GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION GRADUATION THESIS SUBJECT : DEVELOPMENT STRATEGY OF CAM RANH PORT UP TO YEAR 2015 – 2020’s VISION Class: GaMBA.01.C0310 Member Group: Pham Huu Tan Nguyen Huy Phuong Nguyen Van Thang Bui Thi Le Thuy HOME [Pick the date] CAPSTONE PROJECT REPORT INDEX INTRODUCTION CHAPTER 1: LITERATURE REVIEW AND PRACTICAL PREMISE FOR PLANNING THE BUSINESS OF SEA PORT EXPLOITATION 1.1 Theory overview on strategy administration 1.1.1 Concept, nature and characteristics of strategy administration 1.1.2 Role of strategy administration in a firm 1.1.3 Importance of strategy administration: 1.1.4 Strategy planning process 1.1.4.1 Stages of strategy management 1.1.4.2 Model of strategic management 10 1.1.5 Classification of business strategy 11 1.1.5.1 Strategic levels 11 1.1.5.2 Strategy types 11 1.2 Premise to build up a business strategy to a firm 13 1.2.1 Analysis of the external factor 13 1.2.1.1 General environment 13 1.2.1.2 Branch environment 15 1.2.2 Analysis of the internal factor of a firm 16 1.2.2.1 Personnel 17 1.2.2.2 Financing 17 1.2.2.3 Marketing 17 1.2.2.4 Administration activity 17 1.2.2.5 Information system 18 1.3 Tools to plan and select the strategy 18 1.3.1 Tools to plan strategy 18 1.3.1.1 External Factor Evaluation (EFE) 18 1.3.1.2 Internal Factor Evaluation (IFE) 19 1.3.1.3 1.3.1.4 1.3.1.5 1.3.1.6 Competitive Profile Matrix 20 SWOT analysis 20 Analysis of position strategy and evaluation of action (SPACE) 22 QSPM analysis of strategy planning 23 1.3.2 Some experiences in selection of business strategy 25 1.4 Theory on seaport and its services : 26 1.4.1 Concept and classification of seaport 26 GROUP - GaMBA.01.C0310 Page CAPSTONE PROJECT REPORT 1.4.1.1 1.4.1.2 Concept on seaport 26 Classification of seaport 26 1.4.2 Functions and duties of a seaport 27 1.4.2.1 Functions 27 1.4.2.2 Duties of seaport 27 1.4.3 Technical material facilities of a seaport 28 1.4.3.1 The water part of a port normally consists of basin and fairway 28 1.4.3.2 The land part is mainly the yard, traffic system and workshop 28 1.4.3.3 The technical equipment of port may be divided in masin groups 28 1.5 Development orientation of Viet Nam seaport 28 1.5.1 Development viewpoint 28 1.5.2 Target and orientation for development 29 CHAPTER 2: INTRODUCTION & ANALYSIS OF THE ACTUAL BUSINESS CONDITION OF CAM RANH PORT 30 2.1 Introduction on Cam Ranh port 30 2.1.1 Overview : 30 2.1.2 Summary on the formation-development process 31 2.1.3 Organization structure 31 2.2 Analysis of actual business organization and service supply conditions 33 2.2.1 Model and procedure of business organization 33 2.2.2 General results of business: 39 2.2.3 The current status about the labor management situation 45 2.3 Analysis of external factors 45 2.3.1 Analysis of macro environment 46 2.3.1.1 National economic situation in 2010 46 2.3.1.2 Economic situation in first months in 2011 48 2.3.1.3 Political and legal situation 48 2.3.2 Analysis of sector environment 48 2.3.2.1 Advantages and restrictions of seaport industry 49 2.3.2.2 Allocation of goods output 50 2.3.2.3 Planning of Vietnam's seaport 51 2.3.2.4 Competition in sector 52 2.3.3 Analysis of competitors 54 2.3.3.1 Nha Trang port 54 2.3.3.2 Quy Nhon port 54 GROUP - GaMBA.01.C0310 Page CAPSTONE PROJECT REPORT 2.4 2.3.3.3 2.3.3.4 Ports in Dong Nai and Vung Tau area 55 Cam Ranh Cement Port 55 2.3.3.5 The other competitors 55 Analysis of internal factors of Cam Ranh seaport 56 2.4.1 Managing 56 2.4.1.1 System of management, organization, human resources 56 2.4.1.2 Salary and bonus policy 56 2.4.1.3 Training and HR development activities 57 2.4.1.4 Corporate culture 57 2.4.2 Marketing 58 2.4.3 Financing - accounting 58 2.4.4 Investing: 58 2.4.5 Producing 60 2.4.6 Information system 60 2.4.7 The Potential of Cam Ranh Port 60 CHAPTER 3: STRATEGY AND SOLUTION PLANNING 62 3.1 Mission, target of development strategy up to 2015 – oriented up to year 2020 62 3.1.1 Mission 62 3.1.2 Target 62 3.2 Matrix application on the development strategy planning of Cam Ranh port: 62 3.2.1 External factor evaluation (EFE) 62 3.2.2 Internal factor evaluation (IFE) 65 3.2.3 Competitive Profile Matrix 67 3.2.4 Strengths-weaknesses-opportunities-threats analysis (SWOT) 68 3.2.5 Strategy position and activity evaluation analysis (SPACE) 73 3.2.6 Quantitative strategy planning matrix (QSPM) 74 3.2.7 Strategy selection for the company 82 3.3 Solutions on strategy performance: 83 3.3.1 Solution group on human resources 83 3.3.2 Solution group on Marketing 85 3.3.3 Solution group on Investing 86 3.3.4 Solution group on producing management strategy 87 3.3.5 Solution group on financing: 87 GROUP - GaMBA.01.C0310 Page CAPSTONE PROJECT REPORT 3.3.6 Solution on restructuring company 88 3.3.7 Solution group on culture of company 89 3.4 The work of inspection and assessment 89 CONCLUSION 90 REFERENCES 91 GROUP - GaMBA.01.C0310 Page CAPSTONE PROJECT REPORT Table list: Table 1.1 : External factor evaluation – EFE 19 Table 1.2: Competitive Profile Matrix 19 Table 1.3: Internal factor evaluation – IFE 20 Table : SWOT matrix 21 Table : QSPM analysis 24 Table 2.1: Capital and property position 36 Table 2.2: Analysis of financial targets 39 Table 2.3: Analysis of key financial norms 39 Table 2.4: Scale and labor structure of the company in the latest years 45 Table 3.1 : External factor evaluation (EFE) of Cam Ranh port 62 Table 3.2 : : Internal