BS Assignment 1 Nguyen Vinh Tra

8/10/2019 BS Assignment 1 Nguyen Vinh Tra

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u

NAME OF STUDENT Nguyn Vnh Tr

REGISTRATION NO. 1013105035

UNIT TITLE Unit 7: Business Strategy

ASSIGNMENT TITLE Strategy Formation and Planning

ASSIGNMENT NO 1 of 2

NAME OF ASSESSOR Ha Son Tung

SUBMISSION DEADLINE 16:00 22 !o"em#er 2010

$ %%%%%%%%%%%%%%%%%%%%%%%%%% &ere#y 'onfirm t&at t&is assignment is my o(n (or) and not'o*ied or *lagiari+ed from any sour'e, $ &a"e referen'ed t&e sour'es from (&i'& information iso#tained #y me for t&is assignment,

________________________________ _________________________

Signature -ate

----------------------------------------------------------------------------------------------------------------FOR OFFICIAL USE

ASSIGNMENT GRADE

Common Skills Grade

A B C D E F G

1

NATIONAL ECONOMICS UNIVERSITY

BTEC HND IN BUSINESS AND MANAGEMENT


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Assignment 4 ellstru'turedeferen'e is done *ro*erly 8 s&ould #e done if any4

9"erall you"e

Are#s "or imrovement1

ASSESSOR SIGNATURE DATE 2 2

NAME1,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

+Or#' "ee!$#% *#s #'so rovi!e!STUDENT SIGNATURE DATE 2 2

NAME 1,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

F9 $!T/!; US/ 9!;< -T/ 8 8

=/$F$/- / : ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

COMMON S3ILLS 4 COM5ETENCIES ASSESSED +in!i#te! $) 6

A. MANAGING 4 DE(ELO5ING SELF D. MANAGING TAS3S 4 SOL(ING5ROBLEMS

1. Managing own roles & responsibilities X 12. Use inor!ation sour"es X2. Manage own ti!e in a"hie#ing ob$e"ti#es X 1%. eal with a "o!bination o routine & non'routine tas(s%. U n)erta(es personal an) "areer )e#elop!ent 1*. +)entiy & sol#e routine & non'routine proble!s

*. Transer s(ills gaine) to new,"hanging situations & "onte-tsE. A55L7ING NUMERAC7

B. 8OR3ING 8IT9 4 RELATING TO OT9ERS 1. /pplying nu!eri"al s(ills an) te"hni0ues

. Treat others belies an) opinions with respe"t

. elate & intera"t ee"ti#ely with in)i#i)uals & groups F. A55L7ING TEC9NOLOG7

3. 4or( ee"ti#ely as a tea! !e!ber 1. Use a range o te"hnologi"al e0uip!ent an) syste!s

C. COMMUNICATING G. A55L7ING DESIGN AND CREATI(IT7

5. e"ei#e an) respon) to a #ariety o inor!ation X 13. /pplying a range o s(ills an) te"hni0ues to )e#elop a#ariety o i)eas in the "reation o new , !o)iie) pro)u"ts6ser#i"es or situations7. 8resent inor!ation in a #ariety o #isual or!s X

19. :o!!uni"ate in writing X 15. Use a range o thought pro"esses

11. 8arti"ipate in oral & no'#erbal "o!!uni"ation

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/. +ntro)u"tion..................................................................................................................+. ;M4 -ternal en#iron!ent au)it................................................................................1%2. @rgani?ational au)it...........................................................................................17

++. =4@T analysis......................................................................................................2%+++. =trategi" positioning..........................................................................................2*

+V. The "urrent e-ternal en#iron!ent in Vietna!...................................................2V. =trategi" planning or ;M4 in Vietna!...............................................................25:. :on"lusion.................................................................................................................%1. eeren"e...................................................................................................................%2

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A. Introduction

I. BMW Group and its context of business strategy

1. Introduction about BMW Group

;M4 stan)s or Bayerische Motoren Werke whi"h is the !ost i!portant

auto!obiles pro)u"er in


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Vietna!

