Chiến lược kinh doanh của công ty bánh kẹo hải châu e

Business strategy of Hai Chau Confectionery Company.

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TABLE OF CONTENT

TABLE OF CONTENT............................................................2
INTRODUCTION...................................................................3
RESEARCH OF CONTENT.....................................................5
1. Introduction of Hai Chau Confectionery Company....................................5
1.1 Outline of the history of formation and development of the Hai Chau
Confectionery Company........................................................................................5
1.2 Functions and duties.............................................................................6
2. Analysis of PEST model of Hai Chau Confectionery Company.................7
2.1 Economic environment.........................................................................7
2.2 Political environment............................................................................8
2.3 Regarding cultural environment...........................................................8
2.4 About environmental technology..........................................................8
3. Environmental Analysis competitive factors..............................................9
3.1 Customers.............................................................................................9
3.2 Supplier..............................................................................................10
3.3 The potential competitors...................................................................11
3.4 Substitutes..........................................................................................11
4. Opportunities and challenges from the external environment of the
company..................................................................................................................11
4.1 Opportunities......................................................................................11
4.2 Difficulties..........................................................................................12
5. Evaluate the strengths and weaknesses of the company...........................12
5.1 Strengths.............................................................................................13
5.2 Difficulties..........................................................................................13

6. Proposed solutions for strategic management of the Company................13

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6.1 The complete solution work to identify targets and strategic tasks of
business accounting.............................................................................................13
6.2 The complete solution analytical work environment inside and outside
the company........................................................................................................15
6.3 The complete solution formulation of the strategic plan.....................16
6.4 The complete solution working strategic options...............................17
6.5 The complete solution work building control strategies.....................17

CONCLUSION.....................................................................18
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INTRODUCTION
In the strategic plan of the business, must contain mainly the strategic
objectives, strategic measures and policies. But the core of the strategy is the means to
achieve the objective, which is the optimal method to achieve the objective. It is
envisioned business strategy of the enterprise is oriented primarily activities important
measures will be taken in a certain time period in order to bring the most advantages
for enterprises in the conditions certain prerequisites. Enterprise Strategy is regarded
as the rudder of a boat, but the goal is the destination that the ship had arrived.
Strategic management is a continuous process starting from the current
environmental research and forecasting in future, set out the strategic objectives of the
organization, implementation and monitoring the implementation of decisions aimed
at achieving the objective of the current conditions and the future.
Strategic management can be regarded as an art and science establish and
assess implementation of decisions related to many different functions, allowing
enterprises toward achieving goals set out in a certain amount of time. Strategic

management focuses on unity administration Marketting, finance research and
development production and information systems business areas to achieve success.

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RESEARCH OF CONTENT
1. Introduction of Hai Chau Confectionery Company
1.1 Outline of the history of formation and development of the Hai Chau
Confectionery Company
Hai Chau Confectionery Company was founded September 2, 1965, is a stateowned enterprise and is a unit of state-owned corporations sugar 1 under the Ministry
of Agriculture and Rural Development
- Name: Hai Chau Confectionery Company
- International Business name: Haichau Confectionery Company
- Address of head office of the company: 15 Mac Thi Buoi Street - Vinh Tuy
Ward - Hai Ba Trung District - Hanoi
The stages of formation and development:
a) In the period 1965 - 1975
Companies that produce and build and expand major products are all kinds of
biscuits, fried foods, soft candies, hard candies and bread. In the early 1970s, the
company is equipped with the installation of two production lines by the Soviets pasta
and construction help. The company moved from the management of the Ministry of
Light Industry to the Ministry of Food and Food.
b) In the period 1975 - 1985
In 1976, the Ministry of Light Industry to receive Form milk factory and
established workshops spray drying.
In 1978, the Ministry of the thing for the factory production line 4 noodle. By

