Study objective of the thesis
- Systematization of the theoretical issues on strategic management
- Analysis and evaluation of the internal and external situation of the enterprise, from which to evaluate the strengths, weaknesses, opportunities and challenges for the enterprise.
- Propose some strategic complete solutions of the company in the period of2012-2016.
Scope of study
General theoretical basis and foundation toform the business strategy.
- Scope of study does not include building materials industry, safety deposit boxes, mobile phones, solar energy.
- Analysis & evaluation of the internal and external situation of the enterprise, evaluation of strengths, weaknesses, opportunities and challenges for the enterprise.
- Determination of some strategic complete solutions of Vietnam Australia in the period of 2012-2016.
Research method
- Use of the available documents (secondary data) to consider the size, structure and trend of the market
- Research, investigation and survey to collect primary data which is mainly qualitative method.
Structure of the thesis
In addition to the introduction and conclusion, the thesis is divided into three chapters:
- Chapter 2: Business strategy construction for KANGAROO
- Chapter 3: Selection of strategic implementation
Concept
"Strategy" is a term derived from the Greek "Strategos" used in military
Modern time military theorist Clawzevit also said that: Military strategy is the art of commanding in advantageous position.
A publication of the Larous dictionary considered: strategy is commanding art of the means to win.
According to scholar Dao Duy Anh in the Vietnamese Dictionary, strategy refers to the plans devised to achieve victory on one or more fronts In the military context, strategy is recognized as the art of command essential for winning wars.
1.1.1.2 Approach in the new concept.
Modern business organizations are increasingly adopting innovative strategies to manage human resources, finances, and assets effectively, aiming to enhance their core interests Kenneth Andrews, in his seminal work "The Concept of Corporate Strategy," emphasizes that strategy involves leveraging an organization's strengths and addressing its weaknesses while navigating the surrounding opportunities and threats.
Brace Henderson, founder of the Boston Consulting Group, emphasizes the importance of competitive advantage in strategic planning He defines competitive advantage as a company's ability to create greater economic value for customers compared to its rivals According to Henderson, a successful strategy involves a deliberate search for a unique plan of action that leverages and enhances an organization’s competitive advantages He asserts that two competitors cannot thrive simultaneously if their business methods are identical, highlighting the necessity of establishing distinct differences to ensure coexistence in the market.
Michael Porter supports Henderson's view that competitive strategy hinges on differentiation It involves a meticulous selection of distinct activities aimed at generating a unique value proposition.
A business strategy serves as a blueprint for an enterprise's future direction and operational capabilities It is commonly understood in three key contexts, highlighting its significance in guiding organizational goals and resource utilization.
- Determination of long-term goals of the business
- Recommendation of general action programs
- Selection of the action plans, deployment of the allocation of resources to implement that goal.
The strategy outlines clear objectives and a defined business direction for each period, focusing on the comprehensive execution of administrative activities Its orientation is designed to ensure the business's continuous and stable development, even in a frequently volatile environment.
A business strategy outlines the long-term operational direction and framework of a company It serves as a guiding orientation that must align strategic objectives with economic goals To ensure business efficiency, it is essential to evaluate the feasibility of these strategies and adjust them according to the prevailing environment and market conditions, thereby mitigating potential biases stemming from strategic decisions.
A successful business strategy leverages the company's competitive advantages to optimize resource utilization, including human resources and both tangible and intangible assets By focusing on core competencies, businesses can enhance their strengths and capitalize on opportunities to secure a sustainable competitive edge now and in the future.
Business strategy is reflected in a constant process from construction to implementation, evaluation, inspection and adjustment of the strategy.
An effective business strategy is characterized by an offensive mindset aimed at gaining a competitive edge It is developed and executed by identifying and capitalizing on business opportunities, leveraging the company's comparative advantages to enhance overall performance.
Strategic decision-making in the processes of building, implementing, evaluating, and adjusting strategies is primarily the responsibility of the senior management team To maintain the integrity of long-term decisions, it is crucial to safeguard competitive information.
In the market mechanism, the construction and implementation of a robust business strategy are crucial for the survival and growth of an enterprise.
Business strategy helps the business identify its purpose direction in the future as the guideline for all activities of the business.
A well-defined business strategy is essential for the long-term success of an organization, serving as a foundation for operational execution Without a clear and coherent strategy, businesses risk losing direction, leading to various challenges that may arise from a narrow, localized perspective rather than considering the overall enterprise activities.
Business strategy helps the firm understand and take advantage of business opportunities, and simultaneoulsy have active measures to deal with the threats on the business market.
Business strategy contributes to improve the use effectiveness of resources, strengthening the position of the firm to ensure it to develop continuously and sustainaby.
A well-defined business strategy establishes a strong foundation for decision-making in response to market changes It supports critical areas such as research and development, investment, personnel training, product innovation, and expansion efforts Many investment errors and missteps in technology and market approaches often stem from inadequate strategic planning or unclear strategic objectives.
Construction of business strategy
1.2.1 Selection of the targets, visions, missions and strategies
A company's vision is a clear and concise representation of its aspirations, often reflecting the dreams of its founders or leaders This vision should be effectively communicated to ensure that all employees understand it, fostering confidence among potential investors and encouraging them to buy shares in the company.
Vision suggests a orientation for the future, a desire of a brand about what it wants to achieve.
A strategic intention often evokes a vision of the future, embodying an ideal standard that reflects a brand's core values This vision is not only optional but also unique, representing the creation of something exceptional.
A brand's vision serves as a concise message that guides its long-term direction, acting like a converging lens that focuses all brand energy towards a unified goal By establishing a clear vision, businesses can effectively determine their strategic actions and identify what aligns with their brand values.
The company's mission defines its core purposes, foundational reasons for establishment, and ongoing development It serves as a declaration to society, demonstrating the company's value and significance within the community.
The company's mission statement is crucial for defining its purpose, outlining the business's focus on products, markets, customers, and technology It encapsulates the organization's existence, aspirations, target audience, and operational methods, serving as a guiding philosophy for its endeavors.
Customers: Who are the consumers of products and services of the company?
Product or core service: what is the company's main service or product?
Market: Which market does company compete?
Technology: Is technology a leading concern of the company?
The attention to other important issues: such as the survival and development, profitability and the company is bound to target any other business or not?
Philosophy: What are the basic beliefs, values, aspirations and philosophical priorities of the company?
Self-assessment: what are primarily special powers or competitive advantages of the company?
Concern for public image: Is the image of the community primary concern of the company?
Concern for employees: How is the company's attitude for its staff?
1.2.1.3 Core values (There are 4 definations about core values mentioned)Definition 1 :
Core values represent the fundamental principles that a company cannot alter or pay for in cash These values establish the foundation for the organization's internal policies and guidelines.
