DUY TAN UNIVERSITY

BUSINESS ADMINISTRATION
--------------🙖🕮🙐-------------

STRATEGIC MANAGEMENT

TOPIC:
BUILDING A BUSINESS STRATEGY FOR REDSUN-ITI

INSTRUCTORS : Dr. JOAN SERAFICA GOROSPE

CLASS : MGT 403 AC
GROUP 1 : Võ Nguyễn Hoài Liên – 1591
Nguyễn Thị Phước – 2101
Bùi Văn Huy – 6327
Phan Huy Tùng – 0091
Ngô Huỳnh Gia Huy – 3897
Lương Hoàng Khánh Nghi – 1582

TABLE OF CONTENTS :
CHAPTER 1 : INTRODUCTION...................................................................................3

1.1 Background of the company...................................................................................3

1.2 Nature of business operation...................................................................................3

1.3 Mission statement (original)....................................................................................4

1.4 Recommended mission statement...........................................................................5

CHAPTER 2 : STRATEGY FORMULATION..............................................................6

2.1 SWOT........................................................................................................................6

2.2 Internal Factor Evaluation (IFE)...........................................................................7

2.3 External Factor Evaluation (EFE).........................................................................9

2.4 Competitive Profile Matrix (CPM)......................................................................10

CHAPTER 3 : STRATEGY IMPLEMENTATION....................................................11

3.1 SWOT Matrix.........................................................................................................11

3.2 I-E Matrix...............................................................................................................14

3.3 SPACE MATRIX...................................................................................................14

CHAPTER 4 : STRATEGY EVALUATION...............................................................16

QSPM Matrix...............................................................................................................16

CHAPTER 5 : CONCLUSION......................................................................................18
 CHAPTER 1 : INTRODUCTION
1.1 Background of the company
Redsun was established in February 2008, and up to now, Red Sun International
Trade Investment Joint Stock Company (Redsun-ITI Corporation) has become one of the
leading companies in the field of culinary in Vietnam with those companies having
Korean and Japanese-style dishes.
Redsun's restaurant chain was formed and developed in many places in Vietnam
and has been very successful in receiving the support of returning customers. In the field
over the past 6 years, Redsun-ITI has affirmed its leading position in the field of foreign-
style cuisine with more than 10 major brands such as: King BBQ, Seoul Garden,
ThaiExpress...
With more than 200 restaurants across provinces and cities at home and abroad,
Redsun-ITI has been and will always bring you high-end culinary brands, luxury
restaurant chains, and delicious dishes. Great and classy service.

1.2 Nature of business operation

Founded in 2008, Redsun ITI manages and operates several restaurant brands
including King BBQ, ThaiExpress, Seoul Garden, Hotpot Story, Sushi Kei,...
Redsun ITI launched its first franchise concept, named King BBQ, in 2011 and
began to offer franchise opportunities in 2014. After just over three years, King BBQ has
secured a strong presence in the market with 75 restaurants nationwide, 15 per cent of
which are franchised restaurants.
On the back of this success, Redsun ITI introduced a second concept known as
Hotpot Story in 2017. The company has already sold Hotpot Story franchises after
opening 10 restaurants each in Hanoi and Ho Chi Minh City. In the near future, Redsun
ITI will focus on Laotian and Japanese restaurant chains, namely Khao Lao and Sushi
Kei.
Since 2015, Redsun ITI has maintained an upward trajectory with annual growth
rates between 40 and 60 percent.
Redsun ITI built a plant in Ho Chi Minh City’s Hiep Phuoc Industrial Park with the
capacity to serve 250 restaurants by 2020. Their second plant will be put into service in
Hanoi in December, to cater to the northern market. Both plants will also serve as
manpower training centres to supply employees to restaurants.
To retain its leading position in the market, Redsun ITI has set a target to have 450
restaurants by 2021, 40 per cent of which will be franchised. It means the company will
add one to two franchise chains and 60-70 restaurants to the market each year.
1.3 Mission statement (original)
“3 missions are always promoted by Redsun ITI during its operations:
+ Develop a restaurant chain with professional service and top-quality
+ Introducing famous international culinary cultures (Thailand, Japan, Korea,
China, Singapore, Hong Kong, Italy...)
+ Build a professional working environment for all employees and partners
cooperating with Redsun-ITI
And most of all, Redsun-ITI always strives to develop to become a pioneer company
in the restaurant industry in Vietnam."
1. Customer :
2. Products Services : Introducing famous international culinary cultures (Thailand,
Japan, Korea, China, Singapore, Hong Kong, Italy...)
3. Market : in Vietnam
4. Technology :
5. Survival Growth Profit :
 6. Philosophy : Redsun-ITI always strives to develop to become a pioneer company
in the restaurant industry in Vietnam
7. Self-Concept : Develop a restaurant chain with professional service and top-
quality
8. Public Image :
9. Empoyees : Build a professional working environment for all employees and
partners cooperating with Redsun-ITI
1.4 Recommended mission statement
“Redsun ITI mission statement:
+ Develop a restaurant chain with professional service and top-quality
+ Introducing famous international culinary cultures (Thailand, Japan, Korea,
China, Singapore, Hong Kong, Italy...)
+ Build a professional working environment for all employees and partners
cooperating with Redsun-ITI
+ Creating healthy financial rewards for investors as our business partners.
+ Strive to operate sustainably, minimizing impact on the environment.
+ Using advanced technology in restaurant chains.
+ Redsun-ITI meets the needs of all ages.
And most of all, Redsun-ITI always strives to develop to become a pioneer company
in the restaurant industry in Vietnam."
1. Customer : all ages
2. Products Services : Introducing famous international culinary cultures (Thailand,
Japan, Korea, China, Singapore, Hong Kong, Italy...)
3. Market : in Vietnam
4. Technology : Using advanced technology in restaurant chains
5. Survival Growth Profit :
 6. Philosophy : Redsun-ITI always strives to develop to become a pioneer company
in the restaurant industry in Vietnam
7. Self-Concept : Develop a restaurant chain with professional service and top-
quality
8. Public Image : Strive to operate sustainably, minimizing impact on the
environment.
9. Empoyees : Build a professional working environment for all employees and
partners cooperating with Redsun-ITI

