Building multi-sectoral business strategy for Ha Tinh trading and mineral corporatinon within the period of 2010 - 2020

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. Nguyễn Anh Tuấn
2. Nguyễn Đăng Quang
3. Trần Hoài Nam
4. Phạm Văn Tình

VINH, 2010


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
- ii -
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





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
- iii -
TABLE OF CONTENT

ACKNOWLEDGEMENT…………………………………………… …….ii
TABLE OF CONTENT …………………………………………… …… iii
LIST OF ABBREVIATIONS……………………………………… … vii
LIST OF TABLES ……………………………………………………… ix
PREFACE: ……………………………………………………………… …1
1. The need of topic study 1
2. Study purposes 2
3. Study object and scope 2
4. Study methos 2
5. Structure of assignment: 3
Chater 1: THEORY BASIS FOR STRATEGIC CONSTRUCTION.……4
1.1. Basic definition of business strategy 4
1.2. Strategic system of enterprise. 4
1.2.1. Strategy in company level 4

1.2.1.1. Growth strategy: 4
1.2.1.2. Stable strategy 5
1.2.1.3. Withdrawal strategy 5
1.2.2. Competitive strategy: 5
1.2.3. Functional strategy: . 5
1.3. Method for business strategy construction in enterprise 5
1.3.1. Macro environment 5
1.3.2. Sector environment 6
1.3.3. Analysis of internal environment of enterprise 7
1.3.4. Analysis of trading sectors of enterprise (portfolio) 8
Chapter 2: COMMON INTRODUCTION AND ANALYSIS OF
BUSINESS ENVIRONEMNT OF HA TINH MITRACO …………….13
2.1. Common introduction: 13

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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
- iv -
2.1.1. Enterprise’s name: 13
2.1.2. Address: 13
2.1.3. Tel:………………… 13
2.1.4. Website: 13
2.1.5. Trading sectors: 13
2.1.6. Organizational diagram: 14
2.2. Analysis of external business environment of Mitraco 15
2.2.1. Analysis of macro environment: 15
2.2.1.1. Economic environment: 15

2.2.1.2. Legal and political environment: 15
2.2.1.3. Technological environment: 15
2.2.1.4. Cultural and social environment : 16
2.2.1.5. Natural environemnt: 16
2.2.2. Analysis of sector environment: 16
2.2.2.1. Pressure from customers: 16
2.2.2.2. Pressure from providers: 17
2.2.2.3. Current competitive opponents : 17
2.2.2.4. Potential competitive opponents : 20
2.2.2.5. Replaced products: 20
2.3. Analysis of internal environment of Mitraco 22
2.3.1. Analysis of resources 22
2.3.1.1. Human resources 22
2.3.1.2. Finance : 24
2.3.1.3. Technical infrastructure: 31
2.3.1.4. Technology, machine and equipments: 32
2.3.2. Supplemented analysis: 32
2.3.2.1 Management and administration in Mitraco: 32
2.3.2.2. Company structure 33
2.3.2.3. Brand name of Mitraco 34

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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
- v -
2.4. Analysis of trading sector in Mitraco (portfolios) 34
2.4.1. Reality 35

2.4.1.1. Mineral sector 35
2.4.1.2. Construction materials 36
2.4.1.3. Seaport services 37
2.4.1.4. Raising and raising food processing sector 37
2.4.1.5. Commercial and service sector 38
2.4.2. Common assessment of business sectors of Mitraco 38
2.4.2.1. Core business sector of Mitraco: 38
2.4.2.2. New investment sectors of Mitraco 39
2.5. SWOT matrix construction 42
2.6. Construct matrix for internal – external factors evaluation (IE) of
business sectors in Mitraco 48
2.6.1. External factors evaluation (EFE). 49
2.6.2. Internal factors evaluation (IFE). 52
2.6.3. Matrix for internal-external factors evaluation (IF) 54
2.7. Construct BCG matrix (Boston Consulting Group) 56
2.7.1. Market and market share growth rate in some business units of
Mitraco 56
2.7.2. BCG matrix 57
Chapter 3: CONSTRUCTION BUSINESS STRATEGY FOR HA TINH
MITRACO WITH THE PERIOD OF 2010 – 2020 .…………………… 59
3.1. Strategy choice 59
3.2. Vision, mission and targets of Mitraco 61
3.2.1. Vision of Mitraco by 2020: 61
3.2.2. Mission of Mitraco: 61
3.2.3. Strategic targets of Mitraco 62
3.3. Solutions to implement strategy within 2010 - 2020 62
3.3.1. Organizational reconstruction of company 62