- As a belief system affects behavior between people with people or between groups of people together;
- The core values are "soul" of the organization;
- As the efficient values which are ingrained in the organization
- Core values help form the psychological organization from which it can support or remove individual psychology.
The core values are the essential, long-term guidelines and rules:
- To help orient decisions and actions of an organization;
- Not to be cultural actions or specific activities;
- To be not built for the financial purpose of or other interests in the short term;
- The organization will want to retain the core values even when the task has changed.
As the essential and long-term principles of an organization - a set of small guiding rules which have a profound effect on how people in organizations think and act.
Core values hold intrinsic significance within an organization, transcending public opinion These rare guidelines serve as the organization's soul, exerting a profound influence on its culture and direction They are essential for guiding all actions and decisions, ensuring alignment with the organization's mission.
Core values are fundamental principles that remain stable despite market fluctuations Organizations prioritize these essential values, often adapting the market to uphold their true core beliefs.
The macroeconomic environment significantly influences the health and prosperity of the economy, impacting businesses and industries alike Consequently, firms must analyze the economic landscape to identify strategic changes, trends, and their implications for informed decision-making.
The economic environment defines the nature and direction of a business's operations, and in today's interconnected global economy, companies must assess not only their domestic conditions but also the economic health of other nations This is crucial as economies such as those of the U.S., China, Japan, and the European Union significantly impact global markets, requiring firms to continuously monitor and evaluate external economic factors.
The economic environment significantly influences a company's ability to generate value and income, with four key factors playing a crucial role: the rate of economic growth, interest rates, exchange rates, and inflation rates.
Economic growth stimulates increased consumer spending, creating a more favorable competitive environment for businesses This presents companies with opportunities to expand their operations and enhance profitability Conversely, during an economic recession, consumer spending declines, intensifying competitive pressure and often resulting in price wars within saturated industries.
Interest rates significantly influence the demand for a company's products, especially when customers need to borrow funds to finance their purchases Understanding the impact of interest rates on consumer borrowing is crucial for businesses aiming to optimize their sales strategies.
The exchange rate plays a crucial role in determining the value of national currencies and significantly impacts the global competitiveness of companies When a country's currency depreciates compared to others, its products become relatively cheaper than foreign goods, enhancing their appeal in international markets This decline in domestic currency value not only mitigates competition from abroad but also opens up opportunities for increased sales overseas.
High inflation undermines economic stability, leading to slower growth, elevated interest rates, and volatile exchange rates As inflation rises, investment planning becomes increasingly risky, complicating accurate projections of future income from projects This uncertainty discourages companies from investing, resulting in decreased economic activity and potential stagnation Therefore, high inflation poses a significant threat to businesses and the overall economy.
The political factors have greater impact on the operation of the businesses. They can create opportunities and obstacles even real risks for the businesses for political change.
Legal and policy factors also have great impact on the level of the opportunities and threats from the environment.
Tools used in business strategy
The SWOT matrix, which combines threats, opportunities, weaknesses, and strengths, serves as a crucial tool for managers in formulating four key strategies: Strengths-Opportunities (SO), Strengths-Weaknesses (WO), Strengths-Threats (ST), and Weaknesses-Threats (WT) Effectively integrating internal and external factors is a complex challenge in developing this matrix, necessitating accurate forecasting to achieve optimal combinations.
SO strategies leverage a company's internal strengths to capitalize on external opportunities, enabling organizations to align their resources with market trends Managers aim to position their firms to utilize these strengths effectively, often employing WO, ST, or WT strategies as precursors to implementing SO strategies When faced with significant weaknesses, companies strive to transform them into strengths, while also addressing critical threats to maintain focus on available opportunities.
WO strategies focus on enhancing internal weaknesses while leveraging external opportunities Often, these opportunities exist, but a company's internal weaknesses hinder its ability to capitalize on them effectively.
ST strategies use a firm's strengths to avoid or reduce the impact of external threats This does not mean strong organization always must meet the threats from the external environment.
WT strategies are essential defensive tactics that help organizations mitigate internal weaknesses and shield against external threats Companies facing numerous external challenges and internal vulnerabilities risk entering an unsafe state, often struggling for survival Without effective WT strategies, these organizations may be forced to limit expenses, declare bankruptcy, or face insolvency.
Use strengths to take advantage of opportunities
WO strategies Overcome weaknesses by taking advantage of opportunities
Use strengths to avoid threats
Minimize the weaknesses and avoid threats
1.3.2 Strategic position and action evaluation matrix (SPACE)
The Strategic Position and Action Evaluation Matrix (SPACE) is a crucial tool used in phase 2 of strategic planning, visually represented in a chart that identifies the most suitable strategies—competitive, aggressive, defensive, or competitive—for an organization The axes of the SPACE Matrix reflect the organization's internal factors, namely Financial Strength (FS) and Competitive Advantage (CA), alongside two external factors: Environmental Stability (ES) and Industry Strength (IS) These four elements are essential in determining the overall strategic position of the organization.
Depending on the type of organization, there are many variables that may lie in the representing factors for the axis of the SPACE matrix.
Here are the steps to develop a SPACE Matrix:
1 Select a group of variables with financial strength (FS), competitive advantage (CA), environmental stability (ES), and industry strength (IS).
2 Assign a numerical value from +1 (worst) to +6 (best) for each variable of the FS and IS aspects Assign a numerical value from -1 (best) to -6 (worst) for each variable of ES and CA aspects.
3 Calculate the average score for FS, IS, ES and CA by summing the values assigned to the variables in each aspect and then divide them to the the variables of respective aspects.
4 Mark the average score of the FS, IS, ES, and CA on the appropriate axis of the matrix SPACE.
5 Sum up 2 scores of the x-axis and mark the result on the X axis Sum up 2 scores of the Y-axis and mark the result on the Y Mark the intersection of two new points on this xy axis.
6 Draw vector with direction from the original point of the SPACE matrix through the new intersection This vector presents type of strategy for the organization: aggressive, competitive, defensive or conservative.
Self-governing units, or profit centers, within an organization create what is known as a business investment portfolio When different segments of the organization compete across various industries, it is essential to develop distinct strategies for each business operation The Boston Consulting Group (BCG) Matrix and the Internal-External (IE) Matrix have been specifically designed to assist companies with multiple divisions in formulating effective strategies.
The BCG matrix visually represents the relationship between market share and industry growth, enabling organizations to manage their business investment portfolios effectively It assesses each segment's market share relative to the largest competitor, indicated on the x-axis, where a midpoint of 0.50 signifies a segment holding half the market share of the industry leader The y-axis reflects the sales growth rate, ranging from -20% to +20%, with 0.0 as the midpoint While the axes are typically divided into these standard ranges, organizations can also apply specific numerical values tailored to their unique contexts.
