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



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

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

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

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

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
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

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

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
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
- Strategy of market share development
- Strategy of product development

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
- 5 -
▪ 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
sector environment
environment
within enterprise
economic environment
Culture - society
politics- law
Technological environment

Natural environment

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
- 7 - Source: [4, page 6]

Potential opponents
replaced products
Customes
Provides

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
- 8 -
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

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


High Mean Low

i

ii

iii

iv

v

vi

vii

viii

ix

Source: http://nghiencuumarketing.com

High Mean Low

- 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 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
- 12 -
BCG matrix
relative market share of products (%)

star question mark

Milk cow dog

0

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
- 13 -
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: http://www.mitraco.com.vn
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 (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

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

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