Some solutions of business development strategy in Bim Son Cement Joint Stock Company period 2016 2020

Essay title: “Some solutions of business development strategy in Bim Son Cement Joint
Stock Company - period 2016 - 2020"
Name of student:
Course’s name:
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INDEX

REFERENCES LIST ……………………………………………………………………… 32

INTRODUCTION
1. Urgency of topics
As reported by the cement industry, in the first 5 months of 2016, cement production
decreased by 16.8%, consumption dropped 7.8% compared to the same period in 2015. Excess
of cement is estimated up to 6 million tons in 2016. While production and consumption has
reduced, the capacity of the whole industry production increased approximately by 10% by
investing in the cement industry massively in recent years. The entire cement industry has a
capacity of 70 million tons in 2016, output is expected to reach 60 to 62 million tons.
Meanwhile, domestic demand is estimated at 47-48 million tons, exports 7-8 million tons.
Thus, the excess of amount of cement this year is still about 6 million tons.


On the other hand, due to the inputs of the cement industry, such as rising coal prices,
electricity prices have increased by 19%, which makes cement industry meet many difficulties,
among them, the biggest difficulty is financial problem. Most of the equity of the cement
business is very low, so the capital to produce business depends mainly on bank loans.
One of the causes of the problems is, oversupply situation of cement industry today, due
to the investment spread and fragmentation of the industry, and in recent years, development
planning for cement industry in 2011-2020 and orientation to 2030 has been built on demand
growth of 10-15% / year from 2006 to 2010 was the time made a big mistake for the whole
industry.

Moreover, the time of 2015, 2016 and the next few years is the culmination of the
repayment period of investment. Interest rates are too high, the difference in exchange rates
change, access to credit sources have made difficulty because the total financial costs account
for between 25% - 30% of the product price. Meanwhile, the real estate market freezes, delays
construction, purchasing power in the economy should reduce cement consumption and selling
prices also declined.
For Bim Son Cement (BCC) JSC before the general evolution of the industry is not
immune from the impact. The financial situation of the company rather difficult: short-term
assets 1,370 billion (though it has fallen 11.8% decrease compared to the early balance) while
short-term debt 1,496 billion. Despite efforts to liberate 552 billion of inventory is fast
solvency of BCC remains tight. Coefficient of short-term solvency of the BCC is at 0.92 times.
Besides, according to BCC (2016), the cement mill No. 4 after 10 years of operation has
many cracks appear unsafe, does not guarantee productivity, more power consumption. To
remedy this situation, the body utilize BCC cement mill No. 1 line 1 does not work, to replace
the mill 4. The process of removing the mill number 1 just finished, awaiting the right time to
mount the mill instead of 4.
And according to the resolutions of the board BCC (2016), the company will shift to
diversify products, the introduction of new products such as SC40, Sustainable TypeII sulfate,
dry mortar plastering appropriate to customer segments, respond to the user. Plaster dry mortar


products, here is a new product for plaster wet areas indoor and outdoor advantages is the
second episode, durable, environmentally friendly. This new product promises to bring
competitive advantage and improve business performance for BCC.
Industry is exploring many uncertainties and risks in unfavorable macroeconomic
developments, while many internal problems remaining BCC while limiting the enterprises
implementing new products for the existing market areas. The problem requires serious
consideration of the evolution of the business environment; look back the internal problems
and find a solid direction for future BCC.
Stems from the perception that the author has developed the topic "Some strategic

solutions in business development company Bim Son Cement Joint period 2016 - 2020"
2. Objectives of the study
2.1. Objectives of the study
Develop business strategies in developing new business phase to ensure adaptation to the
conditions of evolution, new trends of the industry environment, macro environment at home
and abroad, and proposed solutions implementing business strategies to deliver the highest
business performance for BCC
2.2. Research questions
(i) The theoretical problems of business building strategies have been like? Applications
for industries like cement in the current crisis?
(ii) There are the basic elements of the business environment can greatly affect BCC
(iii) The elements of the business environment? How does it work to BCC? Ability to
adapt and respond to the strength and weaknesses of the company.
(iv) The trend of economic developments at home and abroad, the real estate industry
and construction materials will turn out in the period from 2016 to 2020, BCC should do in
response?