The BCG matrix illustrated in Figure 3 showcases various departments, with each circle symbolizing a distinct business unit The size of each circle corresponds to the income generated by that unit, while the rounded corners indicate the profit levels of each department.
IN D U S T R Y S A LE S G R O W T H R A T E (P er ce nt a ge )
The BCG Matrix categorizes departments into four distinct quadrants: Question Marks in corner I, Stars in corner II, Cash Cows in corner III, and Dogs in corner IV.
- Question Marks - The parts lie on the corner I have a relatively low level of market share but competition in the industry has high growth rates.
- Stars - Parts lie in the corner II represent the best and long-term opportunities for growth and profitability of the organization.
- Cash Cows - Parts of the corner III have the relatively high market share but competition in the industry has low growth.
- Dogs - Parts lie at the corner IV of the organization have a relatively low level of market share and competition in the industry has low growth or no market.
The BCG matrix's primary advantage lies in its focus on cash flow, investment characteristics, and the diverse needs of various organizational segments Typically, company components evolve over time, with dogs transforming into question marks, question marks becoming stars, and stars turning into cash cows, creating a counterclockwise cycle However, not all organizations exhibit this clear progression To optimize their investment portfolio, companies must strive to cultivate and maintain segments that consist of stars over time.
1.3.4 Quantitative strategic planning matrix (QSPM)
The Quantitative Strategic Planning Matrix (QSPM) is a crucial analytical tool used in the third phase of strategic establishment, allowing for an objective evaluation of alternative strategies based on their relative attractiveness It synthesizes inputs from the External Factor Evaluation (EFE) matrix, Competitive Profile Matrix, and Internal Factor Evaluation (IFE) matrix from the first phase, along with insights from the TOWS Matrix, SPACE Matrix, BCG Matrix, and other strategic matrices from the second phase By leveraging key internal and external success factors, the QSPM enables strategists to assess which strategies can be effectively replaced, requiring sound intuitive judgment similar to other strategic analytical tools.
Basic model of the QSPM matrix
Overview of KANGAROO
Founded in 2000, KANGAROO originated from Thanh Do Appliances Refrigeration and Machinery Company, which specialized in both international and domestic appliances This strong product offering allowed Thanh Do to establish a significant presence in the appliances and refrigeration market across the country However, increasing competition has posed challenges as the number of players in the appliances and refrigeration sector continues to rise.
& machinery companies increased quickly and mainly and competed on price In
In 2003, Thanh Do expanded its offerings by introducing event organization services alongside its operations, launching a new product line that included household appliances, electronics, and machinery, all complemented by professional event management.
In 2006, Thanh Do successfully restructured the team-building operating model, leading to the official renaming of the company to VIETNAM AUSTRALIA ELECTRONICS MACHINERY GROUP JOINT STOCK COMPANY This significant transformation garnered considerable attention from customers and became a key element of the company's strategic development.
In 2009, KANGAROO took a significant step forward by launching the KANGAROO Training Center, a facility dedicated to refrigeration and electrical training in Vietnam Strategically located within the V'star entertainment complex in Hoa Binh province, the center offers a unique blend of training and leisure, providing an engaging environment for its participants.
As such, VIETNAM AUSTRALIA REFRIGERATION ELECTRICAL
ENGINEERING GROUP JOINT STOCK COMPANY offers a diverse range of nearly 100 household and refrigeration products, including meat grinders, blenders, ozone detoxifying jacuzzis, steam fans, and electric rice cookers Among these, the household product line is highlighted as the company's most distinctive offering, reflecting its long-term development strategy.
Head office: VIETNAM AUSTRALIA REFRIGERATION ELECTRICAL
ENGINEERING GROUP JOINT STOCK COMPANY
Chairman and CEO Nguyen Thanh Phuong has photograph with President
Chairman and CEO Nguyen Thanh has photograph with Vice President of
Congress Nguyen Thi Kim Ngan
Product system of Vietnam Australia (Kangaroo brand)
Model of management of KANGAROO
Supervisory Board Board of management
Department/Board of the Group Factory Subsidiaries and branches
Advertising Dept Legislation Dept Finance and
Technical Dept artment Business Dept
Vietnam Australia Home alliance Group Joint Stock Company
Kangaroo telecommunications electronics joint stock company
Kangaroo coffer and safety system joint stock company
Kangaroo energy exploitation limited company
Kangaroo building material product joint stock company
Vietnam Australia 2 Trade and Services Company
2.1.2 Mission and strategic objectives of the company
Vision: KANGAROO will become the leading company in the Southeast
AsianVietnam in household industry in 2016.
KANGAROO aims to establish itself as a market leader by offering consumers an extensive selection of innovative products that prioritize advanced technology, quality, and exceptional service, all designed to enhance wellness and improve daily living conveniences.
Analysis of external environment
Since its inception, the company has taken the lead in competition by focusing on learning and development, identifying effective strategies, and securing an appropriate market share to guarantee its success.
As of now, approximately 50 companies operate in the appliances, refrigeration, and machinery sector, with over 40 of these located in Hanoi The author has identified 12 key criteria for comprehensively evaluating the business environment in this industry.
- Excellence leadership aims at assessing orientation ability, decision-making and management of the management board of the company,
- Financial management will demonstrate the financial ability as well as how to control capital, cash flow, debt of providers and customers
A professional marketing team showcases their qualifications and experience, demonstrating adaptability to market changes This enables them to consistently develop innovative and distinctive products that cater to the evolving needs of customers and consumers.
- Thoughtfull after sales: As sensitive area, it is often expressed in physical and mental things to show thoughtful attention of the company to customers.
- Different products are products you have that others do not have, or if any, it is at all different levels, class and sizes.
- Skilled management team is a major factor to lead to the success of the business in this area.
- Strong brand: This is general indicator, which is compiled by the development process of the enterprise by great success in the marketplace and well known by people.
The optimization process involves standardizing and streamlining systems to eliminate unnecessary stages, ultimately enhancing efficiency This approach minimizes the influence of individual variations on the overall performance results of the company.
- Excellent R & D is basic root to create differentiated and preminent products more than same products of competitors.
Competitive pricing significantly influences purchasing decisions for products and services However, in the service sector, varying standards can lead customers to make unwise choices Opting for cheaper services often results in lower quality, ultimately making these customers expensive in the long run.
Excellent customer service is crucial throughout the implementation process, from initial contact and proposal to contract signing and program execution Attentive and careful support from employers significantly enhances the customer experience To achieve this level of service, businesses must establish detailed procedures and guidelines tailored to each department within the organization.
Professional sales staff serve as the face of the company, engaging directly with customers to understand their needs and gather requirements Their expertise allows them to recommend suitable programs and solutions that align with client expectations By providing informed advice, these sales professionals ensure customers receive the best products and services at competitive prices.