;M4 is "urrently owne) by the Cuan)t a!ily D*. E o sharesF6 the /llian?

D.2EF an) *5.5E o shares that owne) by other "o!panies.

2. Vision and mission of BMW

>#ery "o!pany has its own #ision an) !ission state!ents whi"h are "onsi)ere) as

the gui)e or strategi" planning an) the way that "o!pany will go in the uture.

Vision

To be leading provider of premium products and premium services for individual

mobility

Mission

Focus consistentl on !ro"t# and profitabilit

Constant de$elop ne" tec#nolo!ies

Guarantee access to rele$ant customer !roups

Acti$el s#ape t#e future.

536%9 ;M4 !otor"y"les were )eli#ere) to "usto!ers in 29976 "o!pare) to

19165 in 29956 a G!o)erateH )e"rease o 1*.1E.

4hile the worl) !ar(et or !otor"y"les abo#e 99" was still appro-i!ately 1.!illion #ehi"les in 29936 it shran( to about 7996999 units in 2997.

+n


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II. Stakeholder analysis

=ta(ehol)ers are (nown as e#eryone who ae"t or are ae"te) by the beha#ior o the

organi?ation so that e#ery "o!pany has its sta(ehol)ers. . There are three types o

sta(ehol)ers in an organi?ationB internal sta(ehol)ers De!ployees6 !anage!entF6"onne"te) sta(ehol)ers Dsharehol)ers6 "usto!ers6 suppliers6 inan"iersF an) e-ternal

sta(ehol)ers Dthe "o!!unity6 go#ern!ent6 pressure groupsF.

Iowe#er6 in so!e )o"u!ents6 you will probably see that they )i#i)e the sta(ehol)ersinto two groups li(e thisB

@

BMW

+nternal=ta(ehol)ers

:onne"te)=ta(ehol)ers

>-ternal=ta(ehol)ers

Managers >!ployees =harehol)ers Ainan"iers =uppliers :usto!ers


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Aro! their interest6 there is response ris( !a)e or the "o!pany whi"h is shown in the

table belowB

=ta(ehol)er +nterests to )een) esponse ris( Internal

Managers an) e!ployees

Kobs, "areers

Money

8ro!otion

;eneits

=atisa"tion

8ursuit o syste!s

goals rather than

sharehol)er interests

+n)ustrial a"tion

Negati#e power to

i!pe)e

i!ple!entation

eusal to relo"ate

esignationConnected

=harehol)ers

+n"rease in

sharehol)er wealth6

!easure) by

proitability6 8,>

ratios6 !ar(et

"apitali?ation6

=ell shares or repla"e

!anage!ent

A


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;an(er

=uppliers

:usto!ers

)i#i)en)s an) yiel)

is(

=e"urity o loan

/)heren"e to loanagree!ents

8roitable sales

8ay!ent or goo)s

Long'ter!

relationship


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1. Internal stake#olders

The e!ployees o ;M4 "an be )i#i)e) into two groupsB @i"e e!ployees an)

!anual labors.

+n one han)6 the oi"e e!ployees are the !ain or"e to ensure that the business o the

"o!pany "an run s!oothly. +n another han)6 labors are the or"e that )ire"tly wor(s

on the pro)u"ts o ;M4. Nor!ally6 this group has low "are as well as the inluen"e

on the "o!pany. The !anagers $ust ha#e to satisy the! so that they will wor( well.Iowe#er6 in so!e spe"ial situation or instan"e6 the "o!pany brea( the "ontra"t6 this

group will be"o!e the !ain a"tors that )e"i)e the e-isten"e o the "o!pany.

The !anagers are the group that "are an) ae"t )ire"tly to the "o!pany. +tJs not

ran)o!ly that ;M4 "an !a(e the sales in the table below

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+tJs the result o the eort that the boar) )ire"tors o ;M4 as well as the !anager o

;M4 in all o#er the worl) ha#e !a)e.

