The business of strategy VITECHCO company limited e

The business of Strategy VITECHCO Company Limited

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TABLE OF CONTENT

............................................................................................1
TABLE OF CONTENT............................................................2
INTRODUCTION...................................................................4
RESEARCH OF CONTENT.....................................................5
1. Introduction overview of VITECH Company Limited...............................5
1.1 The process of formation and development VITECH Company
Limited..................................................................................................................5
1.2 Structure of apparatus of VITECH limited company............................5
1.3 Functions and duties of the VITECH Company Limited......................5
2. Analysis of PEST model.............................................................................6
2.1 The impact of the economic environment.............................................6
2.2 Effect of the elements of culture, society, geography and demography 6
2.3 Impact of government legislation, politics............................................6
2.4 The impact of technology.....................................................................7
2.5 Effect of natural....................................................................................7
3. Analysis of the competitive factors.............................................................8
3.1 Competitors..........................................................................................8
3.2 Customers.............................................................................................8
3.3 Supplier................................................................................................9
3.4 Potential new rival................................................................................9
3.5 Substitutes............................................................................................9
4. The Strategic vision, business mission of the VITECH Company Limited.
................................................................................................................................ 10
4.1 Identify business SBU........................................................................10

4.2 Identify strategic business objectives of the VITECH Company Limited.
................................................................................................................................. 11
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5. Evaluate the success and limitations of the VITECH limited company....11
5.1 Success in business strategy of the VITECH limited company...........11
5.2 The shortcomings in the business strategy of the VITECH limited
company..............................................................................................................12
5.3 The causes of the current problems in the business strategy of the
VITECH limited company..................................................................................12
6. Trends perfect the business strategy of the VITECH Ltd company in the
near future...............................................................................................................13

CONCLUSION.....................................................................15
..........................................................................................15

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INTRODUCTION
Strategic management is the science and art of the strategy to develop the
direction and business objectives, implement, implement the short-term plan and longterm on the basis of available resources to help the each organization can achieve its
long term goals.
An effective business strategy together with excellent performance is the best
guarantee for the success of every organization. A business exists in a changing
environment including changes in: technology, social values, consumer habits and
economic conditions, policies and even in pollution norms Environmentalists may
face risks and challenges as well as great opportunities. Senior leaders and researchers
can give reasons why businesses and other agencies should conduct business strategy.

The conditions of most of the business changing so fast that strategic planning is only
one way to counter the difficulties and opportunities in the future.
Strategic planning provides every member of the business objectives and the
specific direction of the business in the future. Strategic planning as a basis for control
and evaluation of the management. Organizations and individuals that strategic
planning will be successful and effective than no plan.

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RESEARCH OF CONTENT

1. Introduction overview of VITECH Company Limited
1.1 The process of formation and development VITECH Company Limited
- The VITECH Company Limited was established in July 2009.
- Tax code: 0104076437
- Email:
- Phone: 04. 66536592
- Fax: 04. 66536592
Previously, the predecessor of the company is a shop specializing in providing
advertising services.
Then, jointly developed with the market mechanism, has promoted the
establishment of the company. The company is headquartered at: No. 6, lane 31/2,
Phan Dinh Giot, Phuong Liet, Thanh Xuan District, Hanoi; Transaction office: No. 62,
Phan Dinh Giot, Thanh Xuan District, Hanoi. The company now is still a small
company with the initial charter capital is 1 billion VND.
When first put into operation now primarily active in the field of printing
products such as: billboards, calendars, cardvisite, flyers,etc,.., have not paid attention
to advertising and service sectors other commercial services. However, as demand for
printing and advertising market, particularly businesses, stores rising up from 2010 to

