GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION CAPSTONE PROJECT REPORT BUILDING BUSINESS STRATEGIES FOR SOUTHERN HA TINH SEAFOOD IMPORT-EXPORT JOINT STOCK COMPANY BY 2015 Group 3 – Class: GaMBA 01. Trần Như Long. Trần Hoài Đức. NGHE AN, 2010 TABLE OF CONTENTS ACKNOWLEDGEMENT.i Testimonial of Southern Ha Tinh Seafood Import-export Joint Stock Company.ii List of symbols and abbreviation.iii List of tables, diagrams, figures.
Reason for topic choice. 3 THEORY BASIS FOR BUILDING BUSINESS STRATEGY. Basic problems of business strategy.1 Definition of business strategy. The role of business strategy.3 Administration process of business strategy.
Study external environment of enterprise. Study internal environment of enterprise.1 Steps for strategy definition. Methods to implement strategies. ANALYSIS OF BUSINESS ENVIRONMENT AND REALITY IN SOUTHERN HA TINH SEAFOOD IMPORT-EXPORT JOINT STOCK COMPANY.1 General introduction of Southern Ha Tinh Seafood Joint stock company.2 Analysis of external environment of the enterprise.1 Macro environment - PESTE.2 Micro-environment – sector competition.3 Analysis of internal environment of Shatico:.1 Analyze human resource and management capacity.2 Financial analysis of company.3 Analysis of company’s infrastructure.4 Export form and products.4 Define strategic targets.
Analysis and choice of business strategy.1 Analysis of strategic position:.2 Analysis of SWOT model to suggest for functional strategies:.3 Choice of business strategy.4 Analysis of strategic alternatives:.3 Solutions to implement strategy.2 Solutions of human resource.3 Solutions of infrastructure, equipments and machines.4 Solutions of material sources.6 Solutions of marketing and sale.7 Solution of study and development.8 Solutions of informatics technology. Implementation of solutions.1 Implementation route of solutions.2 Budget and expected results. CONCLUSION AND RECOMMENDATION. 79 ACKNOWLEDGEMENT The topic “building business strategies for Southern Ha Tinh Seafood Import-export Joint Stock Company” is studied and built up by Group 3 of GaMBA01.V02 Class based on collected information in the company and other related publicized materials as well as based on learned theories of analysis tools and methods in Global Advanced Master of Business Administration (GaMBA) organized by Griggs University of the US (GU) coordinated with Centre for technology and Career System – Ha Noi National University (ETC-VNU).
We have tried our best to apply learned knowledge into reality of company in a flexible way. Due to limited time and large study scope, then Group’s topic can have some mistakes in implementation process; we are looking forward to receiving suggestions from the program, lecturers, leaders and employees of Southern Ha Tinh Seafood Import-export Joint Stock Company to supplement and improve this strategy and apply into reality to make company developed. We would like to show our gratitude to teachers and leading board of Southern Ha Tinh Seafood Import-export Joint Stock Company who have created good condition for us to fulfill this topic. Nghe An, 10/2010 Group 3 – Class: GaMBA01.
i Testimonial of Southern Ha Tinh Seafood Import-export Joint Stock Company SOUTHERN HA TINH SEAFOOD IMPORT EXPORT JOINT STOCK COMPANY.com Website: http://www.vn TESTIMONIAL Via working and studying report on “business strategy for Southern Ha Tinh seafood import export joint stock company by 2015” prepared by Group 3 of GaMBAV02, we have some following comments: - Working awareness of the group. During working time at the company, we have realized that the group has earnest and serious working awareness; apart from main activities of the group including collecting data, visiting, considering production process…the group also gets consultancy from leader, cadres, workers of the company on activities in management, material collection, production and sale, after-sale policies, training, payment policy, especially expectation and ideas of each individual to construct and develop company. This report is written based on data and information provided by us as well as documents, policies and information directly related to the company. After studying and listening to the presentation of final report, we have realized that reality assessments and analysis are very thorough and practical.