2. %&ternal stake#olders

;esi)e the high ta- in so!e "ountry6 the go#ern!ents in !any "ountries see! to

support ;M4 be"ause o the en#iron!ent prote"tion te"hnology that ;M4 is

applying or all o its auto!oti#es.

The "o!!unity is another e-ternal sta(ehol)er. +tJs all about the ethi"al responsibility

an) the i!age o the ;M4 in the so"iety. This sta(ehol)er has !any an) big

ob$e"ti#es6 su"h as in"reasing ser#i"es to lo"al "o!!unity6 e)u"ation6 ai) progra!s6

)oing "harity +t is "learly to see that to a"hie#e ob$e"ti#es o "o!!unity6 ;M4

has to in#ol#e in so!e a"ti#ities abo#e. Iowe#er6 ;M4 "urrently has the a)#antage

they are trying their best prote"t the en#iron!ent by )e#eloping new te"hnology

whi"h is also "reating a lot o $obs so that they own the support ro! the so"iety at

this !o!ent. +n a))ition6 their so"ial responsibilities are "on)u"te)6 they ha#e right

way to su""ee).

'. Connected stake#olders

S#are#oldersB The !anage!ent o a business has only one so"ial responsibility

whi"h is to !a-i!i?e wealth or its sharehol)ers. The irst thing that sharehol)ers "are

is that their !oney whi"h is in#este) in the "o!pany "an !a(e proits or not. The

sharehol)ers are the one who "ontribute a lot to the "o!pany an) they )eser#e to ha#e

a right treat!ent ro! the "o!pany.

Suppliers( They i!pa"t )ire"tly on pro)u"tion a"ti#ities o ;M4 be"ause raw

!aterial or ele"tri" are all i!portant a"tors to run pro)u"tion. The a!ount o !oney

spen)ing or this group is a a"tor that )e"i)es the pri"e o the pro)u"t so that in or)er

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to ha#e stable supplying as well as the lowest pri"es as possible6 ;M4 shoul) buil)

up a long' ter! relationship with the suppliers. @#er than that6 ;M4 always "all their

suppliers to parti"ipate in prote"ting en#iron!ent progra!s.

Customers( ;e"ause o the high'pri"e pro)u"ts that ;M4 is pro#i)ing6 the

"usto!ers o the "o!pany are the people who ha#e inan"e ability so that the

inluen"e o the! on the "o!pany is unpre)i"table. This group is always supporting

;M4 an) they are willing to $oin in the en#iron!ent prote"tion progra!s o ;M4 to

i!pro#e their i!age. Than(s to the!6 the i!age o ;M4 is also better as a

"onse0uen"e.

Competitors( There is a air "o!petition between ;M4 an) other auto!obiles

pro)u"er. ay by )ay6 !ore an) !ore pro)u"ts appear un)er attra"ti#e )esign an)

spe"ial un"tion by the talente) han) o ;M4. ;ut not only ;M4 (nows how to

"reate #alues an) bring it to "usto!ers. /t this !o!ent6 ater the "risis6 e#ery

"o!pany is rushing the!sel#es be"ause !any opportunities is re#eale) by the "risis.

Thus6 ;M4 always (eeps wor(ing an) being "reati#e to a"hie#e their !ission an)

ob$e"ti#es.

B. Contents

I. xternal environment and organi!ational audit of the company

1. %&ternal en$ironment audit

To un)erstan) "learly about the e-ternal en#iron!ent6 8>=T>L an) 8orterJs i#e or"es

are the best tools to analy?e the ele!ents o e-ternal en#iron!ent. The e-ternal

en#iron!ent in"lu)es the !a"ro en#iron!ental a"tors an) !i"ro en#iron!ental a"tors.

a. Macro factorsB Ma"ro a"tors "an be )eter!ine) base) on 8>=T>L analysis.