present the company to focus on key areas as print advertising.
1.2 Structure of apparatus of VITECH limited company
The organizational structure of the company vertically, simple, compact,
creating unity in command now. Chart compact structure that allows businesses to
save cost management.
1.3 Functions and duties of the VITECH Company Limited
The main function of the company is: Organize business production and supply
of printing services and advertising business registration and incorporation purposes.
The company's mission is: Provide printing services and advertising in order to
best serve the needs of customers, undergoing renovation repair works of outdoor
advertising, restored edition kinds rental equipment used for advertising, printing,
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unceasing care and improve the material and spiritual life, fostering and improving
education level, professional skills for staff members within the company.
2. Analysis of PEST model
2.1 The impact of the economic environment
Economic factors are often primarily interested businesses is the bank interest
rate, stage of economic cycle. Since early in March 2014 to the present, deposit rates
of commercial banks has decreased significantly, musty deep backward 7%/year
maturities less than 6 months and less than 8%/year terms from 6 - 12 months,etc,...
Raise interest rates further decrease is also a condition to contribute can further reduce
lending rates. In 2014, leaders of the State Bank estimated in favorable conditions,
lending rates may fall further VND from 1-2% /year.
This will help businesses reduce cost of capital for production and business.
Another factor to consider is the economic cycle. Economic cycle makes business
plans of the private sector and economic plan of the state in trouble. Economic cycle,
non-volatile rule, often iterate over the period from nine to ten years. Currently, we are
in the period of economic recession, so this is difficult requiring businesses must have

the appropriate business strategy to step through this period.
2.2 Effect of the elements of culture, society, geography and demography
Like other Eastern countries, most Vietnamese people enjoyed the bold colors,
bright and red as the color of good luck. So businesses need special attention to color
when printing advertising design. Currently, the exchange between the cultural
domain extension is increasingly leading to a change in color preference of some
Vietnamese people, especially the youth. This is what requires businesses to capture
the preferences of different customers. Another encouraging factor for businesses is
present, Vietnam's population increased, up to 90 million people (according to the
General Department of the population). This will make all businesses generally as
well as print advertising business in particular will have the opportunity to sell more
products.
2.3 Impact of government legislation, politics
Vietnam is a country with a stable political regime it very favorable for all
enterprise production and business activities on the territory of Vietnam. Before the
advent advertising rules, Vietnam has many circulars, decree laws regulate the
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advertisement as: 116/2005/ND-CP on September 15, 2005, 20/2005/ND-CP, on
September 30,2005,21/2006/ND-CP, Circular 78/2008/TT- Ministry of Culture, Sports
and Tourism, Advertisement Ordinance 2001 Ordinance on Consumer Protection 1999
Trade Act 1997,etc,… However, on June 21, 2012 the new parliament formally
enacted legislation to regulate advertising of the business scope of activities related to
advertising. Advertising Law is applicable since January 1, 2013. This requires
businesses related to promotional activities must fully comply, or they would be
punished. An important element in the law have direct influence on any particular
business is tax policy.
Currently, we are the government policies stimulate development enterprise
with tax rates. According to Clause 6 of Article 1 of Act No. 32/2013 / QH13, the

income tax rate is 22% of its business from January 1, 2014 and only 20% on January
1, 2016. In addition, for those enterprises with total revenue in the preceding does not
exceed 20 billion will be subject to 20% tax. This is an advantage for the VITECH
Company Limited for now the company is a small business.
2.4 The impact of technology
Currently, the progress of science and technology, the technology transfer that
allows the introduction of modern printing technologies such as laser printing
technology, dot matrix, inkjet printing, 3D printing increasingly better meet demand
consumer 3D printing technology which is new printing technology has been launched
not long, but has received a lot of enthusiastic responses from consumers.
However, their prices are very expensive so overall it has virtually no
advertising printing enterprises of Vietnam has been the technology. The
improvements in printing technology in the world in general and Vietnam in particular
has shaped many methods in increasing productivity and better quality: typo printing
method, flexo printing, gravure printing, screen printing, offset. Offset printing
method is a method of printing businesses in Vietnam used the most because it gives
the yield and quality than other printing methods. The printing technology and
methods in increasingly improved, this requires VITECH limited company quick to
grasp market trends and updated methods and technologies in a timely manner so that
in order to not be left behind compared to other businesses.
2.5 Effect of natural
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The tropical climate countries like Vietnam are characteristic of high air
humidity, creating favorable conditions for mold growth can therefore negatively
affect the preservation and display of printed products an advertisement. In addition,
Vietnam is also one of frequent storms, floods,etc,... Annual collapsed, faded many
billboards. This requires the advertising printing business must have products that can
stand in good climatic and natural conditions in Vietnam.