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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
- vi -
3.3.1.1. Implementation method: 62
3.3.1.2. Targets: 62
3.3.1.3. Implementation orientation: 63
3.3.2. Sector and portfolio reconstruction 66
3.3.2.1. Implementation time:. 66
3.3.2.2. Targets: 66
3.3.2.3. Implementation orientation: 66
3.3.3. Development of high quality human resource 73
3.3.3.1. Implementation time:. 74
3.3.3.2. targets: 74
3.3.3.3. Implementation orientation: 74
3.3.4. Build up effective management information system 75
3.3.4.1 . Implementation time:. 75
3.3.4.2. Targets: 75
3.3.4.3. Implementation orientation: 76
3.3.5. Develop brand name and corporate culture 76
3.3.5.1. Implementation time: 76
3.3.5.2. Targets: 76
3.3.5.3. Implementation orientation: 76
3.3.6. Build up standard operational process: 77
3.3.6.1. Implementation time: 77
3.3.6.2. Contents: 77
3.4. Limitations of process and study orientation in the future 799
3.4.1. Limitations of process 79
3.4.2. Study orientation in the future .80

CONCLUSION.…………………………………………………… …… 82
REFERENCES…………………………………………………………… 83



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
- vii -
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
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

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
- viii -
strategy of the enterprise.
TK
Inventory
TNDN
Corporate income
TNHH
Limited liability
TS
Asset
TSCD
Fixed asset
TSLD
Mobile asset
VCSH
Owner capital

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
- ix -
LIST OF TABLES
Table
CONTENTS
Page
Table : 2.01
Table of opportunities (O) and threatens (T)
20
Table: 2.02
Table to compare some index of labor productivity of
Mitraco in 2008
23
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: 2.09
Table to evaluate external factors (EFE) of mineral sector
(A)
49
Table: 2.10
Table to evaluate external factors (EFE) of construction
material sector (C)
49
Table: 2.11
Table to evaluate external factors (EFE) of seaport service
sector (E)
50
Table: 2.12
Table to evaluate external factors (EFE) of raising and
processing raising food sector (F)
50
Table: 2.13
Table to evaluate external factors (EFE) of commercial
service (G)

51
Table: 2.14
Table to evaluate internal factors (IFE) of mineral sector
(A)
52
Table: 2.15
Table to evaluate internal factors (IFE) of construction
52

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
- x -
material sector (C)
Table: 2.16
Table to evaluate internal factors (IFE) of seaport service
sector (E)
53
Table: 2.17
Table to evaluate internal factors (IFE) of raising and
processing raising food sector (F)
53
Table : 2.18
Table to evaluate internal factors (IFE) of commercial
service sector (G)
54
Table: 2.19

Table of market growth rate and relative market share of
some business units of Mitraco
56
Table: 3.01
Table of revenue density of mineral sector and other sectors
59
Table ; 3.02
Expected time, cost and order of strategic solutions within
2010 – 2020
77










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
- 1 -
PREFACE:
1. 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
Tinh province including Mitraco – the currently biggest enterprise within Ha Tinh
province

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
- 2 -
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.
2. 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?.
3. 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






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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
- 3 -
5. 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