D8oliti"al6 >"ono!i"6 =o"ial6 Te"hnologi"al6 >n#iron!ent an) LegalF

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)olitical

;M4 urope area6 the

i!porting ta- o "ar is !u"h lower than the ta- in /sia an) others. +n Vietna!6

the tari o "ar is 59E an) in :hina it is *9E. +n the >urope6 the ta- is only

about onehal or e#en one'thir) in "o!pare with Vietna!.

%conomic

The "risis in re"ent years has )estroye) the )e!an) o "usto!ers. +nstea) o

satisy the nee)s6 wants6 an) )e!an)s6 the "usto!ers see! to be !ore

"areully by (eeping their !oney in the ban(. +n this perio)6 e#ery "o!pany

in"lu)ing ;M4 agrees that they are #ery lu"(y i they "an !eet the brea(

e#en. ;M4 state) that they ha#e not only rea"he) the target itsel6 but also

a"hie#e) the se"on)'lowest )e"line in sales a!ongst the "o!petitions. /t this

!o!ent6 ;M4 shoul) run !ore !ar(eting "a!paign rather than )o !ore"utting )own. The pro)u"ts o ;M4 are al!ost lu-urious ite!s so that only

person or group whi"h has ability in inan"e "an buy. 4hen the e"ono!y o

the worl) goes )own6 buying a lu-ury "ar )oes not har! these people or group

at all so that running !ar(et penetration strategy is the best way to o#er"o!e

this )ar( perio). 4e "an ta(e an e-a!ple o >urope area


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/t the beginning o 29976 the


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Social

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/s we all (now6 the pro)u"ts o ;M4 are lu-urious ite!s with #ery high

pri"e an) the "urrent strategy o ;M4 is o"us )ierentiation. =o that the

ae"t o so"iety on the "o!pany isnJt a big proble! when the "o!pany

poli"ies is oriente) to the green engine an) prote"t the en#iron!ent. ;M4

always "on#eys the i!age o the ulti!ate )ri#ing !a"hine whi"h is pro!ise)

to bring !ore #alues to the "usto!ers.

*ec#nolo!

e"ently6 there is a "lear tren) that the "usto!ers lo#e to e-perien"e in !any

new (in)s o "ars. + they want to su""ee) in business6 auto!oti#e

"orporations !ust "ontinuously inno#ation6 "reati#ity to satisy all the nee)s

o "usto!ers. ;M4 n#iron!ental eense Dreporte) by :/= gui)eF6

;M4 wins the O!ost i!pro#e)O awar) or its a#erage uel ei"ien"y an)

:@2 e!ission rate. ;M4 oers *7 !o)els with >U, e!issions nor! an)

nearly 29 !o)els with :@2 output less than 1*9 g,(!6 whi"h puts it on the

lowest ta- group an) thereore "oul) pro#i)e the uture owner with e"o'bonus

oere) ro! so!e >uropean "ountries. +n the early 29936 the position o the

n#iron!ental 8rote"tion was

assigne) to the :orporate =trategi" )i#ision. /ll these !o#e abo#e shows that

;M4 is ai!ing to buil) a "ar bran) whi"h is (nown as en#iron!ental

prote"tor.

+e!al

Legal a"tors in"lu)e so!e laws6 su"h as health an) saety laws6 e!ploy!ent

law6 "onsu!er law. This (in) o a"tors ae"ts ways to operation o ;M4

an) )e!an) o "usto!ers or its pro)u"ts. +n this "ase6 parti"ularly6 there is no

law to ae"t negati#ely to operation o ;M4 e-"ept the high ta- in so!e

"ountry.

b. Micro factorsB

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Micro factors can be analy!ed by the "orter#s five forces model.