Solutions that group recommends are really useful for company’s development. Finally, we want to show our gratitude to the group which has recommended solutions for business development of the company. We will study such solutions to apply into reality of production and business activities. We also wish to show our gratitude to the course on Global Executive Master of Business administration organized by Griggs University coordinated with Centre for Technology and Career System – Ha Noi National University that has equipped learners with knowledge to support company in finding out such realistic and useful solutions.
DIRECTOR Nguyễn Mạnh Tường ii List of symbols and abbreviation - CA: Competitive Advantage of enterprise. - EU: Europe Union. - ES: Environment Stability). - FS: Financials Strengths.
- GDP: Gross Domestic Product. - HACCP: Hazard Analysis and Critical Control Point System. - ISO: International Organization For Standardization - IS: Internal Strengths. - QC: Quality Control.
- R: Revenue - UBND: People’s Committee. iii List of tables, diagrams, figures. Tables, diagrams, figures.1: Comprehensive strategy administration process 5 2 Figure 1.2: Five- competitive force model of M.3: Table of opportunities and threats (OT) 12 4 Table 1.4: Table of strengths and weaknesses of enterprise (SW) 13 5 Figure 1.5: Matrix for strategic position of enterprise 15 6 Table 1.6: Table of SWOT matrix 16 7 Table 2.1: Table of opportunities and threats (OT) for Shatico.2: Matrix for external evaluation factor.3: Organizational structure of Shatico 33 10 Table 2.4: Production process in Shatico 34 11 Table 2.5: Financial norms of Shatico.6: Compare some norms with Vietnamese seafood sector.7: Growth rate of Shatico 39 14 Table 2.8: Density of markets of Shatico 40 15 Table 2.9: Density of company’s products 41 16 Table 2.10: Table of strengths and weaknesses (ST) of Shatico 43 17 Table 2.11: Matrix for internal evaluation factor 44 18 Figure 3.1: IE matrix of Shatico 46 19 Table 3.2: Table of factors assessment of SPACE matrix 47 20 Figure 3.3: Matrix for strategic position of Shatico 48 21 Table 3.4: Analysis table of SWOT 50 22 Table 3.5: Allocation of implementation time.6: Expected results and budget. 70 iv Global advanced Master of Business Administration INTRODUCTION 1.
Reason for topic choice In the background of Vietnamese economic integration into global economy, any enterprise which expects to exist and develop then must build up a suitable business strategy. Exporting seafood is one of Vietnamese advantages; In 2009, seafood export of the whole country has brought Viet Nam more than 4 billion USD which make Viet Nam be in one of ten leading nations of seafood export in the world; Vietnamese seafood has been in 130 nations of the world including choosy markets such as the US, EU and Japan. Southern Ha tinh Seafood import export Joint Stock Company (Shatico) is one of enterprises of exporting seafood in the Central of Viet Nam; with the expectation to build up a sustainable business strategy for Shatico, together with learned knowledge in Global Master Executive of Business Administration of Griggs University, Group 3 of MBA01.V02 Class has chose the following graduated topic: “Build up business strategies for Southern Ha Tinh Seafood import-export Joint Stock Company by 2015” 2. Study targets With study and assessment on situation of Vietnamese seafood import export market, studies and analysis of internal and external factors, we can build up business strategy for Shatico to support sustainable development of the company as well as raise position of company in the seafood export market which contributes to raise export turnover of Viet Nam.
Study scope This report will study information and data on operational situation of Ha tinh Seafood import export Joint Stock Company in domestic and foreign business Business strategy of Shatico - Prepared by: group 3 – Class: GaMBA 01.V02 -1- Global advanced Master of Business Administration environment to make proposals of development strategies for enterprise during 2010-2015. Study method We have used qualitative study methods based on analysis and synthesis of secondary and primary data from many different resources, via interview with experts and group discussion. Specific: - The approaches: The capstone uses integrated approaches such as the particular approach, historical approach and qualitative approach. - Method of data analysis: the capstone uses statistical methods of description, analysis and synthesis to evaluate business performance of Shatico.
