ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 32: Business Strategy (574)

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Student name Dương Đức Thắng Student ID GCH18600

Class GBH0807 Assessor name Nguyễn Thùy Linh

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Table of Contents
I. Introduction .......................................................................................................................................................... 4
II. Identify the strategic context of the company ..................................................................................................... 5
1. Business strategy of Le vin in the future........................................................................................................... 5
2. PESTLE model of Le vin company...................................................................................................................... 6
3. Competitive pressures in the industry according to the model of M. Porter .................................................. 7
III. The strategic action program of the timber division of Le vin Company ....................................................... 11
IV. Conclusion....................................................................................................................................................... 14
References ................................................................................................................................................................... 15
 I. Introduction

Business strategy is the method and way of doing business of a company or corporation in the field of
business, in order to achieve optimal business efficiency. Business strategy is the overall content of an
orderly business plan, consisting of a series of main business measures and ways over a long period of
time. The ultimate goal is towards the highest profitability and business system development. I am the
head of strategy development for Le Vin company, also the person appointed by the director for the task
of comprehensive assessment and strategy that the company should pursue in the future. This is a
comprehensive report as well as the company's future strategy

About company

LE VIN INTERIOR DECORATION - DESIGN CO., LTD is one of the leading companies in the country in the
field of designing, manufacturing, supplying and installing high-end furniture for projects: office, bank
products, schools, hotels, showrooms, resorts ... was established in 2004 with nearly 15 years of
experience in the field of design, manufacture, installation, construction, high-end furniture Le Vin has
built. brand and reputation with a huge number of domestic and foreign customers such as Japan,
Singapore, Malaysia, Korea, Thailand, Indonesia, Taiwan, India, France, UK, USA, Australia, ...

LE VIN company has brought customer satisfaction from product quality to high aesthetics. Le Vin decor
is always innovating and constantly evolving to meet the increasing needs of domestic and foreign
customers.

Coming to Le Vin, customers will feel the difference in service style, high professionalism, friendliness
and enthusiasm with the motto: "MAKE A DREAM A Reality"

Company work structure

INFORMATION RECEIVE & CURRENT SURVEILLANCE, PRIMARY DESIGN, 3D SCENE DESIGN, CONTRACTING
AND CONSTRUCTION, Implementation at the site, Acceptance and handover.
 II. Identify the strategic context of the company

VISION

We are determined to build Le vin into a strong brand in the field of interior engineering consulting,
design and construction in Vietnam, based on long-term vision, core values, business strategy. method
and efficiency, based on advanced technology, modern management model and professional staff.

MISSION

Le vin's mission is to always be creative and make constant efforts to design, construct and
manufacture to create a unique, friendly style for the interior of apartments, apartments and villas and
make the house look like a 5-star resort at home. Combining advanced construction solutions and
applying durable and beautiful materials domestically and imported, contributing to creating luxurious
living and working spaces for the community.

CORE VALUES

• People are central.

• Constantly creating and learning.

• Products that make up the brand.

• Respect all commitments.

• Resonance and benefit sharing.

1. Business strategy of Le vin in the future.

➢ Improve customer retention and improve customer service

In general, retaining customers is much easier than spending money to attract a new customer, which is
why this is a great strategy by Le Vin to see an opportunity to improve retention. customer.
Because Le Vin has a long-term warranty and many good after-sales policies. Customers can be
completely assured when using products and services at the company and LE VIN Decor has an
enthusiastic and friendly consulting staff.

Professionalism as well as expertise is evident from the steps working with customers. Creativity and
knowledge as well as high skills and long-term career experience have helped LE VIN Decor to leave a
deep impression on customers.

The need to improve customer service will often focus its goals on creating a more effective online
support tool or customer support center.

➢ Increase sales from new products.

With many years of experience in the field, LE VIN Decor has brought hundreds of thousands of beautiful
designs, diverse and rich designs, so the company needs to invest in research and development to
continuously innovate, even products that are most successful to drive new product sales.

