Building business strategy for southern Ha Tinh seafood import-export joint stock company by 2015

GRIGGS UNIVERSITY
GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION






CAPSTONE PROJECT REPORT




BUILDING BUSINESS STRATEGY FOR
SOUTHERN HA TINH SEAFOOD IMPORT-EXPORT
JOINT STOCK COMPANY BY 2015






Prepared: Group 3.
Class: GaMBA 01.V02
1. Trần Như Long
2. Hà Văn Trà
3. Lưu Quang Cần
4. 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. iv
INTRODUCTION 1
1. Reason for topic choice 1
2. Study targets 1
3. Study scope 1
4. Study method 2
CHAPTER I. 3
THEORY BASIS FOR BUILDING BUSINESS STRATEGY 3
1.1. Basic problems of business strategy 3
1.1.1 Definition of business strategy. 3
1.1.2. The role of business strategy. 4

1.1.3 Administration process of business strategy 4
1.2 Related definitions. 5
1.2.1 Vision 5
1.2.2 Mission 6
1.2.3 Targets 6
1.3. Study external environment of enterprise 6
1.3.1 Macro-environment 6
1.3.2 Micro-environment. 8
1.4. Study internal environment of enterprise 12
1.5. Strategy definition 13
1.5.1 Steps for strategy definition 14
1.5.2 Analysis tools 14
1.6. Methods to implement strategies 16
CHAPTER II. ANALYSIS OF BUSINESS ENVIRONMENT AND REALITY IN
SOUTHERN HA TINH SEAFOOD IMPORT-EXPORT JOINT STOCK
COMPANY 17
2.1 General introduction of Southern Ha Tinh Seafood Joint stock company. 17
2.1.1 General information 17
2.1.2 Development history 17
2.1.3 Trading sectors: 18
2.2 Analysis of external environment of the enterprise. 18
2.2.1 Macro environment - PESTE 18
2.2.2 Micro-environment – sector competition 24
2.3 Analysis of internal environment of Shatico: 32
2.3.1 Analyze human resource and management capacity 32
2.3.2 Financial analysis of company 35
2.3.3 Analysis of company’s infrastructure 38
2.3.4 Export form and products 39
2.3.5 Marketing task 42
3.1. Strategy orientation. 45

3.1.1 Vision 45
3.1.2 Mission 45
3.1.3. Essential values 45
3.1.4 Define strategic targets 45
3.2. Analysis and choice of business strategy 46
3.2.1 Analysis of strategic position: 46
3.2.2 Analysis of SWOT model to suggest for functional strategies: 49
3.2.3 Choice of business strategy 55
3.2.4 Analysis of strategic alternatives: 55
3.3 Solutions to implement strategy 56
3.3.1 Management task 56
3.3.2 Solutions of human resource 59
3.3.3 Solutions of infrastructure, equipments and machines 60
3.3.4 Solutions of material sources 60
3.3.5 Financial solutions 61
3.3.6 Solutions of marketing and sale. 62
3.3.7 Solution of study and development 63
3.3.8 Solutions of informatics technology 64
3.4. Implementation of solutions 64
3.4.1 Implementation route of solutions. 64
3.4.2 Budget and expected results 64
CHAPTER IV. CONCLUSION AND RECOMMENDATION 77
4.1 Conclusion 77
4.2 Recommendation 77
REFERENCES 78
APPENDIX 79

i
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.V02.

ii
Testimonial of Southern Ha Tinh Seafood Import-export Joint Stock Company

SOUTHERN HA TINH SEAFOOD IMPORT EXPORT JOINT STOCK COMPANY.
(SHATICO)
TEL: 0393.868333/868309 Fax: 0393.868308
Email: Website:


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.
- Report quality.
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.
Best regards./.

Ha Tinh, 08/10/2010.
DIRECTOR
Nguyễn Mạnh Tường

iii
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.
- VASEP: (Vietnam Association of Seafood exporters and producers)
- WTO (World Trade Organization).
iv
List of tables, diagrams, figures.