(v) How orientation business strategy for BCC? Are there any measures to support the
construction and implementation of the strategy?
2.3. Research mission
(i) Synthesis and selection theories of business strategy in accordance with the
conditions of the cement industry and BCC
(ii) Analysis of the macro environment, industry environment, competitiveness so that
draws opportunity and challenge for BCC
(iii) Analysis of the internal environment to identify the strengths and weaknesses of
BCC
(iv) Identify strategies and develop business strategies for BCC in the period 20162020.
3. Subjects and scope of research
3.1. Study subjects

- Bim Son Cement Joint Stock Company; business environment of the company including the
macro environment changes, the industry environment, competitiveness and local businesses.
3.2. Study period
- From 2013 - to quarter 2/2016; prospects of the business environment changes from 2016 to
2020.
Space:
- Bim Son Cement Joint Stock Company, In Thanh Hoa, Hanoi and the Central Province,
Western Highlands.


4. Rationable orientation for building business strategies in cement industy
4. 1. Some basic concepts of strategy
4.1.1. The concept of strategy and strategic management
There are many definitions of business strategy, however, they can be understood as the
strategic direction and scope of an organization's actions in the long term aiming to achieve
business advantage through the identification of resources currently can be used in business
environment to identify and satisfy the needs of the market and to ensure the interests of all
relevant stakeholders (stakeholder).
Therefore a business strategy has a very important role in determining the development
of the business. Business strategies are developed, selected and implemented based on the
comparative advantages of the business, which require businesses to assess the true state of
their activities as strategic planning and also put business in such a situation to develop
business strategies with careful preparation and continuous updating.
Strategic Management:
The goal of profound strategic management is now placed in the best position on the
target market, to maximize long-term value of the business. A more specific strategy is to
achieve a number of objectives:
• Achieve business goals in the long term (business & corporate social responsibility) in a
sustainable way (Sustainable)
• The market or market segment that the company business, business strategies will be

applied.
• Enterprise how to dominate the competition in those markets with specific customers?
• Need to use what resources (people, skills, assets, finance, trade secret, ..) to be able to
achieve that goal.
• The potential threat from outside can influence the implementation strategies:
environmental, competitive, political, resources, .. individual risk prevention plan?
• The values which will bring business owners and business society which is member


In terms of process, strategic management is seen as a management process involves the
formation of a strategic vision (Strategic Vision), set goals and prepare a strategy and
implement that strategy , and from time to time to adjust the strategy to suit the circumstances.
4.2. Process management business strategy
The process of strategic planning business can be divided into four main steps:
- Step 1: Select the mission and main objectives of the company.
- Step 2: Analyze and forecast business environment. To sum up results of the analysis
and forecasting in two directions:
Identify opportunities, opportunities and favorable business environment.
Identify the risks, threats and pitfalls of the market for business operations.
- Step 3: Analyze and assess the status of the company to identify strengths and
weaknesses.
+ Financial situation.
+ The number, quality and structure of the workforce.
+ Review the organizational structure of the company and the adaptability of the
structure before the environment changes and new business conditions.
- Step 4: Selection strategies based search resources, capabilities and core competencies.
Develop it to neutralize the risk inside and take advantage of external opportunities
4.3. The process of developing and implementing strategies
- Step 1: Gather information, analyze the outside, inside.
- Step 2: Develop plans, strategic options

- Step 3: Implement and control.
4.4. Some of the tools used to serve in strategic management research
4.4.1. Delta project model
Delta is a model-based approach to customer management strategy compared to focusing
on the characteristics of the product, this model is based on customer economics. Customer


model is this center was developed by Dean Wilde and Arnolda Hax, the focus of Delta's
model-based competition binding values rather than directly competitive strategy. Delta model
has 3 basic core components: system optimization, customers optimal and best products.
4.4.2. Strategic map
The strategy is often documented, to the top of the leader in business or just write out the
main points of the strategy. To share with everyone in the business is easy, there is a draw the
most intuitive way, which is most easily understood strategy map. Kaplan & Norton in the
process of building multiple versions, the map shows that the more important strategy, because
it is very intuitive to express the business strategy.
From the Balanced Scorecard, which helps businesses identify the objectives, measures
and finally go to the individual engaged in business, people identify personal goals.
Strategy maps help us understand the process of implementation and deployment strategies in
an organization. This model is a step forward from the model evaluation table with four points
balance. This model explains the process of implementing the company's strategy in the
following directions: financial orientation, customer orientation, process orientation and
orientation within the learning and growth.
4.4.3. SWOT matrix composite
On the basis of identified opportunities and challenges from the external environment as
well as the strengths and weaknesses of the business, SWOT offer 4 basic strategies:


(1) SO (Strengths - Opportunities): the dominant strategy is based on the company to
take advantage of market opportunities.

