Tài liệu Xây dựng chiến lược kinh doanh công ty cổ phần tài nguyên khoáng sản hà nội điện biên

LUẬN VĂN THẠC SĨ XÂY DỰNG CHIẾN LƯỢC KINH DOANH CÔNG TY CỔ PHẦN TÀI NGUYÊN KHOÁNG SẢN HÀ NỘI - ĐIỆN BIÊN 1 INDEX Introduction.............................................................................................................4 Chapter I: Theory basis on business strategy .......................................................6 I. Overview of strategic management..................................................................6 1.1 Business strategy...............................................................................................6 1.1.1 Origin of strategy and concept of business strategy.......................................6 1.1.2 Basic characters of strategy...........................................................................7 1.1.3 Roles of strategy in business...........................................................................8 1.2 Strategic Management.......................................................................................9 1.2.1 Definition of strategic management................................................................9 1.2.2 Meanings of strategic management................................................................9 1.2.3 Strategic management model .........................................................................10 II. Theory basis......................................................................................................11 2.1 Analysis of the environment within the enterprise.............................................11 2.1.1 Analysis manpower......................................................................................12 2.1.2 Analysis of the technical infrastructure and technology companies.............12 2.1.2.1Technology renovation.................................................................................12 2.1.2.2 Analysis of the infrastructure of an organization.......................................13 2.1.3 Analysis of the capacity of the company ......................................................13 2.1.4 Analysis of the capacity of the company.......................................................14 2.1.5 Analyze the Marketing activities...................................................................14 2.2 Analysis of competitiveness...............................................................................15 2.3 Analysis of Environment macroscopic..............................................................16 2.3.1 Analysis of Legal and Political factors........................................................16 2.3.2 Analysis of the economic environment..........................................................17 2.3.3 Analysis factor in social and cultural...........................................................18 2.3.4 Analysis Factor in technological..................................................................19 2.4 Analysis of the environment sector....................................................................19 2.4.1 Analysis of competitor .................................................................................20 2.4.2 Analysis of customer pressure .....................................................................20 2 2.4.3 Analysis of supplier pressure .......................................................................21 2.4.4 Analysis of new product pressure ................................................................21 Chapter II: Analysis of the current status of the enterprise....................................23 I. Company prpofile..............................................................................................23 II. Function, obligation and strategic target........................................................23 2.1 Function of the company...................................................................................23 2.2 Strategic Target..................................................................................................23 III. Analysis of internal evironment ....................................................................24 3.1 Analysis according to resources........................................................................24 3.1.1 Organization structure of the Company ........................................................24 3.1.2 Human resource management........................................................................26 3.2 Technical and technological material base of the company...............................29 3.3 Analyze company’s financial condition............................................................30 3.4 Analysis of the manufacturing capacity of the enterprise .................................33 3.5 Analyze the Marketing activities.......................................................................34 IV. Analysis of competitiveness............................................................................35 V. Analysis of environment macroscopic ..........................................................37 5.1 Analysis of Legal and Political factors. ...........................................................38 5.2 Analysis of the economic environment..............................................................39 5.2.1 Growth speed of the economy......................................................................39 5.2.2 Inflation.......................................................................................................39 5.2.3 Forex...........................................................................................................40 5.2.4 Interest rate.................................................................................................40 5.3 Analysis factor in social and cultural.................................................................40 5.4 Analysis Factor in technological........................................................................41 VI. Analysis of the environment sector ..............................................................42 6.1 World metal mineral market..............................................................................43 6.2 Domestic mineral market...................................................................................44 6.2.1 