*#reat of ne" entrants

=tarting a business about "ar is #ery easy but to be a lea)er li(e ;M4


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Let i!agine that one )ay you !eet your rien) an) you say that you $ust

bought a new ;M4 X at the pri"e o P1996999 when the real pri"e o a

;M4 X is P1296799. 4ill you prou) o that "arQ 4ill your rien) belie#e

that the "ar you ha#e bought is realQ

+n the "ase o lu-urious ite!s li(e ;M4 pro)u"ts6 the "usto!ers )onJt ha#e

any "han"e to bargain so that e#en when the "o!pany establishes a #ery high

pri"e in "o!pare with the real pri"e6 !any "usto!ers are still willing to buy

with a s!ile on their a"e.

Bar!ainin! po"er of suppliers

+n this in)ustry6 raw !aterials whi"h ;M4 nee)s shoul) be ensure) about

0uality6 be"ause all o the! relate )ire"tly to 0uality o pro)u"ts. 8arti"ularly6

;M4 #ery single e!ployee who

wor(s )ire"tly or in)ire"tly in a pro"ess o !a(ing a "ar has to un)erstan)

about the te"hnology that the "o!pany is applying. To "reate a brilliant "ar6

you ha#e to ha#e brilliant e!ployee.

Finance resources:;M4 has a strong inan"ial "apa"ity. ;eing a big group!eans that it always attra"ts !any in#estors. The sharehol)ers are the Cuan)t

1A


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a!ily D*.EF6 the /llian? "o!pany D.2EF an) *5.55E o others "o!pany

whi"h has *9E o shares belong to the big "o!panies. These nu!bers show

that the inan"e sour"es o ;M4 are #arious an) #ery stable whi"h "an be a

a"tor that help the "o!pany o#er"o!e the perio) o the "risis.

Technology:The inno#ation an) the eort to inno#ate o ;M4 auto!obiles

are appre"iate) by the "usto!ers. ising up ro! the "ollapse ater the 4orl)

4ar ++6 ;M4 bring all their (nowle)ge about the engines o plane into "ar

in)ustry. Aro! that !o!ent6 nothing "an stop ;M4 on the way o

)e#elop!ent.

b. Core competencies

+n this "ase6 ;M4 has so!e "ore "o!peten"ies belowB

Iigh e-perien"es in !anua"turing auto!obiles

eputation o bran)

/)#an"e te"hnology

=trong an) stable inan"e sour"es

:ore "o!peten"ies !a(e "o!petiti#e a)#antages or ;M4. Using "ore

"o!peten"ies6 ;M4 be"o!e one o the biggest "o!panies in the worl).Moreo#er6 the


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+n this !o)el6 there are two (in)s o a"ti#ity. They are pri!ary a"ti#ities

D+nboun) logisti"s6 @perations6 @utboun) logisti"s6 !ar(eting an) sale6 ater

sales ser#i"esF an) support a"ti#ities to support the pri!ary a"ti#ities

Dpro"ure!ent6 te"hnology )e#elop!ent6 hu!an resour"e !anage!ent an)

!anage!ent planningF.

Inbound lo!istic +tJs the way that ;M4 re"ei#es han)les an) stores inputs to

the pro)u"tion syste!B warehousing6 transport6 sto"( "ontrol

an) so on.,perations +tJs the a"ti#ities when ;M4 "on#ert resour"es inputs into a

inal pro)u"t. Din"lu)ing hu!an resour"es6 "apital6 et"F

,utbound lo!istic @utboun) logisti" is the pro"ess whi"h stores the pro)u"t an)its )istribution to "usto!ers. D"ar testing6 )eli#ering to the

)ealers6 et"FMarketin! and sales This is the stage where ;M4 inor! "usto!ers about the

pro)u"t as well as persua)ing the! to buy it. +n another wor)6

it belongs to !ar(eting a"ti#ities li(e a)#ertising6 pro!otion6

8.. et"After sales ser$ice uring the ti!e using the pro)u"ts o ;M46 i the "usto!ers

ha#e any proble!s6 the "o!pany has the responsible to sol#e.Drepairing or upgra)ing the pro)u"ts6 )ri#ing gui)eline6 et"F

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d. *#e product portfolio

;M4 !a(es a lot o )ierent auto!obiles an) ea"h o the! has its own

"hara"teristi". Thus6 un)erstan)ing about lie "y"le o pro)u"ts helps ;M4

re)u"ing ris( an) !a(ing use o a)#antages.

