Thạc Sĩ Strategies for development of Hanoi Textile Company (Hanosimex) in the challenging economic situatio

Strategies for development of Hanoi Textile Company (Hanosimex) in the challenging economic situation

​Chapter 1

Introduction


1.1 Rationale

In the near past, we have seen so many changes in the global economy and context. Especially, the world economy and society have been strongly impacted by the currency crisis and then financial crisis at the whole world level, which began by the Thai currency crisis at the end of the year 1997. It requires every nation and company to revise the ways they look the future. Certainly, nobody can predict 100% right what will happen in the future and/or program for it but at least people can have some proactive actions to prevent these kind of crisis and its effects in our businesses.

Textile and apparel industries are important in the human life. The employment created by these industries account for large portion in any economies. For many developing countries or also in developed countries these industries were paid close attention to because they contribute much benefit for national economy and social welfare.

Vietnam is a developing economy and is assessed as one of the fastest growing countries in the world with the average annual growth rate from 1990 to 1999 at 7%. In fact, it is still in the transition process from central economy to more market oriented economy. For the long time, companies do not need strategic planing, marketing And now they are facing challenging situation from no competition to hard competition, being survive or not, not only between domestic companies but also global giants. Recently, the economy has realized some signals of its unstable development. The growth rate in 1999 is less than some previous years.

Textile and garment industries are playing important role in the economy. They are accounted for 25.7% of employment in total employment of all industries. But now the competition climate is changing and getting tenser. Hanosimex is not out of the situation. What the company can do is to develop fit strategies, which can help them to come over the current situation and also to climb as a dominant player in the domestic market.


1.2 Problem Statement

“ To identify the alternative strategies for development of Hanoi Textile Company (Hanosimex) in the challenging economic situation”


1.3 Objectives

ã Overall Objectives:

- To analyze overall domestic business environment and analyze Hanosimex businesses, and then develop strategy for Hanosimex to give right way to become the leader in the industry.

- To examine global market and build suitable expansion strategy in potential abroad markets.

ã Specific Objectives:

- To get full understanding of the current business environment situation: what are threats and opportunities for Hanosimex, both domestically and globally? What are the main trends of the industry?

- To identify strengths and weaknesses of Hanosimex.

- To clarify competitive situation of the company in domestic market.

- To identify possibility to expand the market activities globally of Hanosimex

1.4 Research Study Framework


1.4 Scope of the Research

The scope of this research is limited to developing corporate alternative strategies for HANOSIMEX to strengthen competitiveness mainly in domestic market, and global market to some extent.


1.5 Data Collection Methodology

Both quantitative and qualitative analyses are done on the basis of available secondary and primary data for this research.

a) Primary data:

- In-depth interview and discussion with the Vinatex’s officials to get their opinions on the business environment in general as well as the textile and apparel industries environment;

- Interview with some other industries’ Managing Directors and functional managers.

- In-depth interview and discussion with the Managing Director and some functional managers of Hanosimex to obtain information on the firm’s current situation and their assessment about the current industry’s environment.

- Discussion with shop floor managers and supervisors of Hanosimex.

b) Secondary data:

- Annual Statistical Reports on the social, economical aspects from the Bureau of Statistics to get general information on the macro environment;

- Textile and garment industry’s reports to get information on the industry’s structure.

- Annual balance sheets and income statements from the selected company to get information on the operating situations in the past and at present.

- Newspapers, magazines, journals, book.

- Information from Internet


1.6 Presentation of the Research Report

ã Chapter 1 provides and introduction including background, problem statement, objectives, scope of the research study, study framework.

ã Chapter 2 presents the literature review of the study and summarizes the work of previous studies It relates to the fundamental ideas on designing corporate strategy: business environment scanning (both external and internal environment factors), corporate strategy formulation

ã Chapter 3 deeply involves in scanning business environment of textile and apparel industries in global, then identifying major trends in these industries globally.

ã Chapter 4 presents the analysis of Vietnamese Textile and Garment Industries, identifications on the market and industries’ trends. And then determines what are the major threats, opportunities for the industries, what are weaknesses and strengths of the industries.

ã Chapter 5 covers the assessment of the current business situation of Hanosimex, and then identifications of some main opportunities, threats, strength and weaknesses (SWOT analysis).

ã Chapter 6 presents the alternative strategies for company

ã Chapter 7 gives conclusions and recommendations for Hanosimex