No.
Tables, diagrams, figures.
Page
1
Diagram 1.1: Comprehensive strategy administration process
5
2
Figure 1.2: Five- competitive force model of M.Porter
9
3
Table 1.3: 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.
30
8
Table 2.2: Matrix for external evaluation factor.
31
9
Diagram 2.3: Organizational structure of Shatico
33
10
Table 2.4: Production process in Shatico
34
11
Table 2.5: Financial norms of Shatico.
35
12
Table 2.6: Compare some norms with Vietnamese seafood sector.
36
13
Table 2.7: 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.
65
23
Table 3.6: Expected results and budget.
70

Global advanced Master of Business Administration

Business strategy of Shatico - Prepared by: group 3 – Class: GaMBA 01.V02
- 1 -


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.
3. 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
environment to make proposals of development strategies for enterprise during
2010-2015.

Global advanced Master of Business Administration

Business strategy of Shatico - Prepared by: group 3 – Class: GaMBA 01.V02
- 2 -


4. 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.
- CHAPTER IV. CONCLUSION AND RECOMMENDATION.
Global advanced Master of Business Administration

Business strategy of Shatico - Prepared by: group 3 – Class: GaMBA 01.V02
- 3 -


CHAPTER I.
THEORY BASIS FOR BUILDING BUSINESS STRATEGY

1.1. Basic problems of business strategy
1.1.1 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, D.Bizrell, Gluecl. G.Arlleret supposed that:
“Strategy is the definition of methods and medium to reach defined targets via
policies”. D.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”.
Global advanced Master of Business Administration

Business strategy of Shatico - Prepared by: group 3 – Class: GaMBA 01.V02
- 4 -


1.1.2. 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.
1.1.3 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:
Global advanced Master of Business Administration

Business strategy of Shatico - Prepared by: group 3 – Class: GaMBA 01.V02
- 5 -


Diagram 1.1: Comprehensive process of strategy administration

(Sources: Fred R.David, strategic management concepts and case, page 27)

Within this report, we just mention period for strategy definition and
implementation of Southern Ha Tinh Seafood import export joint stock company.

1.2 Related definitions.
1.2.1 Vision
Strategic vision can express expectations, highest desire that enterprise
wishes to reach. Vision definition and declaration has important role because it
focuses on expectation of people in organization and encouragement of all efforts to
reach purposes, career and idea

Function, duty and strategic targets

ts

ủa d
anh



iệp
Internal environment
analysis (S, W)
External environment
analysis (O, T)
Strategy choice
Strategy implementation

Results checking and assessment

Feedbacks
Global advanced Master of Business Administration

Business strategy of Shatico - Prepared by: group 3 – Class: GaMBA 01.V02
- 6 -


According to James Collins and Jerry Porran (1960), structure of a vision
declaration often includes two parts: essential thought and imagination of future.
1.2.2 Mission
Mission or duty is a long term valuable declaration of purpose which
distinguishes this company with that company; such declarations can be called
trading philosophy, trading principles and trusts of company.
Mission declaration can indicate the reason for enterprise’s existence;
according to Drucker, mission declaration can answer the question: “what are our
business activities?”; “What and how should we do to reach vision declaration?”
1.2.3 Targets
Targets can be understood as defined achievement that enterprise tries to
reach when following its own mission; right definition of targets can have very
important significances for organizational success because targets can help us to
indicate development orientation, assessment of achieved results which can indicate
preferential resource allocation, development cooperation, basis provision to make
plan effectively to be the basis for organization, effect assessment…
A target is considered to be good if it has enough factors: realistic,
measurable, classified, centre, threats and feasible, time-bound…

1.3. Study external environment of enterprise
Study external environment of enterprise with many factors is aimed to reach

purpose which is to realize opportunities as well as threats impacting on activities of
enterprise; external environment includes macro-environment (general
environment) and micro-environment (sector environment or competitive
environment).
1.3.1 Macro-environment
This report has used PESTE analysis tool (Politics; Economics; Social;
Technology and Environment) to assess and analyze macro-environment of
enterprise, as follows:
Global advanced Master of Business Administration