the year 1981, factory installed 4 furnace production wafers.
In 1982, the company installed an additional 6 wafers oven, rehabilization
noodle production lines to produce high quality prawn noodles.
c) In the period 1992 - 1996
In 1993, the Company invested an wafers lines of the Federal Republic of
Germany. In 1994, the company installing a production line of chocolate coated
wafers and other confectionery products.
In 1996, the company implemented a joint venture project with Belgian
Chocolate candy production. The company has developed and implemented the
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installation of two hard candy production line and advanced fondant with modern
equipment and synchronous technology transfer of the Federal Republic of Germany.
Especially with the help and financial support of the Ministry of Health and the
scheme Vietnam - Australia, the company has research and successful implementation
of technologies for the production and putting iodine Bouillon operational.
d) The period 1997 - to now
In 1998, the company expanded investment Biscuits production lines to Taiwan
more than doubled. Between 2001, the company invested the production line, to
double the capacity of lines onto wafers. In late 2001, the investment company of
chocolate production line (German technology). In late 2003, the Company
successfully installed the advanced line of soft bread Netherlands and ongoing
production in order to launch new products entering the market, enhance the
company's competitiveness. In 2004, the Company completed the investment chain of
Taiwan salty crackers.
1.2 Functions and duties
1.2.1 Function
The company has manufacturing functions and commercial business. Through
it, the company has helped promote market economy development, livelihood security

for workers and increased thuc for the state budget.
The company's activities include the following major contents:
- Manufacturing and trading all kinds of confectionery products.
- Trading materials and materials packaging food industry through the
production and business operations of the company in recent years.
- Direct export commodities production and trade.
1.2.2 Tasks
Major business mission of Hai Chau Confectionery company is exported
directly to foreign commodities trading company. In addition, the company also has a
number of specific tasks:
- Developing and implementing business production.
- Automatically generate capital for production and business management and
effective exploitation of that capital.
- Implement the commitments in the economic contract concerned.
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- Organization of preservation, ensure the circulation of goods frequently takes
place continuously and stability in the market.
- Study and implementation of measures to enhance business efficiency.
2. Analysis of PEST model of Hai Chau Confectionery Company
In market economy all business and production activities of the enterprise are
subject to the impact of the external environment, which acts as the indirect factors
affecting business performance of the enterprise.
Hai Chau Confectionery Company is no exception to this influence, the fact
that businesses are not able to control the events brought this from the external
environment that can only seek information increases the favorable opportunities and
limit risks unprofitable.
Content analysis of the external environment in Hai Chau Confectionery
company is the process of finding, analyzing and selecting useful information from

the external environment, thereby a basis for determining the opportunities and threats
with the company.
When gathering information about the macro environment include the
economic environment, political environment, cultural environment, technology
environment and demographic environment. The information from this income has
become useful supplies for all production and business activities of the company. But
in fact only 45% of income information could be used for the operational strategy of
the company. Hence the formulation of business strategies of the company when
assessing the external environment requires the selection of the information necessary
and useful.
2.1 Economic environment
Considering the economic environment, the company is more interested in
foreign currency exchange rates and the export policies of the State for items related
to production and business operations of the company. Most producers of raw
materials that the company uses is imported, which is a factor to ensure quality inputs
to the volatility of foreign currency exchange rates have a huge impact to the payment
of foreign currency for the foreign suppliers. If rates decline, the company is
profitable, but if increased costs for input materials high. Also world market increase
is also nguyennhan affect production and business operations of the company. In
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particular, a number of changes in the price of electricity and water in no small part
also created difficulties for companies in reducing costs in order to stabilize prices.
2.2 Political environment
Political environment and legal framework of a country directly affected
business operations in general and import-export activities in particular. The political
stability makes the relationship between the two parties was made. Therefore, before
placing relations with partners, businesses need to understand and comply with the
provisions of the relevant governments, customs and international laws relating