2. PESTLE model of Le vin company

Political- Legal Economic

➢ One Party regime

➢ Political stability ➢ Opening, high growth
➢ Open mechanism, actively reforming ➢ Urbanization is fast and strong, living
administration standards are raised
Social- Population Technology

➢ Many young families. Traditional culture of ➢ Many modern production-processing

home furniture technologies
➢ The population is nearly 86 million with 51% ➢ Many new handy accessories for home
of working age interior design
Table1: PEST model with home design furniture industry
Industry structure

Applying factors in PEST model to consider. On the international scale, the field of furniture in general
and wooden furniture in particular is very developed and vibrant, this can be seen through the Spring
International Fair - an exhibition specializing in construction and interior. annual furniture in Guangzhou
(China). There are more than 100 participating countries, taking place in 1 week, attracting millions of
people around the world. Politically, Vietnam has a one-party institution, thus creating a stable and
stable political environment. The State also actively renews the administrative mechanism to create
favorable conditions for businesses to do business, from the granting of business registration to the
facilitation of transportation, import and export, customs, specifically the project. " administrative
reform ". Vietnam's economy is in the opening stage, with a high growth rate (in 2009 the GDP growth
rate of Vietnam was 5.32%, which is quite an impressive figure in the economic recession. bridge). Rapid
urbanization led to the growth of the construction and interior sectors. In terms of population, according
to the 2009 Population and Housing Census, at 0:00 on April 1, 2009, it was 85,789,573 people,a large
market. In which 51% are working age, very convenient for the history industry unskilled labor.
Vietnamese society has long had the habit of using wooden furniture as household products, and now
that trend is maintained. Furniture manufacturing technology is becoming increasingly accessible to
producers who can buy or import technology. Accordingly, the mechanical components (for the wood
furniture industry) imported to Vietnam are increasingly diversified, making wooden products have
higher added value, improved designs and quality, significantly.

3. Competitive pressures in the industry according to the model of M. Porter

Customers: According to the statistics of the Department of Architecture and Construction Planning
(Ministry of Construction), the urbanization rate of Vietnam has increased sharply, the urbanization rate
in 1999 was 23.6%, in 2004 it was 25. , 8%, forecast in 2010 will increase to 33% and by 2025 will reach
45%. Comes with house construction, is the process of completing the interior of the family. The higher
the number of new constructions, the corresponding increase in the proportion of interior equipment
required to provide for those projects, of which
have wooden furniture products. Currently, the number of companies operating in the wood furniture
sector in the north is mainly concentrated in the Hanoi area (here does not consider companies that
specialize in supplying office wood products or demand. other), very small professional scale, mostly
small-scale family workshops. Therefore, the output of the whole industry has not met the real needs of
customers.

Furthermore, if the customer requires a premium product, the smaller number of firms actually capable
of supplying such product. So in terms of pressure from market demand as well as customers of the
wood furniture industry, household groups, is not high. On the contrary, this is a group of industries with
great potential. Alternative products: In Asian culture, as well as in Vietnam, the use of wood in furniture
is already traditional. Currently, on the market there are many products using new materials such as
iron, stainless steel, aluminum, tempered glass, plastic, bamboo and rattan ... to make interior products
such as tables, chairs, shelves ... These 15 products focus on direction, one is series products with low
price with limited design (for example, Xuan Hoa folding furniture, Song Long plastic chair), so customers
choose mainly for restaurants. and office. The other direction is towards high-end products (because
new technology is very expensive) such as glass tables, leather chairs ... These products are mainly
imported, making the price more expensive, so the quantity

There are not many customers choosing these types of products. Thus, in the field of home furniture
today, alternative products (using non-wood materials), though many, have not created significant
competitive pressure due to psychology of customers still want to choose. choose products made from
wood.

Supplier: In the field of wood production for household furniture, there are many types of suppliers such
as: providing screws, supplying production lines, supplying paint materials, baiting ... In wood products, it
is difficult to cause a shortage of materials, or the increase in the price of those materials does not
increase the cost of the product, so this is not a pressure factor for this sector. The most important
supplier is raw wood, on the other hand. Currently there are two wood materials used mainly industrial
wood and natural wood. Wood industry, has started to be Vietnam themselves
production, but the cost is still as high as imported industrial wood and the quality is not as good.
Industrial wood is imported mainly from Malaysia and Indonesia, through distributors. Due to
dependence on imports, it is easy to cause an uncontrollable surplus and a shortage of prices

Also varies according to the conditions of supply. Putting a lot of pressure on the factories. Regarding
natural wood, due to the increasingly rare supply, the uneven quality, most of Vietnam have to import
from Laos, South Africa, and Indonesia, so the price fluctuates quite large within a year, and often
increases. By year. Therefore, the distributors

distribution can easily put pressure on production units, making the valuation of finished products
difficult and difficult to compete.