Business strategy of Shatico - Prepared by: group 3 – Class: GaMBA 01.V02
- 7 -


- Political and legal environment.
Enterprise is economic cell; all enterprise’s decisions can bear strong
influence by political factors; analysis of political and level environment is an
indispensable activity to define business strategy.
Political environment includes State, Law and management activities of the
State; political environment including system of viewpoints, policy of Government,
current legal system, political and diplomatic trends of Government and political
happenings in the nation, region and the world.
- Economic environment.
Economic environment can indicate the essence, growth rate and
development orientation of economy.
Analysis of economic environment can have important significance because
it includes factors impacting on buying and consumption structure; factors in
economic environment always impact on business strategy of enterprise, especially
factors of economic growth rate, interest rate, exchange rate, inflate rate…
- Social and cultural environment.

Social and cultural environment can be understood as language, value,
attitude, behaviors and customers, materuaks, aesthetic, education, factors of
population including scale, population density, age, race, gender, career…
The change of social and cultural environment is the consequence of long
term impact of other macro factors then it often happens slower than other factors;
However, it can have longer term impact than other factors. Therefore,
environmental study of social and cultural environment is an indispensable content
in studying macro-environment.
- Technological environment.
Technological environment – is the forces to create new technology and
market fortune; necessary factors when studying technological market including:
appearance of new technology, invention rate and appliance of new technology,
encouragement and supporting from Government for study and development; law of
Global advanced Master of Business Administration

Business strategy of Shatico - Prepared by: group 3 – Class: GaMBA 01.V02
- 8 -


intelligence ownership, copyright, author, law on technological transfer, pressure
and cost for development and transfer of new technology.
Technological change can allow to create a lot of new products with
outstanding facility, quality in a short term but it is also such technological change
which can make tangible products outdated, sacked after a short time; Then
technological change can include creation and destroying which can bring
opportunities and threats.
- Natural environment.
Natural environment includes factors such as geographical position, climate,
natural landscape, land, river, mineral, purification of water and air…which can
ensure necessary input factors and operational environment for enterprises.

In the background of natural resources, polluted environment, the loss of
ecological balance… business strategy of enterprise must meet the following
demands:
+ Priority for sustainable development.
+ Awareness of effective using of natural resources.
+ Promote study, development of production technology to produce clean
products, protect environment and reduce impacts from pollution of production
activities.
1.3.2 Micro-environment.
Michael E. Porter, the famous professor of business strategy of Harvard has
given the model of five competitive forces which can help enterprises to analyze
macro-environment, realize opportunities and threats from this environment.

Global advanced Master of Business Administration

Business strategy of Shatico - Prepared by: group 3 – Class: GaMBA 01.V02
- 9 -


Figure 1.2. Five-competitive force model of M.Porter

(Sources: M.E. Porter, Competitive Strategy (New York: Free, Press, 1980))

- Competitive pressure from potential opponents.
Potential opponents are competitive opponents that can join in market of
sector in the future; when competitive opponents appear they will exploit new
production capacity, occupying market share, increasing competitive pressure of
sector and reducing profit of enterprise.
Appearance of competitive opponents will impact on business strategy of
enterprise then we must analyze such potential opponents, to assess the risks that
they can create for enterprise.
The risk of penetrating into sector depends much on penetration barriers
(limit methods) which are indicated via reactions of competitive opponents that new
opponents can predict. If barriers are high or new opponents can predict violent
reactions of enterprise in the sector then capacity for penetration of opponents will
be low and vice versa.
Threats of replaced
products and services
Capacity to
create pressure
of customers
Capacity to create
pressure of
providers
threats of new
competitive opponents
Competitive opponents in
the sector

Competition among
existing enterprises in the
sector

Potential opponents
Replaced products

Customers

Providers
Global advanced Master of Business Administration

Business strategy of Shatico - Prepared by: group 3 – Class: GaMBA 01.V02
- 10 -


According to Michael E. Porter, there are six main penetration barriers:
+ scale-based economic advantages.
+ Difference of products.
+ Requirements of capital.
+ Change cost.
+ Approach capacity with distribution channels
+ Cost disadvantages not related to scale
Besides, there is one important barrier when studying which is Governmental
policy.
- Competitive pressure of providers:

Providers are individuals or organizations which provide resources (products,
services, materials and fuels, machines, equipments, human recourse…) for
activities of enterprise.
Providers can create opportunities for enterprise when reducing sale price,
increasing product quality and service quality….On the contrary, it can create risks
for enterprise when increasing sale price, reducing product quality, not ensuring
quantity and time of provision….
Advantages of providers appear when:
+ Market has a few providers
+ Products have difference or replaced products are unavailable.
+ Change cost for providers is high
+ Difficult to combine vertically to provider input factors.
+ Providers have high self-control capacity…
- Competitive pressure from customers.
Customers are objects to serve enterprise which is the factor to create market;
Therefore, to get success, enterprise must study carefully its own customers.
Pressure from buyers can exist mainly in two forms: bargain to reduce price
or increase quality of products and services of enterprises; This can make
competitive opponents to be against each other and reduce profit of sector.
Global advanced Master of Business Administration

Business strategy of Shatico - Prepared by: group 3 – Class: GaMBA 01.V02
- 11 -


Pressure from buyers can exist when:
+ Market just has a few buyers.
+ When buyers buy a high quantity of products or buyers make exclusive
sales for the products of sellers.
+ Products of enterprise have not high difference which is basic product, easy

to buy in the market or replaced by other products;
+ Products of enterprise do not hold important role which cannot decide
product quality of buyers.
- Competitive pressure from replaced products.
Replaced products are products which can be different in names, elements
and forms…but it can bring consumers functions, profits like products of enterprise;
appearance of replaced products can lead to the risk of reducing sale price or profit
of enterprise; Therefore, enterprise must predict and analyze development trend of
replaced products to realize all risks which are created by replaced products.
Replaced products are mainly results of innovation or the burning of new
technology; enterprises expect to reach development strategy or focus on study and
development strategies of products.
- Competitive pressure from internal sector.
Current competitive opponents are opponents that are trading same products
and services as enterprise. Competitive opponents will share market share with
enterprise which can climb to higher competitive position; competitive quality in
the sector can increase or reduce depending on market scale, sector’s growth and
competitive level of opponents.
When analyzing competitive opponents, we must implement the following
tasks:
+ Realize, classify, assess and list competitive opponents according to
market.
+ Collect and assess information of competitive opponents.
+ Predict reactions of competitive opponents.
Global advanced Master of Business Administration

Business strategy of Shatico - Prepared by: group 3 – Class: GaMBA 01.V02
- 12 -

+ Choose suitable strategies (attack, avoid or cooperate) to cope with
competitive opponents.
We can summarize opportunities and threats via following table:

Table 1.3 – Table of opportunities and threats (OT)
Opportunities (O)
Threats (T)
Opportunities of investment and trading
of enterprise
Threats, risks for enterprise

1.4. Study internal environment of enterprise
To exist and develop, all enterprises must implement administration activities
of finance, personnel, production, trading, study, develop, marketing…and
information system, management system and functional divisions; in each activities,
each enterprise can have private strengths and weaknesses which can help it to
choose suitable development strategy.
There are many methods to analyze internal environment of enterprise, out of
which there is analysis method of enterprise’s resources, as follows:
- Human resources.
Human resource is the valuable asset of enterprise; if we know how to attract,
recruit and keep talented people, enterprise can have big advantage to win
competitive opponents; human resource of enterprise can be divided into 3 levels:
high level, medium level and low level; human resource assessment is a general
task including many factors such as assessment of personnel management machine,
policy to attract, use and train labors, assess quantity, quality of labors…
- Financial resources.
Financial resource is one of indispensable factor for enterprise to operate;
when analyzing financial resource, we can use financial tools, groups of assessment
norms such as payment capacity of enterprise, effect of using capital, profit index…