directly or indirectly to action export. In many cases, political factors and criteria
become law forcing businesses must adhere when selecting export market.
Vietnam's business environment is expected to have much breakthrough in
2015 when institutional reform, creating the best conditions for the development of
the private sector is seen as a prime target today. This is a good basis for faster
progress of Vietnam in 2015 with a free trade agreement will be signed. But this also
puts Vietnam before new challenges on request finishing faster business environment,
attract investments, generate momentum for the next development steps. A stable
political environment, a variety of incentives for foreign investors and especially the
purchasing power growth is what many investors describing when asked about the
ease of doing business in Vietnam. This is also an important factor that many foreign
businesses and investment decisions have a long-term intentions in Vietnam.
2.3 Regarding cultural environment
The cultural exchanges with countries such fish has helped Vietnam to learn
and acquire many new cultural color, new attitude, new consumption patterns, in the
previous period, the people of Vietnam remains Clothing eating habits make lasting,
step into the period in 2000 onwards, the people of Vietnam are no longer concerned
about issues such as design, style, style, flavor, attractiveness,... of product. Thus
requiring the diversity of products increasing, and that is the challenge for Hai Chau
Confectionery Company in the process of adapting, innovating or not renewed. This
affects the strategic decisions of the company is necessary to truly innovate the
business to adapt to the diverse needs of customers. Therefore the business strategy in
this period will bring natural extrovert.
2.4 About environmental technology
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The scientific and technological progress has always been a positive factor in
promoting production development. Most nascent technology platform will negate the
technological background backward and inefficient. The products made from the new

technology platform will have more advanced features, more and more extra diversity
capable of attracting customers redirect consumers.
Currently, Hai Chau Confectionery Company owns two main types of
technology: the old technology and new technology investments. If just maintain this
two technology platforms Hai Chau Confectionery Company is unlikely to compete
with the competitors equipped with the new technology. It was a big challenge.
Moreover, the introduction of new technology requires people to consume new
products, gradually replacing older products gradually being eliminated.
3. Environmental Analysis competitive factors
3.1 Customers
The company retains customer dividing into two large sets. That set the final
consumer customer and the customer file is the intermediary company, wholesale
dealers and retailers:
- With files end consumer customers, the company is divided into 3 main
market areas, which are:
+ Urban market areas where high-income consumers of diverse types of
products with the high quality requirements, design and sleek.
+ Rural area where there is market demand for medium and low income, the
creation of customer demands for innovative confectionery products have only lower
urban, good quality, heavy weight, design, Designs do not need beautiful, affordable.
+ Mountainous areas where markets have very low incomes, ask for a moderate
quality, beautiful design without heavy volume, low price.
- The customer file is the intermediary company, the wholesale and retail
dealers are set important customer of the company, the amount consumed most of its
products. This network of dealers spread across the country, mainly in the North,
Central ensure the circulation and consumption of Hai Chau Confectionery products
continuously and rapidly.
Entering the period 2010-2015, the company has set a fresh view of our
customers. The company organizes more important to the rural area market, a market
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that accounts for most of the national market proportion (approximately 70%). On the
other hand, the company's products ever primarily aimed at this customer set, have
moderate incomes and low but guaranteed a high level of sales. Hai Chau
Confectionery Company was very attentive and create all conditions for development
of this market sector. Therefore, the company's products is increasingly high quality of
designs and styles to be able to attract more customers. Also companies not miss the
opportunity to develop the urban market area, where people have a high income to
consumption of these kinds of high-end products. Although the proportion of this
market sector is not high (about 15%) but the profit promises very high.
3.2 Supplier
One of the factors that directly impact production and business efficiency of the
company is being influenced by the material supplier. Previous periods, the company
must import most raw materials abroad as flour, spices, milk powder, cocoa,etc,...
except there is domestic sugar produced. To ensure the quality of products required
the company to ensure the best supply of raw material inputs. Therefore, the company
does not have to bear the high raw material prices, but also were influenced by foreign
suppliers, import and export policies and other factors disrupting the supply process.
This company does not actively do much in production.
In 2010-2015: marks an important step for the food industry in general and in
particular the confectionery industry, which is the establishment of raw material
processing plants such as wheat flour factory in the south. Such levels of dependence
on foreign suppliers has decreased a lot because the proportion of the cost of wheat
flour in bread production is about 40%. Company can easily sign contracts with local
suppliers.
In addition the company also has policy choices street vendors in both
countries to ensure that their capital advantage in the form of deferred payment and
timely supply for production. HaiChau Confectionery company under the Sugar
Corporations No.1 should know very clearly cyclical supply of sugar companies