(2) WO (Weaks - Opportunities): the strategy based on the ability to overcome the
weaknesses of the company to take advantage of market opportunities.
(3) ST (Strengths - Threats): strategies based on the company's advantage to avoid the
risk of the market.
(4) WT (Weaks - Threats): the strategy based on the ability to overcome or minimize the
weaknesses of the company to avoid the risk of the market.
4.4.2. PESTNG model analyzes the business environment
The model analyzes the external environment PEST identified four basic elements of the
external environment affecting business operations of the business and evaluate the influence
of environmental factors there. Although PEST model just to mention the most basic elements
but in fact today may include more analysis of a number of other factors thought to be
important for the operation of the business and is regarded as a model PEST expand as natural
factors or issues of globalization.


4.4.3. 5 forces model analysis M.Porter competitive industry environment
Five forces model M.Porter competitive analysis focused on five areas of the
competitiveness of enterprises include:
- Analysis of customer pressure
- Analysis of the supply pressure
- Analyze current competitors
- Analysis of potential competition
- Analysis of the risk of substitute products
4.4.4. Value chain model M. Porter-enterprise internal rating
Value chain model is a creation of scholarly M. Porter analysis helps a systematic way of
business activities. In this value chain, assuming that the economic activity of enterprises are
creating value. Operation of the business is divided into different sections including two
groups: primary activities and supporting activities. In total, there are nine kinds of activities
throughout the value creation chain. Group activities include suites in the main types of
activities: bringing materials to production operation and production - business outbound

shipping, marketing and sales; provide related services. Supplementary Group include:
infrastructure, human resource management, technology and procurement. The complementary
activities occurring within each main activity.
5. Market overview of domestic and international cement
5.1. On the international market
Cement currently remains one of the elements required in the construction industry in
general, therefore, the demand for cement is expected to sell around the world will continue to
increase in the near future. Production of the world's cement consumption will increase from
4,223 million tons to about 2020 and then rise to around 5,901 million tonnes in 2025.
In total 2,589 million tonnes of cement consumption is expected to increase worldwide,
more than 76% of the Asian market consumption volumes increased by 1,561 million tons in
East Asia, 285 million tons in Southwest Asia and 139 million tons in Southeast Asia. Middle


East will achieve record power consumption increased by nearly 150 tons ironically, with a
capacity of approximately 137 million tons expansion in Africa and 108 million tons in South
and Central America.
Total consumption of 27 countries in the EU is expected to increase to approximately
68.6 million tonnes with 15 EU countries contributed 54.8 million tons. The European
countries not EU will contribute 72 million tonnes, while countries in Oceania are expected to
rise by about 4 million tons. Total consumption in 2025 of North America is expected to reach
63 million tons higher than achieved in 2020.
The expanded capacity reached approximately 27.5% in the period from 2010 to 2015,
and is expected to decrease 20% in the period from 2015 to 2020 and decreased further to 16%
in the period 2020 and 2025.
5.2. Vietnam market
Northern market with abundant raw materials and large cement factories focused more
southern thus cement market in the North met quite a lot of competition, because transport
costs account for a large proportion of the sale price cement, cement prices in the North are
about 10-15% lower than the South.

In the first 9 months of 2016, the price of cement plant remained stable. In the North
from 1,300,000-1,500,000 / ton, in the South from 1,600,000-1,800,000 / ton. Retail cement
prices on the market an average increase of 2,000 VND / bag on the end of the month 3/2013
when gasoline prices adjusted.
Production and consumption of cement
Production of cement in the whole industry May 8, 2016 reached 33.32 million tons, with
59.5% of the plan year. Domestic consumption reached 30.57 million tons, an increase of 8%
compared to the same period last year. Inventory as of the date 12.08.2016 cement to about 2.6
million tonnes, mainly clinker. This inventory is not worrisome because of the amount of
material equivalent to 12-14 days for production.
Cement export market solution when domestic consumption in order to reduce the
difficulty of cement excess pressure in water, but the situation appeared exporters selling