We evaluated the competitive landscape of VIETNAM AUSTRALIA REFRIGERATION, ELECTRICAL ENGINEERING GROUP JOINT STOCK COMPANY using 12 key criteria to identify its strengths and weaknesses in the northern market Our assessment involved interviews with three groups: managers from rival companies, employees within those companies, and customers familiar with various programs This comprehensive approach allowed us to gain valuable insights into the competitive dynamics and identify suitable strategies for improvement.
The author concludes from the interviews that KANGAROO stands out among competitors due to its team of experienced and assertive leaders who are bold pioneers in new areas A key strength of KANGAROO is its commitment to innovation, consistently delivering unique and impressive products that set it apart in the market.
The company boasts a skilled and experienced management team, which is one of its key strengths However, it faces challenges, including higher prices compared to competitors and average after-sales service Additionally, the business staff's performance is lacking, with many customers drawn to the company primarily due to its well-known brand.
IMAGE ANALYSIS OF KANGAROO IN THE COMPETITION OF
Water Purifiers Kangaroo Myota Coway
2.2.2 Five factors of competitive environment
+ Project client, online purchases & TV
+ International buyers with the demand of export
KAGAROO strategically targets medium and large-scale customers in the Northern market, focusing on over 2,000 patrons as the number of home appliance supermarkets continues to surge due to Vietnam's robust economic growth and significant foreign investment The diverse requirements of clients necessitate tailored solutions for each business, highlighting the importance of customization in product offerings Additionally, KAGAROO faces the challenge of maintaining customer loyalty by consistently delivering fresh, engaging, and innovative programs This underscores the need for a dynamic R&D team dedicated to developing new products that align with customer culture and expectations, ultimately allowing KAGAROO to capitalize on identified opportunities.
Every year, KANGAROO actively signs long term contracts with foreign suppliers (ODM)
KANGAROO faces a significant challenge in combating copyright theft, particularly in the household products and electrical appliances sectors, where it is difficult to secure copyright registration for unique, high-quality items This situation necessitates substantial investment from companies to develop innovative ideas, yet success is not guaranteed Meanwhile, imitators often resort to aggressive discounting strategies to attract customers, making it challenging for the original companies to pursue legal action or impose penalties effectively.
KANGAROO recognizes that while it cannot control external factors, understanding their impact on business operations is crucial The company consistently monitors and updates information on macroeconomic trends to develop and adjust effective business strategies in a timely manner.
In recent years, the development of the global and Vietnamese economies has significantly benefited the household refrigeration and electronic appliance industry in Vietnam The country's GDP experienced impressive growth, reaching 8.5% in 2007 and 7% in 2008, with a resilient 5.2% during the global economic crisis of 2009 This trend continued with stable growth of around 7% in 2010, indicating an increase in the number and size of businesses Despite challenging production conditions, the commitment and unity among leadership and staff have become crucial for enterprise survival and growth As material resources become limited, the motivation derived from collective efforts plays a vital role Additionally, rising average incomes—$1,780 in 2007, $2,050 in 2008, and $2,300 in 2010—have expanded the target customer base for companies like VIETNAM AUSTRALIA REFRIGERATION, ELECTRICAL ENGINEERING GROUP JOINT STOCK COMPANY However, an inflation rate of 18% in 2012 has significantly impacted market purchasing power.
In recent decades, rapid advancements in science and technology have significantly transformed various economic sectors, particularly household and electrical appliances These technological improvements enhance productivity, boost economic efficiency, and reduce work time, allowing for increased leisure and entertainment opportunities Additionally, the development of the internet fosters global connectivity, enabling better understanding among people worldwide This evolution also leads to upgrades in transportation, hospitality, and recreational facilities Moreover, technology facilitates the service industry in exchanging and accessing customer information more conveniently For instance, KANGAROO has transitioned from relying on traditional market contacts in Asia, France, China, and Japan to receiving direct orders from customer delegations via the internet.
Analysis of internal environment
Infrastructure factor : sales and work offices is located at 30 Tran Dai Nghia
Located in central Hanoi, the company benefits from convenient transaction opportunities and enhanced brand visibility Additionally, it boasts the largest factory in Vietnam and Southeast Asia, situated in the Van Lam technology area of Hung Yen.
The company's factory in Tan Quang, Van Lam district, Hung Yen
KANGAROO operates under a stringent regulatory framework, with clearly defined responsibilities distributed from the management board to the director and advisory departments The leadership team, comprised of seasoned professionals in home appliances, refrigeration, and electrical appliances, has successfully guided the company towards consistent and positive business growth.
KANGAROO has cultivated a unique cultural identity characterized by open and friendly relationships among leaders, staff, and customers The company emphasizes its brand image through thoughtfully designed office spaces, a distinctive logo, and a well-defined business philosophy Annual events such as sports activities, company outings, and birthday celebrations foster strong connections among employees Additionally, company leaders prioritize regular meetings and communication with customers to gather feedback and enhance product quality, ultimately building trust and better addressing customer needs.
Management Organization chart of Vietnam Australia
2.3.2 Factors of financial accounting and management of goods & materials
The household appliance and refrigeration sector requires significant capital for trade and manufacturing operations An analysis of KANGAROO's business data from 2009 and 2010, along with its balance sheet as of December 31, 2010, indicates a relatively healthy financial condition, with a return on investment (ROI) averaging 50% per year The company's stable suppliers ensure competitive pricing for input goods, which contribute to product costs KANGAROO has established processes for monitoring and approving the purchasing and management of import and export goods, effectively preventing stagnation of working capital and minimizing the risk of obsolescence and damage to inventory.
2.3.3 Product development and research factor
Customers can only assess the quality of specific products after using them, making it challenging to study new and unique offerings Effectively communicating the appeal of these innovative products to consumers is even more complex To develop attractive new products, the R&D department must foster creativity, collaborate with colleagues, and continuously research successful global products online to identify those best suited for their clients.
The company has recently invested in a new brand identity, highlighted by the appointment of Brand Ambassador Thuy Van and a comprehensive refresh of its publications, brochures, and website This strategic move has enhanced the company's luxurious image on an international scale, attracting a significant number of tourists and ensuring stable employment in recent years The firm consistently engages with clients to assist them in selecting products and services, while meticulously monitoring the execution of service contracts to ensure customer satisfaction However, despite these achievements, the company has struggled to address customer inquiries and complaints promptly and effectively Additionally, it has yet to implement a customer classification system to develop tailored care policies.