This "hart shows the lie "y"le o the pro)u"ts whi"h is #ery i!portant to

;M4. ;y using this "hart6 the "o!pany "an (now whi"h stage that their

pro)u"ts are stan)ing. /ter that6 the "o!pany buil)s up a suitable strategy to

)e#elop an) grow in the "orre"t )ire"tion.

e. ,r!ani-ation structure

@rgani?ation stru"ture )eter!ines how wor( is allo"ate)6 )ire"te) an)

"ontrolle)6 in or)er to a"hie#e the goals o the organi?ationJs strategy.

Mint?berg an) Cuinn D1777F ha#e stu)ie) the organi?ation an) "on"lu)e that

su""essul organi?ation "hange arises ro! the ollowing inter)epen)ent

a"tors whi"h is )es"ribe by the !o)el belowB

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To ha#e a strong stru"ture6 ;M4 shoul) "on"ern about these ollowing thingB Kob spe"iali?ation DThe nu!ber o tas(s a) the )i#ision o laborF

;eha#ior or!ali?ation DIa#ing stan)ar) to wor( pro"essesF

Training DTraining e!ployeesF

+n)o"trination D Tea"hing the e!ployee the e-perien"eF

Unit grouping DIa#ing un"tional )epart!entsF

Unit si?e

8lanning an) "ontrol syste!s

Liaison an) "o!!uni"ation DIa#ing "o!!uni"ation "hannels6 su"h as

networ(s6 !atri- stru"turesF

II. SW$T analysis

=4@T analysis is a strategi" planning !etho) to !easure =trengths6 4ea(nesses6

@pportunities an) Threats. /ter i)entiying these ele!ents6 the "o!pany "an buil) up a

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new strategy to sol#e the "urrent proble!s or to )e#elop itsel in the uture. The table

below is the =4@T analysis o ;M4B

Stren!t#s Weaknesses

;M4 auto!obiles are powerul6

reliable an) lu-urious

/)#an"e te"hnology

Ia#ing a long ti!e )e#eloping

:on#enient )esign an) tra)itional style

:ontrol the )istribution networ( tightly

Iigh 0uality pro)u"ts

eputation o bran)

:lose to the buyers

4ell relationship with suppliers


The pro)u"ts is not e-"eptional

The pro)u"t is e-pensi#e

The o"us')ierentiation strategy

,pportunities *#reats

8ro)u"t an) ser#i"es e-pansion :o!petition

>"ono!i" slow)own


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/nso "reate) a !ro"t# $ector matri& to )es"ribe a "o!bination o a"ti#ities in

"urrent an) new !ar(ets6 with e-isting an) new pro)u"ts to apply the suitable strategy.

Market penetrationstrategy shoul) be use when the "o!pany wants to )e#elop the

"urrent pro)u"ts in the present !ar(et. The !ain ai! o this strategy is to !aintain ore#en i!pro#e the !ar(et share as well as the sales. This strategy is using the eort o

!ar(eting as the !ain weapon. +n another wor)s6 ;M4 will ha#e to in#est !ore

!oney in Mar(eting in or)er to in"rease the sales. /t this !o!ent6 this strategy see!s

to be !ost reasonable or ;M4. The "onse0uen"e o the "risis has brought all the

"o!panies into really ba) situation at e#ery si)e. To i!pro#e the proits6 ;M4 has to

optionsB )oing "utting )own or )o so!ething to in"rease the sales. + ;M4 )oes the

"utting )own in e!ploy!ents6 !aterial6 et" the "o!pany will get itsel into anotherproble!s the "o!pany will not !eet the "onsu!ersJ re0uire!ents an) lose the

"usto!ers. The se"on) option is i!pro#ing the sales but how "an ;M4 in"rease their

salesQ The (ey answer is Mar(eting. The history is supporting the se"on) option.

