GRIGGS UNIVERSITY
GLOBAL ADVANCED MASTER BUSINESS ADMINITRATION
PROGRAM

CAPSTONE PROJECT REPORT

BUILDING THE BUSINESS STRATEGY FOR
HA TINH PORT JOINT STOCK COMPANY
IN 2011 - 2015
Group No: 2 - Gemba.v02
Student’s name:
Nguyen Duy Linh
Dinh Hong Long
Dang Dinh Thich
Nguyen Cu Dung
6.3. Focused strategy 9
Figure 2: Basic Competitive Strategies 10 7. Business Environment Analysis 10
7.1. Macro Environment 11
7.2. Industry Environment 12
7.3. Analyzing Internal Business Environment 14
8. SWOT Analysis 14
9. Selecting Strategy by Quantitative Strategic Planning Method 15
CHAPTER II 17
ANALYSIS OF HA TINH PORT’S BUSINESS PERFORMANCE 17
1. Introduction to Ha Tinh Port Joint Stock Company 17
1.1. History 17
1.2. Business Activities 17
1.3. Organizational Structure 18
1.4. Human Resource 19
1.5. Infrastructure 19
1.6. Financial Capacity 19
2. Analysis of External Environment 20
2.1. Political and Legal Environment 20
2.2. Regional Economic Environment 20
2.3. Technological Environment 22
2.4. Natural Environment 23
2.5. Globalization Environment 23
2.6. Demographic Environment 24
3. Analysis of Industry Environment 24
3.1. Bargaining Power of Customers 24
3.2. Bargaining Power of Suppliers 25
3.3. Rivalry 25

3.4. Execution of Human Resource Development Strategy 46
3.5. Execution of Finance Strategy 47
4. Suggested Execution Plan for Focus Strategy 48
RECOMMEND 50 CONCLUSION 52
REFERENCES 53
i
LIST OF ABBREVIATION

Abbreviation
Explanation
HTP
Ha Tinh Port Joint Stock Company
SWOT
Strengths ,Weaknesses, Opportunities and Threats
PEST
Political, Economic, Social, and Technological factors
Lao PDR
People Democracy Republic of Lao
DWT
Deadweight tonnage
ODA
Official Development Assistance
CPI
Comsumer price index

Table 10: Execution Plan for Focus Strategy 48
iii
LIST OF FIGURES
Figure 1: Strategy Selection Process 6
Figure 2: Basic Competitive Strategies 10
Figure 3: Five Force Model 12
Figure 4: SWOT Matrix 15
Figure 5: Organizational Structure of Ha Tinh Port 18 iv
ACKNOWLEDGMENT

Dear Lecturers and Professors of GAMBA program,
Dear the Director of Ha Tinh Port Joint Stock Company;
This capstone project titled “Building Business Strategy for the Ha Tinh Port
Joint Stock Company in 2011 -2015” is prepared by the Group 2 based on the
knowledge collected from the GAMBA program and other business data from Ha
Tinh Port Joint Stock Company.
We would like to thank lecturers and staff of Global Advanced Master
Business Administration Program, especially Associate Professor, Dr. Nguyen Thi
Tuyet Mai, Associate Professor, Dr. Ngo Kim Thanh, MBA. Pham Ngoc Thang,
MBA. Doan Hong Quan, Ms. Nguyen Thi Ha Giang and others who provided the
group with invaluable assistance and supports which enable the completion of this
capstone project.
We also would like to express our warm gratitude to Mr. Nguyen The
Cuong, Director of Ha Tinh Port Joint Stock Company and other managers who had

access to the company’s business.
We hope that our willing will get your attention and the findings from this
research will help the port formulate an applicable competitive strategy for its
sustainable development.
Thank you very much! vi
FEEDBACK FROM HA TINH PORT JOINT STOCK COMPANY

Dear Evaluation Committee of the Global Advanced Master of Business
Administration Program, Griggs University.
Ha Tinh Port Joint Stock Company received the letter from the Group No 2
regarding the capstone project titled “Building Business Strategy for the Ha Tinh
Port Joint Stock Company in 2011 -2015” which relates to the business strategy of
the Company. We understand that this is an opportunity for the Group No 2 to
access to the sea port service business which is being received great attention from
the Government because this is one of the most important businesses in the
country’s master development plan: maritime and sea port economic sector.
Although limited time, but through the process of working with Group 2, we
find that the team members worked hard to explore, study and apply the theory and
the data reported by companies a reasonable level, set out the issues and the very
practical question for the company's activities in general and content of research
topics in particular.
We highly appreciate the comments of the Group No 2 on the operation
process and strategic management process of the company. The Board of Directors
will consider and apply flexibly the findings (strategy) proposed by the Group.
On behalf of the Board of Directors, I wish the Group No2 and the
GeMBA01.V02 a successful completion of the MBA Program and flexible
application of the knowledge delivered by the courses that will help their companies