Also through the survey and explorationm it shows company's services and products are higher than the same products of the rival companies but it’s still loved
1 Leading household brand in the North 20% 4 0,8
2 First image in the market (the new brand identity set & brand ambassador) 10% 3 0,3
3 ODM partner with world leading class 15% 3 0,45
4 Strongdistribution system, especially home appliance supermarket channel 20% 4 0,8
1 Investment in brand and image in the Middle & South has not been invested 5% 2 0,1
2 Direct competition with products imported from China, Korea, Taiwan
3 Products fail to meet the diverse needs of the South people in design, style 5% 2 0,1
4 Distribution system has not deployed deeply & widely in the southern provinces 5% 1 0,05
5 Limitation in the ability to penetrate and export in the markets of countries in Southeast Asia 5% 1 0,05
SWOT analysis of KANGAROO
Using the SWOT matrix method for factor analysis, we identify four key groups: Strengths, Weaknesses, Opportunities, and Threats Strengths and Weaknesses are internal factors specific to the enterprise, while Opportunities and Threats pertain to the external business environment.
SWOT analysis table of KANGAROO.
1 The leading home appliance brand in the
1 Brand and image has not been invested in the Middle & South
2 The leading image in the market (the new brand identity set & brand ambassador)
2 Direct competition for products imported from China, Korea, Taiwan spread today.
3 ODM partner has the leading world class 3 Products fail to meet the diverse needs of the Southern people in design, style
4 Strong distribution system, especially home appliance channel.
4 Distribution system has not been deeply
& widely deployed in the southern provinces
5 Strong financial capability 5 Limitation in the ability to penetrate and export in the markets of countries in
1 Potential from new customer group & new market areas in the South & Southeast Asia.
1 In the household sector market more and more International and Multinational
2 The market has great potential for expanding the depth and length of the line of household products
2 Unhealthy competition leads to disorder price & fake product
3 Positioning new products in niche segments of modern consumers, high income, popular gadgets & new features
3 Input price and exchange rate changes lead to fierce advantages and competitiveness
4 Ability to annex & acquisition of industry rival high water filters
4 Banks tighten lending situation and high interest rates leading to competitiveness in the market reduces - payment - debt investment of customer is still low
Vision and mission of the company during the period of 2011 - 2015
After analyzing the strengths, weaknesses, opportunities and threats, towards the solutions which should be concerned specifically as follows:
- Promote, attract and develop new customers, develop Southern markets & other countries in South East Asia.
- Construct Kangaroo Academy to train management & staff force of the Group
- Focus resources on the development of R & D
- Implement the leading after sales policy in the industry for customers
- Adopt attractive policies to attract qualified, experienced professional talents.
- Marketing needs to supplement good human resources, have midterm - long term plans and large budget.
Important groups of business strategy are differentiation strategy and focus strategy to help KANGAROO to come to success in the near future, namely:
- Focus on research and development of new products,
The company will concentrate its resources on enhancing product size and quality to boost its competitiveness in the market, specifically targeting consumers with fair income and above.
By integrating differentiation and focus strategies, KANGAROO can gain a competitive advantage and dominate a specific market segment, ultimately achieving the highest market share in that niche Consequently, the importance of product pricing diminishes, allowing the brand to prioritize quality and unique offerings over cost.
TOWS matrix analysis
Based on the assessment of the company's strengths, weaknesses, opportunities, and threats, we will create a SWOT Matrix to identify strategic combinations that can help achieve our goals.
1 The leading household brand in the North
1 Brand and image has not been invested in the
2 The leading image in the market (the new brand identity set & brand ambassador)
2 Direct competition for products imported from China, Korea, Taiwan spread today.
3 ODM partner has the leading world class
3 Products fail to meet the diverse needs of the
Southern people in design, style
4 Strong distribution system, especially home appliance channel
4 Distribution system has not been deeply & widely deployed in the southern provinces
5 Limitation in the ability to penetrate and export in the markets of countries in Southeast Asia
1 Potential from new 1 Strengthen 1 Increase budgets for customer group & new market areas in the South
& Southeast Asia. expenditure budget for image and the brand identity set promotion
& building throughout the northern provinces (S1, S2, O1) image and the brand identity set promotion & building in Hochiminh City
2 The market has great potential for expanding the depth and length of the line of household products
3 Positioning new products in niche segments of modern consumers, high income, popular gadgets & new features
2 Exploit deeply consumer market with fair income and over by new products on the features, usability and improvement of better design, form (S3, S4, S5, O2, O3)
2 Enhance product with colors and designs to match individual tastes of the Southern people (W3,
4 Ability to annex & acquisition of industry rival high water filters
1 In the household sector market more and more
1-Construct exclusive distribution & exclusive retail chain of Kangaroo in Hanoi
1 Alliance strategy with transnational partners groups from Australia, Japan to develop high quality products & leading after sales service quality in Vietnam (T1, W2)
2 Unhealthy competition leads to disorder price & fake product
3 Input price and exchange rate changes lead to fierce advantages and competitiveness
& work capital by the high discount policy for customers who pay immediately (S5, T3,
4 Banks tighten lending situation and high interest rates leading to competitiveness in the market reduces - payment - debt investment of customer is still low
1 The leading household brand in the North
1 Brand and image has not been invested in the
2 The leading image in the market (the new brand identity set & brand ambassador)
2 Direct competition for products imported from China, Korea, Taiwan spread today.
3 ODM partner has the leading world class
3 Products fail to meet the diverse needs of the
Southern people in design, style
4 Strong distribution system, especially home appliance channel.
4 Distribution system has not been deeply & widely deployed in the southern provinces
5 Limitation in the ability to penetrate and export in the markets of countries in Southeast Asia
1 Potential from new customer group & new market areas in the South
1 Buil products with average price which is appropriaten with ordinary class in the
2 The market has great potential for expanding the depth and length of the line of household products
North, South, Middle, Cambodia and Laos, Cambodia, Myanmar
3 Positioning new products in niche segments of modern consumers, high income, popular gadgets & new features
1 Enhance products with colors and designs which is appropriate particularly with tastes of the Southern people (W3, W4, O 2, O3)
4 Ability to annex & acquisition of industry rival high water filters
1 In the household sector market more and more
1 - Establish regional distributors spread across the country (S4,
1 Cheap cost strategy & few models to compete with smuggled goods, the domestic companies
2 Unhealthy competition leads to disorder price & fake product
3 Input price and exchange rate changes lead to fierce advantages and competitiveness
& work capital by high discount policy for customers who pay immediately (S5, T3,
4 Banks tighten lending situation and high interest rates leading to competitiveness in the market reduces - payment - debt investment of customer is still low