cement floor under prices. Therefore, when exporting cement for 40-45 USD / ton, the
business loss from 8-10 USD / ton. In the first 8 months of 2016, the cement business has
exported 2.3 million tons and 4.4 million tons of cement clinker to the Middle East, Africa and
some countries in Southeast Asia, exports increased by 50% compared to the same period last
year.
Domestic cement market has change: In which Vicem (Corporation Vietnam Cement
Industry) from 34% market share of the domestic cement III/2015 quarter increased to 36% in
the third quarter / 2016, an increase of 2% compared to the same period last year. Remainder
of the cement business venture accounted for 31% and other cement companies accounting for
33%.
Currently the highest clinker export price is around 78 USD / ton and the price of cement
in the country on an average of 1.3 million/ton, lower than the average sale price in the world,
approximately 100 USD/ton. The increase electricity prices caused the cement business was
more difficult as things stand.
RESEARCH METHOD
1. Research Methodology

Method comparison and analysis methods of synthesis methods combined with
qualitative research and quantitative survey data of actual statistics, comparative analysis,
systems approach, the optimal choice, the legal experts.
Methods of collecting secondary data
Data is taken from sources such as BCC Company, other companies in the sector, the
GSO, newspapers, magazines and the internet.
Methods of collecting primary data
To collect the data, the author interviewed a number of members of the company,
including: Board of Directors-Board of Director (General Director, Deputy General Director in


charge of engineering, deputy general manager in charge business), the head (Organization and
Administration, Finance and Accounting) and a number of staff involved BCC.
For other subjects, author interviewed and discussed with a number of experts in building
strategic issues to refer to their opinions.
2.Contributions of topic
(i) The theme has been codified arguments about business strategies for BCC cement
industry in particular and in general
(ii) The theme has reviewed the specific issues affecting the industry analysis,
formulation and implementation of strategies for the cement industry
(iii) The theme has developed strategic plans to contribute to the development of the
cement industry in general and BCC in particular in the context of today's challenging
economy downturn.
(iv) The theme is also a valuable resource to serve researchers and interested readers
sole strategic areas and cement industries.
RESEARCH RESULTS
1.Overview of Bim Son Cement Join Stock Company
1.1. Overview of Bim Son Cement Joint Stock Company
Company’s Name:

Bim Son Cement Joint Stock Company

Abbreviations:

BCC

Headquarters:

Ba Dinh Ward, Bim Son town, Thanh Hoa province

Phone Number:

(84-37) 824.242

Logo:

Fax: (84-37) 824.046


Bim Son Cement Joint Stock Company was established in 1980, with the largest reserves
of raw materials. Technology including dry and wet. During operation, the company has
gradually improved and matured, becoming one of the leading enterprises, occupying a
relatively large market share. The Company's markets stretch from Son La to Khanh Hoa
provinces.
Lines of business: Manufacture of cement, clinker, production of building materials and
cement additives; Business cement, clinker and other building materials; Export cement,
clinker; Extraction of minerals for cement production, maintenance and repair of cars and
other motor vehicles to transport of goods by road, unloading port waterways.
1.2. The impact from the macro environment (model PESTNG)
1.2.1. Economic Environment

As a business activity that the market is mainly domestic, Bim Son Cement JSC also
affected by the economic environment in the country. In recent years, the domestic economy
strongly affected by the financial crisis and global recession. Besides, it is a developing
country, so the structure of many lines in the economy unreasonable. Macro economy are more
difficult to predict change.
1.2.2. Environmental government, law and politics
Vietnam joined the WTO between 2007 and create more opportunities for enterprise
development in the country. Beside that, participation in negotiations and going forward TPP
agreement will create many new opportunities, including the cement manufacturing
industry.However, which is accompanied by challenges and little competition from foreign
enterprises.
One of the advantages of the country thought the environment was stable political
situation. To meet the increasing demands of the market economy, the government has
promulgated many new laws and amend old laws, to create a favorable investment
environment for enterprises.
Table 1: The political factor - the basic laws affecting BCC


Factors

Describe

Political
institutions
Viet Nam
system

Impact assessment to BCC

Political stability and the absolute Stable production and business

leadership of the Communist Party of enterprises
Law Tends to improve, many laws born Having a positive impact on
of transparency and contributes to a business activity in the medium
healthy economy ...
and long term BCC

The government's Interested in encouraging the
view on the cement development of the cement industry,
industry
facilitate credit to the sector;
Although much of the planning and
widespread inconsistencies

