The thesis t it le
The thesis n e ce ssity
T h e ra p id e x p a n s i o n o f s h r i m p í a r m i n g in V i e tn a m h a s c r e a t e d a ra n g e o f d e v e lo p m e n t o p p o r tu n itie s a n d c h a lle n g e s to in v e s to rs T h e r e s e a r c h f o u n d out th a t
IC Company's current production capacity is only one-third utilized, leading to a minimal market share To enhance its market position, the company must adopt a growth strategy that focuses on significant investments in expansion.
This thesis aims to develop effective business strategies for the growth of ICC Company The research has enhanced the strategy formulation process by providing valuable recommendations and proposing an actionable plan that can be implemented to achieve these strategies.
O b je c tiv e s
The objectives of this thesis are to review business strategy theories, provide an overview of the shrimp farming industry in Vietnam and the shrimp market in Quang Ninh, present an analysis of ICC Company and its business environment, and develop a suitable business strategy for the company's future growth Additionally, the study offers insights into the company's current strengths and weaknesses while identifying an action plan for production expansion.
M eth o d
T h is th e sis a p p lie s th e c a s e s tu d y to b u ild b u s in e s s s tr a te g y f o r IC C o m p a n y T h e r e s e a rc h h a s b e e n p re p a r e d m a in ly t h r o u g h d e s k s tu d y r e v i e w s o f a v a ila b le litera tu re a n d d a ta th r o u g h th re e b a s ic steps:
The first step involves reviewing theories of strategy and strategic management This study focuses on the literature regarding existing approaches to business strategy formulation and identifies a common process for developing effective business strategies.
T he s e c o n d step is b a s e d on the research o f s h rim p ía r m in g in d u s try in V ie tn a m and íìn d s o ut s p e c iĩic ía c to rs that in ílu en t the busin ess success.
The case study of ICC Company involves an analysis that includes interviews with the company's managers responsible for strategic planning This analysis facilitates the development of effective business strategies and offers recommendations related to the implementation of these strategies.
Data so u rce s
The theoretical review and collection of secondary data were conducted through extensive research of books, reports, newspapers, and online sources Primary data was gathered via interviews with managers and key employees of the ICC company A significant aspect of this research is my personal experience within the company, which facilitated a deeper understanding of specific industry issues.
By examining the theory of strategy and strategic management, and understanding the impacts of the business environment, this thesis provides valuable insights for ICC Company in developing effective business strategies This theoretical framework can also be applied to other companies within the shrimp farming industry.
The study is limited by the small number of local market competitors analyzed, and the lack of detailed information and data on these competitors may not fully represent the competitive landscape of the industry.
This thesis aims to develop effective business strategies for the growth of the ICC company The methodology proposed is anticipated to be successfully implemented in case studies of other companies within the shrimp farming industry.
T he thesis is s tarted w ith the intro d u ctio n part, fo llo w in g by th ree c h ap ters and the co n clu sio n part.
C h a p te r 1 p r o v id e s a fu n d a m e n ta l rev ie w o f strategy a n d strateg ic m a n a g e m e n t theory It fo c u s e s e s p e c ia lly on the busin ess strategy ío rm u la tio n process.
C h a p te r 2 d is c u s s e s the s h rim p fa rm in g in V ie tn a m , h ig h lig h tin g its latest d e v e lo p m e n t a n d k e y su ccessful íactors.
Chapter 3 focuses on ICC Company, analyzing its environment to identify external opportunities and threats, as well as internal strengths and weaknesses that inform the company's business strategy Additionally, the chapter provides recommendations for effective strategy implementation.
T h e rap id c h a n g e o f e n v iro n m e n t íactors, like te c h n o lo g ic a l a d v a n c e s , clim ate, and c u s to m e r ’s lifestyle, cre a te s b oth o p p o rtu n itie s an d c h a lle n g e s to the in d ustry and
IC C o m p a n y T h e re fo re , it could b e interestin g i f fu rth e r re s e a rc h w ith larger sam ple size c o u ld b e u n d e rta k e n to co n ĩirm fu lly the fin d in g o f this study.
The significance of strategy and strategic management for organizational success is widely acknowledged in both academic literature and practical applications Implementing effective strategies is essential for organizations to achieve their objectives, enhance competitive advantages, and increase overall value.
In today's competitive business environment, managers and employees at all organizational levels are increasingly pressured to assume strategic responsibilities It is crucial for them to grasp both the concepts and processes of strategic management to navigate these challenges effectively.
