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PHÂN TÍCH BA LỢI ÍCH CƠ BẢN MÀ CHIẾN LƯỢC SẼ MANG LẠI
CHO DOANH NGHIỆP

Business Strategy as a direction, a direction to help organizations overcome this
turbulent market, reached a major effort in the future and its possibilities. This is the
result of scientific research on the basis of the business practices of many companies. It
really is a product of scientific management, because if the organization is to build a good
business strategy, they would have been better to prop forward.
Three basic benefits that strategic will bring business, if the business build a true
strategy
The first: Business strategy to create a solid basis for the formulation of policies and
decisions of business consistent with market volatility.
The second: Business strategies contribute to improving the efficient use of
resources enhanced the competitive position of the business to ensure the sustainable
development of enterprises.
The third: Business strategy to help businesses understand and take advantage of
business opportunities, and proactive measures to overcome the risks and threats in the
market competition. And help identify business goals, its direction as a basis, the lodestar
for all business activities of enterprises.
Therefore, the business strategy related to the objectives of a business, the strategy is
built to help businesses achieve these goals. But business strategy is related more to how
a business can compete successfully in a particular market. It relates to the strategic
location of the choice of products to meet customer needs, gain competitive advantage
over competitors, exploiting and creating new opportunities v.v…
Follow Fred R.David “Business strategy is the means to achieve long-term goals.”
We can say business strategy is the means to help businesses achieve long-term
goals. Business strategy not to point out the specific way, but it is a general program, the
solution most effectively mobilize resources to implement the objectives identified.
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So what is the correct understanding of strategy and strategic management? The term
strategy has been defined in many different ways. Here, I do not intend to go into the
debate about scientific terms only interested in practical aspects of the problem. Strategy
can be seen as a set of decisions and actions targeted to the capacity and resources of the
organization to meet the opportunities and challenges from outside. So, first of all
relation to the strategic objectives of the business, the second, corporate strategy includes
not only what businesses want to do , but also how to perform a series of actions and
decisions that are closely related to each other and the choice of method coordinate
actions and decisions. Business strategy to exploit the strengths of his basic (resources
and capabilities) and to take into accounted the opportunities and challenges of the
environment.
Michael L.Porterr, distinguished professor of strategic management at the University of
Harvad business reputation, in 1996, said his new ideas about strategy through the article:
"What is Strategy?" he said:
The first, strategy is the creation of a position unique value and include different
activities.
The second, strategic choices, tradeoffs in competitive
The third, Strategy is creating fit among all the operations of the Company.
Speaking to the definition of the strategic framework more deeply with this essay I would
like to present specific evidence of Lung Lo 3rd One Member Company Limited is an
affiliated enterprise Lung Lo Construction Company - Ministry of Defence
Introduce about Lung Lo 3rd One Member Company Limited
Lung Lo 3rd One Member Company Limited is an affiliated enterprise Lung Lo
Construction Company - Ministry of Defence, Established over 20 years the company has
not stopped growing, expanding in size and industry organizations. today, Lung Lo 3rd
One Member Company Limited has been involved in developing many important works
of Ministry of Defence in particular and the country in general as the construction of
hydropower projects, underground works, tunnels, traffic works, marine works ...
Recognizing the importance of building strategic business actually play an important role
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in the development, creating competitive advantages of the company, the company has
built strategic business for his company in 2012 -2016 to this company was nearly halfway and found that the business strategy of the company has made successful of Lung Lo
3rd One Member Company Limited, now a day.
In this article I would like to present some policy that Lung Lo 3rd applied in its strategy
to get the right direction of the company today and the future
The strategy was developed and implemented to achieve success today is
“BUILDING BUSINESS STRATEGY OF TUNNEL CONSTRUCTION

SERVICES FOR LUNG LO 3 ONE MEMBER COMPANY LIMITED PHASE
2013 - 2016.”
In its strategic Lung Lo 3rd had analyzed, evaluated macro environment, micro
and internal environment of the company from which recognize the opportunities and
threats from the business environment; strengths, weaknesses affect the development
tunnel construction services of the Company.
- Develop targeted business strategies tunnel construction services for the
Company from 2012 through 2016 and proposed implementation plan strategic goals that
help develop sustainable company in a competitive environment and integration.
With the advantage over twenty years experience in the field of construction and
installation, tunnel construction, detection and handling of explosive mines, the company
has been the 3rd Lung Lo investors appreciate, Lung brand Lot has prestige at home and
abroad. Right from its inception, the company has set a target leading to it's existence:
Closely held steadfast, QUALITY - EFFECT - PRESTIGE in business. This is the
company's platform for the development of tunnel construction works - a required field
experience, high construction capacity, modern technology, innovative, skilled staff and
high-tech , to analyze and assess a number of competitors have the ability to compete
with existing companies and future.
And of course Lung Lo 3rd One Member Company Limited also recognize the
threat of potential competitors is heavily dependent on the sector barrier penetration .

