THESIS
DEVELOPING BUSINESS STRATEGY
FOR VIET-V-STANDA JOINT STOCK
COMPANY (V-STANDA., JSC) FOR THE
PERIOD 2015-2020


TABLE OF CONTENTS
INTRODUCTION………………………………………………………….Page 3
I.

AIMs, GOALS OF THE STUDY……………………………… Page 5

II.

SUBJECTS AND SCOPE OF THE STUDY

III.

SEQUENCES OF THE STUDY . . . . . . . . . . . . . . . . . . . . . . .. . . .Page 6

IV.

SOURCES OF THE DATA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 6

V.

METHODOLOGY . . . . . …………. . . . . . . . . . . . . . . . . . . . . . . .Page 6

VI.


ANALYSIS OF MACRO ENVIRONMENT ………………………….Page 43

2.3.

ANALYSIS OF TRADING SECTOR………………………………….Page 45

2.4.

ANALYSIS OF INTERNAL ENTERPRISE ENVIRONMENT……….Page 53

2.5.

ANALYSIS OF STRENGTH, WEAKNESS, OPPORTUNITY AND THREAT
OF V-STANDA (SWOT ANALYSIS)………………………………….Page 57

2.6.

IDENTIFICATION OF CORE COMPETENCE OF V-STANDA
COMPANY………………………………………………………………Page 57

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CHAPTER 3
DEVELOPMENT OF COMPANY BUSINESS STRATEGY……………..Page 61
3.1. STATEMENT OF VISION, MISSION, TASK AND OBJECTIVE OF COMPANY
BUSINESS STRATEGY . . . . . . . . .……………………………………………….Page 61
3.2. DETERMINATION OF STRATEGIC BUSINESS ACTIVITIES……………Page 62
3.3. SPECIFIC MEASURES FOR IMPLEMENTING BUSINESS STRATEGY...Page 69


demand of target customers stated in the famous speech by Steve Jobs that he wished
Mac would become "the centre of digital life". Such strategies inspired the introduction
of a range of its products like iPod, iPhone, iMac, or Macbook Air. If Mac is the centre,
iPhone (iPod as well) is the gentle satellite in accordance with the Mac system and

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draws customers to Apple's world. With a sound strategy and vision figuring out
consumer trends, Apple has really succeeded.
FPT and Vietnam Computer Company are the two enterprises in the IT area. It was
hard to make a difference between the two companies regarding sales, profits, capacity
and potentials 20 years ago. But now hardly anyone knows Vietnam Computer
Company whereas FPT has become a strong economic group of Vietnam with revenue
of billions of USD per year and an average turnover growth rate of 30% per year. Apart
from that, FPT exports its software to the world, and becomes strategic partners of the
leading IT groups like HP, IBM, Intel, etc. It is clear that a big difference was made in
market analysis, corporate strategy development, as well as realistic measures to
perform strategies.
Such typical examples show that if a business wishes to gain success, it should possess
a sound strategy and effective measures to realize it. On the other hand, due to the
economic globalization, increasing scarify of resources, IT boom and fast changes in
the demand of the market resulting in a more complex and fluctuating business climate,
there is a must for all enterprises to work out right business strategies to grasp
opportunism, avoid risks and ensure sustainable development.
Over 20 years since Vietnam transformed itself from a central-planning economy to a
market oriented one; thousands of enterprises have emerged, including both successful
and unsuccessful enterprises. In general, the majority of Vietnamese businesses have
developed spontaneously without a long-term vision and strategy, which is especially
the true case among small and medium sized enterprises. Recently, in the current trend

II. SUBJECTS AND SCOPE OF THE STUDY:
1. Subjects of the study
The subject of the study is the business environment of the company, including both
the internal and external. The external environment contains the factors directly
affecting the business activities of the company; the internal environment is the internal
strength of the company. Studies and analysis of such environments lay the ground for
latter evaluation, analysis and development of business strategies of Viet V-Standa.
2. Scope of the study:

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The research on business strategies of Viet V-Standa for the period 2010-2015 is based
on financial reports from 2006 to 2008, annual sales reports, and market analysis by the
business department. (These are the past statistics. Naturally, certain limitations in the
evaluation of financial criteria may exist)
3. Field of the study.
To formulate the business strategy within the framework of the overall strategy of Viet
V-Standa Joint Stock company.