This c h a p te r p ro v id e s th e b asic u n d e r s ta n d i n g o f s tra te g y , b u s in e s s s trateg y and strategic m a n a g e m e n t T h e c h a p t e r íb c u s e s on s tra te g y í o r m u l a t i o n as a p art o f the strategic m a n a g e m e n t.
Strategy is a carefully crafted plan aimed at achieving specific long-term goals The term originates from the ancient Greek word "strategos," which combines "stratos," meaning army, and "ago," meaning leading Initially rooted in military applications, the concept of strategy has since been adapted for use in the business world.
T h ere is v e ry little a g r e e m e n t a b o u t th e m e a n in g o f s tra te g y in th e w o rld o f business A lth o u g h stra te g is ts a n d p ra c titio n e rs u n d e r s ta n d s tr a te g y in d ifferent
In various contexts, there are common concepts related to strategy First, strategy encompasses perspective, which involves vision and direction Additionally, strategy pertains to positioning, reflecting decisions to offer specific products and services in targeted markets.
1 O xpo rd E n g lis h D ictio narv
2 hltp://en.\vikipedia.org/\viki/Stratcgy
3 H en ry M in t/b crg (1 9 9 4 ), "The R ise a n d F a ll o fS tr a te g ic P la n n in g " s S trateg y is a plan, a “h o w ” , a m e an s o f g ettin g from here to there s Strategy is a pattem in actions over time
Strategy is the art of the general, focusing on how objectives will be achieved through broad, long-term planning It emphasizes the deployment of resources, while tactics are concerned with their actual employment In both business and military contexts, strategy serves as a bridge between policy and tactics, effectively connecting ends with means Together, strategy and tactics create a cohesive approach to achieving goals.
Strategy is a fundamental aspect present in organizations of all sizes, from small businesses to large corporations, as well as in political and social entities It manifests at various levels within an organization, including corporate, business, and functional strategies Corporate strategy, developed at the highest management level, involves selecting the businesses in which the company will compete and determining how resources will be allocated among them Business strategy focuses on competitive approaches within specific markets, while functional strategy pertains to the activities within different functional areas of the organization.
M o s t b u s in e s s e s h a v e strategies w h ic h m ay n ot b e íb rm a lly w ritten but still exist.
Business strategy is a plan fo r how a firm w ill compele, whal its goals shouỉd be and \vhat policies W ’ilỉ be need to achieve goals.5
A business strategy combines investment decisions with the development of a sustainable competitive advantage This involves evaluating the product and market, determining investment intensity, and allocating resources effectively Establishing a sustainable competitive advantage relies on leveraging the unique strengths of a business, including its assets, technology, human resources, and management capabilities.
4 F re d N ic k o ls (20(X)) "Strategv: D efinilions a n d M e a n in g " w w w n ic k o ls.u s
Since p u b licatio n , M ic h a e l E P o rte r’s “C o m p e titiv e S tr ơ te g y ” has in ừ o d u c e d the theory and p ra c tic e o f b u s in ess strategy th ro u g h o u t the vvorld.
Competitive strategy involves seeking a favorable position within an industry, which is the primary arena for competition Its goal is to establish a profitable and sustainable position against the forces that shape industry competition.
C o m p e tiíiv e s ír a te g y is a co m b in a tio n o f the en d s (g o a ls) f o r w h ich the firm is s lr iv in g a n d the m ea n s (policies) b y w h ich ií is s e e k in g to g e í there 7
Michael Porter identifies three generic strategies—cost leadership, differentiation, and focus—that businesses can implement at the unit level to gain a competitive advantage and mitigate the impact of competitive forces These strategies are essential for navigating the complexities of industry competition, allowing companies to position themselves effectively in the market Additionally, the four basic alternative competitive strategies include cost leadership, differentiation, cost focus, and differentiation focus, each offering unique pathways to achieve business success.
Overall Cost Leadership Differentiation Ị N ar ro vv Cost
6 M ichael Portcr (1 9 8 5 ) ‘C om petitive A d \’antage: C reating a n d Susta in in g S u p erio r P er/orm ance "
7 M ich acl Porter (1 9 9 8 ) “C om petitive strategy”
Cost leadership involves producing the same product or service at a lower cost than competitors By establishing a more efficient production or service delivery process, a company can offer lower prices while still maintaining profitability.
1.2.2.2 Differentiation: P ro d u c in g the sam e p ro d u c t or S e r v i c e a t a h ig h e r quality than c o m p e tito r s do.
1.2.2.3 F o c u s : F o c u s in g ex c lu siv e ly on a n a iro w s e g m e n t o f the m arket.
