Develop strategies for a business development company has field (Nguyen Viet Cuong- Chairman KOSY)

Date 21/09/2021

From a small business one (1) field, after a certain period of time developed into a corporation doing business in many different fields. To do this requires administrators to build their own strategies accordingly.

There are many different viewpoints are as chemical business. There are no supporting point, so that they will lose the core capacity will have to suffer more risk, affecting the brand, negative impact to business results …

There have been many studies on diversification, but until now no studies that indicate the relationship between diversification and business results for a satisfactory result. Thus, to conclude as above is not true.

My opinion, diversified business is a form of business development. The world's leading corporations do business prospered as General Electic, Samsung, Sony, Honda, Hyundai … family business with large-scale multi-sector, compared to the Vietnam business, we only at this stage stubs . In addition, from the point of business is to grasp opportunities, take advantage of the opportunity, so we have to diversify to accumulate financial capacity and thereby building their capacity for true to the core bring business to grow.

To develop a large business corporations have branches from a small business is an industry first thing the administrator must define the core capabilities of your business.

Capacity of the core business is the probability that the enterprise can do better, it creates competitive advantage for businesses, must meet three (3) conditions: (i) the ability to benefit customers, (ii) the ability to competitors before the start very difficult (iii) can manipulate the ability to expand business scale. Core capabilities can be technical know-how, technology, the ability relations with partners, the brand …

On the basis of ability to identify the core business of the business – known as the first branch (1) – in a period or a period certain (d? office must determine in a certain period because the business grow to a certain extent the ability to change the core and primary business is also subject to change). Primary business must have revenue and profit stability in a long time.

Next, companies must identify the business following the business can be conducted. Industry Monday (2) the industry profit but should require large capital investment. Industry Tuesday (3) a large profitable industry but also contain hidden risks. In addition businesses must also identify business groups Wednesday (4) that are part of the industry or business losses, inefficient and difficult to develop. The second business (2) and (3) … businesses should choose based on the core competence of your business. This helps companies penetrate industry and less favorable to risk more. But if the rigid penetrating branches based on the core competence in a certain aspect we only sell the things you have but not provided things to market demand. Thus, when the company grow to a certain extent they can change the core capability for development. The development of many major brands as well comes from changing the core capability to take advantage of opportunities, opportunities and keep pace with the development trend of the society. Nokia starting point in their business sector and forestry but now they are the manufacturer's largest mobile phone world. On the basis of identified primary business – the first branch (1), enterprises have to invest all resources construction and development industry. Put this business into an industry stable, long-term profit. On that basis, using the profits of this industry to invest in the development of third sector (2), third (3) .. But must follow rules: (i) only allowed a first profit sector (1) to provide investment (ii) a remaining profit to be reinvested first branch (1) , to investment and development, by the it so that it can bring about the source of growing profits and stable, not squeeze it take to invest in third sector (2), third (3). Many enterprises in Vietnam after penetrating into the next sector squeeze them and not continue to invest in the first sector (1) and they have problems and failures. External resources are taken from the profits from the first sector (1), the administrator must find other sources for investment and development sectors next. Company KOSY new phase formed on the basis of core competence KOSY select business is business in the field of education and training. Investment companies, development of this sector into a profitable industry stable, long-term. The company has won a profit from industry and from some other source of investment in the sector Monday (2) the construction sector and followed by Tuesday (3) the mining and mineral processing. Current KOSY business on three (3) the field very well, creating a firm foundation for a future sustainable development. For business groups Wednesday (4) are the team loss, difficult to develop, depending on the actual situation of the investment management needs to consolidate, of up to sell rather than sell them to remove the little amount. A very important issue is the penetration of the third sector (2), third (3) … to build a team of talented administrators in each area, each sector.

To develop a large corporation, most business sectors and enterprises to set goals for yourself and build to suit their specific strategies for each stage.

                                                                           January 17, 2010