I.Introduction: When we want to take a business plan put into operation, we need to have a plan about business strategy. Business strategy plays a very important role in determining the success of the project. It will increase the chances of success, help reduce unnecessary risks when performing the project. In my assignment, I will show a report about knowledge of strategic planning includes example for each task by solving 3 tasks: -Assess how business missions, visions, objectives, goals and core competencies inform strategic planning.-Analysis the factors that have to be considered when formulating strategic plans.-Evaluate the effectiveness of techniques used when developing strategic business plansAnd this assignment, I will give example about Traphaco company, to clear the above task. Traphaco is a vertically-integrated pharmaceutical company specializing in the development, marketing and distribution of Vietnamese traditional medicines. The company is the clear leader in the Vietnamese traditional medicine sector and the second largest pharmaceutical manufacturer in Vietnam in terms of revenue and net profit. The company owns a strong brand, 2 GMP-WHO manufacturing factories and a nationwide distribution network, with 22 distribution branches. (Mekongcapital)

II.Analysis:LO1 Understand the process of strategic planning 1.1Assess how business missions, visions, objectives, goals and core competencies inform strategic planning:a, Compare and discuss the differences among mission, vision, objective, goal and core competence.

DefinitionTraphaco

MissionsStatement of business.States the business reason for the organization's existence. Does not state an outcome. Contains no time limit or measurement. Provides basis for decisions on resource allocation and appropriate objectives. Defines current and future business in terms of product, score, customer, reason, and market price. (cocreatr)Missions of Traphaco:- Dedication to society products - services epochal and rich traditional values in order to improve the quality of life.- Always satisfy customer needs, to create meaningful work and advancement opportunities for employees.- Increase the value to investors.

VisionsDream or a picture to be achieved ultimately.Created by consensus. Forms mental image of future to which people can align. Describes something possible, not necessarily predictable. Provides direction and focus. Pulls people, who hold it, towards it. (cocreatr)

Vision to the year 2020 become a strong economic corporation involved in trading and providing health care products and services and owned the capacity in researching and developing natural hi-tech products. (Traphaco)

GoalsResults to be achieved.Describes ideal states to be achieved at some unidentified future time. Defined consistent with and related directly to vision and mission. Guide everyday decisions and actions. Do not necessarily deal with measurable results. (cocreatr)Goals of Traphaco:Investment in development of enterprise resources: human, material and financial resources. Take advantage of the opportunities, advantages, limitations and difficulties, maintain and expand the domestic market for traditional products and new products. Enhanced promotion, branding, brand retention leading pharmaceutical Vietnam.

ObjectivesHow - Actions and Results - to plan to achieve the desired results.Focuses on critical organization issues and milestones. Describe activities to be accomplished to achieve goals. Identify dates when specific results are to be accomplished. Measurable in terms of whether or not they are achieved. They may be changed when necessary for progress towards goals.(cocreatr)-Traphaco will develop a team of international expertise, built upon a local core culture, which takes pride in the quality of their products and their contribution to the health of the community.-Traphaco will have 4 manufacturing factories, 1 global distribution network, 1 research and development institute, 1 medical and pharmaceutical vocational training facility, and 1 health service center.From that short term, Traphaco has some result:Since the Fund first invested in Traphaco, the company has achieved a consistently high net profit annual growth rate of 23%. Traphaco has also aggressively expanded its distribution network through increasing the number of branches from 4 to 22. At the same time, Traphaco also acquired a majority stake in CNC, the partially-owned manufacturing subsidiary, which was also the major source of corporate governance concerns and major stakes in two formerly state-owned provincial distributors. (Mekongcapital)

Core competenciesIs understood as the probability that businesses can do well, but must simultaneously satisfy three conditions:- The possibility that the benefit to the customer;- The possibility that competitors are difficult to imitate;- You can use this ability to expand the range of products and markets. (cocreatr)With Traphaco company:-Quality products and services determine the existence of the business.- Adding value to society, customers, employees and shareholders is the goal and the dynamics of sustainable development.- Labor creativity is the cornerstone of the development.- The cooperation, sharing, commitment and commitment is the foundation of corporate culture.- Age and traditional identity TRAPHACO.