uring the "risis in 29916 ell an) 4al'!art in"rease) the a!ount o !oney

that use or running !ar(eting "a!paigns.

uring the 1759s6 so!e ;2; or! "o!panies re!aine) or in"rease) !ar(eting

bu)get then their sales ro"(ete) to 2E in the "risis year an) also the ne-t three

year. D a""or)ing to M"


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/""or)ing to the sur#ey result o the :M@ :lub in ,29956 31E o parti"ipants

respon)e) that their !ar(eting bu)get has not been "ut in 29956 while only 1*E

re#eale) that they saw the prospe"t o "uts re0uire) be"ause o the pressure o

the "risis.+n#esting in !ar(eting at this !o!ent is a s!art "hoi"e or ;M4 to gain !ore proits

an) (eep the !ar(et share as well as "o!pete with its "o!petitors.

The market developmentstrategy is applie) when a "o!pany wants to sell its "urrent

pro)u"ts into a new !ar(et. This strategy )oesnJt re0uire a huge a!ount o !oney

in#esting in !ar(eting but itJs #ery i!portant to buil) up a suitable !ar(eting plan to

apply in that new !ar(et. +n the "ase o ;M46 be"ause the pro)u"ts o ;M4 are

e-pensi#e so that e#en when the "o!pany runs a pere"t !ar(eting "a!paign in a

)e#eloping "ountry li(e Vietna!6 the sales will rarely in"rease.

4hen a "o!pany wants to pro)u"e new pro)u"ts in its "urrent !ar(et6 the product

development strategy is the !ost suitable one. This strategy basi"ally wor(s on the

eort o & Desear"h an) e#elop!entF. ;M4 has been putting a lot o !oney into

the & )epart!ent to !a(e highly "o!petiti#e a"tors in their auto!obiles. ;M4

reputation together with &6 the satisa"tion o "usto!ers will be ulille).

%iversification is usually use) when the "o!pany $u!ps a !ar(et at the irst ti!e with

#ery new pro)u"ts. This strategy will "ost a lot o !oney be"ause the "o!pany has to

start e#ery thing ro! the beginning. There is nothing "an ensure the su""ess o the

"o!pany so that this strategy is a high'ris( strategy e#en or a big "o!pany li(e ;M4.

I&. The current external environment in &ietnam

%&ternal en$ironment Vietnam market

)olitics Vietna! is a "ountry whi"h has stable

politi"s with only one party. Vietna!ese


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the ne-t % years6 that ta- !ust be )e"rease)

a""or)ing to the rule o 4T@.

%conomic

+n 29976 the growth rate o Vietna! is .2E6

ran(ing thin the worl) D:+/ 4orl) Aa"tboo(6

2997F. Iowe#er6 )o al!ost the "usto!ers !eet

the seg!entation o ;M4Q The answer shoul)

be GN@H be"ause the pro)u"ts o ;M4 are too

e-pensi#e or the in"o!e o al!ost Vietna!ese.

;ut it )oesnJt !ean that the o"us')ierentiation

strategy o ;M4 wonJt wor( in Vietna!. There

are !any "usto!ers ro! the upper "lass who are

willing to pay a lot o !oney to ha#e a ;M4

auto!obile.

Social

Vietna!ese has a habit that is #ery /sian.

That habit is the willing to buy things at higher

pri"e to get "oni)en"e prou). ;M4 "an use this

habit o Vietna!ese6 together with the

seg!entation that the "o!pany is ollowing to

in"rease the sales.