III. SEQUENCES OF THE STUDY
1. Analyzing the business environment
2. Analyzing the production and business situation of the company
3. Realizing opportunities and challenges
4. Choosing strategic models
5. Identifying business aims and goals and develop relevant strategies
6. Conditions and measures to ensure the successful implementation of the
strategies.
IV. SOURCES OF THE DATA
1. The secondary data

1. To develop the proper business strategy for V-STANDA., JSC..
2. To work out the framework for realizing the business strategy based on the
implementation and supervision plans of V-STANDA., JSC.
3. To give orientations for the follow-up goals in order to develop business
strategies in the next stages.
VIII. ORGANIZATION OF THE CAPSTONE PROJECT
Regardless of the introduction, conclusion, references and appendixes, the main
contents of the Capstone project are divided into four chapters:
Chapter 1: Theoretical Background to the development of business strategy for VSTANDA., JSC.

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This chapter introduces a theoretical background to the development of business
strategy for V-STANDA., JSC, serving as a foundation for the following chapters.
Chapter 2: Analysis of real business situation of V-STANDA., JSC.
An overview of the company, and an analysis of the business environment and
internal strengths of V-STANDA., JSC. shall be offered in this chapter.
Chapter 3: Development of the business strategy for V-STANDA., JSC.
This chapter deals with relevant solutions and a business strategy framework in line
with the mission, goals and aims of the company.
Chapter 4: Action mottos to realize the business strategy
Feasible measures to implement the business strategy shall be identified in this
chapter.
Conclusion
Annex

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Ploy: Specific methods to deceive rivals
Besides traditional approaches mentioned above, many businesses understood strategy
in a new way: a business strategy is a plan to control and use resources, assets and
finance in order to strengthen and ensure the corporate essential interests.
According to Kenneth Andrews, a strategy is what an organization has to do base on its
strengths and weaknesses in the context of available opportunities and risks. Brace
Henderson, the founder of Boston consultation group included the concept of business
strategy in that of competitive advantages.
A competitive advantage is a situation in which the company is placed at a better
position compared with its rivals to bring about economic benefits for its customers.
"Strategy is the cautious search for an action plan to develop and combine with the
corporate competitive advantages. Differences between you and your rivals serve as a
foundation for your advantage." Brace Henderson believed that two rivals cannot exist
if their businesses are identical. It is necessary to make a difference if they wish to
survive. Michael Porter stated "Competitive strategy is related to differences which are
a range of different activities to form a system of unique values".
Whatever approaches, the nature of business strategy is figuring out the future image of
a company in its business field and capacity. Thus, the term "business strategy" can be
understood in the three most popular ways:
− Indentifying long-term goals for the business.
− Putting forward overall action programs.
− Selecting action plans, and implementing the distribution of resources to realize
such goals.
The development and implementation of business strategy has really become the
leading takes and an important content or function of business management popularly
adopted among enterprises. The most popular concept is "business strategy is like an

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promote the position of the company in the market and ensure its continuous
and sustainable development

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− The business strategy creates concrete foundations for the company to make
good decisions in line with the ups and downs of the market. It also lays the
ground for research, investment activities, staff training, and market expansion
and production promotion.
1.1.4. Constituents of the business strategy
After all, whatever different concepts or definitions of the business strategy, it can be
seen that the business strategy is constituted by a strategic target and solution.
Strategic targets
A very important thing a company should know before taking actions is being aware of
its orientation. This orientation is established through the formulation of different goals
with a view to increasing the adaptability of the company to current or future
conditions. The concept of goals can be understood in a broad sense and analyzed into
two types: long-term and short-term targets.
A short-term and long-term strategic business target can be a target or a more specific
result that a company would like to achieve in a certain business area. The target
originates from the strategic goal of the company.
Long-term business target
The long-term target is the desired outcome after a long period. Though the long-term
target sometimes can be more specific than the functions or responsibilities, it is not as
concrete as the short-term one. According to Peter F.Drucker, long-term targets of a
company involve seven areas as follows:
− Profits
− Capacity
− Competitive position

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Which business line
should we choose?

Organizational
Strategy

How should we
earn money?

How should we
compete?

