DEVELOPING STRATEGIES FOR VIETNAM SCHREÙDER
5. DEVELOPING STRATEGIES FOR VIETNAM SCHREÙDER
5.5. Some specific solutions proposed for development strategy for Vietnam Schreùder
The above analysis and selection of the development strategy for Vietnam Schreùder require some supportive solutions and actions taken during the period under review which are mentioned hereafter:
Products
Develop at least 2 new products per year for each product line such as urban, public, sport and industrial lighting.
• Concentrate the resources to develop in priority the products for:
• Public and urban lighting
• Industrial lighting
• Sport and flood lighting
• Maintain and develop the products according to the standards IEC 598, ensuring the safety, durability, and tightness.
• Deploy the new technology in the optical sets
• Improve the components such as mechanic parts, electric components, packaging and labeling in the fittings by enhancing the capabilities of outsourced suppliers Diversification in the products colors
• Develop the value added services together with the supply of the products.
Sales and Marketing
• Prioritize the resources to maintain and develop the market share for public lighting by geographical areas, by sources of investment capital from the Government for infrastructure
• Select and take alliances with strategic partners in pole production, design companies and electrical construction companies in order to create competitive advantage.
• With the industrial lighting, focus on medium and high class products market segment.
• With the sport lighting, focus on stadium invested by the Government.
current customers with the new features of the current products
• Improve the delivery time of the products. Offer on site delivery to bulk orders from customers.
• Continue to develop the market share in theLaos and Cambodia especially the projects with Government funded projects. Prepare the strategic alliances with partners in Laos and Cambodia specializing in design and electrical construction companies. In addition, Vietnam Schreùder is to offer the competitive price for its products in these markets
• Regularly organize the survey to collect the customers’ opinions via seminars, conferences, questionnaires etc…on the product quality, price, and service quality in order to have a plan to improve the product and service quality.
• Cooperate with design, local urban lighting to introduce new products with advanced features in order to build up the Schreder name nationwide.
• Develop the value added services with the product supply:
o Before sales: increase the quality of the design and consultation of the use of lighting system. Organize training workshop to group of design companies; increase the frequency of the newsletter on the new products as well as their technical information.
o After sales: Increase the warranty time for the products, increase the feedback time on the warranty service (within8 hours instead of 24 hours as previously). Provide supports and consultation on installation of the lighting system using Vietnam Schreùder’s products.
• Manage and develop the suppliers with competitive purchase price in order to reduce the production cost
• Increase the delivery time of suppliers in order to optimize the warehouse space and working capital.
• Make bulk purchase order to decrease the purchase cost and get higher discount on the purchase.
Finance(refer toAppendix Afor the financial plan forecast from 2007 to 2010)
• Maintain turnover growth rate at least 10% per year.
• Maintain the net profit on sales at least 10%.
• Maintain the net profit on investment capital at least 20%
• Improve the debtor collection. Build up the separate the debt collection team in order to increase the debtors lower than 1/3 (one third) total sales of last year. This will help Vietnam Schreùder to improve the cash flows and be proactive in the use of cash flows in the investment to increase the assembling capacity.
• Optimization of stock on hand in the warehouse and increase the accuracy of the sales forecast.
Investment in assembling capacity and production
• Invest in one more assembling line to increase the assembling capacity to 35,000 to 40,000 products per year
• Build up skillful assembling team, technical team, quality control team
• Regularly update the knowledge on assembling, manufacturing, materials
• Apply the Total Quality Management system and introduce Lean
• Invest additional assembling tools, measurement equipments
Human Resources: as the human resources are the most valuable assets in the company therefore in order to successfully deploy the strategies suggested above, Vietnam Schreùder needs to focus:
Training:
Production and assembling team:
• Focus on the knowledge of lean production, manufacturing management, supply chain management, new technology on electric materials, innovation on lamps and control gears.
Sales and marketing team:
• Organize the in-house training on the products knowledge, professional sales skills
Other staff
• In addition, the managerial skills, English and other short courses in human resources, finance, accounting, tax, are also considered to be provided to relevant staff.
In general the training should be provided in terms of in-house or external training.
Organisation structure:
• Focus on full authorization with considering the responsibilities, authorities and benefits.
• Deploy the flat organisation structure, decrease the intermediate level in order to enable the decision making process.
• Staff promotion from internal sources Reward system:
• Maintain the benefit and reward from medium to high as compared with other
level and performance. Encourage the punctual rewards on innovation and creativeness.
Information system
• Deploy the CRM system integrated with project database system.
• Deploy the ERP (basic level) to integrate with financial module to increase the information assess for the managerial accounting, purchase and production for quick decision making.
• Improve the interface of the website in order to increase the interaction with customers for feedback for products and services improvement.
• Improve the communication system and database assess from outside enabling the staff can work as mobility.
As the research aims at creating a development strategy for Vietnam Schreùder therefore the strategy implementation and evaluation processes are not discussed in this research.