Business Strategy : Long Son and Bim Son Cement

The following paper is based on Cement sector companies market analysis. The two selected cement manufacturer companies are Long Son Cement and Bim Son Cement. The paper covers all the details starting from ther introduction to thier strengths and weaknesses. In between it has benchmarking properties of the cement manufactures. It also includes value chain analysis and VRIO framework.

ASSIGNMENT 2 FRONT SHEET Retake
Qualification BTEC Level 5 HND Diploma in Business
Unit number and title Unit 32: Business strategy (574)
Assignment due Assignment submitted
Learner’s name Trần Minh Learner’s code
Class Assessor name
Learner declaration:
I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.
Learner signature Date
Grading grid
P2 M2

Assessment criteria Grading
(achieved or not) Assessor’s Feedbacks
LO2 Assess an organization’s internal environment and capabilities
P2. Analyze the internal
environment and
capabilities of a given
organization using
appropriate frameworks
M2. Critically evaluate
the internal environment
to assess strengths and
weaknesses of an
organization’s internal
capabilities, structure and
skill set.

Summative feedback:
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Table of Contents
Introduction...........................................................................................5
Benchmarking........................................................................................5
Value chain analysis...............................................................................6
The VRIO FRAMEWORK.........................................................................8
Strengths and Weaknesses....................................................................9
Conclusion............................................................................................10
References...........................................................................................11

Introduction
For every business to flourish, its internal climate is vitally important. The vitality of the whole organization's
internal environment is essential to the proper operation of all other components. The Thanh Hoa region is
home to two large cement manufacturers: Long Son Cement and Bim Son Cement. However, it is obvious that
there are significant differences in manufacturing capacity between CP20 and CP40 cements.
Benchmarking
Long Son Cement and Bim Son Cement are two major cement producers in the Thanh Hoa area.
Supplying CP20 cement and cp40 cement products together, but the difference in production capacity
and factory is very clear.
Annual output: In recent years, the Bim Son Company has invested in upgrading and modernizing line 2
and constructing a new line 3 to improve the factory's capacity in response to the difficulties and needs
of the market. In order to increase output and eliminate production bottlenecks, a new German-
developed cement grinding-bagging technology, rated at 3.2 million tons per year, has been added to
the project. As a result, each year, the corporation provides a substantial portion of the state's revenue.
In addition, the corporation has spent billions of dollars on charitable and humanitarian causes.
With just two manufacturing lines, the Long Son facility can produce 7.2 million tons annually and has
opened bagging facilities in Khanh Hoa and Long An, each with a capacity of 500,000 tons. A total
investment of more than 700 billion dollars is required to produce 800,000 tons a year. Even though
Long Son has only two lines, it produces more than twice as much cement every year than Bim Son, and
that's only throughout the course of the year. Lines 3 and 4 will also be extended by Long Son, which will
place Bim Son in the distance.
Production technology :
The Bim Son rocky mountain region (Thanh Hoa) has been examined and assessed by Soviet specialists as the
number one raw material location for cement manufacturing in Vietnam, where Long Son Cement products
are being made. Male. To develop a wide variety of high quality cement products, this material is coupled
with Japanese technology and contemporary lines. However, Long Son Cement Company is also the unit that
employs the most advanced technology for controlling and monitoring the manufacturing line's machinery.
Long Son Cement's high-quality, long-lasting cement products have satisfied customers after just a short time
on the market. New technology from the Federal Republic of Germany is used by Cement Bim Son to improve
production and reduce technical obstacles.
There are several ways to examine your company's value chain, including determining which activities
contribute most to your product's value and then analyzing those operations to cut costs or boost
productivity. An organization's value chain is a collection of internal processes it uses to convert raw materials
into finished goods (Jure, 2013).