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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
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Chater 1: THEORY BASIS FOR STRATEGIC CONSTRUCTION
1.1. Basic definition of business strategy
Strategy is understood as compound action to exploit and mobilize resources
in an enterprise to reach a defined purpose; There are many different definitions of
business strategy but the most common definition currently is: Strategy is: “a series
of complex actions to mobilize all resources of an organization to reach a defined
purpose” [6, page.1].
Chamdler considered strategy as including stability of long term targets of
enterprise, choice of methods or action process as well as allocation of necessary
resources to implement such targets [4, page.2].
Alain Threlart supposed that “Business strategy is an art that enterprise uses
to cope with competition and win” [4, page.2]. Business strategy can help
enterprises to realize targets and orientation to promote and make use of all
resources, opportunities to have the best competitiveness with other enterprises at
the same time have methods and large vision for enterprises to overcome threatens
on competitive market then help enterprises to exist and develop.
1.2. Strategic system of enterprise.
With regard to each enterprise, there are many strategies which are suitable
to each type, period and different targets, including:
1.2.1. Strategy in company level
1.2.1.1. Growth strategy:
▪ Strategy of focused growth
- Strategy of market penetration

- Strategy of market share development
- Strategy of product development

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Global Advanced Master of Business Administration
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Build up multisectoral business strategy of Mitraco for the period of 2010 - 2020
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▪ Growth strategy by integration:
- Merging
- Taking over
- Joint venture
▪ Diversification of enterprise’s activities
- Co-centre diversification
- Horizontal diversification
- Mixed diversification
1.2.1.2. Stable strategy
1.2.1.3. Withdrawal strategy
1.2.2. Competitive strategy: there are three basic types of competition
which are: strategy of cost influence, strategy of product difference, and strategy of
concentration
1.2.3. Functional strategy: including Marketing, human resource,
investment…[4, page.11 - 12].
1.3. Method for business strategy construction in enterprise
Based on above theory, in current economy and future trend, the topic will
analyze internal environment of enterprise in sector environment, acro environment
with SWOT analysis, analysis of competitive capacity, portfolios…
1.3.1. Macro environment

Macro environment is the place where enterprises will look for opportunities
and limit threatens including: economic environment; technological environment;
social and cultural environment; natural environment; legal and political
environment.


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Global Advanced Master of Business Administration
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Build up multisectoral business strategy of Mitraco for the period of 2010 - 2020
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Model of macro environment

Source: [4, page 6]
1.3.2. Sector environment
This is pressure for enterprise including: pressure from providers, pressure
from customers, pressure from competitive opponents, and pressure from replaced
products; we must analyze and predict pressures in sector environment to define
opportunities and threatens for enterprise then give suitable solutions.

Macro environment
sector environment
environment
within enterprise
economic environment
Culture - society
politics- law
Technological environment

Natural environment

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Build up multisectoral business strategy of Mitraco for the period of 2010 - 2020
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Source: [4, page 6]

1.3.3. Analysis of internal environment of enterprise
As we have known, within enterprise, there are many factors that can impact
on activities of enterprise; then we can go on analysis of enterprise’ resource
including: human resource, finance, technical infrastructure, technology and
machine, equipments; indicate strengths and weaknesses of enterprises, then have
solutions to promote strengths, limit and adjust weaknesses.






Threatens of replaced
products and services
negotiation
power
Negotiation
power
threatens of new
competitive opponents
Competitive opponents in
the sector




Competition among
existing enterprises in the
sector

Potential opponents
replaced products
Customes
Provides

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Global Advanced Master of Business Administration
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Build up multisectoral business strategy of Mitraco for the period of 2010 - 2020
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Enterprise’s resources








(Source: Analyze by Group)
1.3.4. Analysis of trading sectors of enterprise (portfolio)
Analyze reality of trading sectors of enterprise, assess competitiveness and
development level.
From above analysis we go on building SWOT matrix , IE matrix of business
sectors of enterprises and BCG matrix of some distinctive business units of
enterprise which is the basis for choosing business strategy for enterprise, then
define vision, mission, targets and suggest solutions for implementing strategies.
 SWOT matrix

To build up SWOT matrix we must implement the following eight steps:
 Step 1: list main opportunities from external environment ( O1, O2…)
 Step 2: list main threatens from external environment ( T1, T2…)
 Step 3: list main strengths of enterprise ( S1, S2…
 Step 4: List main weaknesses of enterprise ( W1, W2 )
 Step 5: combine strengths with opportunities to form strategies ( SO)
Human financial
resource resource