Global advanced Master of Business Administration

Business strategy of Shatico - Prepared by: group 3 – Class: GaMBA 01.V02
- 13 -


- Infrastructure, equipments and machine
Infrastructure of enterprise can include construction projects, factory, store,
machine, equipments, medium for delivery, materials…which serve management
and production process of enterprise.
- Technology and techniques
Technology and technique is a knowledge system of process and technique to
process products or services; technological development including activities related
to study and development of production process, improving machine and
equipments, development of management software, controlling and producing
products, improvement of information system Enterprise which wants to have
competitive advantage in the market must care for activities for technological
development.
We can summarize strengths, weaknesses via following table:

Table 1.4 – table of strengths and weaknesses of enterprise (SW)
strengths (S)
weaknesses (W)
Advantages and strengths of enterprise
Limitations and weaknesses of
enterprise

1.5. Strategy definition
Strategic administration is a science and an art to define, organize
implementation and assess strategies; strategy definition is the first period which put

the basis and play an essential role in the whole process of strategic administration;
in the period, we must define vision, mission and strategic targets of enterprise;
based on that, we can set up strategies, trading policy, decision of new sector to join
and to withdraw, expand or narrow down trading activities…In this period, we must
focus on analysis of external and internal factors, defining opportunities, threated,
strengths and weaknesses then combining and choosing suitable strategies.
Global advanced Master of Business Administration

Business strategy of Shatico - Prepared by: group 3 – Class: GaMBA 01.V02
- 14 -


1.5.1 Steps for strategy definition
To build up a good strategy, we must well implement steps of analysis,
assessment, study and synthesis of all information, related factors to enterprise;
strategy definition including:
- Analysis of external environment of enterprise, including macro and micro
environment. Then we can define opportunities and threats for enterprise.
- Analysis of internal environment of enterprise, then define strengths and
weaknesses of enterprise.
- Combine strengths and weaknesses and opportunities and threats to define
alternatives and strategies for enterprise.
- Use analysis tools to compare and define the best strategies.
- Decision to choose business strategy for enterprise
1.5.2 Analysis tools
- EFE matrix is the one to assess external factors; this matrix will synthesize,
summarize and assess main opportunities and threats of external environment. EFE
matrix will help administrators to assess reaction of enterprise with opportunities
and threats then it can give recognition with external environment which can create
good or bad condition for enterprise.

- IFE matrix is the one to assess internal factors; this matrix will synthesize,
summarize and assess main opportunities and threats of enterprises. This matrix will
show strengths that enterprise should promote and weaknesses to improve then raise
competitive position of enterprise.
- IE matrix: IE matrix is built base on two main aspects, the total important
marks of the IFE on the horizontal axis and the total important marks of the EFE on
the vertical axis.
- SPACE matrix: SPACE matrix is the one to define strategic position and
assess activities; this is an important combination tool to help enterprise to choose
attacking strategy, which can be cautious, attack, defense or competition.
Global advanced Master of Business Administration

Business strategy of Shatico - Prepared by: group 3 – Class: GaMBA 01.V02
- 15 -


Figure 1.5 – Matrix for strategic position of enterprise

(Sources: H.Rowe, R.Mason, and K.Dickel, Strategic Management and
Business Policy: A Methodological (Reading, Massachusets: Addison – Wesley
Pulishing Co.Inc, 1982), p 155)

- SWOT matrix
SWOT is the collection of English abbreviations which are Strengths,
Weaknesses , Opportunities and Threats. This is a very useful tool which can help
us to learn to know problem or make decision in organization, management as well
as business. In other words, SWOT is theory frame based on which we can consider
strategies, define position as well as orientation of an organization, company;
-1

-2

-3

-4

-5

-6
+6

+5

+4

+3

+2

+1
-6 -5 -4 -3 -2 -
1
Financial strength
ES
IS
FS
Competitive
Advantage
Internals
Strenghts
II
Cautiousness
I
attack
III
Defense
IV
Competition
CA
Enviroment Stability
+1 +2 +3 +4 +5 +6
Global advanced Master of Business Administration

Business strategy of Shatico - Prepared by: group 3 – Class: GaMBA 01.V02
- 16 -


analyze business proposals or any idea related to rights of enterprise; appliance of
SWOT in constructing business plan, strategy definition, opponent assessment,
market survey, product development and study report…is chosen by enterprises.