1 Leading household brand in the North
1 Brand and image has not been invested in the
2 The leading image in the market (the new brand identity set & brand ambassador)
2 Direct competition for products imported from China, Korea, Taiwan spread today.
3 ODM partner has the leading world class
3 Products fail to meet the diverse needs of the
Southern people in design, style
4 Strong distribution system, especially home appliance channel.
4 Distribution system has not been deeply & widely deployed in the southern provinces
5 Limitation in the ability to penetrate and export in the markets of countries in Southeast Asia
1 Potential from new customer group & new market areas in the South
1 Strengthen expenditure budget for image and brand identity set promotion
& building throughout the northern provinces (S1, S2, O1)
1 Strengthen expenditure budget for image and brand identity set promotion in Hochiminh city & Da Nang, Can Tho (W1, O1)
2 The market has great potential for expanding the depth and length of the line of household products
3 Positioning new products in niche segments of modern consumers, high income, preferring utilities
2 Exploits deeply consumer market with fair income and over by new products on features, usability and better improvement of design forms (S3, S4, S5, O2, O3)
2 Enhance products with colors and designs which are appropriate particularly with tastes of the Southern people (W3, W4, O 2, O3)
4 Ability to annex & acquisition of industry rival high water filters
1 In the household sector market more and more
1-Construct exclusive distributors & exclusive retail chain of Kangaroo in Hanoi
1 Alliance strategy with partners of transnational groups from Australia, Japan to develop high quality products and leading quality of after- sales service in Vietnam
2 Unhealthy competition leads to disorder price & fake product
3 Input price and exchange rate changes lead to fierce advantages and competitiveness
& work capital by high discount policy for customers who pay immediately (S5, T3,
4 Banks tighten lending situation and high interest rates leading to competitiveness in the market reduces - payment - debt investment of customer is still low
1 SO strategy is strategy to take advantage of opportunities and strengths,known as the exploitation strategy of the potential abilities.
2 WO strategy is strategy to take advantage of opportunities and overcome weaknesses, namely product strategy.
3 ST strategy is the strategy to take advantage of the strengths and overcome weaknesses, namely lower price.
4 WT strategy is strategy to overcome weaknesses and threats, called focus strategy on key factors.
BCG matrix analysis
Data analysis table of product groups
Since then we have BCG matrix
SPACE matrix analysis
Data analysis table of product groups
- 2 Product Life Cycle +3 Profit Potential
- 3 Control Over Supplier + 2 Easy of Entry
( +1 worst, +6 best ) ( -6 worst, -1 best) + 5 Working Capital - 3 Technology change + 3 Return Investment - 3 Competive Pressure
"+3 Return on Asset - 4 Inflation Rate+ 4 Liquidity - 2 Barry to entry i s
- 3 Price eslaticity of demand + 2 Inventory Turnover - 3 Demand Variablity
Since then we have the matrix SPACE
Analysis of QSPM matrix
Focus strategy Differentiation strategy Low cost strategy
1 The leading home appliance brand in the North 20% 4 0,8 15% 4 0,6 15% 4 0,6
2 The leading image in the market (the new brand identity set & brand ambassador) 10% 3
3 ODM partner has the leading world class
4 Strong distribution system, especially home appliance channel 20% 4
1 Brand and image has not been invested in the Middle &
2 Direct competition for products imported from China,
3 Products fail to meet the diverse needs of the Southern people in design, style 5% 2
4 Distribution system has not been deeply & widely deployed in the southern provinces 5% 1
5 Limitation in the ability to penetrate and export in the markets of countries in
1 Potential from new customer group & new market areas in the South & Southeast Asia 20% 4
2 The market has great potential for expanding the depth and length of the line of household products 10% 3
3 Positioning new products in niche segments of modern consumers, high income, preferring utilities & new features 15% 3
4 Ability to annex & acquisition of industry rival high water filters 5% 4
1 In the household sector market more and more
2 Unhealthy competition leads to disorder price & fake product 15% 2
3 Input price and exchange rate changes lead to fierce advantages and competitiveness 10% 2
4 Banks tighten lending situation and high interest rates leading to competitiveness in the market reduces - payment - debt investment of customer is still low 5% 1
Based on QSPM matrix we have selected differentiation strategy which has the highest score 5.85
Determination of the business strategy for the company
Kangaroo, a leading player in the manufacturing, assembly, and distribution of mobile phone products, electrical appliances, and water filters, has established a strong presence in markets nationwide This success stems from a strategic planning approach implemented by the company's leadership from the outset Amid current inflation, Kangaroo remains resilient and views this period as a "gold testing fire" opportunity for market expansion and product development, reinforcing consumer confidence in their brand.
The Planning and Strategy Department of the group has established both short-term and long-term goals by analyzing key economic indicators such as the consumer price index, cost of living index, producer price index, and personal consumption index By calculating product components and optimizing costs, they have developed targeted competitive strategies Furthermore, fostering strong collaboration among departments and employees has significantly contributed to the overall success of Kangaroo.
The core value of our enterprise lies in the quality of our products and services Our management is committed to maintaining the highest standards, ensuring that cost-cutting measures do not compromise our brand's reputation We refuse to raise prices merely to offset rising input costs, reinforcing our promise to protect consumer interests and uphold the integrity of our offerings.
The group has successfully surpassed growth targets while effectively implementing state policies and ensuring staff income It prioritizes employee welfare through special offerings and support for family life Additionally, the company has expanded its production scale to 600,000 m², diversified its product offerings, and broadened distribution channels across the region.
Kangaroo Group has officially entered into a strategic partnership with Fcubed Australia Group, designating Fcubed as its preferred collaborator for the development, manufacturing, assembly, and distribution of various Kangaroo products.
By 2015, Kangaroo plans to expand its production capabilities with a 600,000 m² factory in Vietnam, aimed at serving both the domestic market and exporting to neighboring countries To enhance operational efficiency, Kangaroo's engineers will collaborate with Fcubed Australia to gain insights and knowledge in advanced equipment and technology solutions This partnership will leverage technology from a developed country to boost production in Vietnam Additionally, Kangaroo-branded products will be introduced in Australia, a challenging market known for its stringent quality standards.
During the signing ceremony, Mr Robert Pyman, president of Fcubed, highlighted the significance of the event for commodity groups in the Vietnamese market, particularly for Kangaroo He emphasized that their advanced technology is among the best globally, establishing a strong foundation for future growth and development for both Fcubed and Kangaroo.
With the division strategies set out aim at achieving the strategic objectives of the company, I propose implementation of measures to perform the strategies as below:
- First solution: Penetrate in the domestic market further to implement strategy of exploiting the potential abilities
- Second solution: Develop new products and improve existing products to implement product strategy.
Selection of the steps of the business strategy implementation
Penetrate in the domestic market further to to implement strategy of exploiting the potential abilities
To implement this solution, the following measures should be adopted:
The first measure : Sales advertising promotion
The measure focuses on utilizing propaganda and advertising strategies to capture customer attention towards the company and its products Additionally, it aims to establish consumer habits that influence purchasing decisions, ensuring that customers think of the company when considering their next buy.
1 Reason for proposing measures: Kangaroo’s products Company can be superior for products of other companies on Vietnam market on style and quality.
To confirm the brand and attract new customers, the company should conduct these activities
Advertising is an effective way to enhance the visibility of a company's brand and products, ensuring they reach potential customers The company plans to utilize various advertising methods, including promotions on the internet and television.