sugar, and other information related to the time when the supply curve is the highest
quality, is low Best to take timely decisions to produce sugar stocks. Not only that, we
also understand very clearly the information on sugar imported from abroad especially
from China. When the supply of sugar from sugar mills are high, while sugar imports
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into themselves massively. A corollary is to pull the line to the lowest price. Grasp
clearly the above information, Hai Chau Confectionery Company make timely
decisions and reserves for production line. Do a good job of reserves, the company
will be able to reduce product cost compared to competitors if they do not reserve the
sugar at low prices. Because the cost of sugar in the cake was 15%, the candy is 25%.
3.3 The potential competitors
In addition to business enterprises producing traditional sweets such as Hai Ha,
Hai Chau, Trang An, Huu Nghi, Quang Ngai, Lam Son,etc,... has appeared to produce
confectionery business with the scale and potential new very diverse forces. Most
prominent is the Kinh Do company, have abundant financial resources, with many
dealers and stores in all regions of the country. Currently, the Kinh Do company is
entering the North and gradually affirmed its position on this market. Products of the
company have gained the trust of customers by high quality, beautiful design, rich
category. But the prices are slightly higher than the average income of the consumer.
Especially as Kinh Do is a leading enterprise in the manufacturing sector needs fresh
bread tends to increase in urban areas. Subsequently the Hai Ha company also
successfully implemented. Hai Chau company only really began in 2003 when
entering lines of dutch soft bread, and put into production to produce competitive
products.
3.4 Substitutes
For confectionery products, the product replacement can only be the fruit.
When the fruits are seasonal confectionery consumption rate would slow. Because
then people will switch to hands that fruit consumption for confectionery. Therefore,

in the April, May, June, July are not selling candy month, Hai Chau company should
plan to reduce production.
4. Opportunities and challenges from the external environment of the company
4.1 Opportunities
- Due to increased GDP growth, coupled with high urbanization speed up
consumer demand for confectionery products increased particularly in urban areas,
companies need to focus on key market areas in order to bring the products meet
customer needs.

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As international relations are expanding, Hai Chau Confectionery Company
has expanded market prospects by exporting to markets within ASEAN.
- Companies have the opportunity to transfer advanced technology lines to
improve production capacity, product innovation.
- The company easily establish relationships suppliers may select suppliers
capable to best meet the production needs of the company with the lowest price,
payment method most profitable for the company.
4.2 Difficulties
- Vietnam has economic integration in the ASEAN region is a stepping high
global nature. Economic benefits will focus on some foreign corporations, big
competition, this is a major problem for the survival of small and medium enterprises
in Vietnam.
- Entering the period 2010-2015, the competition in the domestic confectionery
market place increasingly aggressive in terms of variety, design, price and regimes and
policies entice customers.
- The investment in confectionery production massively and cause oversupply
in many kinds of candy.
- Many confectionery manufacturing facility also uses competitive measures,

causing substrate exist in quality reputation and market share of companies in the
market.
- In normal conditions among the country means more traffic, quite convenient,
quick to market fruits are abundant, many categories and cheap price. Moreover fruits
imported from countries same as: China, Thailand,etc,... always is the danger
threatening the consumption of confectionery companies in the market.
Some material the company has to import from abroad as flavoring, cocoa,
should the USD higher exchange often increased input costs for business. For
materials like road salt in water, but the company has made procurement policy
reserves for producing reasonably but now and the next year the price will rise, this is
a difficulty for the manufacturers of food processing after sugar, salt,etc,...
5. Evaluate the strengths and weaknesses of the company

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The analytical work environment help administrators in companies established
are the strengths and weaknesses of the company when planning their business
strategies.
5.1 Strengths
- Hai Chau Confectionery Company has strong human resources, increasingly
high qualifications are fostered by training and meet the requirements of production in
the process of using the machinery and modern equipment should quality of work is
guaranteed. So that companies can increasingly improve product quality.
- The company owns many modern production lines in all depreciation period
should have the ability to produce products with low cost but quality is guaranteed
good design. In addition to this very diverse line should produce more diverse
products to meet the diverse needs of customers.
- The company has considerable working capital to meet the demand in
business and production.