December 2009 on the approval of Vietnam port system development planning up
to 2020 and the orientation to 2030. The main objectives of the planning are to
systemize the ports according to the master plan to meet the requirements of
industrialization, modernization as well as facility development to make Vietnam
ready in the integration process and able to compete in seaport business with other
countries in the region and in the world. Furthermore, this will help Vietnam
maintain its position and advantages in maritime economy development, at the same
time to protect the national security. The port system development also helps
connect Vietnam with important economic zones in the world to create dynamic
growth momentum for development of coastal urban and economic zones areas.
Ha Tinh Port Joint Stock Company is converted from a State owned
enterprise to the Joint Stock Company according to the Decision No 2668/QD
UBDN dated 24/09/2008 issued by Ha Tinh People’s Committee on the approval
Global advanced Master of Business Administration

Business strategy for Ha Tinh Port
Group No.2 - Class GeMBA01.V02
2
for shifting the Ha Tinh port under the Ha Tinh Trading and Mineral Co-operation
to the joint stock company. The Company’s business license No 2803000598 was
issued on 05/02/2009 by Vung Ang Economic Zone Management Unit. The main
functions of the company are to explore and do business on the seaport including
Vung Ang port located in Ky Loi commune, Ky Anh district, Ha Tinh province.
In recent years, although there have been still a lot of difficulties the Board
of Directors and staff have made big efforts in exploiting the strong points of the
port to improve its position in Vietnam Port System Map and in the South East Asia
region.
Given that it is the contact port of the Central North according to the
Government’s planning, Ha Tinh port has special tasks to the continued
development of Vung Ang economic zone and it will soon become a key national

Company.
4. Research Methodology
This capstone project is done through a combination of different research
methods. It deploys various theories on strategy building such as PEST, 5
competitive forces, SWOT analysis and Quantitative Strategic Planning Method.
The research uses qualitative methods such as observation, interview, and
group discussion, comparison analysis to generate, analyze and summarize both
primary and secondary data on business activities of Ha Tinh port. Primary data will
be collected through interview and discussion with executives and other business
partners of Ha Tinh port as some important data or opinions are not publicly
revealed. The secondary data is gained in various reports from Ha Tinh port and
other publications.
5. Structure of the Capstone Project Report
Apart from the Table of Content, Introduction, Conclusion, Indexes,
References, the main content of the report includes three parts:
Chapter I: Theoretical fundamentals of business strategy
Chapter II: Analysis of Ha Tinh Port’s business performance
Chapter III: Selection of strategy for Ha Tinh Port and suggested execution
solutions

Global advanced Master of Business Administration

Business strategy for Ha Tinh Port
Group No.2 - Class GeMBA01.V02
4
CHAPTER I
THEORATICAL FUNDAMENTALS OF BUSINESS STRATEGY

1. Definition of business strategy
The term “strategy” is derived from the Greek word “strategos” which means

needs of markets and to fulfill stakeholder expectations.
In conclusion, business strategy might be understood as the direction and
scope of the organization in the long term; the strategy will create the competitive
advantages for the organizations by optimally usage of resources in a competitive
environment to meet market demands and expectations of the shareholders. In other
words, strategy is the answers for the following questions:
- Where is the business trying to get to in the long-term? (direction)
- Which markets should a business compete in and what kinds of activities are
involved in such markets? (markets; scope)
- How can the business perform better than the competitors in those markets?
(advantage)
- What resources (skills, assets, finance, relationships, technical competence,
and facilities) are required in order to be able to compete? (resources)
- What external environmental factors affect the businesses' ability to
compete? (environment)
- What are the values and expectations of those who have power in and around
the business? (stakeholders)
2. Roles of a business strategy for the performance and development of a
business
The strategy could be understood as the well-rounded and comprehensive
plan of a business. The business strategy has important roles as the guideline for the
activity chain of the business to achieve objectives in the future, indicating the
following factors:
- Identify the long-term direction for a business, certifying the core objectives
of the business and where the business wants to get, what trends will the
business be developed, how will the business stay in the future market;
Global advanced Master of Business Administration

Business strategy for Ha Tinh Port
Group No.2 - Class GeMBA01.V02

Global advanced Master of Business Administration

Business strategy for Ha Tinh Port
Group No.2 - Class GeMBA01.V02
7 4. Roles of Strategic Management Process
According to A.Chandler, strategic management is the process of defining
the long-term basic objectives of the business, selecting the methods or performance
direction as well as allocating required resources to implement these objectives.