Current competitors: Currently, in the Vietnamese wooden furniture market, and more narrowly, in the
northern market, there are the following models of companies supplying products: imports (such as
Dafuco, Sbfurniture…); Big companies produce on lines (such as Hoang Anh Gia Lai, Hung Long); Small-
scale production workshops are family-friendly. Each type of company has its own characteristics with its
own advantages and disadvantages, so its current competitiveness

This is difficult to judge. In terms of import companies: currently mainly imports from Guangzhou
(China), Thailand and a few from Europe. The target customers are high-income families in Vietnam, so
the number is small, on the other hand, customers do not always choose to suit their existing space, so
they usually only choose one of them. Product sets. Production companies on production lines have
advantages in quantity, but their designs are also limited. Customers can also order their own samples,
but must be in bulk. The products of these companies are priced lower than imported products of the
same type. Currently, companies of this type in Vietnam, especially in the North are not many, and their
main customers are projects such as hotels, resorts ... are not family customers. Small companies: the
target customer is a mass customer with a decent or lower income, a wide range of prices. There are
advantages in the ability to flexibly respond to customer requirements on designs and styles. But the
downside is the small scale, so it cannot satisfy large orders with short time.

Potential competitors: As Vietnam is on the rise, the booming construction industry has led to the
furniture industry becoming a very potential industry. At that time, the first potential competitor was
enterprises with large financial capital and were doing import and export business. They will get in easily
by renting a premises (eg in MelinhPlaza) and importing furniture for the market. Potential competitors
in the form of companies with production scale, in the immediate future, if considering the Northern
market, manufacturing companies in the South will bring more agents to this area. Potential opponents
in the form of family size: due to the characteristics of the craft village, loose management, building a
local factory is not too difficult, does not require large capital. This scale of production will have more
potential competitors in the future.

Marketing-Sign Transportation and

the contract installation

Customer
=

Sign the
contract
Production department

-Reception of drawing
Survey- Design
Finished product
products -Assignment of production

-Reviews learn from experience

Raw materials for production Human Production line process

Table2:The value chain of the company's wood division

 III. The strategic action program of the timber division of Le vin
Company

Efficient operation: With the best product-based competitive strategy, the business goal of the Lv wood
mill department is to maximize the process to improve product quality. Quality of products that Lv
towards on two aspects. Aesthetic and functional aspects of the product (often visually impacting the
customer - making an immediate impression): to do this, the survey process, customer contact and
design plan are designed. strict design, there are processes and corresponding documents accompanying
each stage. In order for a product to be converted into production drawings, there must be a signature
of the customer's sample, the actual survey with the signatures of both surveyor and curator. Product
sustainability aspect (often perceptible): established by production management processes such as
regulations, targets, quality metrics. The connection between the design and production department will
make the most of information technology, and the transfer of drawings by mail via the internet will help
maximize communication time no matter where the employees are, and the time of the incident. period.

Target customers: Wood department business strategy Lv has analyzed that, given the built-in
advantage of the design department's reputation, it is necessary to make the most of the customers
available from the department. Customers of the design department who have demand for custom-
designed wood furniture are mostly family houses (villas, townhouses, apartments), partly restaurants -
cafes, very few the client is the office or the other. Based on the Lv company's financial statements, we
also see that nearly 70% of sales of the Lv wood division are products supplied to the family home group,
20% are restaurant-shops, 10% are Thus, we can conclude about the current target customer of the
furniture division of the Lv company is: the product group for the home.

Innovation and improvement: The production department is moving towards the standard and built
according to ISO standards will optimize the production. But in order to always respond to increasingly
complex customer tastes and quickly, management always determines software technology as the
optimal solution. To do that, upgrading the visual design software quickly, training the design staff to
update the above software. On the other hand, professional training for design staff is always considered
because it is the stage that creates the most value in the product value-added chain.

Learn from experience and feedback

Implementation plan each year. At the end of each quarter and year, the results of the ongoing plan will
be released. All planned information will be adjusted to suit the actual situation. Learning from
experience, giving feedback on the basis of reports and opinions of all members of the department.
There will be a budget for motivating practical feedback, helping to accelerate succession effective plan.

