TRNG I HC KINH T QUC DN

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STRATEGIC MANAGEMENT
ASSIGNMENT




Name : Qu Nhn
ID: CQ532800
Advance enteprise management 53





2014
BIG C STRATEGIC ANALYSE
I. Introduction about Big C
Big C Supercenter operates business in the form of "Hypermarket" or
"Supercenter", a modern retail business which is managed under the umbrella of
Casino group. It is one of the major retailers in the world, with over 307.000
employees working in more than 12.000 stores, in Vietnam, Thailand, Argentina,
Uruguay, Brazil, Colombia, France, Madagascar and Mauritius. Today, Big C has a
total of 26 stores all around Vietnam.
Big C reflects the two most important elements of the business and strategies
for success:
Big refers to the large size of our stores and the wide selection of merchandise
we offer.
C refers to our loyal customers, who are the key to the success of our
business.C currently stocks over 40,000 items to meet every customer's needs.
Big C super center
At Big C, the majority of the space is devoted to the sale of consumer goods at low
prices and good quality. Products available in a Big C store can be divided into 5
main categories, as follows:
Fresh Food: meats, seafood, fresh fruits and vegetables, delicatessen, frozen
food, dairy products, bakery.
Dry Food: seasonings and condiments, beverages, soft drinks, liquor, snacks,
personal stuffs, cleaning products, pet food and accessories.
Clothing and Accessories: mens, womens, childrens and infants clothing
as well as shoes and handbags.
Electric Appliances: a wide range of electric appliances including fridge,
washing machine, air conditioner, kitchen appliances, home entertainment
equipment, computers and IT equipment.
Home Dcor and Accessories: furniture, kitchenware, plastic storage items
and utensils, decorative items, home improvement, maintenance tools and
supplies, automobile and motorcycle accessories, sporting goods and toys.
Big C shoping mall