Combina
tion of
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tools

Combina


Combina
tion of
models,
tools
Global advanced Master of Business Administration

Business strategy for Ha Tinh Port
Group No.2 - Class GeMBA01.V02
8
Strategic management helps a business create a visionary perspective, setting
up core feasible objectives, building up successfully the strategy, conducting and
steering the strategy, and finally assessing and revising the strategy.
Most of the researches agree that if any business which knows how to
perform the strategic management well can reach their objectives compared with
those who do not have strategic management. The strategic management still helps
business deal with serious issues and improves the company’s ability in winning
opportunities when they come.
5. Strategy Classification
There are many types of strategy used for business and production process
but 3 types of strategy are found the most popular including:
5.1. Corporate strategy
Corporate strategy is concerned with the overall purpose and scope of the
business to meet stakeholder expectations. Corporate strategy tells companies which
markets or sectors to compete in. This is a crucial level since it is heavily influenced
by investors in the business and acts to guide strategic decision-making throughout
the business. Corporate strategy is often stated explicitly in a "mission statement".
5.2. Business Unit strategy (SBU)
Business Unit Strategy is concerned more with how a business competes
successfully in a particular market or sector. It concerns strategic decisions about

performer in its industry, provided it can command prices at or near the industry
average.
6.2. Differentiation strategy
In a differentiation strategy a firm seeks to be unique in its industry along
some dimensions that are widely valued by buyers. It selects one or more attributes
that many buyers in an industry perceive as important, and uniquely positions it to
meet those needs. It is rewarded for its uniqueness with a premium price.
6.3. Focused strategy
The generic strategy of focus rests on the choice of a narrow competitive
scope within an industry. The focuser selects a segment or group of segments in the
industry and tailors its strategy to serving them to the exclusion of others.
The focus strategy has two variants.
Global advanced Master of Business Administration

Business strategy for Ha Tinh Port
Group No.2 - Class GeMBA01.V02
10
In cost focus a firm seeks a cost advantage in its target segment, while in
differentiation focus a firm seeks differentiation in its target segment. Both variants
of the focus strategy rest on differences between a focuser's target segment and
other segments in the industry. The target segments must either have buyers with
unusual needs or else the production and delivery system that best serves the target
segment must differ from that of other industry segments. Cost focus exploits
differences in cost behavior in some segments, while differentiation focus exploits
the special needs of buyers in certain segments.
Figure 2: Basic Competitive Strategies

7. Business Environment Analysis
All business activities can not be separated from the business environment.
Business environment factors have a tremendous impact on businesses because they

7.1.4. Cultural- social environment
It is related to social attitudes and cultural values. Cultural values and social
attitudes create social foundations leading to changes and technological conditions,
political-legal, economic and demographic conditions. Social changes also create
opportunities and threats for enterprises.
7.1.5. Natural environment
Geographical factors, regional characteristics, weather conditions, soil,
climate have an impact of business activities, bringing companies advantages or
Global advanced Master of Business Administration

Business strategy for Ha Tinh Port
Group No.2 - Class GeMBA01.V02
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disadvantages, especially for those business, its activities depend on weather
conditions heavily.
7.1.6. Global environment
Global environment includes related global market, changing current market,
the internationally important political events and institutions characteristics and
background cultures in the global markets.
7.1.7. Demographic environment
Segmenting demography in the macro environment is related to population,
age structure, geographic distribution, ethnic communities, and distribution of
income
7.2. Industry Environment
Industry is a group of companies providing products or services that can closely
replace each other. Close alternative means that the products or services meet
basically similar customer needs. Industries are very different in economic
characteristics, competitive situations, prospects and future profitability. Economic
and current competitive conditions as well as projected future of the industry are a
basis to predict low, medium or high future profitability contributing sector

companies operating in the same business. Those are structure competition;
situation-market demand; and the barrier out of the business sector. Important part
of controlling the external factors is to identify all the competitors and identify the

Combina
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Threat of new entrants

Combina
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Threat of substitute
products Rivalry

Combina
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Global advanced Master of Business Administration

Business strategy for Ha Tinh Port
Group No.2 - Class GeMBA01.V02
14
advantages, weaknesses, capabilities, opportunities, threats, objectives and
strategies of them.
7.2.3. Buyers
The third force in the Michael Porter’s 5 force model is the ability to
bargaining power of customers. Customers often request or require off-quality
goods to better come with excellent services. This makes the operating costs
increase the risk of creating price competition.
7.2.4. Suppliers
The fouth force is the ability of suppliers to bargain. Suppliers not only
supply materials, equipment and labor but also the service firms that provide
services such as consulting, advertising, shipping, and training. To avoid the