Machines, technical
Equipments, infrastructure
Technology

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Global Advanced Master of Business Administration
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Build up multisectoral business strategy of Mitraco for the period of 2010 - 2020
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 Step 6: combine weaknesses with opportunities to form strategies ( WO)
 Step 7: combine strengths with threatens to form strategies ( ST)
 Step 8: combine weaknesses with threatens to form strategies ( WT)
SWOT matrix

SWOT matrix
Opportunities (O)

O1: List of opportunities
according to
importance order
O2:
Threatens (T)
T1: List of threatens
according to
importance order
T2:
Strengths (S)
S1: List of strengths
according to
importance order
S2:
SO strategies
- use strengths to exploit
opportunities

ST strategies
- use strengths to avoid
threatens

Những điểm yếu (W)
W1: List of weaknesses
according to
importance order
W2:
WO strategies
- Limit weaknesses to
exploit opportunities

WT strategies
- Minimize threatens and
avoid threatens

Source: [4, page 9]
 IE matrix:
Put different business units/sectors of an enterprise into a table of 9 squares.
This matrix will be based on two main aspects:

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Build up multisectoral business strategy of Mitraco for the period of 2010 - 2020
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 Total point of IFE on horizontal axis
- If total point is from 1.0 – 1.99 then it is internal factor
- If total point is from 2.0 – 2.99 it is mean
- If total point is from 3.0 – 4.0 it is strong
 Total point of EFE on horizontal axis
- If total point is from 1.0 – 1.99 then capacity to cope with external
environment of enterprise is low
- If total point is from 2.0 – 2.99 l then capacity to cope with external
environment is on mean level
- If total point is from 3.0 – 4 then capacity to cope with external
environment is high
IE matrix
Internal factors evaluation (IFE) of sectors

High Mean Low

i

ii

iii

iv

v

vi

vii

viii

ix

Source:

High


Mean


Low

Extern
al
factors
of
sectors

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Build up multisectoral business strategy of Mitraco for the period of 2010 - 2020
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- If business unit/sector is located in squares i, ii, iv: it must be developed
and constructed
- If business unit/sector is located in squares iii,v,vii: it must be maintained
If business unit/sector is located in squares vi, viii, ix: it must be harvested
and removed
 BCG matrix:
This matrix is given by the leading administration consultancy company of the
US (Boston) to help bog companies to assess activities of strategic business units.
Then it will help administrators to allocate capital to SBUs and assess financial
situation of the company. This matrix is a table of 4 squares:
 Horizontal axis: relative market share of SBU is defined by the rate between
revenue of SBU with revenue of leading opponent or the secondly ranked
opponent.
- If SBU does not have leading revenue then relative market share of SBU
will be equal the rate between revenue of SBU with revenue of leading
opponent within the sector

- If SBU has leading revenue then relative market share of SBU will be equal
the rate between revenue of SBU with revenue of the secondly ranked
opponent
 Vertical axis: indicates annual growth of market of products that SBU
trading by percentage; if SBU has percentage higher than 10%, it will be
considered as high level





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Build up multisectoral business strategy of Mitraco for the period of 2010 - 2020
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BCG matrix
relative market share of products (%)

star


question mark

Milk cow


dog

Source: [4, page 8]
- SBUs located in question mark are newly established with high growth rate but
small market share and revenue. Company must consider to invest capital for
such SBUs to increase market share
- SBUs located in star square often have leading market share in the sector with
high growth rate, but must cope with violent competition then company must
invest much capital; according to time, if such SBUs can keep high market
share then such sector will go on stability with reduced growth rate, SBUs will
transfer to milk cow square
- SBUs located in milk cow square is the financial source of the company; then
if SBUs cannot keep the first position then they will transfer to dog square
- SBUs located in dog square have less capacity to bring profit to company then
company should consider whether to get or remove such SBUs
UBS
UBS

UBS
UBS
20

Annual
market
growth
rate
(%)