CHAPTER 2 : STRATEGY FORMULATION

2.1 SWOT
2.1.1 Stregths
- Strong brand
- Wide distribution network
- Convenient store location
- High-quality product
- High-quality human resource
- High equipment and technology
- Luxurious, airy, clean space
- High-quality input materials
- Strong domestic investment capital
- Effective franchise chain
2.1.2 Weakness
- Not yet independent of raw material sources
- Ineffective use of financial resource
- Not fully exploited Korean culture
 - Few loyal customers
- Some staff service attitude is not good
- Many facilities are degraded
- Quality of the brand chain is not stable
- Using strategies that are not reasonable and effective
- High cost and price
- Attracting customers is not effective
2.1.3 Oppotunities
- Demand for food industry is increasing
- A large number of potential customers
- Techniques and technology are increasingly advanced
- Potential for sales development through online model app
- Trend of international cuisine is becoming popular in Vietnam
- Many raw material suppliers
- Increase engagement on social networks
- Strengthening cooperation with strategic partners.
- Training and developing human resources
- Take advantage of green, clean, and sustainable food trends
2.1.4 Threats
- Intense competition from other players in the culinary industry
- Quality management and maintaining high service standards
- Human resources and staff training to maintain quality service
- Efficient operational cost management to maintain competitive pricing
- Menu innovation to sustain customer appeal
- Food safety policies and compliance with relevant regulations
- Marketing strategy to attract and retain customers
 - Partner and supply chain management to ensure stable and quality ingredients
- Impact of weather conditions, especially during the rainy season
- Adaptation to Changing Consumer Preferences
2.2 Internal Factor Evaluation (IFE)

Key External factors Weight Rating Weighted

Score

Stregths

- Strong brand 4 0,07 0,28

- Wide distribution network 4 0,06 0,24

- Convenient store location 4 0,04 0,16

- High-quality product 4 0,08 0,32

- High-quality human resource 3 0,08 0,24

- High equipment and technology 3 0,05 0,15

- Luxurious, airy, clean space 3 0,07 0,21

- High-quality input materials 4 0,08 0,32

- Strong domestic investment capital 3 0,05 0,15

- Effective franchise chain 4 0,05 0,2

Weakness

- Not yet independent of raw material sources 2 0,05 0,1

- Ineffective use of financial resource 4 0,04 0,16

- Not fully exploited Korean culture 3 0,03 0,09

- Few loyal customers 3 0,03 0,09

- Some staff service attitude is not good 3 0,03 0,09

- Many facilities are degraded 4 0,06 0,24

 - Quality of the brand chain is not stable 4 0,03 0,12

- Using strategies that are not reasonable and effective 4 0,03 0,12

- High cost and price 3 0,02 0,06

- Attracting customers is not effective 4 0,05 0,2

TOTAL 70 1,00 3,54

=> Redsun's overall weighted score of 3,54 is higher than the industry average of
2.5. Therefore, the company has internal strengths so it competes competitively.
2.3 External Factor Evaluation (EFE)