b, How are they related to strategic planning?Strategic planning is important for any organization. A clear understanding of the process of strategic planning is crucial for successful implementation of the same. This assignment focuses on mission, vision, objectives, goals and core competencies of Traphacocompany, issues involved in strategic planning. Strategic plans defined the direction of all other plans and they must have characteristics: long term, base on clear mission, comprehensive and last, developed and controlled by top management (Business Essentials, chapter 6 -The planning framework).According to this definition, the strategy has long-term direction of achieving goals.First of all, we need to care about what the company is, what they want to be, want to become. So the first step, we can identify the gap of company, so it can pick out a suitable strategy. Therefore, factor mission equal with a clear mission really necessary to be able to choose strategies. And with a complete plan, not without clear vision and objective, to that, managers can control the elements appropriately, to be able to achieve goals. With objective, we need interested factors such as: human resources, material and financial resources. The company should pay special attention to human resources, as this is the most important factor in the success of a project.Finally, we need to pay attention to corecompetancies, to determine whether the plan, the possibility that the benefit to the customer; related to competition, expanding the range of products and markets.

*Factors affect to strategic planningAll businesses have an environment inside and outside.- Internal environment is very much related to the human resources of a business or organization, and the way in which people perform the work in accordance with the organization's mission. To some extent, the internal environment can be controlled and changed through the process of planning and management. Factors in the internal environment, such as: Human resource, organisational culture, organisation structure, management, assets, financial strength. (leoisaac)- Externalenvironment,can not be controlled. The manager of a business does not control business competitors, or changes in the law, or general economic conditions. However, the manager of a business or organization has a number of measures to control businesses react to changes in its external environment. Factors in the external environment, such as: Economic conditions, market (competition), technology, climate change, legal, media, political, demographic. (leoisaac)

1.2Analyse the factors that have to be considered when formulating strategic plans:What are the steps and issues/factors of strategic planning?

StageCommentKey tools, models, techniquesExample

Step 1Mission/ vision Is answer for question: why does the organization exist?Mission of statement

Mission of Traphaco: to the year 2020 become a strong economic corporation involved in trading and providing health care products and services and owned the capacity

Step 2GoalsInterpret the mission to different stakeholderIn this step we need to analysis stakeholder therefore set goal to approach the need of different stakeholder.Traphaco is one company bring brand of tradition medicine .Enhanced promotion, branding, brand retention leading pharmaceutical Vietnam.

Step 3ObjectivesQuantified embodiments of mission. If mission just set purpose of organization, in objective will show more clearly about profitability, time scale of strategic planning..Traphaco will develop a team of international expertise, built upon a local core culture, advanced in the world market

Step 4Environment analysisOpportunities and threatsIn this step we can use PEST analysis, 5 forces analysis of Porter to evaluate the opportunities and threats of organization, Opportunity:- Pharmaceutical industry has great potential to grow, the rate of traditional medicine consumption is forecast to continue to grow further in the coming years.- Participation in export markets. The time rate of Traphaco export sales accounted for less than 1%. The company is actively promoting exports to ASEAN countries.

Threats:- East pharmaceutical market increasingly fierce competition. Typical products of the company are faced with counterfeit goods, pirated goods.- Price subject to strict control from the state agency, price growth has not kept pace input costs.

Step 5Position audit or situation analysisIdentify strengths and weakness-Resources-Value chain-Product life cycle-Boston matrix -Directional policy matrix-Marketing audit-Market share Strengths:- Owning a leading brand of traditional medicine with a high level of awareness.- Infrastructure, modern equipment with 2 factories GMP-WHO.- R & D activity is strong competitive advantage biggest Traphaco. Annual revenue from new products are accounted for 7% of total revenue.- Distribution System No. 2 with pharmaceutical companies listed throughout the country.- Use 80% of inputs are the ingredients in water.

Weaknesses:Raw materials companies grow only about 30% of raw materials for pharmaceutical products China, on the other hand most of the raw materials to produce Tan pharmaceutical imports.

Step 6Corporate appraisalCombine step 4 & 5Therefore we can analysis the SWOST analysis to see advantage and disadvantage of the organizationTraphaco can rely on the strengths, opportunities ... to be able to optimize profits for businesses. Especially in the context of the volatile market today. It can be used to analyze SWOST, launched one of the strategies to help businesses achieve short and long term goals.- The strategy suggested as SO: streng used to optimize the opportunities available; ST: streng used to limit the challenges businesses face.