10

0

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Build up multisectoral business strategy of Mitraco for the period of 2010 - 2020
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Chapter 2: COMMON INTRODUCTION AND ANALYSIS OF BUSINESS
ENVIRONEMNT OF HA TINH MITRACO
2.1. Common introduction:
2.1.1. Enterprise’s name:
2.1.1.1. Funll name: HATINH MINERALS AND TRADING
CORPORATION
2.1.1.2. Abbreviated name: MITRACO
2.1.2. Address: 02 –Vu Quang street–Ha Tinh city– Ha Tinh province
2.1.3. Tel: 039.3855603; Fax: 039.3855606
2.1.4. Website:
2.1.5. Trading sectors: Ha Tinh Mitraco is the State-owned enterprise
directly under Ha Tinh Provincial People’s Committee established according to
Decision No. 61/2003/QĐ-TTg of Prime Minister. The corporation is operating and
trading according to model of parent company – subsidiaries on many sectors
including:
- Exploit and process minerals
- Trading supermarkets, hotels, restaurants, tourism, informatics technology,
transportation service, labor export

- Produce and trading construction materials
- Exploit and trading hydroelectric
- Raising and processing raising foods
- Repair machines and equipments
- Export garment
- Manage, exploit, seaport services; commodity appraisal

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Build up multisectoral business strategy of Mitraco for the period of 2010 - 2020
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2.1.6. Organizational diagram:

(Source: provided by organizational office of Mitraco)


Administration
council
Director board
Monitoring board
Divisions
Organizational
and labor office
Administrativ
e office
Economic
office
Accounting
office
Mine office
Technical
office
KCS office
Project office
Directly under
units
Ky Anh
mineral
enterprise

Exploiting
enterprise
Cam Xuyen
Titan
enterprise
zircon
processing
enterprise
Thach Anh
mineral
company
Vu Quang
hotel
Labor
export
company
Subsidiaries
Mangan joint
stock
company
Agricultural
and forest
company
Raising food
company
Raising
company
Construction
material JSC

Thach Khe
iron company

Viet Nam-
Laos Ltd.
company
Ha Tinh port
JSC
Commercial
JSC
Thien y JSC
Lam Hong JSC
Transportatio
n and
construction
JSC
Mechanic and
construction
JSC
associated
company
Thach Khe iron
JSC
Huong Son
hydroelectric JSC
Vung Ang
petroleum JSC
Dioxititian JSC
Vinatex Hong
Linh JSC

Ha Tinh
garment JSC
Construction
material JSC

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
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2.2. Analysis of external business environment of Mitraco
2.2.1. Analysis of macro environment:
2.2.1.1. Economic environment:
Ha Tinh Mitraco is trading in common economic environment which is
developing; trading products of Mitraco are mainly exploiting and processing
minerals; consumption market including both domestic and foreign market then it
can get much troubles; but it also has many advantages: our nation is in the first
period of market economy which in on growth rate then there are many products to
be used; especially Ha Tinh is implementing many big projects such as: Thach Khe
iron mine exploiting; Formosa project; Vung Ang economic zone;…This is the
opportunity for Mitraco to diversify sectors and expand production; common
assessment: Vietnamese economic environment in general and Ha Tinh province in
particular is the opportunity for Mitraco but also opportunity for other enterprises.
2.2.1.2. Legal and political environment:
Trading sectord of Mitraco are adjusted by law including corporate law,
labor law, environmental law, land law, investment law…besides, Mitraco also
implements some regulations according to sector; in general, Viet Nam is assesses
to have stable social political environment compared to other nations in the area;

After giving many policies for innovation, Viet Nam has reached stable growth rate
of GDP. Political and economic of macro economy is maintained; Viet Nam is
assessed to be a safe place for investment; besides, currently Ha Tinh province also
has some big policies to create good condition for development of Mitraco, such as
policy of issuing mine, supporting investment…This is really an opportunity for
Mitraco
2.2.1.3. Technological environment:
Sector of mineral exploiting and processing in Viet Nam is in lower level
than the world with low technology; then Mitraco get much difficulties, especially