5.2 Difficulties
Real tough start for the company's annual interest rate payable by the investor
greater depth from 2005 to 2010.
- The company's marketing function has not been much emphasis should not
really exploited information from external interests, not fully capture the diverse needs
of customers, as well as the change of guests consumer goods in confectionery.
6. Proposed solutions for strategic management of the Company
6.1 The complete solution work to identify targets and strategic tasks of business
accounting.
Currently, Hai Chau Confectionery Company is pursuing three main objectives
were:
+ Improving Competitiveness
+ Increased Profit
+ Increase market share.
As we all know that business objectives to achieve as a result of future
expectations that enterprises have to mobilize all available resources to perform but if
the target is not precisely quantifiable, in particular, the very difficult to achieve. Also
it made losses of enterprise resources if such high goals past or vague. Moreover, the
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targets to be achieved must be based on the current status of resources business
owners should not pursue goals beyond the resources that businesses that have relied
on external funding, the power-do reduced the autonomy in the process of achieving
this goal have suffered due to pressure from outside. Also when pursuing multiple
objectives simultaneously, then make sure that the benefits of this goal will threaten
the interests of other objectives, excludes never have the perfect pick all 3 targets at
work. Hence the complete solution works identified strategic business objectives of
the company during this period are:
- Companies need to quantify your goals clearly. Especially difficult to quantify

goals as the goal of improving competitiveness. Companies should improve their
ability to compete for traditional items such as: Items biscuits, wafers, a commodity
which the company is dominant in the market that has many advantages in production
and business, forming a strong individual. And for some luxury items like candy
chocolate products, soft bread should have other goals such as lower market
penetration goals for these products. As this is a new kind of new products entering
the life cycle have not been accepted by the market, the Company does not have much
experience in the production and trading in this commodity should not be high quality.
Therefore the company must visit the market before, this will make the company very
costly to invest locusts amplified product program.
- The company must be in the status of its resources to determine the objectives
to be achieved, should not use funding from outside to perform high-level goals, it
will put pressure on the company. To do so the company should implement the motto
"raising short-term peel" like buying the biscuits chain moderately valued rapid
payback period can reinvest to expand.
- The company should not put three goals are equally important as this mutual
incompatibility. If implemented targeted market penetration for new products certainly
profit target will be affected in the early stages of the product life cycle, the fixed costs
per unit calculated for high quality products, the the consumer has not been accepted
so much backlog of unsold,etc,...
The period 2015-2020, from the most important objective as the objective of
improving competitiveness for products with the strength of the Company and market
penetration for new products, expand market share. Thus a number of tasks laid out:
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- Enhance the work of finding outlets for premium products of the company on
the market to consumers.
- Research new products can meet the needs of the market.
- Look at the new needs of the market for a new investment trend.

- Improving pricing policies, distribution policies, advertising policies, and the
policies of accounting for new products to enter the market.
- To mobilize investment capital for businesses to invest in production.
- Improve the training of people to acquire new technology to better serve the
manufacturing process,etc,...
* Besides the target profit should be taken to increase the efficiency of
production and business activities. Some mission is:
- Improving the supply of input materials to reduce costs.
- Improving production planning for the timely supply of candy when the
market needs with the number and types to meet consumer demand.
- Improving the management of production in order to save the manufacturer.
6.2 The complete solution analytical work environment inside and outside the
company
- Workforce: This is the amount of resources and also the most important to the
enterprise not only with Hai Chau Confectionery Company. All production and
business results achieved were served to employees and the employees dominate and
use other resources for the manufacturing service business must therefore grasp hold
structure and qualified employees of the Company.
- Financial resources are very important resources to be able to finance the
process of production and business activities of the Company from the stage input to
output stages.
Need to accurately assess the financial resources according to the structure and
by source:
+ If assessed according to structural funds will determine the ratio between the
working capital and fixed capital. Since we can know the company is capable of
flexible financing working capital in the business to some degree.
+ If financial resources assessment will identify sources of proportion between
equity and capital funding from outside.
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- Power machinery equipment - the technology of the company is seen as an
advantage to produce all kinds of high quality products, with high competitiveness.
- Reputation and brand of the company is a competitive advantage that a
company should consider as a resource effectively. It is very beneficial to companies
when launching new products on the market.
* Analysis and evaluation of external environmental factors under the
following perspective:
- Consideration of external factors influence an objective and quantifiable
impact levels as demand, supply, foreign currency exchange rates, income per capita
annual GDP.
- Forecast of the change of the macro environment as well as environmental
characteristics to determine direction for the Company. It is the State's policies on
taxes, import and export of raw material of the company,etc,...
6.3 The complete solution formulation of the strategic plan
- The local strategy must be built on the basis of exploiting the strengths of the
company and the favorable factors from the environment. The strong point is that
large human resources and qualified skilled, large working capital, the production line
has all the payback period, the reputation and brand of the company high, wide
distribution network wages , the flexible price policy,etc,... The advantage is increased
consumer demand and market trends increasingly expanding.
- The strategic plan of the Company can take strength to overcome difficulties
from the environment or from the environment favorable taken to overcome the
weaknesses of the company. Specifically biscuit products of the Company are diverse,
high quality, but the price is very consistent with the average income of the consumer
should be able to penetrate the rural market area, which would carve for the
difficulties caused by the competitor offers. Thus strategic plan to diversify products
biscuits can be set.
- The strategic plan must be based on the actual situation of the Company
resources should not build strategic plans indeed depend on external resources.