Table 1.6: SWOT matrix

Main opportunities (O)
Main threats (T)
Strengths (S)
SO strategies
Using strengths to make
use of opportunities.
ST strategies
Using strengths to avoid
threats.
Weaknesses (W)
WO strategies
Overcome weaknesses
by making use of
opportunities
WT strategies
Adjust weaknesses to avoid
threats

1.6. Methods to implement strategies
To make strategies of enterprise well implemented, company must find out

solutions to implement strategies; based on chosen strategy group, we must build up
suitable solutions with strengths, weaknesses of enterprise and opportunities and
threats of business environment.
Solutions must focus on solving problems of management, human resource,
infrastructure, production technology, material, financial source, production, study
and development….

Global advanced Master of Business Administration

Business strategy of Shatico - Prepared by: group 3 – Class: GaMBA 01.V02
- 17 -


CHAPTER II. ANALYSIS OF BUSINESS ENVIRONMENT AND
REALITY IN SOUTHERN HA TINH SEAFOOD IMPORT-EXPORT JOINT
STOCK COMPANY

2.1 General introduction of Southern Ha Tinh Seafood Joint stock
company.
2.1.1 General information
Name: Southern Ha Tinh Seafood Joint stock company.
Abbreviated name: Shatico
English name: Southern Ha Tinh sea product import-export joint stock
company.
Address: Vung Ang economic zone – Ky Anh district – Ha Tinh province
Tel: 0393.868333/868309 Fax: 0393.868308
Email: Website:
2.1.2 Development history
Southern Ha Tinh sea product import-export joint stock company is
established according to Decision No.196/QĐ-UB on 20/6/1993 of Ha Tinh

Provincial People’s Committee with the name of Southern Ha Tinh sea product
import-export joint stock company, with main institution in Ky Anh town, Ha Tinh
province; After establishment, company is lent by Ha Tinh Viet Nam Development
Bank with preferential capital to invest in seafood export processing with capacity
of 550 tons/year. After 5 years of operation, together with common development of
the market, company has continued upgrading factory to 900 ton/year and change
into Southern Ha Tinh sea product import-export joint stock company.
After establishing Vung Ang industrial zone, company has been allowed by
Ha Tinh PPC to transfer into industrial zone and invest in new processing factory
with capacity of 1.500 tons/year, which can meet the demand of export to American
and EU market.
Global advanced Master of Business Administration

Business strategy of Shatico - Prepared by: group 3 – Class: GaMBA 01.V02
- 18 -


Well implement privatization of State’s enterprise, company has organized,
assessed and defined values of enterprise which has been approved by Ha Tinh
Provincial People’s Committee according to Decision No. 1105/QĐ-UBND on
04/7/2005.
From 01/01/2006, company has officially gone into operation under the form
of joint stock company with the name of Southern Ha Tinh sea product import-
export joint stock company (Shatico).
Charter capital: 5.800 million dong; Face value of 1 stock: 10.000 dong.
Structure of firstly issued stocks
Total shares: 580.000 stocks, out of which:
- State’s owner shares: 0 (the State does not hold stock in enterprise)
- Shares sold to labors in enterprise: 452.400 shares, occupying 78%.
- Share for public auction: 127.600 shares, occupying 22%.

2.1.3 Trading sectors:
Southern Ha Tinh sea product import-export joint stock company has
operated in term of buying, processing and consuming sea foods.
Main products of company:
- Cuttle-fish: instant cuttle-fish, shusidane, skinned cuttle-fish…
- Shrimp: prawn, sugpo prawn
- Fish: anchovy, butchered fish…

2.2 Analysis of external environment of the enterprise.
2.2.1 Macro environment - PESTE
- Political and legal environment:
In current violent globalization, regional and international happenings can
create global influence. Vietnam is not an exception which cannot avoid global
economic trends because Viet Nam is a nation of deep economic integration into
global commercial system. However, Viet Nam is stilled assessed as one of nations
of stable political and social environment; Viet Nam Government expects to “be