, community relations, location technology, social responsibility.

+ Short-term goal:

the results of specific companies expected to achieve in a cycle, the volume

into a number.

1.3.3 Principles for determining the target
- Be clear in each stage of development of the enterprise;
- There are computer links, reciprocally, this goal does not interfere
with

other

objectives;

- Must identify priority objectives, which represent the hierarchical
objectives and tasks set out for businesses in each period.

18


1.4 Analyze the business environment of enterprises
The purpose of environmental analysis is to identify business
opportunities and risks for enterprises, including the macro
environment and micro (also known as the environmental sector).
That review process of various environmental factors and determine the
influence of chance or risk to the enterprise. Judgments environment (diagnostic) based on the analysis and
review of environment from which to take or owned the risks affecting the business.

Macro environment:

- Environment macro
consists of the external
factors that affect
business.
- Environmental work
career including factors
outside of enterpriseoriented competition in
that industry.
- Environment consists of
internal resources of the
enterprise internal

1.Economic factors
2. Political factors and laws.
3. Social factors
4. Natural elements
5. Technological factors
Industrial work environment
1. The competitors
2. Customer
3. Suppliers
4. Potential competitors
5. Substitute goods
Internal business environment

1. Manpower
2. Research and
development
3. Production
4. Financial
accounting
5. Marketing
6.Routine
organizational

Map 1.1: Simulated business environment of enterprises

19


(Source: Le Van Tam - 2000, the Catholic strategic management,

Statistics Publishing House)
1.4.1 Analysis of macro environment
1.4.1.1 Economic Environment
Status of the economy and future trends affecting the success and strategy of the enterprise, the main
factor is the growth rate of the economy, interest rates, inflation, unemployment, exchange rate exchange
rates. Variation of these factors will affect business.

- Economic growth: Economic development with high-speed reflects the growth of the market, so
will contribute to reduce competitive pressure. Purchasing power of the overall market higher facilitate
business

development

of

enterprises.

- Interest rate: interest rate is one element of monetary policy. High or low interest rates have a direct impact
to business and market needs. High deposit interest rates will encourage residential and business depositors
led to the liquidity of the market is shrinking purchasing power is declining risk for enterprises.

- Foreign exchange rates:

Foreign exchange rates have a large impact on the business

enterprises in activities related to import and export.

- The rate of inflation

increased to control the price, amount of labor does not own is, threats

and increase business.

1.4.1.2 Environmental technologies
Technological factors influential to the business strategy of enterprises and industries. Moment is
the time when industrial development should the judgments tend to industrial problems is very important for
the development of enterprises. Changes in technology affecting to the life cycle of products and services.
The dimension / events in the technology may be opportunities for those companies able to mobilize
investment capital, but would be a threat to the bonding companies were on the old technology.
In the development of society, is must surely move to new technologies. But not so suddenly that
businesses are using old technology losses, because: one is the old technology still buyers in the long run,
partly because the business continued to improve technologies that; two are difficult to predict the advent of
new technology, because the new research is very expensive and incomplete; it more often starts from the
secondary market; and again the new technology has tended to create new markets and not encroach current
market. Therefore, enterprises need to get the right technology, to create opportunities for enterprises in
developing products and services.

1.4.1.3.Cultural and Social Environment
For strategic management, cultural factors, social sensitivity, or change one. Lifestyle of the
inhabitants themselves rapidly changing trends introduced the new lifestyle, leading to consumer attitudes

20


change. Of higher level, thus increasing demand of consumers for high quality, rich category of products will
be higher. This is a challenge for manufacturers
Every business enterprise is operating in the cultural environment - social constraints. Business and
cultural environment - social relationships are close and impact each other back. Provide social resources that
businesses need and consumption of products and services that businesses produce. Cultural and social
environment can affect strategic decisions such as selecting areas and items, select the brand, color, style,

change the channels.

Concepts of value and value of life consumption: the concept of
the value of life will arise on the concept of value and influence
consumer decisions and purchasing goods declined or reduced
procurement other goods appear as chance or threat for business.
1.4.1.4. Natural Environment
Natural environment factors include geography, climate, ecological environment. To threaten from
climate change as influential for business. Therefore anticipate the factors of climate change weather makes
business more active in making decisions about their products.
Natural environment is deteriorating a challenge for most business enterprises in different fields; the
supply of raw materials, energy depletion, increasing pollution levels, adverse weather complex, flood
drought cause losses. Things that make business expenses increased due to extra cost, more devices equipped
with waste treatment, taxpayers than as required by environmental protection

1.4.1.5 Environmental government, law, politics
Legal factors, political influence development strategies of enterprises in different directions. They
can be opportunities for this business is the risk to other enterprises. Policies to encourage more open
economic sectors involved in producing a business risk to the state-owned enterprises, but an opportunity for
manufacturers business private market participants
Can be seen the influence of government policies for the production and business how. For example,
tax policies: higher taxes will benefit any business, low taxes will encourage business. In terms of Vietnam's
businesses in addition to interest tax rate also concerned about the stability of the tax rate. Tax rate is not
stable it difficult for the expected long-term business strategy of the business. Political stability, complete
legal system is always a big interest of manufacturers business.