The impact of natural conditions to the decision of the print ad business has
long been recognized. The majority of printed products and advertising, the quality
and reliability of it depends on the climate and weather. Therefore, theVITECH
limited company well as enterprises in the sector have studied the effects of nature,
especially the weather to have the initiative in business.
3. Analysis of the competitive factors
3.1 Competitors
Currently, due to the demand for printing products increasing advertising has
led to many companies involved in this business sector. According to the association
in Vietnam, only less than 10 years after the law is now in force and the provisions on
the establishment of printing houses are easing, the printing company in Vietnam has
increased 6 times, up to 3000 enterprises.
Currently, intensive direct competitors of the company is the printing business
advertising on the city of Hanoi as: Travel - Commerce - Advertising Ha Viet
Corporate, Advertising agency Young Hanoi, Advertising Capital company,
commercials Hanoi Capital printing Limited company, Tan Viet An Development
Joint Stock Company,etc,... Consequently, competition among companies dealing in
printing products increasingly fierce advertising affect sales of other businesses as
well as VITECH limited company.
3.2 Customers
Regular customers of the company's stores VITECH Limited company,
companies such as: Duc Phuong production and commercial company, Vietnam
JapFacomFeed company, North Cotton joint-stock company,etc,... Each client has a
need different needs and characteristics require advertising printing enterprises should
grasp this need to attract customers.

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Moreover, today, customers are increasingly demanding and have more

information about the market. Consequently, only those companies that have the
ability to meet customer demand, the new best stand in the market.
3.3 Supplier
The main suppliers are very lontoi affect business operations of enterprises.
There are good relationships with suppliers will help businesses reduce purchase
costs, ordering costs and actively in business. If no good supplier will be able to make
business fell into disruption of production and business activities. Therefore, to ensure
that the manufacturing process is happening stable, ongoing businesses need to have a
good relationship with suppliers and selected reputable suppliers. When a new vendor
offerings, enterprises have researched the possibility of financing, availability of
materials,etc,... Before signing the contract. The main suppliers of VITECH limited
company is:
Table 1: The main supplier for VITECH limited company
No.

Provider name
The Southern printing ink trade investment joint-stock

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company, The Vietnam ink trade and export joint-stock
company,etc,...
Minh Chau paper Trading and Producing Joint Stock

2

Company, Hoang Ha Counseling and Producing paper
Company Limited,etc,...
LALA building and commercial Limited Company, Dong

3

Phuong Manufacturing and commercial construction
limited company,etc,...

4

Xuan Thuy Dai Duong Joint Stock Company

Items supplied
The printing
inks

Printing papers

Supplying steel
frame types
Supply tarpaulin

hiflex
(Source: Business Department)

