GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Capstone project REPORT BUILDING MULTI-SECTORAL BUSINESS STRATEGY FOR HA TINH TRADING AND MINERAL CORPORATION WITHIN THE PERIOD OF 2010 - 2020 Group: 11 Group members: 1. NguyÔn Anh TuÊn 2. NguyÔn §¨ng Quang 3. TrÇn Hoµi Nam 4.
Ph¹m V¨n T×nh University Griggs Global Advanced Master of Business Administration Capstone project report - Group: 11 - Class: GeMBA 01.V02 VINH, 2010 Build up multisectoral business strategy of Mitraco for the period of 2010 - 2020 - ii - University Griggs Global Advanced Master of Business Administration Capstone project report - Group: 11 - Class: GeMBA 01.V02 ACKNOWLEDGEMENT To complete this assignment, our group wishes to show our gratitude to teachers who have transferred knowledge to us during the process of learning and instructing to do graduation assignment; in addition we also wish to show great attitude to the program of Global advanced master of business administration organized by Griggs University of the US and ETC of Ha Noi National University which has created good condition in term of material and spirit for us during recent time. Then, we also wish to show our great gratitude to Leading board, cadres of Ha Tinh Trading and Mineral Corporation and member units of Corporation that have created the best condition and suggestions for our group during the process of topic implementation. Due to limited time and qualification, it can be sure that the topic “build up multisectoral business strategy for Ha Tinh Trading and Mineral Corporation during 2010 – 2020” cannot avoid mistakes; then we are looking forward to receiving the helps and suggestions of teachers and leading board, cadres of Ha Tinh Trading and Mineral Corporation and program of Global advanced master of business administration organized by Griggs University of the US and ETC of Ha Noi National University, then we can improve and complete this topic better. Best regards! Group 11 – Class: GeMBA01.V02 Build up multisectoral business strategy of Mitraco for the period of 2010 - 2020 - iii - University Griggs Global Advanced Master of Business Administration Capstone project report - Group: 11 - Class: GeMBA 01.V02 TABLE OF CONTENT ACKNOWLEDGEMENT…………………………………………….3 TABLE OF CONTENT …………………………………………….4 LIST OF ABBREVIATIONS……………………………………….
vii LIST OF TABLES ………………………………………………………. The need of topic study. Study object and scope. Structure of assignment:.
2 Chater 1: THEORY BASIS FOR STRATEGIC CONSTRUCTION. Basic definition of business strategy. Strategic system of enterprise. Strategy in company level.
Method for business strategy construction in enterprise. Analysis of internal environment of enterprise. Analysis of trading sectors of enterprise (portfolio). 8 Build up multisectoral business strategy of Mitraco for the period of 2010 - 2020 - iv - University Griggs Global Advanced Master of Business Administration Capstone project report - Group: 11 - Class: GeMBA 01.V02 Chapter 2: COMMON INTRODUCTION AND ANALYSIS OF BUSINESS ENVIRONEMNT OF HA TINH MITRACO.
Analysis of external business environment of Mitraco. Analysis of macro environment:. Legal and political environment:. Cultural and social environment :.
Analysis of sector environment:. Pressure from customers:. Pressure from providers:. Current competitive opponents :.
Potential competitive opponents :. Analysis of internal environment of Mitraco. Analysis of resources. Technology, machine and equipments:.
32 Build up multisectoral business strategy of Mitraco for the period of 2010 - 2020 - v- University Griggs Global Advanced Master of Business Administration Capstone project report - Group: 11 - Class: GeMBA 01.1 Management and administration in Mitraco:. Brand name of Mitraco. Analysis of trading sector in Mitraco (portfolios). Raising and raising food processing sector.
Commercial and service sector. Common assessment of business sectors of Mitraco. Core business sector of Mitraco:. New investment sectors of Mitraco.
SWOT matrix construction. Construct matrix for internal – external factors evaluation (IE) of business sectors in Mitraco. External factors evaluation (EFE). Internal factors evaluation (IFE).