1.4.2.

Environmental

analysis

environment)

21

sector

(industrial

work


Potential new competitors

The competitors in the
industry

Supplier

Customer

products and services
substitution

Map 1.2 :

Five forces model of M. Porter

(Source: Le Van Tam - 2000, the Catholic strategic management,

Statistics Publishing House)
1.4.2.1 Analysis of existing competitors
The first force in the model of M. Porter is a scale competition
among enterprises have the opportunity to increase price and earn
more profit. Competition between enterprises in the industry often
focus

on

the

following

main

contents:

- Nature of competition: among the substitutes for each other to satisfy a desire the same, ie competition of
priorities when purchasing the product uses a different set of relationships for revenue Added; compete in the
same category of products; competition between brands.

- Pressure in a competitive industry:

competitive structure which is the number and

size of companies competing in the same business. If the business is small, no business dominates the
structure of competition will be distributed. If market demand is huge competitive pressure will decrease, in
contrast, if market demand, the competition is becoming fierce.

- Barriers to exit from the industry:

when business conditions deteriorate in the

industry, business difficulties forced businesses to consider withdrawing from industry stories; costs to
withdraw from the sector to enterprises with losses and losses, even bankruptcy, including:

+ Cost of capital: factories, equipment, technology

22


+ Direct costs of investment preparation, and administrative
procedures
+ Social costs: training workers, firing workers

1.4.2.2 Analysis of potential competitors
The potential competitors are likely to enter the enterprise
sector in the future, threatening to businesses currently produce.
Current businesses often try to prevent potential competitors to
participate in industry because the market will be fierce competition
over market and profits will be shared, even the location of the
business can be change. Level of profit potential rivals depends mainly on the cost of joining high
or low branches (barrier industries), including:

- High initial capital investment the ability to join the industry's new rivals will be less.
When you start taking a business, the investor must put a certain amount for procurement of inputs such as
machinery, raw materials, to create outputs. Thus if the original investment, the greater the risk the greater
the risk, traders want to enter the industry to consider more than when the investment decision.

- Price advantage: When companies hold high technology for production supply the products

with low cost will have the advantage in competition. Want to keep this advantage, businesses must always
lead in technology, not focusing on business management, to reduce costs, improve production efficiency and
business.
- The advantage of label products, goods and services: the customer was familiar with the brand name is
often used in, the cost of building a brand new goods usually takes more time and cost costs.

- Advantages of production scale: a large-scale production, the average fixed costs for a
unit of product decreased, large-scale enterprises will have a competitive advantage over new competitors as
much.

- Legal barriers: are the provisions of the State on the conditions to participate as a condition of
business capital, the equipment, the level of the workforce ... the more stringent regulations will obstructing
the business sector to join and vice versa.

1.4.2.3 Pressure of Suppliers
Suppliers is likely to be a threat to pressure industry when they raised prices, limited quantity, not
quality assured. Enterprises should pay attention to the negative impacts from the suppliers. However,
providers can only be pressure for businesses in the following cases:

23


- There are few suppliers industry.
- There are few products and services instead.
- Have the advantage of specialized products and services.
- Ability to integrate vertical-way agreement, closed products.
1.4.2.4 Pressure customers
Customers are common nouns to refer to people or
organizations using the product or service business. Customers can
be divided into five following subjects: the final consumer;

distributors intermediate; agents, wholesalers; the home buying
industry.
Customers are the main target involved in the marketing of products, identify customers and the impact
on customers to determine the basis of market products, services and investment structure needed. Needs of
customers is one key factor in the production and business interests to decide should or should not be
maintained long-term competitive advantage for that product. Ability to pressure customers higher risk of
disadvantage to larger businesses. Customers often pressure for businesses in the following cases:

- They are the customers who buy large scale.
- There are many vendors with a product, there are many
options.
- Ability to backward integrate to own all or part of the
production of the product.
When customers have the advantage over the seller,
indispensable to reduce the price and increase product quality,
service, means that profits will decrease.
1.4.2.5 The substitute products
Substitute products are not competitive but it can affect the
ability of the market is profitable threat to business. Need special
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attention to the product replacement likely to improve, change due
to

advances

in

technology

bring.

Most new replacement product is the result of the explosion of technology. Want to achieve success in
their business enterprises need to spend the resources necessary to develop new technologies in development
strategies.

1.4.3 Analysis of internal business environment
Internal business environment is all that belongs to the
enterprise itself, directly related to production and business
operations of the business to identify strengths and weaknesses of
the enterprises that provide the basis for strategic planning and
implementation of business strategy. Object to be considered are the
main factors occur inside the enterprise, the control of the business.
The main factors, namely: human resources, finance, accounting,
marketing, information systems, organizational system.
1.4.3.1 Factors of human resources and organizational
Human resources play a role very important for the success of
the enterprise. People provide input to planning objectives, the
context of environmental analysis, selection and implementation of
test strategies of enterprises. Only people working efficiently create
effective new business, elements of human resources including:
- The leadership, professional qualifications and experience leadership.

- Organization and management accordingly.
- The skill level, from the morality of the staff employees, the policy
staff flexibility and efficiency.

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