Big C Shopping mall provides rental space located both inside and outside of Big C
building to let the entrepreneurs do business within Big C. Nonetheless, goods and
services providing must be different from the goods sold in Big C. Therefore,
customers visiting Big C could find a great range of products and services available
at a single destination, enhancing the overall shopping experience. Most of the
operators that lease space at Big C Shopping mall can be divided into 4 main
categories:
Food and Beverage: restaurants, franchises food outlets, food court
Entertainment: cinemas, karaoke booths and kids play ground.
Specialty Stores: book shops, fashion boutiques, electronics shops, mobile
phone shops.
Services: ATM...
Vison & mission
Vision:
Nourishing a world of diversity
Mission:
Become the reference be the best retail to satisfy our customer
Value:
Customer satisfaction
Responsibilities
Solidarity
Transparency
Inovation
II. Business environment analyse
1. Extenal Environment
Enterprise looks like a living body, it always has an interaction with the external
factors. Every changes controls to the operation and the result of business.
Analysing the influence of macro environment to Big C business operation to
clarify.
Economic factor
Economic environment plays an important role, have the directly effect to the
market development of the supermarket. When the economy is increasing with high
growth rate, the personal income increases lead to increase the ability of payment
and the buying power in the economy. High income also diversify the demand and
change the market segment, consumers increase the buying power and size of
demand.
Ha Noi with the capital role also has the outstanding development. GDP per year in
period 2000-2005 is 13.6%, in period 2005-2010 is 15%. Besides the GDP rate,
Personal Income increases rapidly, population and educational level also increase
that create the advantaged condition to expand the market.
However market economy of Viet Nam in general and Ha Noi economy in
particular in recent period have many changes.
In the end of 2007 the hyperinflation incurs, the price of goods and services
increased rapidly, the life of people meet many difficulties, the buying power of
market decreased, the high inflation situation lasted until quarter III 2008 to be
curbed and stable in 2 digits.
The difficulties because of inflation put the economy in unrecoverable status and
the recession happened. This affected the financial operation of many countries in
the world include Viet Nam because USA is the largest exporting market of our
country.
In according to the forecast of economists, the economic recession continues in the
next time, the recession makes the enterprises have the problem of reducing the
human resource. Reducing the financial budget, with the affect of psychological
problems in recession period make the buying power in the market decreases
dramatically.
In the case of economy like this, the operation in Big C suffered many difficulties.
Geographical environment
There are some factors affected to the business operation in Big C
In 2011 the population of the city is 6472200, the intensity of population in urban
area is 17.679/km2 The Big C supercenter is located in Cau Giay district which is
not populated but Big C is on Tran Duy Hung street which everyday there are
many people moving, moreover this street has no traffic jam in rush hours so it is
so easily for the buying of inhabitants around this area and the urban area. Big C is
highly appreciated with beautiful location, highly attracted to the attention of
people created the condition to consume goods.
Social culture environment
The social culture environment affects directly to the life and consuming behavior
of people. In recent years with the development of the economy and the integrity of
Viet Nam to the world that create the consuming culture of Vietnamese people in
general and the capital inhabitants in particular the new things more modern and
access to the consuming civilization. With the evidence of consuming habit have
many changes. Instead of buying in the market they come to the supermarket to
consume from the grocery store to the clothes store. The consuming culture is
more and more integrated to the modern culture of world business civilization. This
is the opportunity to develop retail business like supermarket or shopping mall. The
enterprises take this opportunity with the appearance of Big C supermarket chain in
the market.
Technology Environment
The development of technology in recent years has created the condition to apply
the modern technology in selling goods and services to increase the productivity
like electronic products, air conditioner, fridge, laptop, interne, automatic selling
machine, scanner...
To update the information of the development of technology especially the
technology serve the self service means the board of management of Big C usually
watch the technology information from magazines and mass communication.
Besides Big C is the large corporation so the application of technology in selling
goods is so easily.
However, to apply the technology to business reality the information about
technology must be find carefully and consider effectively about the cost to set up
new equipment.
Political and Legal Environment
Political and Legal Environment is the legal framework for business operations, it
creates the equal competitive environment among enterprises in the economy. Viet
Nam has a stable politics that be an advantage compare to the other countries.
A appropriate legal framework created favorable conditions for the enterprises in
the market include Big C. This enterprise has many advantages in the process of
establishment and doing business in Viet Nam.
A stable political environment is a favorable condition for companies to invest in
Viet Nam.
From the economic reform, the government has issued many decrees that help the
companies doing business in Viet Nam include Big C.
In terms of retailing 100% foreign capital enterprises allow to invest in the
domestic market. This factor made challenges in retailing business for Big C in the
next time.
Industrial Environment
Big C customers: are the part of inhabitants in Cau Giay district and the satellite
area, mainly the medium income families and over. Besides, it has the
participation of a small amount of foreign people and students.
In according to the data we collect indicates that ratio of customer segments of Big
C below:
21% is the high income (over 8 millions per month)
48% is the good income (5-8 millions per month)
22.5% is the medium income (2-5 millions per month)
8.5% is the others (students, tourists and foreign people...)
Porters Model
Threat of rivalry
The rivalries of Big C not only the domestic supermarket in Cau Giay district but
also the supermarket in the satellite area, the shopping malls in Cau Giay district.
Especially, Big C has to compete with many big retailer in the world like
Cash&Carry, Parkson,....
Threat of new entrants
After 1 years of becoming a official member of WTO, many large corporations in
retailing business targerted to Viet Nam market and put a pressure on domestic
companies.
If Big C of Bourbon transferred the outlets of Cora and increase the numbers of
supermarkets nationwide to 5, Metro & Carry is continuing to expand market to the
north and Mekong Delta.
In Ho Chi Minh City, Parkson opened the premium shopping mall in District 1 and
5.
In October 2007, Dairy Farm retailing corp has opened the new supermarket
system with the new Welcome brand in Ho Chi Minh through the change of
Citimart supermarket.