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However there are some pretty big barriers for domestic enterprises to join the industry
and compete with Lung Lo 3rd One Member Company Limited , this is the time of the
establishment of businesses , experience factors , the capability of enterprise , energy
financial resources , the business category , the long-term cooperation with the agency
owner of the Hanoi City ... Especially in the field of underground construction and
tunneling is a construction sector construction techniques require the most difficult to
present in Vietnam . To ensure timely , quality work , companies operating in this field
must have strong financial resources , abundant , the ability to manage , highly skilled
workers and using advanced technology machines . Thus, with the advantage of Lung Lo
3rd One Member Company Limited will not face competitive pressure from large
potential competitor in water.
But the moment when formulating strategies during open economy, our country
joined the WTO, AFTA coming .... there will be more corporate construction companies
penetrate foreign markets Vietnam. With the financial advantages as healthy, hundreds of
years of experience, team management, professional and skilled workers, advanced
machines and technology, Lung Lo 3rd will certainly faced very strong competition from
this competition. Recognizing these challenges, Lung Lo 3rd has developed a vision and
strategy for 2016 to a company in the right direction and lead to success today
Now aday, customer of Lung Lo 3rd One Member Company Limited is Electricity
of Vietnam group– EVN, Project Management Unit 46 – Department of Defense,
Company investment and development highway Vietnam (VEC) ... The brands was
confirmed 3rd Lung Lo has a lot of domestic and foreign customers and invites interested
in construction of the tunnel. With brands increasingly affirmed the financial capacity ,
equipment capacity is constantly improve , progress , quality, commitment to customers ,
for the work that the company has been the implementation the date has been confirmed ,
with a staff of highly qualified and dedicated to the company , especially the dynamics of

leadership in recent years the company was awarded the special work in the tunnel next
time the Company will focus its resources on the Metro subway construction - Hanoi ,
Ben Thanh tunnel work - Join Nuong , the tunnel project Xepian - Xenamnoy ( Laos )…
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There are successful today thanks in part to correct the direction of leader’s Lung
Lo 3rd, He has captured the market economy - and noticed the ongoing globalization
very strong: The process of globalization, international economic integration, enabling
businesses to build an environment of Vietnam business schools and a more dynamic
markets beyond national borders.
Plus knowing encourage the development of the underground tunnels of the
Government: Our country is growing, however, with the current status of infrastructure
at present is unable to meet to develop it. Moreover, Vietnam is a country densely
populated, especially in the big cities leading to overcrowding. Therefore, the demand
for underground works, tunnels becomes more urgent than ever. The government is
promoting the development of underground tunnels across the country so 3rd Lung Lo
is facing great opportunities to expand production and develop the company's business.
- Competitiveness of the domestic construction companies is not high: in
addition to a number of large corporations on building: VINACONEX, LICOGI, SONG
DA… capacity, most of the remaining construction company in Vietnam today is not
the real opponent of the Lung Lo 3rd. Construction schedule, the weakness of labor,
machinery and outdated technology, poor ... experience is the factor that is difficult for
companies to compete with Lung Lo 3rd One Member Company Limited capacity, most
remaining construction companies in Vietnam today is not the real opponent.
Construction schedule, the weakness of labor, machinery and outdated technology, poor
... experience is the factor that is difficult for companies to compete with Lung Lo 3rd.
And one more strategy is right that is for human resources strategy
Lung Lo 3rd personnel work is considered one of the critical, important to develop, so
staff of the company has always been focused on quality with suitable quantities,

regularly attend courses Advanced technical, management and quality control. Force
technical workers of the company are being recruited by skilled vocational schools have
known and continue training in place. Force officers and employees of the company