At first there is a positive
impact on the enterprise;
however in the long term make
it difficult to operate due to an
imbalance between supply and
demand and competition

The support of the
Corporation
Vietnam Cement
Industry

Positive impact on the business,
but now VICEM not kept good
coordination role between the
members should have created
obstructions and difficulties in

the operation of BCC

Cement industry of Vietnam in its
history has proved an excellent
source of ownership, meet volume
targets for ensuring the construction
industry and the needs of society,
promoting
values
resources,
contributing
to
economic
development - national society

1.2.3. Social and cultural environment
Social Environment: Population national average in 2015 estimated 90 million people,
the urban population is 26.88 million, accounting for 30.6% of the total national population.
Vietnam's population is a young population, the proportion of people aged private housing
demand, married (20-30) is quite high. The rate of migration to urban areas tend to be
increasing, the average annual migration of about 1.4% today.
Cultural Environment: Consumer behavior based on cognitive thinking, what their
consumers know, I know, gather full information of the product, the enterprise to make the
right decisions, not affected by other consumers to protect their personal interests, community
and society
1.2.4. Environmental technology
As a growing, so the government and the investors always focus ngah development of
high technology industries such as nanotechnology, biotechnology, information technology ...

Together with that, do the trend of technological development in the cement industry as well as
changes: Reduce the percentage of clinker; Alternative Fuels, Optimization Technology.
1.3. The environmental impacts from industry
1.3.1. Current competitors
Currently in the market, JSC Bim Son Cement much competition. In some including the
Company:
Pomihoa: Company Product quality standards according to ISO 6260: 2008. -To assess
consumers cement solidification fast, low priced, flexible mechanisms. In addition, the
company also has promotions theothang, in the CH system NPPC and building materials. No
communication programs to promote the image, brand
Duyen Ha, The Vissai: Products: Quality standards according to ISO 260: 2008. Cement
Company of this dark green color, the taste. Low price, flexible mechanisms. Integration with
the distributor of gypsum provides. There are promotions by month, year and CH system
NPPC building materials. Develop communication programs on television advertising. There
are staff visit the market selling system.
Ha Long and Cam Pha, Phuc Son, Hocement, Zhongshan, La Hien, Sai Son: quality
products meet quality standards according to ISO 260: 2008; Using the distribution system of
Bim Son cement capacity transport system to the car washed and free market development in
the core areas of Bim Son cement. These businesses have promotions by month, year and CH
system NPPC building materials.
1.3.2. Potential competitors
Projects going on in Central or investing activities: Cong Thanh Cement DC 2 cs 3.6
million tonnes Cement Thanh Son (Thanh Hoa Ngoc Lac) projects in Nghe An: 12 / 9 (0.6),
The Son (0.35); Tan Thang (1.8); Sai Gon - Tan Ky (0.91); U.S. cement (2 million) Xuan
Thanh Group.
When these companies come into operation, will create greater competitive pressure due
to the new enterprise, applied technology - modern techniques. Product variety and quality.


1.3.3. Substitutes

Currently, the world market has appeared a number of alternative products such as:
Cement "GREEN" Novacem: A type of magnesium silicate cement used for limestone
replacement. Currently testing in England.
Construction Adhesive: As a special type of cement used in the construction of surface
paving, walling, has high adhesion ability. Appeared on Vietnam market
However, the above mentioned products have a high price and increasing resource
scarcity and low replacement ability.
1.3.4. Pressure from suppliers
Company Bim Son Cement JSC is governed from some suppliers of inputs such as
energy supply inputs: coal, electricity, oil and gas;
Provide material adjustment, cement additives: iron ore, silicon, basalt, gypsum, slag ...;
Provide materials and spare parts: heavy, pads, conveyor ...; Supply maintenance services:
Technology equipment, motorcycles, construction ...; Providing transport services (transport
company part self): Roads, railways, waterways; Provide financial services: banking system of
trade.
Due to the scarcity of energy resources gradually, and by the impact of the financial crisis
... pressures of the Company is offering up high.
1.3.5. Pressure client
The market has been saturated with all kinds of brand cement distributors often capable
types of cement business. NPP largely run profitable and easy to sell product. Many NPP links
put pressure on suppliers.
2. Strategic objectives for the period 2016-2020
2.1. Creating value for shareholders
To build and further strengthen the confidence of shareholders, the Company Bim Son
Cement Joint Stock set a target: Ending the fiscal year with business results with excellently
indicators: decline short-term debt, increase capital by retaining profits, cut costs enterprise