Advertisement on television with the image representatives as famous actors, singers, models as Thuy Van, MC Tuan Tu, Huyen Lizzi
Rent advertising companies to design advertising programs, focus on advertising items of the company.
Advertise 1 time per week, continuous daily on VTV3 channel as entertainment television channel which often has a number of large viewers. c Advertising on the Internet
Upgrade the electronic information page of the company: www.kangaroo.vn
To enhance visibility, it is essential to register advertisements across various electronic newspaper platforms such as Vnexpress and 24h.com for a duration of two months each year Furthermore, the company should implement additional advertising strategies concurrently to maximize outreach and effectiveness.
Arrange,put the products sold in stores, agents rationally, it will be a factor affecting the customer's attention for the product when customers enter the store.
Annually organize customer conference in early year to get actively comments to study fashion model, product innovation in line with the requirements of the market, customers.
Organize activities to promote the company’s brand through fashion shows,model design competitions.
Give the products of the company to participate in the Gameshow program on TV
Enhance participation in trade promotion activities, particularly participate in textile fairs, fashion performance activities.
Pay attention to the quality for customer before and after sale.
3 The person in charge of the implementation of measures
Marketing Dept is responsible for implementation
No Activity Expected budget for nest 5 years
Viet Nam Laos & Cambodia Myanmar & Thailand Indonesia & Malaysia
Deploy the brand identity of Richard
Implement the brand identity of Richard Moore in the internal Group & customers nationwide Vietnam
Adjust some of the content in the brand identity to suit the tastes & culture of the people in other countries in Southeast Asia and deploy
Invest outdoor advertising (large advertising panels /
To maximize visibility and impact, strategically position large and high-quality billboards in key locations within major cities For instance, in Ho Chi Minh City, place prominent billboards near Ben Thanh Market; in Hue, position them at Trang Tien Bridge; and in Da Nang, utilize the area around Han River Bridge.
- Place Pano at Highways with the large car density such as Highway 1, Highway 5 (in the north), East-West Highway (south)
Place large panels & Panos in prime and best locations in the capital of the countries in Southeast Asia Choose the forms of the most modern Outdoor Advertising
Invest image for large customer & important points of sale
Investing in branding for major clients, including distributors, agencies, and electric supermarkets, should adhere to the standards and regulations outlined in the provided table Additionally, it is essential to align branding efforts for significant customers in regional countries with the relevant standards and regulations of the host nation.
100.000 USD Catalogue should be designed in parallel rows and all industry sectors Catalogue of each rowUsing the Brand Ambassador in print advertising advertising leaf, user manual
-Should design English – Chinese Catalogue to promote when entering the regional countries and Catalogue for each nation
- Use celebrities in the countries that are going to enter to select Brand Ambassador
Design & implement display cabinets, shelves and other items POSM at point of sale
3.000.000 USD Use leading reputable vendors of Vietnam or the nations that Kangaroo will be entering the market to design & implement POSM at the point of sale
In June, 2011 advertising on television
Customer conference held in January every year.
5 Expected results after implementing the measure:
After performing advertisement on VTV3, Kangaroo immediately created a fever in the market as well as on the mass media.
More and more people know the brand of Kangaroo
Kangaroo’s 5'' advertising image which is impressive on television in the C1 Cup
6 Economic efficiency of the measure:
The company's revenue boomed after a month of advertising on television.
Conclusion: This measure has a negative effect toKangaroo brand at first but later more promoting its effectiveness Kangaroo consider advertisement as a strength of the company and continuously developing it.
Second solution : Open more the sale points or retail agents
Measure name: Open more dealers and showrooms and product sale stores in the North, Central and South provinces.
1 Reason for proposing the measure: The domestic market of the company is quite potential compared to the production scale of the company Evaluation and comparison of quality, design, price of the company's product is comparable with the competitors, along with the assessment of consumer demand of garments is increasing more and more, it may find that the market expansion of the company is necessary in order to increase sold product quantity, increase profits for the company.
2 Works should be done to implement the measure:
- Step 1: Appoint officials of the business department to the provinces for market research and survey
+ Selecting the region will research, deploy and open stores, hiring agents is cities or towns as the center of the province.
+ Find out how many sales stores and dealers are there of which companies and makers.
+ Find out the consumption situation of the same products with the products of the company of each store.
+ Find out the price of the same products with the company's products
- Step 2: After studying the situation, the officers gather at the corporate office,summarize and evaluate the situation and make the decisions:
In the central region, the company will initially focus on identifying dealers, with plans to develop a tailored sales system over time This approach will also apply to areas with existing stores selling competitors' products The company aims to establish agents in both central and northern provinces To recruit these agents, staff will engage with building material distributors to present the company's products, pricing, business cooperation terms, discounts, and other incentives.
The company plans to strategically open seven new stores, with a focus on building materials, primarily in the Hanoi area where five of the stores will be located This approach includes selecting optimal locations, implementing a rental strategy, and leasing sales staff to enhance operational efficiency.
- Step 3: Return to the locality, search, negotiate, sign the contract of opening Agent, find places to open stores, hire managers and sales.
3 The person in charge of implementing the measure:
Business director assigns responsibility for the sales department and each employee group.
4 Time of implementing the measures: total 3 months
+ Step 1: Research and surveys: 12 people, each group of 3 persons is in charge of four provinces, each province needs 2 weeks Total time is 6 weeks
+ Step 2: Summarize, report the situation, analyze, decide to implement: concentrating 2 weeks at the corporate office
+ Step 3: Return the location, group of 3 persons for each province, each province needs the average as a week The total time required is three weeks.
Thus, the total time required is 3 months, starting from January 2009, expected to end in March of the same year.
In conclusion, implementing strategies to expand markets and boost production output can significantly enhance product consumption, leading to high economic efficiency Additionally, these measures can facilitate the recovery of investment capital through increased profits within the first year.
Third solution : organize promotions to increase sold output
Measure name: Open the promotions at the current sales areas and new market areas.
1 Reason for proposing measures: The company currently has hundreds of agents and stores in the provinces, cities and according to the expansion plan of the market which is presented above, the company will have a total of 600 agents and product showrooms throughout North, Central and South provinces Promotional expansion solution not only attracts more customers to come to the products at the time of promotion, but also creates opportunities for customers to be aware of the advantages of product such as quality, price, type design, leading to create impression about product for consumers.
2 Works should be done to implement the measure:
- Choose the time to open promotional campaign in April of each year.
- Make big banners hung at each store during the promotion period
- Promotion in the forms of presenting with valuable products when customers buy a number of products with any amount
3 The person in charge of directing the implementation of measures:
- The person in charge of assigning coordination and direction as deputy business director and chief business of the company.