Evaluate sources of supply in the vietnamese market ..................................44 6.2.2 Estimation of market demand.......................................................................46 3 6.3 Analysis of the environment sector...................................................................48 6.3.1 Analysis of potential opponents....................................................................48 6.3.2 Analysis competitor present.........................................................................48 6.3.2.1Backan Mineral Joint Stock Corporation (BAMCORP)...............................49 6.3.2.2Hoang Bach Group......................................................................................49 6.3.2.3Thanh Hoa SD Xuan Minh Joint Stock Company.........................................50 6.3.2.4Bac Kan – Nikko Mineral Joint Venture ......................................................50 6.3.3 Analysis of customer pressure......................................................................53 6.3.4 Analysis of supplier pressure .......................................................................53 6.3.5 Analysis of new product pressure.................................................................53 Chapter III: Designing strategies and solutions for the implementation of the strategies.................................................................................................................. 57 I. Formulating strategies 57 II. Consideration of strategic target for the period from 2010 to 2015 60 III. Major factors in the selected strategy 60 3.1 Market expansion..............................................................................................60 3.2 Investment, Process and Production..................................................................60 3.3 Strategy to develop its human resource ............................................................61 3.4 Marketing Strategy............................................................................................61 IV.Investment plan and inplementation process 61 4.1 Actions to be taken for solution implementation...............................................62 4.2 Person in chare of solution implementation.......................................................62 4.3 Time for solution implementation : 5 years in total (From 2010 – 2015)..........63 V. Conclusion 67 List tables........................................................................................................68 List of the models............................................................................................69 List of reference materials...............................................................................70 4 INTRODUCTION Topic: “Building business strategy at company level for HA NOI - DIEN BIEN MINERAL AND RESOURCES COMPANY LIMITED in the period 2010 – 2015” 1. Necessity of the subject: In the history of the world has observed many people integrate the business world with a small capital, but they were quickly then successful and gained victories and victories thanks to the right business strategy. The business strategy is compared with steering wheel of the ship that helps to come over the ocean to the destination, particularly at the beginning time of its operation. It is also considered a gust of wind that flies the kite higher and higher. Actually, experiences of successes and failures in business have showed some billionaires are descended from bare hands with tiny capital thanks to optimum business strategy, vice versa some of millionaires have to pass their fortune to their competitors in a short time due to blunder in business method. Closing down of loss-making companies and development of profitable enterprises really significultly depends on business strategy of such companies, particularly in the market economy. Origin of success or failure is dependent on one of the important factors, which is what business strategy the company has. Being aware of the importance in building the company Business Strategy , with the knowledge gained from MBA course provided by ETC (Hanoi National University) in association with Griggs University and study period in HA NOI - DIEN BIEN MINERAL AND RESOURCES COMPANY LIMITED, our group would like to choose the topic: “Building business strategy at company level for HA NOI DIEN BIEN MINERAL AND RESOURCES COMPANY LIMITED in the period 2010 – 2015” Purpose: With this topic, we wish to help the company have right track in the coming period. 5 2. Scope of research The concentration of resources to the question on the development strategies of HA NOI - DIEN BIEN MINERAL AND RESOURCES COMPANY LIMITED. Analysis, to study the operation of the business of the company on the following aspects: the function, tasks and inside and Outside and environment branch. Since the strategy of business for a period of 2010-2015 and the solutions and specific measures for the implementation of the strategies. 3. Methods of research Capstone project report use of scientific methods: comparison and to sum up, the method mark; the use of statistical data for the demonstration. 4. Thesis structure Apart from the introduction and conlusion, large exercise of 3 of chapter: Chapter I: Theory basis on business strategy Chapter II: Analysis of the current status of the enterprise Chapter III: Designing strategies and solutions for the implementation of the strategies 6 CHAPTER I GENERAL THEORY BASIS ON BUSINESS STRATEGY I. OVERVIEW OF STRATEGIC MANAGEMENT : Motivated by increasing internationalization trend and scarcity of resouces, rainstorm development of technology, change of market demand, business environment is becoming more and more complicated and fluctuant. Such business environment requires the enterprise to have a good business strategy, so that it can catch the opportunity, avoid risks, and ensure a stable and sustainable development. 