Value chain analysis
There are several ways to examine your company's value chain, including determining which activities
contribute most to your product's value and then analyzing those operations to cut costs or boost
productivity. An organization's value chain is a collection of internal processes it uses to convert raw
materials into finished goods (Jure, 2013).
Primary activities:
Typical pursuits include:
Supply chain: To ensure a steady supply of cement and timely delivery to all sorts of customers throughout the nation,
Long Son has established a number of ports projects around Vietnam, including as a clinker grinding mill in Nghi Son, a
cement distribution terminal in Ninh Thuy and Ben Luc, and others.
Operations: In Dong Son ward of Bim Son town, Thanh Hoa province, a two-synchronous Long Son cement mill has
been operating since 2014. A yearly output of 5 million metric tons of cement is possible with a daily output of 14,000
tons. Cement production in Thanh Hoa's Bim Son town has grown significantly as a result of the expansion of Long Son
Co., Ltd. Incorporating iconic German companies like Loscher, IKN and ABB with cutting-edge Japanese manufacturing
technology. Converging on Long Son Cement is a great way to get the greatest cement on the market today. Long Son
Cement has inked contracts in countries throughout the globe, including Singapore, Japan, the Philippines, Taiwan,
Australia, Bangladesh, and Africa, to create confidence with local customers.
Logistics: Long Son Cement is not only well-known for its high-quality cement, but it is also a major player in logistics,
with a reputation for lightning-fast shipment. Long Son Cement has a fleet of thousands of trucks, ships, and other
heavy-duty machinery, and a staff of highly-trained workers to ensure that clients get the best service possible.
Customers' loyalty and large orders from overseas markets are proof that Long Son is successful in the foreign market
owing to its experienced forwarder team working in partnership with internationally famous logistics organizations.
Sales and Marketing: Through local cement brokers and through orders from domestic and foreign contractors, Long
Son distributes its goods worldwide. Now, Long Son Cement Factory is manufacturing PCB 30, PCB 40 and bulk cement,
as well as Clinker and cement to be exported based on customer demands. In the last year, overall consumption was
110 percent more than anticipated. ISO 9001-2015 quality management system certifications and American ASTM
certifications have confirmed the company's status and worldwide market integration... Continuous efforts have
brought more recognition to the company's goods, which are becoming more popular with customers.
Service: In order to guarantee the greatest quality goods for consumers, Long Son Cement products are tested
experimentally before they are sent out of the plant. Long Son Cement is always looking for methods to enhance its
product lines, which necessitates constant market input. Seaports are used to carry goods to customers and agents, in
addition to road transportation. The firm has also invested in a network of distribution centers in order to ensure that
items are rapidly and easily available in both local and international markets.
Technological advancements/research and creation: Long Son Cement Company has finished and placed into
operation two steady production lines with a combined annual capacity of 7.5 million tons, starting construction in
2014. In Khanh Hoa and Long An, two bagging plants with annual capacity of 800,000 tons and 1 million tons,
respectively, were put into operation at the same time, with a combined investment of more than 700 billion dong.
Now that the bagging facility in Quang Ngai has been completed, Long Son Cement Company is working on the
construction of a 3, 4 line project. For the first time, Long Son Cement Company has reached a point of maturity. says
Long Son Cement will become even more dominant in the Vietnamese cement market. Lines 3 and 4 are anticipated to