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today are mostly young people, active, creative, was trained at the prestigious university
in Vietnam. Special team of company employees has always relentless campaign to catch
up as rapidly changing technology of science. This is strength of the unit in the
construction and installation works. January, 01th, /2012, staff are follows as:
Table 2.6: HR List of Lung Lo 3rd One Member Company Limited
No

Specialize

Number

I

Engineer

120

1

Irrigation Engineer

14

2

Demining commander

30

3

Electric Engineer

4

4

Civil and industry Engineer

18

5

Bridge construction Engineer

27

6

Architects

3

7

Irrigation engineers

3

8

In Mechanical, Geology Engineering

13

9

Engineer Underground

6

10

Bridge Tunnel Engineering

2

II

Economic managers

32

1

Dr.

1

2

Masters

3

3

Bachelor Economics

32

III

Bachelor of Foreign Language

2

IV

Technical Finance of College

31

6


V

Technical workers

550
Total

739

(Source: Lung Lo 3rd One Member Company Limited)
The solution implemented strategic business services the construction tunnel Lung
of Lo 3rd One Member Company Limited
Marketing solustion
Safety strategies in business
- Speed up settlement construction after handing over the project.
- Skills training for creative construction engineer in company
- Establish task team to find out the fluctuations of the market and competitors
existing or newly penetration.
Competitive Strategy
- Strategy exploration customers, competitors
+ Learn desire of investors for the upcoming bidding process. Based on these
factors making construction plans and projects in accordance with requirements the
investor
+ Learn about competitors, their ability to serve, comparing his opponents, has
nothing remarkable, when bidders put on record factors
Distribution policy
Distribution policy of the company now uses only single channel directly reduces the

efficiency of the business. Although the construction industry, the use of direct channels
are the best but companies should also expand its distribution channels as developing
indirect channels to create more favorable conditions for contact clients in negotiations
with company:
-

Opening of a branch in the local.

-

Improve the ability to grasp and master the information market by building teams
of task relationships, collaboration information search.

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-

Expanding and maintaining relationships with existing customers. Paying attention
to the activities, establishing marketing department, investigate and explore
markets.

HR Solutions
To ensure a stable human resources for the company's development strategy until
2016, the 3rd Company Lung Lo must always pay attention to recruitment to selected
candidates have the skills and qualifications match case, has experience working with
devotion and common aspiration for leadership development company, willing to pay
high costs (wages), in order to meet current needs and development in preparation for the
strategy in the future. In addition, attention should be paid to training for employees,
especially our staff key to workforce resources to help leaders effectively implement

company business activities of the Company. Investment consultants hired as professors,
doctors experienced in the field of domestic and foreign personnel to advise the Company
in the field of human resource management. In addition, the company needed manpower
reserves to compensate for fluctuations and human resources
Besides internal communication of the company is also not good, many of the
guidelines and policies of the company has not been disseminated to each employee and
lead   to   misunderstandings,   lack   of   cooperation   in   the   work   of   a   parts   company
employees. On the other hand the income distribution mode is not really fair, disciplined
regime rewards incommensurate or not the right audience so not motivate, encourage all
employees to promote capacity. So companies need to improve remuneration for workers
following the direction:
­ Improving the distribution of income for workers: The issue of primary concern
is the issue of labor income, so to motivate employees to promote the company working
mode should have a reasonable income distribution, in which: 
+   Incomes   of   workers   have   increased   each   year   and   ensure   the   level   offset
inflation of consumer goods and the inflation rate in the market. On the other hand the

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company's income must be higher than the average income of the company size, and
industry to avoid brain drain and attract talent from competitors.
+ Regulation of income distribution should be based on criteria results done by the
employees, titles coefficient coefficient responsibility ... to ensure fairness to employees
enhance the sense of responsibility, promote self­awareness and the capacity.
­ Building reward regime and reasonable discipline: Includes deserved reward
for   the   individual,   collective   high   achievement,   there   are   initiatives   beneficial   to   the
company,   every   affair   reward   and   reward   your   assessment,   five   ...   to   encourage,
encourage staff and employees of the Company to promote their capabilities at work. 
­   Develop   a   good   working   environment:  Work   environment   becoming