1.1. Business strategy: 1.1.1. Origin of strategy and concept of business strategy “Strategy” is a term originated from Greek language, “Strategos” which is used in military, the modern military theorist Clawzevit reckoned: Military strategy is the commanding art at the optimum advantage. A publication of Larous dictionary considers: strategy is an art to commend all means to gain the victory. Scholar Dao Duy Anh, in Vietnamese dictionary wrote: strategy is drawn plan to achieve the victory on one or many battlefields. Therefore, in army aspect, strategy term in general is considered a commanding art aiming at victory achievement in a war. In 1962, Chandler defined strategy as “determination of long-term basic target and goal of the enterprise and application of actions series as well as allocation of necessary sources to implement such targets” (Chandler, A. (1962). Strategy and Structure. Cambridge Massachusetts. MIT Press). Until 1980, Quinn introduced a more general definition “Strategy is a pattern or plan which integrates essential goals, policies and action series into a firmly consolidated general” (Quinn, J.B.1980. Strategies for Change: Logical Incrementalisn. Homewood, Illinois, Irwin). Then, Johnson and Scholes redefined strategy in an environment with a lot of quick changes: “Strategy is orientation and scope of an organization in long term to gain its competition power through formulation of its sources in changing environment 7 in order to meet market demand and satisfy shareholders” (Johnson, G.,Scholes, K. (1999), Exploring Corporate Strategy, 5th Ed. Prentice Hall Europe). A part from the above traditional approach, many business organizations approach the strategy in a new way: business strategy is plan to control and use human, properties and finance resources aiming to enhance and ensure the indispensable rights. Kenneth Andrews was the first to offer these outstanding ideas in the classical book "The Concept of Corporate Strategy!" He introduced that the strategy is what an organization must rely on the strengths and weaknesses of theirs in the context of both opportunities and threats. Brace Henderson, strategist at the same time was the founder of Boston Consulting Group connected the concept of strategy with competitive advantage. Competitive advantage is setting a company in a better position than its competitor’s to create the economic value for customers. "Strategy is a careful search for an action plan to develop and combine competitive advantage of the organization. The difference between you and your competitor is the basis for your advantage. He believed the two competitors can not coexist if their business methods are identical. Difference creation can enable the existence. Michael Porter also agreed with Henderson’s judgment: "Competitive Strategy relates to differences. That is a careful selection of a series of different activities to create an unique set of values”. By what means of approach, nature of strategy is drafting the future image of the enterprise in their activities field and operation capacity. According to this understanding, business strategy term is used in 3 most popular meanings: - Determination of long term goal of the enterprise - Provision of the general action program - Selection of action options, allocation of sources to implement such goal. “Source: Chapter 1 – General view on Strategic Management – National Economic University” 1.1.2. Basic characters of strategy - Strategy specifies clearly fundamental objectives, business directions to be obtained in each period and is fully consistent thoroughly in the areas of operations management of the 8 business. Orientation character of the strategy is to ensure business continuous and firmly development in the usually fluctuated trading environment. - Business strategy only drafts operation course of the enterprise in long term, and operation framework of the enterprise in future. That is orienting only but in practice, business activities require combination of strategic target and economic target, taking into consideration of reasonability and adjusting to suit the environment and condition of business to ensure the business efficiency and remedy errors caused by orienting character of the strategy. - Business strategy is built on basis of the enterprise competitive advantage to ensure maximum mobilization and good combination with operation and use of sources (manpower, asset power of both visible and invisible), core capacity of the enterprise in present and in future aiming to promote Strengths, capture the chances to obtain upper hand in competition. - Business strategy is reflected in a continuous process from building up, implementation organization, evaluation, inspection and adjustment of the strategy. - Business strategy always carry attacking idea to gain victory in competition. Business strategy is formed and realized based on identification and utilization of business opportunities, competitive Strengths of the enterprise to achieve high business efficiency. - Every important strategic decision in the process of building-up, implementation and adjustment of strategy is often focused to high rank managers group. To ensure the correctiveness of long term decisions, information secret in competition is important. 1.1.3. Roles of strategy in business With the above characters, it is said that in market mechanism, building and realization of business strategy has an important meaning for the enterprise existence and development. - The business strategy help the enterprise recognize its target of orientation in future as guideline for all activities of the enterprise. 9 - Business Strategy plays oriental role of the enterprise operation in long term, it is the firm basis for deployment of activities. Lack of strategy or unclear strategy without firm ground will make the enterprise lose the direction, problems arisen are foreseen in short term not in long term or viewed partially not in whole operation of the enterprise. - Business Strategy will provide assistance to the enterprise in seizing and making use of trading opportunities, simultaneously proceeding countermeasures against threats in business market. - Business strategy contributes to enhance efficiency of sources usage, intensify company position to make sure of uninterrupted and unshakeable development. - Business strategy creates strong base for the enterprise to make decision suit the market changes. It gives firm basis for activities of research and development, investment to personnel training and improvement, market widening and product development. In fact, almost mistakes in investment, technology, and marketing… are in consequence of building wrong strategy or wrong target. 