Business
Strategy

Figure 1.1: Goal - Strategy
a.Company strategy
The strategy of V-Standa is shown in the following forms:
Vision. It is how a company sees itself in the future. Charlotte Villiers defined:
"vision is an ideal image a company wishes to have if it makes the best use of its
own potential resources and its staff"
The concept of visions and goals, though closely interrelated, bears a few differences.
Both of them infer that a group shares a positive idea about something which is
powerful. However, the concept of visions focuses on the explicitness of the idea about
tangible things like a building, a new product or an expected event. On the other hand,
the idea of goals tends to emphasize the desire for the goal in any way.
Mission. It is a form of goals which an organization wishes to achieve in a long

the selection of business lines.
For example, the strategy of Samsung Electronics is that it will promote the key
business lines like memory chips and TFT-LCD screen. The company also focuses on
high quality products like LSI systems, LCD small and medium-sized screen, and
optical accessories.
b. Business strategy (competitive strategy)
The business strategy is to identify how a company can compete in an established
business line or a specific area. If the company wishes to maintain a sustainable
development in a certain field, it has to set up its own competitive advantages over its
rivals. Therefore, the business strategy is regarded as the competitive strategy.

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The competitive strategy of a company serves as the way a company creates a valuable
position in its business line. This includes a far-sighted vision (literally and
connotatively) on target customers and how the company can bring values to
customers. A competitive strategy does not simply show a pure vision, but it is a
combination of specific activities and procedures, helping the company to create an
unique image among customers. Thus, the strategy also brings up a harmony among
corporate practices and accordingly, long-lasting efforts of the whole company will
unit, increasing the potentials of the corporate vantage point.
The strategy of business units identifies how each unit can complete its responsibilities
in its own business line (and then, contribute to realize the overall corporate strategy)
The business strategy is of equal importance to single business units and individual
companies in the multi-business sectors.
c. Functional strategy
The functional strategy is supportive of the corporate and business strategies. The
functional strategies of single business units and business establishments in multibusiness units are similar to each other. These strategies lay the foundation for other
strategies. For example, strategies of marketing, finance, research, and activities


Corporate level

Departmental Level

Analyzing the
environment
Identifying functions,
responsibilities and
objectives
Analyzing and
selecting strategies
Carrying out
Checking

Analyzing the
environment
Identifying functions,
responsibilities and
objectives
Analyzing and
selecting strategies
Carrying out
Checking

Analyzing the
environment
Identifying functions,
responsibilities and
objectives


Multi-business units

Typical decisions

level
Overall and long-term goals and
fundamental strategies

Leaders of the
company

Business

Unit A

Unit B

Unit C

unit/
division

More specific goals in line with
corporate

strategies

company


aimed at the achievements of all
business unit goals. Corporate and
business unit plans are targeted.

Functions

Short-term goals are in accordance
Product

Price

Distribution

Promotion

with functional strategic goals with
a view to the realization of all
functional plans

Department

Single business unit

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Similar to that of the multiCorporate leaders/ Business Unit

Human
resources



Of them, the business strategy is designed on the basis of the corporate responsibility
which identifies business objectives and necessary activities and helps leaders to define
goals. In turn, such goals can clarify the corporate responsibility. They are also used as
a means to make action plans and assessment of the procedures. On the other hand,
they are based on the reality of the external environment and internal capabilities.
1.2.1. Analysis of business lines
The strategy is formulated on the basis of estimated conditions; therefore, the good
strategic management depends on the in- depth understanding of the conditions an
organization is facing. The overall environment the organization usually interacts with
can be divided into three levels: macro environment, interactive environment, and
internal environment. The macro environment has an effect on all business lines in
different ways. The interactive environment is found in a specific industry and all the
companies of the same industry are under the influence of their relevant interactive
environment. In this case, the combination of the macro and interactive environment is
called as the external environment of the organization.
The analysis of the external environment will help the company to answer partly to the
question: What is the company facing and what risks and opportunities can the
business activities have? Many external factors can have a direct or indirect impact on
the performance of the company or its rivals. In order to analyze the direct influence of
the external factors on the business practice, a model of five forces by Micheal Porter is
used as the most powerful tool.
As far as we know, the business line includes a group of companies producing
substitute products (goods or services) to satisfy a certain demand of customers. The
responsibility of a strategic manager is to analyze competitive pressures in the business
environment so that he or she can recognize risks and opportunities his or her company

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Substitutes
Figure 1.4: Model of five competitive forces
Competitors of the same business line. Knowing what rivals think about the
company and others of the same line is an advantage. However, if the assumption is not
exact, it will create "blind" points, i.e. weaknesses of the rivals. Similarly, the company
will have incorrect assumptions about the business line or its business environment.
For example, American car manufacturers used to think that the demand for small cars
depends on the economic condition. But they made it wrong because foregn rivals
could manufacture more luxurious cars of higher quality which won the popularity of
the customers.

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