3.4 Potential new rival
New competitors to enter the business in the business of advertising printed
products are factors that reduce industry profits. Therefore the research to protect the
competitive position of enterprises in this industry include maintaining legal barriers
prevent intrusion from outside is important.
3.5 Substitutes
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The strong development of electronic communication with the explosion of the
internet and digital media for many diverse advertising methods without resorting to
printing technology, such as: Electronic billboards, advertising through web pages,
through radio, television,etc,... is becoming a threat to print advertising industry. Many
businesses now use this new form of advertising revenue thereby printing advertising
industry affected. Therefore, businesses in the print industry as advertising supply the
VITECH Company Limited need continuous research, monitoring of potential
substitutes and improved printing technology as well as design.
4. The Strategic vision, business mission of the VITECH Company Limited.
According to a survey interviewed senior executives in the company, the only
existing company business strategy for the company that's best business print on
canvas Hiflex billboard for Beach tents are a form of advertising is most commonly
used today, many businesses, shops selected by the advantages of cost saving, printing
simple, quick. Material suitable for advertising promotions on many small areas from
the sign company, shop, showroom by the ability to print on large areas, after the print
image quality is guaranteed, no blurry pictures, cracks form durable and can withstand
sun and rain, good elasticity. Through interviews with company executives in the
strategic vision of the company is "always eager muontro a leading company in
printing advertising industry by offering products beautifully designed, affordable
reasonable, good quality to satisfy the needs of customers' business and mission of the
company is: "Focus on the most advantageous areas to improve the position in the
industry".
When investigators tested 10 employees in the company about the level of
awareness strategic vision and business mission of the company, found that 70% of
staff in the company is not aware of a strategic goal comb. This is because the
company leaders clearly not common to all staff. This may be the reason that
companies do not achieve the desired results in strategic planning.
4.1 Identify business SBU
Currently, the company has five product business groups are: billboards,

brochue, visde cards, calendars, books circulated internally. These products are
consumed in the Hanoi market and customers are small and medium enterprises. The
competitive advantage of the company's products are uniquely designed, beautifully.
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This is because the company focused on product design, the design staff in the
company are good employees, trained in the arts field. Among the products, the
products tarpaulin billboards hiflex received greater attention since it is the company's
main product. Because of this, the proportion of product revenue tarpaulin billboards
hiflex majority of business revenue, approximately 60% of total revenue.
4.2 Identify strategic business objectives of the VITECH Company Limited.
As a result of the current survey interviewed only company business strategy
for key commodities are hiflex tarpaulin billboards and major objectives of the
strategic business promotional items is necessary to do sea beautiful and eye-catching
design, the next secondary objective is to provide products with good quality, cheap,
fast. From this goal, the company focused research, design beautiful products and
introduce preferential policies for patrons to encourage customer loyalty. The goal is
to bring profit to approximately 12% of total revenue and accounted for 6% share of
the billboard on the Hanoi market. This strategy will be implemented over three years,
starting from 2015 and 2017.
5. Evaluate the success and limitations of the VITECH limited company
5.1 Success in business strategy of the VITECH limited company.
First success must mention that the company has identified strategic objectives
of achieving profitability on approximately 12% of total revenue and accounted for
6% of the market for the commodities business of his own billboard by Hiflex canvas
simultaneously determine current target markets and target orientation for the future.
The company also has planned initially in human resources and finances to prepare for
the upcoming business strategy.
Business strategic planning of the company has been focusing attention. The

company defines this as an important step startup, specify the path, is necessary to
base the stage after performing the tasks and objectives set. When conducting the
strategic planning company was based on the actual situation of the external
environmental factors associated with the ability, resources at their disposal.
Companies are aware of the strengths, weaknesses, opportunities and
challenges so that business strategy more effectively. Self noticed was a small
company, so the company focused on a major production business to make up the
strength to be able to compete with large companies - with strategic competitive
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differentiation in the product product, focusing on product design work was initially
brought to the company of loyal customers. This could help to position the company
to be more advanced.
5.2 The shortcomings in the business strategy of the VITECH limited company.
Besides these encouraging results, the company also has a few shortcomings in
strategic planning. The VITECH limited company also build business strategy but in
fact the building is not a specific strategy, obviously, but also in general in the form of
orientation, lack of clear analytical information on the economic situation clearly clear
of branches.
Regarding the analysis of the external environment: Currently, the analysis of
external environment has not really been the investment company and attention.
Business and acquiring information from the external environment of enterprises have
only been collected through secondary data but the company does not go directly to
find out the external environment, market research to obtain primary data.
Environmental analysis inside: The analysis of the internal environment of the
company and can only be measured through subjective judgment of administrators,
and do not use analytics tools to analyze.
On the use of strategic tools: Currently, the company has not used the tool to
analyze the strategy as: TOWS, BCG, EFAs, IFAS.