Step 7Gap analysisCompare outcome of step 6 with step 3Gap analysisTo achieve the objectives of step 3, Traphaco have to try a lot to adapt with market in world.Enhance and promote the recruitment of high quality search quality human resources for the company, long-term dedication and loyalty.

=>So, to achieve the objects, to achieve that objectives, the factors inside and outside will affect the success of that objectives. But external factors accounting for more factors, when trying to reach Traphaco than on world market.

1.3Evaluate the effectiveness of techniques used when developing strategic business plans:-Boxton Matrix (Boston Consulting Group): It focus on product to give strategy.Resources are allocated to the business units according to their situation on the grid. The four cells of this matrix have been called as stars, cash cows, question marks and dogs. Each of these cells represents a particular type of business.10 x1 x0.1 x

(http://www.managementstudyguide.com/bcg-matrix.htm )

Limitations of BCG MatrixThe BCG Matrix produces a framework for allocating resources among different business units and makes it possible to compare many business units at a glance. But BCG Matrix is not free from limitations, such as:- BCG matrix classifies businesses as low and high, but generally businesses can be medium also. Thus, the true nature of business may not be reflected.- Market is not clearly defined in this model.- High market share does not always leads to high profits. There are high costs also involved with high market share.- Growth rate and relative market share are not the only indicators of profitability. This model ignores and overlooks other indicators of profitability.- At times, dogs may help other businesses in gaining competitive advantage. They can earn even more than cash cows sometimes.- This four-celled approach is considered as to be too simplistic.(managementstudyguide)=>With Traphaco, Vision to the year 2020 become a strong economic corporation involved in trading and providing health care products and services and owned the capacity in researching and developing natural hi-tech products. So, Traphaco take care for their products and services.=>Traphaco should choose BCG to give business strategy.

-SPACE(Strategic Position and Action Evaluation): focus on position of company to give strategy.SPACE can be used in the second stage of the strategic planning process. This matrix corporate strategic choices attacks cautious / conservative defense or competition. The axis of the SPACE matrix represent 2 internal factors the organization and two external factors.

(http://www.mba-tutorials.com/wp-content/uploads/2010/12/image1.png )

Disadvantage :It hard for companies control external factors of environment like the changing of policy of government or competitor is a lot in large market share. -Directional policy matrices: more focus on product too like Boston Matrix but more detail and clearly.

(http://www.brs-inc.com/models/model18.asp )With this matrix measures the health of the market and your strength to pursue it. The results indicate the direction for future investment. It has advantages, such as: - Help business build a business structure and optimal balance .- Figure out how to use financial resources in order to maximize the business structure of a business .On other hand, it also has disadvantages: assess the development potential based on market share and growth of the business sector is incomplete .

-PIMS (Profit impact of market share) this indicates a positive relationship between market share and profitability.PIMS seeks to address three basic questions:- What is the typical profit rate for each type of business?- Given current strategies in a company, what are the future operating results likely to be?- What strategies are likely to help improve future operating results?=>With Traphaco, problems about customer also need taken care. We should choose this, because it as appropriate with the objectives.Conclusion, with the objectives mentioned in task 1.1 , 1.2 , should we choose BCG , PIMS is the appropriate method to evaluate the company's strategy

III. Conclusion:In conclusion, company have to defied clearly the mission, vision, goal or objective, core competence, to be able toeasier develop allow the purpose. On the other hand, they helpful for selected strategic planning model. It is very necessary to find out and understand strategic planning to apply to the business in the future.

Bibliographycocreatr. (n.d.). http://cocreatr.typepad.com. Retrieved from http://cocreatr.typepad.com/everyone_is_a_beginner_or/2012/04/defining-vision-mission-goals-and-objectives.htmlleoisaac. (n.d.). leoisaac.com. Retrieved 2015, from http://www.leoisaac.com/planning/strat016.htmmanagementstudyguide. (n.d.). http://www.managementstudyguide.com. Retrieved from http://www.managementstudyguide.com/bcg-matrix.htmMekongcapital. (n.d.). Mekongcapital. Retrieved 2015, from http://www.mekongcapital.com/en/content/traphacoTraphaco. (n.d.). Traphaco. Retrieved from http://www.traphaco.com.vn/en/introduction/overview

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