management. Fulfill the criteria efficiency/performance of: revenue, net profit, competitive
position. Increasing the ratio of annual dividend payment, increasing its position and prestige

of the enterprise in the market at home and abroad. Create a firm basis towards joining the
stock market
2.2. Creating value for customers
Complete 100% of the commitment between company and customer Bim Son. Important
contribution in structuring the new residential areas, industrial parks, meet the conditions of
the environment, the production environment by completing the following factors: technical
infrastructure, social infrastructure, facilities for production, support services, the environment
and social security and order.
100% meet the needs of customers through the commitment expressed in the contract,
the requirements of the approved plan. Solve 100% satisfied customer complaints.
2.3. Create value for employees
To achieve the goal of creating value for employees, in addition to achieving the
department goals such as ensuring the income of workers and employees to improve, per
capita income of workers - Workers Park reached $1,000/month, adequate benefits, job
stability company must also achieve important objectives: Provide training programs of
quality; Construction company culture based on core values are all members of recognized
companies; Creating a friendly working environment, and modern civilization ...
2.4. Creating value for society, community
JSC Bim Son Cement always see the creation of value for society, the council is also one
of the main objectives in the business plan for 2020. The company set a number of strategic
objectives as follows: Meters extreme fulfill the role of the social community; Full
contribution to the budget of tax obligations; Join the full social benefits; There are activities
and policies to strengthen the competitiveness of the Company


3. Strategic direction for Bim Sơn Cement Joint Stock Company for the period 20162020
On the basis of analyzing the business environment, the authors identify opportunities,
risks, strengths, weaknesses and SWOT matrix for the formation of BCC as follows:
SWOT matrix for BCC
Opportunities

O1: Government prioritize macroeconomic
stability, inflation control, restructuring the
economy and adopt policies to support domestic
enterprises. The country is in the process of
industrialization - modernization, the economy
attracted FDI and ODA
O2: Cement demand will grow annually at 5.2% 7.2% (according to TNS sale) until 2020.
O3: Concrete and aggregates have the same
growth rate as cement
O4: Government investment priorities developed
transport infrastructure and response to climate
change.
O5: Our country has a huge population, GDP per
capita is increasing.
O6: Tend to use high-quality products, reasonable
prices and friendly environment.
O7: Demand for cement used in the growing
central provinces, especially the coastal provinces
O8: Cement production technology is getting
more advanced, high-quality products, low energy
consumption, environmentally friendly
O9: Information technology development with a
very high speed
O10: Tend to use bulk cement increased
O11: Demand for imported cement and clinker in
some countries is increasing
O12: No alternative products
Strength
S1: Products fairly diversified, prestigious brand
with customers, large market and large

competitive position.
S2: Strong distribution system and high coverage
in the core markets.
S3: Equipment, advanced technology, large
production capacity.
S4: Products and services are of high quality and
diversity
S5: Near the source of raw materials, with large

Risks
T1: Vietnam's economy growth slowed. GDP
growth forecasts <6% by 2020. Industry
Construction and Real Estate develops slowly
T2: Planning of cement oversupply, many large
projects are continuously being invested period of
2016 - 2020. Competition in the market is
increasingly fierce, particularly price competition
T3: On the area of operation of the company has
many competitors, and potential competitors
T4: Brand loyalty of customers is declining,
requirements type, product quality, price be
increasing
T5: International integration associated with
regulations
on
quality
standards
and
environmental protection policy
T6: Excess cement is currently in a number of

markets: Thailand, China ... Inland Cement are no
longer protected by the import tax reduction
schedule of the Government
T7: Energy prices, input materials tend to
continually increase
T8: Coal, gypsum, adjusting ingredients, additives
for cement increasingly scarce
T9: Clay material resources increasingly scarce
and unstable quality
T10: Companies in the region do not have river
ports and seaports for shipping the product to the
consumer market
Weakness
W1: Proportion of bulk cement consumption is
low (15% - 20%)
W2: Product quality has not really remarkable.
W3: The ability to manage the distribution
channels is not high, limited marketing, sales
policies have not really flexible.
W4: Energy consumption in the production
process is high; 2 clinker production line quality
is low
W5: Grinding System 2.3 & bagging old high