1.2. Strategic Management 1.2.1. Definition of strategic management Some definitions of strategic management: - Strategic management is a group of decisions and actions to decide the long term success of the Company. - Strategic management is a group of decisions and measures to make plans and implement strategies to realize targets of the Company. - Strategic management is to study existing and future conditions and to make plans for targets of the Company; to organize and check the implementation of decisions to realize targets in both existing and future conditions. 1.2.2. Meanings of strategic management - Help to realize, give priorities and obtain opportunities - Point out real opinions and views on difficulties of management works. - Put forward an outline for the synchronous development of activities and control - Minimize risks 10 - Help to have major decisions serving the preparation of targets. - Help to have better arrangement of time and resources for specific opportunities. - Reduce time and resources necessary to correct mistakes and wrong decisions. - Create a framework for relationships among individuals within the Company. - Help to combine individual actions into a common effort. - Create a basis to specify responsibilities of each individual. - Bring about an encouragement for good and progressive opinions. - Create means of cooperation, attachment, passion in jointly solving problems and obtaining opportunities. - Encourage active manners to changes. - Bring about an official discipline in the Company. 1.2.3. Strategic management model Strategic management process is often studied and used through models. The strategic management model created by F. David is popularly accepted. This model does not ensure the success but provides a clear and basic approach in preparation, implementation and evaluation of strategies. The Relationship among steps of the strategic management process is presented in Figure 1.1 Evaluate external factors, point out opportunities and challenges Point out existing tasks, targets and strategies Set up long term targets Review tasks of the Company Evaluate internal factors, point out strengths and weaknesse Set up normal targets Distribute resources The choice of strategy for according to to Formulating strategies Measure and evaluate the impleme-ntation Policy unit Implement strategies Assess strategies 11 Model 1.1: Strategic management model of F. David “Source: Chapter 1–General of Strategic Management–National Economics University” The Outline of tasks, targets and strategies of a Company is the firstly logic and necessary step in the strategic management because the existing position and status of the Company could prevent the Company from applying some strategies and even prevent the Company from series of works. Each Company has its own tasks, targets and strategies though these tasks, targets and strategies are prepared, and published unintentionally. The answer for the future position of the Company will be mainly decided by its current position. II. THEORY BASIS: 2.1 Analysis of the environment within the enterprise Purpose to identify strong and weak points which allow the enterprise to determine: What we can do? Based on the determination of company sources and core capacity, from that appropriate measures for the company strategy will be given in compliance with external conditions. * Company core capacity: - Special production skills with high quality - Provision of after-sales service - Low production cost - Advantagous location of retailing system - New technology for product development - High professional sale representatives, etc. * Internal sources of the enterprise Those are input factors of production and trading process including visible and invisible sources. * Model of value chain analysis (by M.Porter, 1985 ) In this value chain, Porter’s model divided into two main aspects of business: supplementary and key activities. Basically, there are generally nine types of 12 activities which creat value in the whole chain. Group of key activities consists line of five types of activities: input the materials to trade; operation, production-trading; transportation outwards; marketing and sale; providing relating services. Supplementary group contains activities which make value including: infrastructure, human resources administration, technology and procurement. Supplementary ones occur inside each key activity. 2.1.1 Analysis manpower In the way of the creation of the competitiveness of companies, the advantage through human rights is a fundamental factor. Human being is reckoned as essential source and possess decisiveness thoughout ages. Resources from the human factor is sustainable and difficult to change in any organization. Capacity through manpower in company is understood as capacity of the company employees team. This capacity is shown in aspects of figure 1.3. Human resource contributes to success of the company in respects of high quality, excellent services, innovation ability; skills in specific works; and capacity of employee team. This is the core factor to bring about the sucess for the organization. However, not every organization can achieve sucess in all aspects on manpower and normally they choose focuses suitable to the company vision and strategy. Paying attention to labor is the best way to stick them to the company. Researches will demonstrate thoughts, attitude and indicators of changes in their works, from those, countermeasures of the company will be drawn out. Consistent, effective and courageous management will bring sucessfull efficience better than expected. The company has to confirm number of employee and their relative capacities can match with position and function of the current work or not? Therefore, in long term, the company, organiztion has to control the employment, selection, training-upgrading, and complimentary. Tasks and targets of the organization will be carried out in parallel with an efficient HR strategy. 