*ec#nolo!

e"ently6 there is a "lear tren) that the

"usto!ers lo#e to e-perien"e in !any new (in)s

o "ars. + they want to su""ee) in business6

auto!oti#e "orporations !ust "ontinuouslyinno#ation6 "reati#ity to satisy all the nee)s o

"usto!ers. ;M4


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)eal with these "o!petitors

&. Strategic planning for BMW in &ietnam

/ter un)erstan)ing about the e-ternal en#iron!ent o Vietna!6 ;M4 shoul)"onsi)er about the =4@T analysis belowB

Stren!t#s Weaknesses

;M4 auto!obiles are powerul6

reliable an) lu-urious

/)#an"e te"hnology

Ia#ing a long ti!e )e#eloping

:on#enient )esign an) tra)itional style

:ontrol the )istribution networ( tightly

Iigh 0uality pro)u"ts

eputation o bran)

:lose to the buyers

4ell relationship with suppliers


The pro)u"ts are not uni0ue enough to

ensure the lea)er position.

The pro)u"t is e-pensi#e

The o"us')ierentiation strategy

,pportunities *#reats

8ro)u"t an) ser#i"es e-pansion

:reate a low pri"e an) high 0uality "ar

or Vietna!ese with the a"tory lo"ate)

in Vietna!.

;ringing the ;M4 !otorbi(e "loser to

Vietna!ese "usto!ers.

The "o!petitions (eep "hasing.

>"ono!i" slow)own

/""or)ing to the =4@T analysis6 we "an see that by using the a)#an"e te"hnology6

;M4 has the ability to "reate the new series o "heap "ar whi"h is still "on#enient

)esign an) tra)itional style.

4hen we loo( at the /nnso !atri-6 we "an see that i ;M4 want to !a(e the

opportunity "o!es true6 the "o!pany will apply the )i#ersii"ation strategy Dnew

!ar(et an) new pro)u"tsF howe#er6 itJs saer or ;M4 i they apply the !ar(et

)e#elop!ent at this ti!e.

2A


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The a"t is the e"ono!y o Vietna! $ust re"o#ers ro! the "risis so that e#en i ;M4

run a new "a!paign about a new series o "heap "ar in Vietna!6 no one will buy. /t

this !o!ent6 ;M4 shoul) bring their "urrent auto!obiles to "reate a goo) base to

e-pan) the seg!entation later. Aurther !ore6 Aor)6 Ion)a6 an) Toyota are "reating a

triangle in the "ar in)ustry in Vietna!. + ;M4 wants to brea( that big'three6 the

"o!pany nee)s to prepare well an) buil) up a "orre"t strategy.

No one (nows how the "ar in)ustry situation will be"o!e i ;M4 $u!p into all the

seg!entation that other "o!panies "hoose. ;M4 !ay be"o!e the lea)er an)

)o!inate the Vietna! )o!esti" "ar in)ustry or all these "o!panies will reunite an)

establish a new or"e whi"h will )ire"tly ight with ;M4.

;y o#er#iew the e-ternal en#iron!ental6 the =4@T !atri- an) /nnsoJs !atri-6

;M4 shoul) "onsi)er about the #ision an) !ission state!ent that + re"o!!en)e)belowB

&isionB To be"o!e the lea)er in auto!obiles in)ustry in Vietna! as well as )o!inate

all the seg!entation that possibility e-ist in Vietna!.

MissionB

>-pan) the ;M4 hea)0uarter in the =outh6 North an) !i))le o Vietna!

whi"h "oul) be allo"ate in the big "ity li(e Ianoi6 Iue6 anang an) Io :hi

Minh :ity.

30


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esear"h an) )e#elop the new series o "heap "ar that "an pro#i)e to the

"usto!er in the ne-t % years when the i!porting ta- o Vietna! !ust be

)e"rease) a""or)ing to the 4T@ rules.

8repare or a totally !ar(eting "a!paign whi"h will be run in the !o!ent thate#ery "o!pany in this region rushes ba"( into the !ar(et.

;uil)ing a te"hni"al "ollege un)er the na!e o ;M4 whi"h "an pro#i)e a

stable high s(ill wor(or"e or the "o!pany.

C. Conclusion

The pre#ious analysis has shown a ba"(groun) about ;M4


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BS Assignment 1 Nguyen Vinh Tra

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