Matrix for internal-external factors evaluation (IF). Construct BCG matrix (Boston Consulting Group). Market and market share growth rate in some business units of Mitraco. 59 Chapter 3: CONSTRUCTION BUSINESS STRATEGY FOR HA TINH MITRACO WITH THE PERIOD OF 2010 – 2020.
Vision, mission and targets of Mitraco. 63 Build up multisectoral business strategy of Mitraco for the period of 2010 - 2020 - vi - University Griggs Global Advanced Master of Business Administration Capstone project report - Group: 11 - Class: GeMBA 01. Vision of Mitraco by 2020:. Mission of Mitraco:.
Strategic targets of Mitraco. Solutions to implement strategy within 2010 - 2020. Organizational reconstruction of company. Sector and portfolio reconstruction.
Development of high quality human resource. Build up effective management information system. Develop brand name and corporate culture. Build up standard operational process:.
Limitations of process and study orientation in the future. 819 Build up multisectoral business strategy of Mitraco for the period of 2010 - 2020 - vii - University Griggs Global Advanced Master of Business Administration Capstone project report - Group: 11 - Class: GeMBA 01. Limitations of process. Study orientation in the future.85 LIST OF ABBREVIATIONS Abbreviations Significance BCG BCG matrix ( Boston Consulting Group) CDDC Popular shareholders CPDC Popular stock DH Long term DT Revenue DTDH Long term investment DTNH Short term investment EBIT Pre-tax interest and lending interest EFE External factors evaluation IFE Internal factors evaluation IE Matrix for internal – external factors evaluation MGR Market growth rate Mitraco Ha Tinh mineral and trading corporation NH Short term NNH Short term debt Build up multisectoral business strategy of Mitraco for the period of 2010 - 2020 - viii - University Griggs Global Advanced Master of Business Administration Capstone project report - Group: 11 - Class: GeMBA 01.V02 NVNH Short term capital NVTX Constant capital RMS Relative market share SBU Business unit SWOT Strengths (S), weaknesses (W), opportunities (O), threatens (T).
SWOT matrix is the most typical model in building business strategy of the enterprise. TK Inventory TNDN Corporate income TNHH Limited liability TS Asset TSCD Fixed asset TSLD Mobile asset VCSH Owner capital Build up multisectoral business strategy of Mitraco for the period of 2010 - 2020 - ix - University Griggs Global Advanced Master of Business Administration Capstone project report - Group: 11 - Class: GeMBA 01.V02 LIST OF TABLES Table CONTENTS Page Table : 2.01 Table of opportunities (O) and threatens (T) 20 Table to compare some index of labor productivity of Table: 2.02 23 Mitraco in 2008 Table: 2.03 Table of trading results in 3 years 24 Table: 2.04 Balance sheet on 31/12 of every year 25 Table: 2.05 Table of financial norm analysis 27 Table: 2.06 Table of strengths (S), weaknesses (W) 40 Table: 2.07 SWOT matrix 42 Table: 2.08 Table of symbols of analyzed sectors 48 Table to evaluate external factors (EFE) of mineral sector Table: 2.09 49 (A) Table to evaluate external factors (EFE) of construction Table: 2.10 49 material sector (C) Table: 2.11 Table to evaluate external factors (EFE) of seaport service 50 Build up multisectoral business strategy of Mitraco for the period of 2010 - 2020 - x- University Griggs Global Advanced Master of Business Administration Capstone project report - Group: 11 - Class: GeMBA 01.V02 sector (E) Table to evaluate external factors (EFE) of raising and Table: 2.12 50 processing raising food sector (F) Table to evaluate external factors (EFE) of commercial Table: 2.13 51 service (G) Table to evaluate internal factors (IFE) of mineral sector Table: 2.14 52 (A) Table to evaluate internal factors (IFE) of construction Table: 2.15 52 material sector (C) Table to evaluate internal factors (IFE) of seaport service Table: 2.16 53 sector (E) Table to evaluate internal factors (IFE) of raising and Table: 2.17 53 processing raising food sector (F) Table to evaluate internal factors (IFE) of commercial Table : 2.18 54 service sector (G) Table of market growth rate and relative market share of Table: 2.19 56 some business units of Mitraco Table: 3.01 Table of revenue density of mineral sector and other sectors 59 Expected time, cost and order of strategic solutions within Table ; 3.02 77 2010 – 2020 Build up multisectoral business strategy of Mitraco for the period of 2010 - 2020 - xi - University Griggs Global Advanced Master of Business Administration Capstone project report - Group: 11 - Class: GeMBA 01.V02 Build up multisectoral business strategy of Mitraco for the period of 2010 - 2020 - xii - University Griggs Global Advanced Master of Business Administration Capstone project report - Group: 11 - Class: GeMBA 01. The need of topic study Vietnamese economy is operating according to market economy under State’s management and global economic integration; to exist and develop, each enterprise must have suitable strategy with integration and common development of the market; Enterprise without business strategy will be like a boat without boatman and if the strategy is not suitable or not well implemented then enterprise cannot reach success. In other words, the destiny of enterprise will depend much on administration, strategy construction and strategy implementation.