- Analysis tool: we use EFE , IFE, IE, SPACE, SWOT matrix to analysis. - Sources of information: we use secondary information from newspapers, the Internet and reports from Shatico. Topic structure: this topic including the following main parts: - CHAPTER I. THEORY BASIS FOR BUILDING BUSINESS STRATEGY - CHAPTER II.
ANALYSIS OF BUSINESS ENVIRONMENT AND REALITY IN SOUTHERN HA TINH SEAFOOD IMPORT-EXPORT JOINT STOCK COMPANY - CHAPTER III. SUGGESTIONS FOR BUSINESS STRATEGIES. CONCLUSION AND RECOMMENDATION. Business strategy of Shatico - Prepared by: group 3 – Class: GaMBA 01.V02 -2- Global advanced Master of Business Administration CHAPTER I.
THEORY BASIS FOR BUILDING BUSINESS STRATEGY 1. Basic problems of business strategy 1.1 Definition of business strategy. There are many viewpoints on business strategy according to different groups of viewpoints; there is the viewpoint to consider business strategy as an art including Alain Threlart and Micheal Porter. Alain Threlart supposed that “Strategy is the art that enterprise uses to be against competition and win”; and M.Porter considered “Strategy is the art to build up competitive advantage for defense”.
There are also viewpoints which consider strategy as a form of plan, including scholars: G.Arlleret supposed that: “Strategy is the definition of methods and medium to reach defined targets via policies”.Bizrell and author group have defined: “strategy is general plan to lead or orient for enterprise to go to expected targets; it is also the basis for defining policies and operational tasks”. Gluecl supposed that: “Strategy is the consistent, comprehensive and general plan which is designed to ensure that enterprise’s targets will be implemented” Apart from above viewpoints, there are also viewpoints of connecting consistency “business strategy is the art to coordinate with activities and control them to reach long term targets of enterprise”. Chandler considered strategy as including defining long term targets of enterprise and choosing methods or process for action then allocating necessary resources and organizing implementation of such targets”. Then we can understand in the most common way, “strategy is to collect basic long term targets which are defined to be suitable to vision, mission of organization and methods, medium to reach such targets in the best way then it can promote strengths, weaknesses of organizations, receive opportunities and avoid or reduce damages from threats of external environment”.
Business strategy of Shatico - Prepared by: group 3 – Class: GaMBA 01.V02 -3- Global advanced Master of Business Administration 1. The role of business strategy. The role of business strategy in enterprise is as follows: - Business strategy can help enterprise to define clearly purposes, orientation in each period. - Business strategy can help enterprise to grasp and make use of trading opportunities, promote strengths and have active adjustment for weaknesses, avoid or reduce damages from threats in external environment.
- Business strategy can raise using effect of resources, increase position of enterprise which can ensure enterprise to develop constantly. - Business strategy can create solid basis for enterprise to find out suitable decision with the change of market; it can create solid basis for study and implementation, human resource development and training, expansion of market activities and product development. The reason for failure and success depends on one of important factors which are the business strategies of enterprise. Strategic process is a complex process including: defining strategy, implement strategy and assessments which must be done constantly.3 Administration process of business strategy Process of strategy administration including 3 periods: - Strategy definition.
- Strategy implementation - Strategy assessment. We can summarize comprehensively process of business administration process via the following diagram: Business strategy of Shatico - Prepared by: group 3 – Class: GaMBA 01.V02 -4- Global advanced Master of Business Administration Diagram 1.1: Comprehensive process of strategy administration Function, duty and strategic targets ts ủa d Internal environment anh External environment analysis (S, W) analysis (O, T) Strategy iệpchoice Strategy implementation Results checking and assessment Feedbacks (Sources: Fred R.