Regarding the construction of the strategic plan: Strategic decisions made are
not really thorough, still superficial, simplistic. Strategic plans made based primarily
on experience and the operational forecast accuracy is not high.
Regarding resource allocation plan: current workforce of companies do not
have much experience. In the future, the company will provide training to improve the
quality of human resources. But the company plans to offer concrete is not clear.
Financial resources have been identified as the company mobilized mainly from the
banks, but companies do not have the detailed allocation of funding for each specific
year.
5.3 The causes of the current problems in the business strategy of the VITECH limited
company
5.3.1 Objective reasons

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- The fiercely competitive market of business, science and technology also
developed strongly.
- The business environment changes constantly and complicated, surprisingly,
been dominated by macroeconomic factors such as inflation, interest rates. This
company may encounter unforeseen events.
- The state has no clear mechanism for management and operations consistent
with the Company's business in general and for the planning and implementation of
business strategies in particular.
- The economic policy of the State to accede to the WTO has also been in the
process of both building just finishing up also many shortcomings and inadequacies.
- Information systems to support business strategies are weak, companies have
to seek to forecast the company usually does not exactly affect no less to the
feasibility of the strategy.
5.3.2 Subjective reasons

- Due to the analysis of environmental assessment under the provisions
trinhkhoa study based on sensory analysis of the administrator.
- Because of workforce in companies without much work experience
- Due to the company's financial resources are limited, raising capital from
outside the bank loan cost of capital so high.
6. Trends perfect the business strategy of the VITECH Ltd company in the near
future.
For strategic planning can achieve good results should research thoroughly
analyze the factors and trends have important implications.
- Development Trends customer needs: Demand tastes and social development
intertwined. Government needs to promote production and upward social
development and economic growth will influence the society to demand. Social needs
shift from basic to higher demand. Nowadays quality elements and services have a
major role to ensure success of the company. As society grows more factors, the price
factor plays a more important role for product quality and service. It is increasingly
concerned about the time factor and future sales services, the selling method, will
promote its great role.

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- The development of technologies and modes of service: Technology today is
considered to be the result of four component synthesis equipment, people,
organizations and information. Among them is the core equipment, the human role in
the decision. Technological factors, techniques affect all activities of the company so
you want to survive and development companies are not integral factors engineering
technology. Want to information system works well need the means and tools
analytical processing, exchange information effectively. Want effective leadership
strategy requires increased management devices and means to exchange information
through the management apparatus and equipment management leadership.

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CONCLUSION
Strategy is the direction and scope of an organization to act on long-term aim to
achieve business advantage through the identification of existing resources can be
used in the business environment to ensure our determination market demand and
ensure benefits for all the stakeholders. In view of the consulting firm and strategic
support Win-Win, profound goal of strategic management is enterprises set in the best
position on the target market, to maximize the long term value of the business
Industry. A more specific strategies are to:
- Achieve the target of the business in the long term (business & corporate
social responsibility) in a sustainable way (Sustainable)
- Market or market segment that the company will business, business strategies
will be applied.
- Business how to dominate from the competition in those markets with
specific customers?
- We need to use what resources (people, skills, assets, financial, trade secret)
in order to achieve that objective.
- The potential risks from outside may affect the implementation strategy:
environment, competition, politics, resources, both risk prevention plan?
- The enterprises value that will give owners and society that enterprises is a
member.
In terms of process, strategic management is seen as a management process
including the formation of a strategic vision, setting goals, draft a strategy and
implement that strategy , and over time to adjust strategies to suit the circumstances.

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