4 Time of measure implementation: implementing continuity in the year.
5 Expected results after implementing the measure:
The company anticipates that every customer purchasing a promotional product will not only make an additional four purchases but also refer friends and family, leading to increased sales Through these promotional strategies, the company aims to sell an additional 40,000 products in the current year, with a projected annual growth of 10% in subsequent years.
Conclusion: This measure brings highly economical effectiveness and significancy in promoting the corporate image and products to consumers in the market.
3.7.1.2 Second solution: Develop new products and improve existing products to implement product strategy.
Measure name: Research, produce and consume the product
1 The reason of measure implementation: At present, people's living standards increases markedly, consumption of high-end electronic refrigeration products are concerned very much by the families as well as the young people. Shopping needs of these items keep growing Each product offerred is to erve all customers that the company’s products aim at.
2 Works should be done to implement the measure:
+ Buy the new technology, patents
+ Combine with major groups around the world to find out the differential technology and product
+ Develop, create products that support on the existing product background of the company.
3 Person in charge of directing the implementation of measure:
Head of planning dept and head of business dept assign the responsibility to employees.
Conclusion: This measure gives a high economic efficiency, even recalling all the investment in additional profit in the first year.
Positioning product
With over 100 models divided into categories: filter and water heater coated artificial diamonds, kitchen equipment, appliances, Kangaroo has a high position in the Vietnam market of electronics, refrigeration.
Kangaroo Group was honored to get the cup and certificate of "Vietnam famous brand 2011"
To maintain this position, the Kangaroo brand will be:
Develop strategies MKT mix (of which 360 Degree Plan is the most important) Develop strategic picture
Solution on human
Attracting top talent can be challenging, as it often depends on offering competitive salaries and bonuses, as well as the opportunity to work alongside industry leaders Additionally, establishing a strong business brand and a professional workplace is crucial not only for operational success and customer recognition but also for instilling confidence and inspiration in potential employees who are eager to join the company.
The HR department at VIETNAM AUSTRALIA REFRIGERATION, ELECTRICAL ENGINEERING GROUP JOINT STOCK COMPANY will conduct a comprehensive survey among all officials and employees to assess the work environment and opportunities for advancement This initiative aims to enhance employee retention and foster a supportive atmosphere for growth Corporate leaders are committed to offering attractive compensation and facilitating career development for existing staff, ensuring they are well-prepared for management roles as the company evolves By nurturing a team of skilled professionals who are dedicated to the company's success, management encourages a transition from employee to employer roles, resulting in improved performance and effective outcomes.
To enhance the professional skills of the sales team, the company has established Kangaroo Academy, which offers monthly, quarterly, and annual training courses These regular training sessions aim to improve team members' behavior, appearance, professionalism, communication skills, and their ability to respond quickly to market updates and situations.
Kangaroo Academy also invites marketing professionals, financial professionals associated with good sales managers to train professional for officers
& employees of departments and divisions under the direct & indirect blocks in the company.
Structure of employees in the enterprise
II By the nature of labor contracts 950 100%
2 The labor contract for a period of 1-3 years
3 Labor has not signed labor contract 95 10%
Financial strategy
Financial resources are crucial for effective business planning, as a well-structured budget closely aligns with the overall business strategy Budgeting not only solidifies the business plan but also helps the company realize its goals and objectives.
The company primarily relies on equity and long-term loans as its financial sources, adhering to a policy that utilizes long-term funding for sustained investments while employing short-term sources to maintain high liquidity To support short-term projects, the company plans to secure additional capital and utilize short-term bank loans Furthermore, it will implement an operations budget and a liquidity budget to effectively balance revenues and expenditures.
Vietnam Australia performing with normal customers is immediate payment,for the channel of electric and machinery supermarket is applied payment and debt within 30 to 45 days.
To maintain financial flexibility and efficiency, companies frequently collect payments for well-selling products ahead of their due dates, ensuring a high capacity for payment obligations.
Corporate capital using includes equity, long-term loans and short-term loans.
- Long-term loans account for around 22%
- Short-term loans account for about 45%
Vietnam Australia uses the capital source of years based on the following factors:
Accounts receivable: includes largely credits of purchases for customers The company will note for customers who are often deferred and necessary measures to deal with them.
Inventory constitutes approximately 60% of the company's total assets, indicating its significance in the overall financial structure With a combination of initial capital and short-term loans, the management of inventory has remained reasonable over the years.
Main accounts payable are credits that providers for the company are inheritted With the ability of finance and estimated budget flow, the company ensures high solvency.
Loans payable include loans from banks: expected short-term loans.
Due charges and taxes include salary pay, interest for the bills, insurance premiums
3.10.5 Provision for losses from exchange rates & inflation:
Because most Vietnam Australia products are imported the fluctuations in exchange rates will affect partly the company’s profitability.
Inflation significantly impacts business revenues, prompting Vietnam Australia to project a minimum inflation rate while anticipating a maximum range of 12-24% Additionally, the company expects a nominal interest rate that aligns with future inflation rates for both local and foreign currencies.
Estimated revenue of Vietnam Australia in the period of 2012-2016
The first objective of VIETNAM AUSTRALIA REFRIGERATION, ELECTRICAL ENGINEERING GROUP JOINT STOCK COMPANY is striving to become one of the leading enterprises in the business sector in Vietnam & South
East Asia To implement this goal requires a feasible and efficient business strategy.
More than ever, the business strategy planning is one of the urgent needs, which is indispensable to ensure the success of the business activities of VIETNAM
AUSTRALIA REFRIGERATION, ELECTRICAL ENGINEERING GROUP
A joint stock company can gain a competitive advantage by choosing the right strategy and target market, distinguishing itself from other firms in the industry To support the company's growth from 2012 to 2016, a group of MBA students has proposed additional strategies aligned with the company's established direction.
The thesis also hopes that with the issues presented will be theoretical basis for companies in the industry for reference, as a basis for improving the quality of their business.
The group of students is committed to their thesis and works diligently; however, time constraints have led to some unavoidable errors They seek feedback from teachers, colleagues, and friends to enhance and complete their work effectively.
2 Information sources on the websites: vnexpress.net, kangaroo.vn
3 Annual financial statement of the company
1 Study objective of the thesis 3
1.1.1.2 Approach in the new concept 6
1.2.1 Selection of the targets, visions, missions and strategies 9
1.2.2.2 Five factors of competitive model 17
1.2.2.2.1 Level of competition among rivals 17
1.2.2.2.5 Threat of new substitute products 25
1.2.3.2 Analysis of the technological level 28
1.2.3.3 Analysis of financial capacity for innovation and development 29
1.3 Tools used in business strategy 32
1.3.2 Strategic position and action evaluation matrix (SPACE) 33
1.3.4 Quantitative strategic planning matrix (QSPM) 37
2.1.2 Mission and strategic objectives of the company 43