- The strategic plan of development should focus on solving the key problems
that the company is facing the potential risk or difficulty. In order to implement the

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strategic plan, the Company may remove the difficulties and avoiding the potential
risk it.
- The strategic plan should be built on the basis of economic benefit to the
long-term (over 5 years). As this company can effectively mobilize the resources to
focus on strategy implementation and provides small allocation of costs for the
production process and also easy to business investment recovery.
6.4 The complete solution working strategic options
- Once the strategic plan is built, it is necessary to have the discussion and
evaluation of the functional parts and the board of directors of the Company. The
economic feasibility of each alternative strategy is to point out the enormous
economic benefit which brings strategy and the feasibility of that plan. If the strategic
plan promises economic benefits are difficult to implement that plan can not be
selected. Conversely feasible alternatives high but low economic benefit it would not
be chosen for such a company will lose much opportunity cost.
- The strategic plan was selected to create the superior capabilities that the
Company is available and there is a difference with the competition. In fact in recent
years the company has yet to do this as the competitors: Hai Ha, Kinh Do,etc,... The
capacity of the lines and soft chocolate cake very large but production surplus by not
selling be. Because of the high-end products of the company are not really exceptional
and distinctive in the market is much.
6.5 The complete solution work building control strategies.
- Develop strategies next stage is the selection of strategy. After the company
planners had considered and evaluated the benefits and feasibility of the strategy
chosen, the school embarked on the strategy. To be able to effectively control the

development strategy must comply with the following requirements:
- The strategy must be built on the basis of the analysis and assessment of the
environment inside and outside the enterprise via individual models or model SWOT
pair market products.
- Strategies to hate themselves on the recommendations, comments of the
functional parts.
- The strategy must be based on limited resources, can not develop strategies
beyond the reach of the company.
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CONCLUSION
. When it comes to manufacturing business, whether in the form of any issues
raised first is also effective. Production and business efficiency is a target of a
production platform, which is a measure of all aspects of the national economy as well
as the production unit.
Operating profit in the market economy is the biggest goal of every business.
To achieve that while maintaining good quality, reasonable prices, business remains
solid in the competition, businesses must constantly improve the level of production
and business, including business management strategy the important issue is crucial to
the outcome and efficiency of production and business of enterprises. Experience
shows that enterprises with strategic management practices' will reap success in
business than now not interested. Strategic management process helps businesses
determine how stable a purpose and direction for the leaders help to focus attention on
the leadership collective action in any direction and when to achieve it while focusing
on the key, of course, functions and duties that aim to achieve.
Today's business environment changes quickly, do appear more chances and
risks. In the process of strategic management, we take very seriously the factors
affecting the business environment, it was forecast environmental changes near and
distant future, thereby exploiting the limited opportunities corruption risks and be

prepared to adapt to environmental changes.
Strategic management approach is very logical and artistic medium high
science, to achieve the basic objectives and comprehensive corporate influence that
choice.

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