Key External factors Weight Rating Weighted

Score

Opportunities

- Demand for food industry is increasing 4 0,10 0,4

- A large number of potential customers 4 0,06 0,24

- Techniques and technology are increasingly advanced 4 0,07 0,28

- Potential for sales development through online model

app 4 0,04 0,16

- Trend of international cuisine is becoming popular in

Vietnam 3 0,04 0,12

- Many raw material suppliers 3 0,03 0,09

- Increase engagement on social networks 3 0,06 0,18

- Strengthening cooperation with strategic partners. 3 0,04 0,12

- Training and developing human resources 4 0,07 0,28

- Take advantage of green, clean, and sustainable food

trends 4 0,05 0,2
 Threats

- Intense competition from other players in the culinary

industry 4 0,07 0,28

- Quality management and maintaining high service

standards 4 0,05 0,2

- Human resources and staff training to maintain quality

service 4 0,04 0,16

- Efficient operational cost management to maintain

competitive pricing 3 0,04 0,12

- Menu innovation to sustain customer appeal 4 0,03 0,12

- Food safety policies and compliance with relevant

regulations 4 0,04 0,16

- Marketing strategy to attract and retain customers 4 0,03 0,12

- Partner and supply chain management to ensure stable

and quality ingredients 4 0,05 0,2

- Impact of weather conditions, especially during the

rainy season 3 0,04 0,12

- Adaptation to Changing Consumer Preferences 4 0,05 0,2

TOTAL 74 1,00 3,75

=> The total score of 3.75 is higher than the industry average, showing that Redsun
is responding quite well to opportunities and challenges from the external environment.
2.4 Competitive Profile Matrix (CPM)

Redsun ITI Golden Gate Redwork

Key success factor Weight Rating Score Rating Score Rating Score

Market share 0,15 0,3 2 0,6 4 0,15 1

 Customer loyalty 0,1 0,3 3 0,3 3 0,2 2

Financial position 0,1 0,2 2 0,3 3 0,2 2

Global expansion 0,15 0,6 4 0,6 4 0,3 2

Sevice quality 0,2 0,6 3 0,6 3 0,6 3

Price competitiveness 0,05 0,15 3 0,1 2 0,2 4

Skilled manpower 0,05 0,15 3 0,15 3 0,15 3

Location of facilities 0,1 0,4 4 0,4 4 0,3 3

Innovation 0,05 0,05 1 0,1 2 0,1 2

Inventory managament 0,05 0,1 2 0,1 2 0,05 1

TOTAL 1 2,85 3,25 2,25

=> Redsun's weighted total score is 2.85, behind Golden Gate, but higher than
Redwork. This shows that Redsun is in a stable position in the food service industry, the
level of competition is quite high.

CHAPTER 3 : STRATEGY IMPLEMENTATION

3.1 SWOT Matrix

SWOT Opportunities Threats

- Demand for food industry - Intense competition from
is increasing other players in the
- A large number of culinary industry
potential customers - Quality management and
- Techniques and maintaining high service
technology are increasingly standards
advanced - Human resources and
- Potential for sales staff training to maintain
development through