reserves, stable quality.
S6: Company leaders with strategic vision,
management capacity and lead innovation,
restructuring powerful company
S7: Staff, qualified technicians and long

experience in the field of cement production

energy consumption, responsiveness to low
product quality
W6: Dust and CO2 emissions in excess of
standards
W7: Large production costs, the ratio Debt /
capital is high (> 4)
W8: Greater numbers of human resources, higher
average age, low labor productivity, the level of
irregularities.
W9: The system of salaries, bonuses and working
environment has not really motivate employees.
W10: Some organizational structure with
overlapping functions, coordination, flexibility
and autonomy is not high
W11: Active research and development is not
extensive
W12: Information systems have not met the
requirements of development.
(Source: Analysis and synthesis of the author)

3.1. The strategy group SO
- S1,2,3,4,5,6,7 + O2, 5, 7: Company needs to increase its market share in the Company's
existing markets and develop new markets: Leverage the strengths of the company to exploit
the existing opportunities of the market, the company will offer strategies to bring value to
shareholders through profitable strategies, create sustainable value for our customers, satisfy
more customer needs.
S2,5 + O3,6 => Companies need to make strategic investment or joint venture production
of aggregates and concrete (to integrate suppliers and distributors).

S1,4,5, 6, 7 + O2, 7, 8, 10 => Companies need to invest in innovation and development
of technologies to improve the production capacity for the development of regional markets of
Central and border.
S1 + O4,7,9 => Investment technological innovation to meet the needs riverside
construction, marine (programs to cope with climate change).
In the SO strategy pair, we found that "strategy Increase market share in the existing
markets of the Company and new market development" is the optimal strategy and in line with
the company more than other strategies.


3.2. The ST group strategy
S1, 2, 3, 4,5,6,7 + T1, 2, 3, 4,5,6,7 => To continuously improve product quality and
service to maintain a strong brand in the market. Optimize production, effective cost
management, increase customer value, increase competitiveness.
S1, 2 + T5, 6, 9 => fills the market gap (coverage, products). Search outsourcing
opportunities, license products, competitors takeovers (M & A, joint ventures).
S1, 3, 4, 7 + T4, 5 => Development cement diversified and suitable to the needs of each
customer group.
S1, 2,3,5,7 + T9 => search for water transport reasonable, investors grinding stations,
distribution stations cement factory near markets to reduce transportation costs to distant
markets.
S1, T4 + 2.6, 7 => optimal distribution system and supply. Strategic marketing and
distribution: the rich form of advertising than in newspapers, the radio, and on the television ...
good quality products is also a form of branding for the company.
S1, T4 + 2.6, 7 => Looking for the sustainable supply of raw materials to adjust, cement
additives.
S2 + T9 => Looking for new clay mining, clay mining optimization.
In the ST strategy pair, we found that "strategy continuously improve product quality and
service to maintain a strong brand in the market. Optimize production, effective cost
management, increase customer value, increase competitiveness" is the optimal strategy and in

line with company strategy than the rest.
3.3. The WO strategy group
W1 + O9 => Increased consumption of bulk cement. Including sulfate resistance cement.
W2 + O6, 11 => Research, research, design and manufacture products with outstanding
quality.
W4, 5.6 + O8, 10 => Investment technological improvements No. 2 line, cement
grinding systems and advanced packaging direction. Optimizing production through effective


assessment tool production (MPR). Technology improvements to meet environmental
standards.
W12 + O9 => Infrastructure Construction and application of advanced information
technology to increase labor productivity and effective governance.
In the WO strategy pairs above, we found that the strategy "Investing technological
improvements No. 2 line, cement grinding systems and advanced packaging direction.
Optimizing production through effective assessment tool production (MPR). Technology
improvements to meet environmental standards" is the optimal strategy and consistent with
company strategy than the rest.
3.4. The WT group strategy
W3 + T1, 2, 3, 4 => Optimizing distribution channels. Using effective marketing new
trend (7P, 5T). Establish flexible sales policies. The consulting services to ensure customers
and better meet their needs, customer-oriented consulting services deeper / existing products of
the company.
W7 + T2, 7 => Financial Management effectively towards modernization.
W8,9.10 + T2, 3 => Restructuring organizational structure and human resource
development towards efficient and streamlined. Construction company culture to create
efficient working environment.
W11 + O2, 3,5,7 => perform research and development towards production optimization,
optimizing product, production process innovation and direction to clients.
In the WT strategy pair above, we found that the strategy "Restructuring the

organizational structure and human resource development towards efficient and streamlined.
Construction company culture to create efficient working environment" is the optimal strategy
and in line with company strategy than the rest.
4. Selection of the optimal strategy
On the basis of the strategy pair SO, ST, WO, WT mentioned above, the author continues
to use the model QSPM to choose the optimal strategy for each pair of the above strategies.