Ha Tinh trading and mineral Corporation (Mitraco) is a strong State-owned enterprise which has reached many achievements in recent years; However, operational background of Mitraco has got many changes which creates high pressure to force Mitraco to build up general strategy for itself; High pressure for Mitraco including: Firstly: core traditional trading sectors of Mitraco (mineral exploiting, especially Ilmenite) at traditional area (Hà Tĩnh) has coped with limited development due to exhausted reserves. This can make business effect of Mitraco reduced in the coming times; If there is no timely adjustment, then Mitraco can get financial difficulties in the future. Secondly: Development of market economy and global economic integration as well as innovation trend of State-owner enterprise have created high pressure for Mitraco. Thirdly: Strong development trend of Vietnamese economy in general and HA Tinh in particular, especially in associated international relation with Laos and other partners have created opportunities and threatens for enterprises within Ha Build up multisectoral business strategy of Mitraco for the period of 2010 - 2020 - 1- University Griggs Global Advanced Master of Business Administration Capstone project report - Group: 11 - Class: GeMBA 01.V02 Tinh province including Mitraco – the currently biggest enterprise within Ha Tinh province In such background, Mitraco cannot just focus on tactics solution but focus on building, implementing and monitoring long term strategy to maintain growth rate, make use of advantages and core capacity which are suitable to economic and legal environment and support Mitraco in making investment decision; Therefore, Mitraco must build up and implement general strategy from 2010 to 2020, to maintain position and basis for development in the coming periods.
Study purposes Study purpose of the topic is to build up general strategy of Mitraco to anser the question: (i) Which sector should Mitraco join in? (ii) And how to make brain agency of Mitraco manage business activities of member units in the most effective way?. Study object and scope Assess business activities of enterprise: define business activities that enterprise will maintain, newly establish or remove; define and assess strategic choice and necessary methods to maintain or expand business activities 4. Study methos In study process, we have use main study methods in economic study such as method of analysis and synthesis, method of statistics and comparison; analysis of macro environment, sector environment and reality of enterprise; Then we build up SWOT matrix, IE matrix, BCG matrix combine theory and reality to make up strategy of Mitraco Build up multisectoral business strategy of Mitraco for the period of 2010 - 2020 - 2- University Griggs Global Advanced Master of Business Administration Capstone project report - Group: 11 - Class: GeMBA 01. Structure of assignment: The assignment is divided into three chapters: Chapter I: Theory basis for strategic construction Chapter II: common introduction and analysis of business environment of Ha Tinh Mitraco.
Chapter III: construction of business strategy for Ha Tinh Mitraco during 2010 – 2020 Build up multisectoral business strategy of Mitraco for the period of 2010 - 2020 - 3- University Griggs Global Advanced Master of Business Administration Capstone project report - Group: 11 - Class: GeMBA 01.