Streghts
- Strong brand
- Wide distribution network strategy (expanding or
- Convenient store location
- High-quality product
- High-quality human
resource
online model app
- Trend of international
cuisine is becoming
popular in Vietnam
- Many raw material
suppliers
- Increase engagement on
social networks
- Strengthening
cooperation with strategic
partners.
- Training and developing
human resources
- Take advantage of green,
clean, and sustainable food
trends
SO
- Market development
opening more branches in
many different provinces)
- Strengthen marketing
campaigns (advertising, PR competitiveness.
quality service
- Efficient operational cost
management to maintain
competitive pricing
- Menu innovation to
sustain customer appeal
- Food safety policies and
compliance with relevant
regulations
- Marketing strategy to
attract and retain customers
- Partner and supply chain
management to ensure
stable and quality
ingredients
- Impact of weather
conditions, especially
during the rainy season
- Adaptation to Changing
Consumer Preferences
ST
- Implement brand
positioning strategies such
as focusing heavily on
marketing to build the
brand and increase
- High equipment and
technology
- Luxurious, airy, clean
space
- High-quality input
materials
- Strong domestic
investment capital
- Effective franchise chain
Weakness
- Not yet independent of
raw material sources
- Ineffective use of
financial resource
- Not fully exploited
Korean culture
- Few loyal customers
- Some staff service
attitude is not good
- Many facilities are
degraded
- Quality of the brand chain
is not stable
- Using strategies that are
not reasonable and
effective
- High cost and price
or discount programs,
promotions,...) to attract
more customers.
WO
- Strongly deploy online
sales methods, combined
with well-branded delivery
applications (Now,
BEAMIN,...) with
additional incentives to
attract customers.
- Renovate the facilities
and restaurant space to give - Associate and cooperate
customers a comfortable with reputable raw material
feeling.
- New product
development strategy:
Besides focusing on
serving food or drinks, the
company can sell
additional products such as
water bottles, ceramic cups,
- Develop menus that keep
up with trends and have
unique characteristics.
- Remember the names and
favorite dishes of regular
customers and have special
preferential policies
WT
- Attract and retrain high
quality human resources,
increase service quality.
- Choose a business
strategy suitable for the
company.
- Create campaigns to
promote Korean culture.
suppliers.
 - Attracting customers is ceramic bowls,...
not effective

3.2 I-E Matrix

=> With IFE coefficient 3.54 and, EFE coefficient 3.75, Redsun ITI is in cell I,
which shows that Redsun is suitable for the grow and build strategy. This means
intensive and aggressive tactical strategies. Your strategies should focus on market
penetration, market development, and product development.
1. Market penetration strategy: Expanding or opening more branches in many
different provinces
2. Market expansion strategy: Continuing the strategy of expanding the high-end
restaurant chain
3. Product development and diversification strategy: Perfect and develop new
products, menus, and service methods to meet customer needs
3.3 SPACE MATRIX
* Financial Position (FP):
- Return on Investment (ROI): 4
- Liquidity: 5
- Leverage: 4
- Inflation: 3
- Interest Rates: 4
- Economic Indicators: 5
Total: 25
* Stability Position (SP):
- Technological Changes: 4
- Production Capacity: 4
- Employee Morale: 3
- Market Demand: 4
- Competitive Pressure: 5
- Political Stability: 3
Total: 23
* Industry Position (IP):
- Market Share: 5
- Product Quality: 5
- Research and Development: 4
- Industry Growth Potential: 4
- Barriers to Entry: 4
- Industry Profitability: 4
Total: 26
* Competitive Position (CP):
- Brand Strength: 4
- Distribution Channels: 4
- Innovation Capability: 3
 - Competitive Rivalry: 5
- Substitute Products/Services: 4
- Bargaining Power of Buyers and Suppliers: 3
Total: 23
=> X = 25 – 23 = 2
=> Y = 26 – 23 = 3

=> According to the chart above, we see that Redsun falls into the attack quadrant
of the SPACE matrix, showing that the strategies suitable for Redsun are intensive
strategies, combining diversification. So in its business strategy, Redsun must find new
customers, new markets or deeply exploit old markets, developing new products and
services.