TABLE: USE OF QSPM MODEL TO CHOOSE OPTIMAL STRATEGY
POSSIBLE STRATEGIES

INFLUENCING FACTORS

IExternal Factors
TOTAL OF ATTRACTIVE SCORES

Continuously
improve
goods &
services
quality to
maintain
INFL
company
UENC
Expand
trademark
ING market share
on the
LEVE

in current
market.
L
market and
Optimize
develop new
production,
market
effective cost
management
, add more
value to
customers,
increase
competitiven
ess
AS
TAS
AS
TAS
258
260

Invest in
technology
improvement
line 2, cement
grinding and
advanced
packing systems.

Optimize
production
through MPR.
Improve
technology to
meet
environment
criterion

AS

TAS
254

Restructure
organization
chart, develop
human
resources
towards
effectiveness
& streamline.
Build
corporate
culture to
make effective
working
environment

AS

TAS
240

CONCLUSION: By using SWOT model combined with QSPM model, the author proposes strategic options leading
business development for Bim Son Cement Joint Stock Company period 2016-2020 is: Not to stop improving the quality of


products and services in order to maintain a strong brand in the market. Optimize production, effective cost management,
increase customer value, increase competitiveness (the total number of attractions: 260).


5. Solutions and recommendations of business strategy implementation for Bim Son
cement Joint Stock Company in theo period 2016-2020
5.1. Some solutions of implementing business strategy for the Company in the period 2016 2020
5.1.1. Product solutions
Production company will bring to market the product in accordance with the regional
salt-tolerant as cement , cement used in the high temperature zone , low , business climates ,
adjusting the chemical and physical components to produce products in accordance with
consumer tastes .
To develop this segment Bim Son Cement JSC should:
 Clear product positioning to create differentiated features than products on the market.
 Identify clearly segment and target customers.
 Communication on differentiation and product information to customers familiar with
the product,
 It should be used for direct marketing products only used for special projects, client
objects clearly
 Target market area is expected to focus towns and cities, crowded urban areas.
 The individual and combined construction and building needs, construction repair .
 For the investor in real estate operations, major contractors on civil engineering

applications author offers direct measures.
 Focus on existing agent systems
5.1.2. Marketting solutions
About the product: Products produced to ensure consistent standards under ISO
4314:2003 . The new products each have weight categories: 25kg, 50kg.


Price: price equivalent to its rivals
Distribution: Make 2 parallel forms distributed through the intermediary channel and
direct distribution to customer’s large demand for products grading policy. Build distribution
networks, annual real to classify the network structure more efficient to apply incentive
mechanism in operation. Sell directly to distribution channels: the implementation of the direct
contact between the leaders of the seller – buyer, conference clients, and developing policies
for each type of customer: customer importance, customer friendly...
Strategy and promotional communications: Establishment, recruitment and training
department Marketing professional to strengthen and guide the customer market.
Strengthening marketing, participation in exhibitions, trade fairs, seminars and programs
sponsored events to expand the coverage of the BCC brand to customers.
Building Information Management program clients to choose the traditional customers,
potential, thereby applying incentives to customers to maintain and grow customer base.
In addition to building and creating images familiar to customers, support sales agents,
authors are expected to carry out promotion activities through mass media: VOV traffic
channel, Beautiful House magazine, site,...
5.1.3. Research solutions - development
Lines for the production technology of Bim Son Cement JSC have 3 lines, 1 point here is
different from the competitors, with the advantage line 3, and the plant can operate
continuously. Continued improvement chain technology to maintain the strength of Bim Son
Cement JSC is one of the necessary implementation measures.
Product innovation: cement market today are diverse and abundant, the importance of the
company to capture market the product should look like, then design the product design to

satisfying the needs of customers.
Continue to invest in more modern machinery and equipment to this unit capable of
undertaking the task is to create products superior to competitors.