Evaluation of the current strategy of the company Le vin

Coherence between mission and strategy implementation

Lv's mission is "... creative space, high-class convenience products." The competitive orientation as well
as the action plan of the MUN wood division is aimed at creating the best product (in terms of features
and aesthetics). This is completely consistent with the company's mission, long-term strategy. Moreover,
the cohesion is also tight, because we see that management has focused on two key stages of product
creation to increase competitiveness, and

optimize production process to reduce costs. Both of these stages bring about the result that customers
will enjoy a product of high value: in terms of quality, aesthetics and price. So, considering the alignment
between the company's mission and the current company's strategy implementation in the right
direction, ideas and actions are clearly supporting each other.

The effectiveness of the strategy

If properly implemented the parts of the action plan (here we have not assessed the feasibility of the
plan to the extent), it will certainly bring positive results. The company competes according to the best
product orientation, while the plan is to promote innovation, innovate and create new products, make
the most of the capabilities of technologies and machines. Therefore, it will surely make a good
impression on the market. Along with that, completing the production process according to standards
will help the product to be cheaper and high productivity. The plan to expand showrooms, agents and
transportation teams will further bring products to rapidly expand market share not only in the Hanoi
area but also in neighboring provinces.

Difficulties between linking strategy with competitive environment

The key to today's strategy is the creation of new products, with emphasis on design and functionality.
However, in Vietnam at present, the protection of intellectual products and industrial designs are not
good, so it is inevitable that if the company's products do well, they will quickly be counterfeited. ,
Counterfeiters. That would do a great deal of damage to the image as well as the expected sales.

Standardizing the production process will create a long-term cost-effectiveness, but because the workers
in the North are not professional and have a bad sense, the investment in building ISO standards is
expensive but effective. really need more research. In the strategy map, the internal section has
mentioned social environment issues, although this is a very important thing, ensuring the image and
long-term development of the company, but realistic if Ensuring these factors will push the product price
higher than the competition. Because most likely, competitors will ignore the environmental problem,
focus on production to reduce costs?

Difficulty in implementing the strategy

The difficulty in implementing this strategy has some of the following major problems. First, in terms of
finance: to implement all parts of the plan from advertising, opening more showrooms, agents, investing
in prototyping, completing production processes, expanding the fleet of trucks to equal or more The
competitor is leading the market, the capital is very large. It is estimated that the amount needed to
increase is at least twice as much as the current capital (equivalent to about 5-7 billion). For a small
business, raising that capital is not easy. Secondly, on the implementation plan: with the vision to
become the most popular home furniture company in the North, but the time of the plan given in 2-3
years is not feasible, even impossible. do it. Thirdly, on the issue of learning and learning from
experience: the action plan has not underestimated the important role of this. Currently, only focus on
market research to grasp trends, from which to draw experience and train employees to design better
products. This is not comprehensive and effective, even the information will not make the product less
competitive.
In summary, the company's current strategy is on the right track and at the same time is promoting the
company's strengths, but some difficulties in the strategy are due to the need for a more detailed
solution. . This will be discussed in the next chapter.

IV. Conclusion

Through research, the first result I found that strategic management is really vital to the business. To
be able to use the administration tools proficiently as in this project is not easy but extremely
practical, with great value. I also find that, in order to be able to see an overview of an enterprise's
business strategy, especially in evaluating the effectiveness and success of the strategy, it requires a
scientific approach with management theory. treatment system.

At the end of this project, I also have a deeper understanding of the strategy of Le vin's furniture
department (where I am working). On the one hand, it increased my confidence in the young leaders
of the company, but it soon identified a clear and scientific development direction. On the other
hand, I also identified the shortcomings of the current strategy of the company, and then made
recommendations to the management department to make adjustments, which could help the
company grow stronger in the future. .
References
https://dongsuh.vn/blogs/tin-tuc-noi-that/bao-cao-tong-quan-thi-truong-nganh-noi-that-trong-5-
nam-2015-2020

https://levindecor.com/quy-trinh-lam-viec.html

https://levindecor.com/gioi-thieu-cong-ty.html

https://blogs.opera.com/

Philip Kotler, Basic Marketing (Labor and Social Publishing House 2007)

Statistical Yearbook 2009.