increasingly   important   and   is   one   of   the   most   important   factors   determining   the
attachment,   productivity,   quality   and  efficiency   of   employees   working   for   businesses
(along   with   factors   on   wages).   Therefore,   the   construction   a   professional   working
environment need to set up a priority in the strategy of the company. Besides the work
done is in the process of building a professional working environment, such as work time,
uniforms, fully equipped catering equipment for the job, build solidarity between people
company employees ... should implement the following: 
+   Construction   work   atmosphere   friendly,   close   to   the   leaders   between   staff,
between departments and between employees at the same time enabling employees to
share thoughts, their aspirations to create the most comfortable thought, to maximize
their own power. 
+ Construction work environment of healthy competition to motivate development
by enhancing the capacity of an official work and workers. 
­ Ensure regime for workers: Company needs to focus on the regime for workers
such as social insurance, health insurance, and allowances clearly …
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Technology development solution
Increased mechanization of tunnel construction: investment in machinery and
equipment for construction of modern tunnel, namely: investment synchronized series of
construction machinery and modern equipment manufactured by the company Celebrity
of the G7 countries as: Atlass Copco - Sweden, TAMROCK - Finland, Volvo,
Caterpiler ... tunneling technology applied in accordance with the most modern methods
of NATM world like Austria, drilling technology full face…
- Strengthen the research and application of new construction techniques: a new
application technique tunnel construction work is very clear in improving the quality of
construction and speeding up construction as well using alloy materials do drills, drills to
improve form to increase drilling speed; exploding research design optimization, capacity
controlled drilling machine, drilling capacity building exploding under computer

program…
- Strengthen modernization tunnel construction: Research methods applied
management application modernization tunnel construction can promote motor
performance, ensuring the quality and safety of construction projects to maximum.
Financial Solutions
The company should implement a number of measures to improve the financial
capability as follows:
- Minimize inventory value: The company needs to focus on the work of payment
accepted late third quarter and early in the fourth quarter of each year, to avoid frantic
situation at the end of the year as the past years have caused pressure lack of capital and
payments to vendors and banks.
+ Not to state construction and handover of completed but not yet ratified arising
out of acceptance by design.
+ Should have periodic meetings to review the work of each level of payment
acceptance and debt collection, the measures for the next period.

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- Improved debt collection stages: early recovery of capital to the need to perform
accurate handover staged, accepted and put into use, payment records to where it closed
to the investors including the debt profile.
- Increased capital: Currently, the Company's charter capital is 30 billion as
compared to other companies operating in the charter capital of the Company at an
average level. In the coming time when performing large projects, to ensure liquidity,
even in 2013 the company needs to increase its charter capital by: Recommendations
Lung Lo Corporation (parent company) gives rise additional capital and charter capital
level.
Management solutions for service quality
- Managing the supply of raw materials: the last time due to the impact of the

financial crisis and global economic recession, the price of raw materials together with
fluctuating exchange rates soared, affecting business plan as well as reduce the
performance of the company due to material accounting for over 60% of the product cost
units. So the solution is given:
+ With the number of suppliers of raw iron, steel, cement relatively more on
market: should negotiate with suppliers to purchase raw materials cheapest.
+ Develop financial plans realistically plan to buy raw materials to meet
production requirements. Develop financial plans to start construction plan that
consuming products from production planning, material planning appropriate.
-

Reduce material wastage norms of materials in the construction process.

-

Reduce labor costs.

-

Use new technology in hydropower tunnel construction and tunnel traffic

CONCLUSION
Develop strategy for the company is the first task of every business. In the market
economy has many opportunities but also many challenges, manufacturing enterprises
and business to survive and grow, the need to map out a direction appropriate to the stiff
competition in the market mechanism. Direction is the development strategy for the
company.
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Present and future, Lung Lo 3rd will increasingly have more and more competitors
have strong market potential. From the construction and the choice of the optimal
business strategy, the Company will be subject to appropriate solutions to constantly
consolidate and enhance its competitiveness, make good use of the advantages available
before the existing competitors and potential competitors to build and develop stronger
company.

LIST OF REFERENCE
1. Website of Lung Lo 3rd One Member Company Limited.
2. Nguyen The Phung, Construction of basements Curriculum, Publishing statistics,
Hanoi.
3. Nguyen Quoc Hung, Tunnel and Metro Curriculum, Publishing statistics, Hanoi.
4. Đại học PGSM (2014), Strategic Management
5. Le The Gioi (2009), Strategic Management, Publishing statistics, Hanoi.

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