2.1.2 Analysis of the technical infrastructure and technology companies 2.1.2.1 Technology renovation: 13 For production process, arrangement of machinary must be evaluated carefully. It will affects on suitability in transportation, storage, smoothness of the system, the synchorous machinery. Therefore, personnel who carry out the production administration must answer: How appropriate the machine and equipment arrangement in the company is now? Motivation of technology innovation differs from motivation of innovation and improvment of products of which market widening is the main target, while technology innovation is with purpose of cost reduction or product quality rising. Technology innovation does not always require research of basic technical science, but it demands competences to exploit new science achievements. 2.1.2.2 Analysis of the infrastructure of an organization. This activity is controlled by the whole team, organization or strategic plan, including MIS, equipments and machines for implementation and monitoring them. It like an accounting department. The enterprise has to maintain following elements: - Organization structure, prestige and enterprise image - Enterprise scores to achieve goals - Communication system setting - General organization monitoring system - Atmostphere of organizational order - Capacity, level of attention and qualification of the highest management board - Strategic planning system 2.1.3 Analysis of the capacity of the company Financial analysis enables enterprise in determination of its strengths and weakness. It also identifies causes and gives solutions for that issue. The enterprise can only exist and bring in more wealth to its owner if its finance is well managed. Therefore, in any scale, big or small, the enterprise should focus on financial management. In order to implement the enterprise business assignments, financial management activity does not taken independantly but related to other functions such as production, marketing, administration, human resource. During analysis of enterprise finance, it is required to conduct following steps: Selecting criteria to be 14 evaluated; identifying those criteria; comparing with the past’s criteria and common criteria in the business field as well as competitor’s criteria. 2.1.4 Analysis of the capacity of the company During business development, enterprises spend great efforts to achieve market advantage such as expansion of production scale, gained experience... in order to reduce product price and increase competition of the product in the market; final goal is to increase turnover and profit for the enterprise. Or enterprises carry out improvement of their machinary, motivate development research aiming to promote products having different functions to sastify customers’ demand. Though the enterprise has to invest big amount for this method but owning to the difference of product, consumers are willing to pay high price for it. Thus, the enterprise are still able to maintain its position in the market. Production function in business operation is a process of making inputs into goods and service. For almost businesses, major production cost to creat goods and service makes up large ratio in company costs. The enterprise should determine: What to be produced? How is quantity? Where to be comsumed? And when to be produced? So, the enterprise should establish production plan, material reservation and supply plan and product reservation and provision plan... Therefore, production function is often considered as a competition weapon in the company strategy. 2.1.5 Analyze the Marketing activities As definition of American Marketing Association: ”Marketing is performing business activities in order to transfer goods and services from manufacturers to consumers or users“. Marketing plays an important role in decision and coordination of integration of enterprise’s business activities and market; ensures business activities of enterprise following the market, which consider the market and consumer’s demand the basis for business decision-making. To analyse marketing performance in business, we need to forcus on matters of analysing customer, purchasing and selling acitivities, product and service strategies, price making, distribution, marketing study, 15 opportunities and social obligation. From such analysis, we must consider if marketing staff, who mainly perform marketing tasks, make a future market prospects with newly arising consuming trends and which trend will dominate the market. Marketing attitude nowadays will strongly decide the company’s position in the future. Consequently, the system’s addtitute in term of responsibility toward the consumer will proberly play a key role in making decision. 2.2 Analysis of competitiveness Companies pursue strategic businesses to achieve more competitive Strengths than their competitors’ and consequently gain an income higher than the average level. These strategic businesses are: Leading in cost saving, product differentiation and concentration. Leading in cost saving (mainly Low differentiation Market price) Low (mass market) Production Concentration differentiation by High (mainly by From low to high Product segment Specific ability Product the uniqueness) (price or uniqueness) High (many Low (one or some market segments) market segments) and R&D, Marketing Any specific ability material management and Sale Model 1.2: Three competitive strategy of basic M.Porter “Source: Chapter 6 – General of Strategic Management–National Economics University”  Assess the competitive capacity of the whole enterprise Business must find out its strong point that it’s performance is better than other competitors. Such strong points that the competitors cannot copy or adopt simply. Overall frame of building business competitive Strengths is as below: 16 Good quality Competitive advantages: High - Low cost productive - Difference Consumer’s good feedback Innovation Model 1.3: Core competitive capacity “Source: International Business Management – Commercial University” From comments and analysis of business’s internal and external factors, we build matrix SWOT (identify weak point, strong point, opportunity, challenging) to determine the suitable strategy to be executed. 