Also in 2007, The top retailer in Korea Lotte began constructing the shopping mall
in Phu My Hung district 7.
Threat of substitute
With the supermarkets, the substitute products are the network of traditional
market, small outlets. Introducing product store of big companies....In recent years,
the establishment of supermarket chain in Ha Noi make the market share of
traditional market decrease considerably. However because of consuming habits
the people dont get used to buying in supermarket therefore the proportion of
Revenue of supermarket in Hanoi is so small.
Besides, in recent years on television the appearance of shopping channel
TVshopping bring to the audiences the popular buying mode in the world through
telephone, message, internet help save cost and time. So we can say that this is a
very useful buying method for the busy families which limited in time.
The power of suppliers
At present, Big C is Co operating with thousands of suppliers mainly the
manufactures such as
- Hanoi foods company
- Viet Nam Milk company
- Trung thanh company
- Ha Long company
- Miwon Ajinomoto company
- Hai Chau Company
- Dong Anh ,Tu liem clean vegetables farms.
- Phu thai distribution company, vison company.
- And others foreign suppliers,....
With many suppliers in the market is the advantage of Big C in seeking success
about the goods source. Information about the suppliers always update about
models, origins, quality, price.. by the logistics department.
2. Internal Environment
The value chain of Big C
Inbound logistics
Big C is a foreign capital company, besides the importing goods, mostly the goods
in Big C come from the domestic company. Big C keeping moving the connection
of farmers, producers in order to push the goods consuming in supermarket. Big C
usually organize the seminars to introduce to the producers the policy, quality
standard, procedures in co operating with Big C. Through this, Big C accompany
with the local producers increase the competitive strength of Viet Nam Brands.
Big C also produce the foods follow HACCP standard so the materials that fresh
and have standards is so necessary. Price of input materials in recent years is
increasing because of high importing price. Therefore cost of materials is
increasing affected the price of final products. Therefore Big C always change their
policy to meet the difficulties of the market.
Operations
With the big supermarket system the secure of applying goods is very large. Big C
is the producer of eBon, WOWS with appropriate price. With supermarket system
and manufacturing own brand and nearly 3000 employees. Although it has to
produce large quantity of products to meet the demand, big C always focus on
every process of manufacturing to secure the quantity and bring the good quality
product to consumers.
Outbound logistics
Products of Big C always attached to the cheap price with good quality so the
consumers always trust and highly appreciate. All supermarkets in the system have
the preservation system with high standards. Ever y goods has the stamp to prove
the quality.
Packaging the products for customers help customers bring the goods to home. This
make the customers feel convenient.
Bulky goods will be supported to transport to home by services.
Marketing and Sales
More than 10 years in Viet Nam market, the brand development of Big C is
implemented so well by investing to market to research market developing and
after service that help company increase the revenue and increase the quantity of
products in the market. The company continues to maintain what it achieve and
continue to expand and develop the size of the market.
Services
Operations and the principles of Big C in the distribution service for customers,
inbound logistics, co operating with the suppliers and public relations, relations
with investors and staffs always based on 5 values of Big C: customer satisfaction,
responsibility, solidarity, transparency, innovation. Big C has the free
transportation policy for customers have the bill over 500.000 VND in the radius of
10 kilometers. The customers can change the products free within 48 hours after
buying... Besides, the company also has the website for customers find out
information.
Supporting activites
Procurement
The procurement is implemented so well when the economy is at the side of crisis
Big C did the best to curb the increasing the price through the negotiation with the
suppliers especially the necessary products. It is determined to refuse the decision
of increasing price without convincing reason.
Technology development
Big C is the brand of Casino retailing corp. The modern inbound system, paying
system, goods management, European manufacturing technology, implement ISO
standards in management, the staffs have the high level
Human resources management
At present brain drain, oversea studying and working trend is more and more
popular. This is because of lack of opportunity to develop in Viet Nam. Working
environment, the appreciation of role of human, equal treatment... are lack in the
Viet Nam companies. Big C has created the enterprise culture and transform it into
the opportunities for the staff to promote. Big C looks it as a investment not only a
cost. Values they receive is more than many times the cost they spend for staff
training. This is a human resources management strategy that very few companies
can do and achieved success like Big C.
Infrastructure.
Organizational structure of Big C comply with the international style. Big C has the
big space so that it could display and organize goods efficiently. With a scientific
space organize Big C split space into the areas or the selves that creates the
convenience for customers. The movement of customers among the selves secures
the convenience as well as buying. The organize of goods in supermarket is so vital
to the satisfaction of customers.
The infrastructure of Big C is so modern, beautiful, high technology creates the
attraction of customers and creates the beliefs and trust.
III. SWOT matrix Analyse
STRENGTH
1. Big C have good management
expirence
2. Big C is the widely known brand
3. Big C have abundant financial
resources
4. Big C have good & modern
facilities
5. Big C staff are professionally
trained
6. Big C supply products with
reasonable prices and variety
WEEKNESS
1. High cost
2. Frequently overloaded
3. Slow payment system
4. Product quality is unstable
5. Distribution chanel is narrow
6. Big C remains slow in catch customer
expectation
OPPORTUNITIES
1. Vietnam joined the WTO,
expansion of international
integration
2. Consumer demand is increasing
3. Retail market is fast growing
4.The fast growth of Vietnam
economic
THREATS
1. Increasing in competition
2. Buying habits of customers
3. The economic crisis
4. Supply chain of Big C

S O:
S1,S5 O: Professional staffs always keep open-hearted attitude will attract more
customers.
S3 O2,O3: Big C have good opportunity to expand distribution chanel.
S6 O2,O3: Big C have good opportunity to expand structure of products,
especially the high profit commodities.
W O:
- Improving the quality of products.
- Upgrading payment systems & providing multiple payment methods.
- Improve operational efficiency such as PR, marketing, customer care
S T:
S1,S5 T1: Big C should improve the quality of staff service
S6 T2: Big C should expand the structure of product to compete on price and
quality
S1-T4: Big C should improve the quality of supplier, looking for partners who
have high quality and prestige.
W-T:
- Propaganda, advertising continually aimed at raising awareness and changing
shopping habits of customer
- Use promotions and discounts regular to stimulate demand for shopping