become live in 2020 and 2021, respectively. Long Son Cement Factory relies on the most up-to-date and cutting-edge
technology available to run its manufacturing, sales, and other aspects of the business.
Management of Human Resources: Management of human resources is a critical link in the chain of value of a
company. Long Son always prioritizes applicants with experience in cement factories and living in Bim Son, Ha Trung,
Tam Diep, candidates with expertise operating tower cranes and cranes in a working environment that needs high
accuracy, excellent health, and a high technical level. Long Son pays their staff generously and has supporting policies
since they want the industrial operation to run smoothly and without errors. The company's staff of specialists does
more than just work; they also pass on their expertise and insights to the company's workers.
Manager of sourcing: Most of the installed equipment is highly synchronized and fully automated, coming from well-
known Japanese, German, Italian, and Danish firms. Equipment selection is critical, and it should always take efficiency
and cost into account in order to make the most of available capital and minimize unnecessary expenditures.
A solid foundation: Any company's infrastructure is critical to its success. Management, financial capital, culture, and
structure all play a role in an organization's design. The more efficient a company's infrastructure management is, the
more likely it is to generate revenue. As a result, Long Son's infrastructure is constantly being upgraded and expanded
to satisfy the demands of both local and international customers.
FRAMEWORK OF THE VRIO
Global reach: Import and export is the major sector in products circulation, increasing company markets and
establishing commercial links between nations throughout the globe.. Domestic and regional economies are also
bolstered as a result. In addition to the country's rapid economic growth. It is a source of great pride for Long Son Co.,
Ltd. that it is a major player in the import and export of commodities to a wide range of nations throughout the globe.
As a means of restocking supplies that cannot be produced locally, imports and exports are an important part of the
Long Son Co., Ltd business model. Production is unable to keep pace with consumer demand, which necessitates rapid
economic restructuring in the direction of industrialization, modernization, and timely reinforcement of the economy's
balance. ensuring that the economy grows in a balanced and stable way.
Exports of high-quality clinker from Long Son have gone to nations all over the globe. International trade may be
complicated, but using import and export services makes it easier to navigate the complexities of international
commerce. The import-export market serves as a link in the chain of international commerce. Long Son relies on this
power to aid with marketing, trade, and global expansion of its product and brand names.
The following companies provide delivery services:
A clinker grinding mill at Nghi Son – Thanh Hoa, a cement distribution terminal in Ninh Thuy – Khanh Thuy, and Ben Luc
– Long An, among others, were all built by Long Son. Long Son Cement has a fleet of thousands of trucks, ships, and
other heavy-duty machinery, and a staff of highly-trained workers to ensure that clients get the best service possible.
The framework:
Long Son Cement Company has finished and reliably placed into operation two production lines with a total capacity of
7.5 million tons per year as of currently. More than 700 billion VND was invested in the construction of two bagging
facilities in Long An and Khanh Hoa with a capacity of 800,000 tons / year and 1 million tons / year, respectively. In
addition to technology from Japan and machines from all around the globe.
A List of Assets and Liabilities
Strengths

1. Cost and logistical advantages
Quick capital infusion, low-impact manufacturing
At 4.6 million tons per year, LONG SON CEMENT is categorized as a cement plant that can be built in less than three
years, making it a high-speed building facility. LONG SON CEMENT has a comparatively low investment rate
(approximately 1.7 million VND / ton) compared to the typical investment of around 1.9 -2.1 million VND / ton. The
total investment for both lines is over 8,000 billion VND. It saved LONG SON CEMENT money by putting each line into
service two months early.
2. Location
Additionally, LONG SON Cement is positioned in a good location for a cement production because of its proximity to
limestone mountains with enormous reserves and the Bim Son quarry in the Dong Dao rocky strip. - LONG SON
Cement's transportation infrastructure, which includes road and canal, is very convenient from Ninh Binh to Nga Son -
Thanh Hoa. As a result of several causes, Cement Long Son, a brand that has just entered the market, has already
established itself as a major player in both local and foreign markets.
Weaknesses
Mismanaged transportation
In violation of the limitations on vehicle loading capacity, Long Son Cement Plant continues to export items that exceed
the vehicle's capacity. Penalties and negative effects on community safety result when road transportation is not
properly managed.
Conclusion
So to sum it up, Long Son Cement is well-positioned in the cement sector, with a big transportation network and an
abundance of contemporary equipment. As a result of these factors, Long Son Cement has grown extremely fast and
has had to overcome a few setbacks in order to become a stronger company.

References
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cement. In IOP Conference Series: Materials Science and Engineering (Vol. 869, No. 7, p. 072004). IOP Publishing.
Fong-Sam, Y., 2011. The mineral industry of Vietnam. Minerals Yearbook.
Ngo, H.T.T., Pham, T.A., Vu, H.L.T. and Giap, L.V., 2021. Application of Artificial Intelligence to Determined
Unconfined Compressive Strength of Cement-Stabilized Soil in Vietnam. Applied Sciences, 11(4), p.1949.
Amin, O.M., Van Ha, N. and Heckmann, R.A., 2008. New and already known acanthocephalans from amphibians and
reptiles in Vietnam, with keys to species of Pseudoacanthocephalus Petrochenko, 1956 (Echinorhynchidae) and
Sphaerechinorhynchus Johnston and Deland, 1929 (Plagiorhynchidae). Journal of Parasitology, 94(1), pp.181-189.