2.3 Analysis of Environment macroscopic It is an environment containing huge factors that affect to long term strategical decision of business. For example: economical, political, cultural, law factors, etc. 2.3.1 Analysis of Legal and Political factors. Elements of political influence and great to the operations of enterprises. They can create opportunities and obstacles even real risk to the enterprise for a change of political. For example: - Political stability. - Role of Government and its attitude to international trading and business. - Law system. - Lawcourt system. In the business operation of the enterprises shall have to take action from all sides that the relevant policies of the state such as: antitrust law, tax laws, the option to adjust or priority, labour legislation and policies to manage the state can affect activities and the profitability of industry or business. 17 The interests of enterprises and consumers of an enterprise must comply with the policies of the decree of the state and have advanced according to the operation of the enterprises themselves. 2.3.2 Analysis of the economic environment Economic factors can change value and turnover of the enterprise, such as: balance of trade, foreign investment, market orientation, monetary system, distribution of income and purchasing capacity, inflation, economic development, infrastructure and natural resources. Specifically: - Economic environment shows nature and direction of an economy in which the enterprise operates its activities. Such definition of economic environment in present condition should be relatively understood, since intergration of countries in over the world as a result of a global economy, thus the business itself needs to inspect, observe, calculate cost estimation and assess economic healthy of the overseas economy. - National balance of trade shows advantage fields of a country. - Inflation can reduce stability of an economy and cause slow economic growth, higher interest and unstable exchange rate variation. If the inflation increases, making a business plan becomes high risk. A key feature of inflation is that it makes future forecast very difficult. - Investiment in morderation of companies in case of increasing inflation will slowdown economic activities, then at last put them to come into deadlock. Consequently, high inflation is certaintly a threat to company. - Economic growth leads to an outbreak of expenses of consumer, thus it can make a more comfortable trend of competitive pressure in the same field. This brings opportunities to companies to expand their business and obtain higher profits. In contrast, economic decline will lead to decreasing consumption, as a result, competitive pressure is increased. Also an declined economy normally causes price wars in saturated fields. - Monatory system is indicated through national applicable currency and the exchang rate, which defines value of currency of different countries. Exchange rate 18 variation directly impacts to competitiveness of companies in global market. For example, when value of domestic currency is lower than other foreign currencies, domestic products will be relatively cheaper than foreign products. Low or down value of domestic currency will reduce threats from foreign competive companies, in the meanwhile, it creates opportunities for increasing export turnover. 2.3.3 Analysis factor in social and cultural Culture is a complicated concept. Culture is considered as an objective existance in human society. Each of person, manager or organization belongs to a curtain culture. Moral, belief, system of values of each individual is built and grown under each culture. Similarly, business strategy is also affected by culture, it controls consumer’s behaviour and customer’s buying attitute. Society is a colorful picture created by individual with different life styles. It is this to control strongly the formation of demand of type, quality, quantity, shape, sample etc of products or services characterising that life style. Thus managers, unless adjusting their activities to catch up with life style of both current and future society, they hardly to make a good business. The factors are as follows: - Social organizations - Values and criteria - Language and religion - Population with growth rate and aging structure. Normally, in each business, manager has to analyse population structure by gender, age to phase and determine the target market. That means, by such analysis, they can identify the actual demand of their products, then make decision of production and consumption plan of their business. - Urbanization speed - Fact and business behaviour Population movement from one area to another area is also a factor affecting to making strategic plan and human resources management, marketing stretagy and other supporting business plan acting in the existing business environment. - Professional Capacity 19 Social labor specialization and cooperation is an indispensable in development process of each country, region and all over the world. Obviously we can see that, the significant economic development, labor specalization and cooperation is extreamly high and vice verce. This also means that professional specialization and cooperation is stronger and stronger in a developed society. Besides, people having different consumption demands of food, accommodation, travelling and entertainment because of their different professions. In order ton meet demand of all kinds of profession in the society, managers must consider all impacts of such factors on their business plan and strategy. Population and population growth in each market and each nation, as always, is factor that causes dramatical affection to all business administration of each company. 2.3.4 Analysis Factor in technological Of course, technology alternation will affect to life circle of a product or service. A theorical cycle consists of starting, growth, mature and vanish. There is the fact that after the vanish stage, some products will have a new growth. Moreover, technology alternation also affects to production method, materials as well as labor’s behaviours. Thefefore, this is factor with significant and direct affection to business strategy of many companies and many sectors. The 21 century is a century of science and information technology, therefore, analysis and prediction of technology alternation is very important and urgent ever, as following indications: - Scientific and technology criteria - Technological effort - Protection of invention cerficaiton - Technology transferring - Automation - Decision for development, and the conditions for the application of new technologies, modern. 2.4 Analysis of the environment sector 20