CHAPTER 4 : STRATEGY EVALUATION

QSPM Matrix
Based on the analysis of the SPACE matrix and SWOT matrix, the strategy suitable
to the goals and current situation of Redsun company is:
 - Market development
- Market penetration
Market development Market Penetration
RatingAttractiveness ScoresTotal Rating Attractiveness Scores Total
Stregths
- Strong brand 0.10 4 0.4 0.10 4 0.4
- Wide distribution network 0.06 3 0.18 0.06 4 0.24
- Convenient store location 0.07 4 0.28 0.07 4 0.28
- High-quality product 0.04 4 0.16 0.04 3 0.12
- High-quality human resource 0.04 3 0.12 0.04 3 0.12
- High equipment and technology 0.03 3 0.09 0.03 3 0.09
- Luxurious, airy, clean space 0.06 3 0.18 0.06 3 0.18
- High-quality input materials 0.04 4 0.16 0.04 3 0.12
- Strong domestic investment capital 0.07 4 0.28 0.07 4 0.28
- Effective franchise chain 0.05 3 0.15 0.05 4 0.2
Weakness
- Not yet independent of raw material sources 0.07 3 0.21 0.07 2 0.14
- Ineffective use of financial resource 0.05 3 0.15 0.05 3 0.15
- Not fully exploited Korean culture 0.04 2 0.08 0.04 3 0.12
- Few loyal customers 0.04 2 0.08 0.04 0 0
- Some staff service attitude is not good 0.03 3 0.09 0.03 3 0.09
- Many facilities are degraded 0.04 4 0.16 0.04 3 0.12
- Quality of the brand chain is not stable 0.03 3 0.09 0.03 4 0.12
- Using strategies that are not reasonable and effective 0.05 3 0.15 0.05 4 0.2
- High cost and price 0.04 1 0.04 0.04 1 0.04
- Attracting customers is not effective 0.05 2 0.1 0.05 2 0.1
Opportunities
- Demand for food industry is increasing 0.10 4 0.4 0.10 3 0.3
- A large number of potential customers 0.06 4 0.24 0.06 3 0.18
- Techniques and technology are increasingly advanced 0.07 4 0.28 0.07 4 0.28
- Potential for sales development through online model app 0.04 4 0.16 0.04 4 0.16
- Trend of international cuisine is becoming popular in Vietnam 0.04 3 0.12 0.04 4 0.16
- Many raw material suppliers 0.03 4 0.12 0.03 4 0.12
- Increase engagement on social networks 0.06 4 0.24 0.06 4 0.24
- Strengthening cooperation with strategic partners. 0.04 4 0.16 0.04 3 0.12
- Training and developing human resources 0.07 3 0.21 0.07 3 0.21
- Take advantage of green, clean, and sustainable food trends 0.05 3 0.15 0.05 2 0.1
Threats
- Intense competition from other players in the culinary industry 0.07 3 0.21 0.07 4 0.28
- Quality management and maintaining high service standards 0.05 3 0.15 0.05 3 0.15
- Human resources and staff training to maintain quality service 0.04 2 0.08 0.04 2 0.08
- Efficient operational cost management to maintain competitive pricing0.04 2 0.08 0.04 3 0.12
- Menu innovation to sustain customer appeal 0.03 3 0.09 0.03 2 0.06
- Food safety policies and compliance with relevant regulations 0.04 2 0.08 0.04 3 0.12
- Marketing strategy to attract and retain customers 0.03 4 0.12 0.03 4 0.12
- Partner and supply chain management to ensure stable and quality ingredients
0.05 2 0.1 0.05 2 0.1
- Impact of weather conditions, especially during the rainy season 0.04 1 0.04 0.04 1 0.04
- Adaptation to Changing Consumer Preferences 0.05 2 0.1 0.05 3 0.15
TOTAL 6.28 6.2

=> The results obtained from the QSPM matrix show that the Market development
strategy has a score of 6.28 higher than the Market Penetration Strategy. Therefore, the
company should pursue a market development strategy in the future.
 CHAPTER 5 : CONCLUSION
Thus, with the highest score of 6.28, the market development strategy is prioritized
by Redsun company; Market penetration strategy is considered a backup strategy. For
Redsun to be able to plan and implement its market development strategy effectively, it
requires applying many different basic marketing techniques and activities. There are
various steps that need to be followed for a business to develop and implement a market
development strategy.
Some specific market development strategies may include:
- New product or service development: Redsun ITI may develop new products or
services to meet the unmet needs of current customers. For example, they can develop
new dishes or menus that suit customers' tastes or ages.
- Develop new distribution channels to reach more customers, in addition, develop
delivery or online ordering services. Leverage e-commerce and digital platforms to reach
a broader audience.
- Develop new markets through expanding into new markets to reach potential
customers. For example, expanding to other provinces or neighboring countries, then
customizing the product/service to fit the cultural and regulatory aspects of the target
area.
With existing advantages in business model, brand, know-how, formula,... Redsun-
ITI is still using the market development strategy and promoting franchising of brands. In
the period 2018 - 2021, Redsun-ITI strives to have 450 restaurants, of which 40% are
franchise restaurants. However, by 2020, the company has only opened 215 restaurants.
The number of King BBQ restaurants nationwide is 85 (including 60 in Hanoi and Ho
Chi Minh City), and more than 20 franchised restaurants; With 89.1% of Redsun-ITI's
restaurants located in large commercial centers such as Vincom, which attracts a large
number of customers, it shows the right choice of Redsun-ITI.
 In the future, from 2022 to 2026 King BBQ will continue to implement the market
development strategy and franchise restaurant chains, especially the high-end Korean
royal barbecue restaurant chain King BBQ Premium.