factor evaluation (IFE) of Cam Ranh port 65 Table 3.3 : SWOT analysis of Cam Ranh port 67 Table 3.4 : SPACE analysis of Cam Ranh port 68 Table 3.5: QSPM analysis of Cam Ranh port – SO strategy group 73 Table 3.6: QSPM analysis of Cam Ranh port – ST strategy group 74 Table 3.7: QSPM analysis of Cam Ranh port – WO strategy group 76 Table 3.8: QSPM analysis of Cam Ranh port – WT strategy group 77 Table 3.9 : QSPM analysis of Cam Ranh port - WT strategy group 79 Figure list: Figure 1-1 : Module of global strategy management 11 Figure 1-2 : Illustration of general factors 14 Figure 1-3 : SPACE matrix 22 Figure 2-1 Geographical position of Cam Ranh port 31 Figure 2-2: Organizational Model 33 Figure 2-3: Description of order process 34 Figure 2-4: Production plan 35 Figure 2-5: The development output by goods from 2007 to 2011 38 Figure 2-6: The revenue according to service over the years from 2007 to 2011 38 Figure 2-7 : Revenue – profits – paid to the State‟s budget from 2007 – 2011 42 Figure 2-8: Monthly inflation happening in 2010 47 Figure 2-9: Chart of commodity output through Viet Nam seaport 49 Figure 2-10: Chart of output distribution through areas 51 Figure 3-1: SPACE matrix of Cam Ranh port 74 GROUP - GaMBA.01.C0310 Page CAPSTONE PROJECT REPORT INTRODUCTION: The seaport is an important infra-structure of maritime economy, a terminal connecting various transportation means in a series of logistics, and contributes in determining the development and the marine economic growth speed of country The whole country owns more than 140 seaports, lying along the coast from North to South Many seaports are assessed having an international strategic position However the exploitation capacity of Viet Nam on seaport does not deserve its potentiality The seaport service activity is still spontaneous, small and lacks for cooperation resulting in inefficient exploitation of port and the handling capacity is not high as compared to the regional seaports Though the seaports are numerous but as their outputs are distributed unevenly: the ports at developed economic centers such as Hai Phong, Da Nang, Ho Chi Minh city get many commodities but as they are situated far from sea, then they have difficulty in receiving ships of big load The Central area has many advantageous locations to build the seaports , especially those of deep water but due to their slow economy development with very few industrial zones then the exploitation capacity can not reach the design target Cam Ranh port which lies on Cam Ranh bay is one amongst best bays in the world for seaport construction and is situated in the center of the Southern central part and the western highland Even having advantageous location and being the important gateway for the economic development in the region but the port size is still small The handling means are short and obsolete; the handled cargo mainly is bagged and loose one therefore the port exploitation efficiency is not high Therefore the build up of Cam Ranh port development strategy at stage 2011 – 2015 oriented up to year 2020 is required to stabilize and develop the firm The port development strategy build up suits the Vietnamese seaport development planning and is necessary for the socio-economic development of the area  Study target and application capacity To study the current condition of firm, to analyze the market so as to get the plan for development investment, market expansion, quality improvement and service diversification, specific advantage exploitation so that Cam Ranh port becomes a general national port, a terminal one in the area (class I) in 2020 GROUP - GaMBA.01.C0310 Page CAPSTONE PROJECT REPORT  Method of study and performance: - Theory systematization: of strategy management, of theory on human resource management and on production management relating to service - product Use of study methods: to determine quality and quantity, based on the market study data, of forecasts made by maritime experts, of forecasts on use demand, of the branch growth speed, as well as to refer to some models of successful integral service management of certain ports in the area and in the country, to data published on the website of branches and industries such as General Department of Statistics, Maritime Department, Transportation and Communication Ministry Subject content: consists of chapters  Chapter 1: Presentation of basic theories on the strategy build up relating to the study extent  Chapter 2: Analysis of Cam Ranh port current business conditions  Chapter 3: To buid up the development strategy of Cam Ranh port at stage 2011 – 2015 oriented up to year 2020 GROUP - GaMBA.01.C0310 Page CAPSTONE PROJECT REPORT CHAPTER 1: THEORITICAL AND PRACTICAL PREMISE FOR PLANNING THE BUSINESS OF SEAPORT EXPLOITATION 1.1 Theoritical overview on strategy management 1.1.1 Concept, nature and characteristics of strategy management The business strategy is defined differently by various administrators This derives from different approaches of study - Fred R David (2003) : Strategy is the means to achieve long- term targets - Alfred Chandler, Harvard university : Business strategy is the determination of basic and long-term targets of a firm and in the same - time is the selection of a mode or the process of an activity and a distribution of required resources aiming at performing these targets Michael E Porter : Strategy is the selection of what is necessary and unnecessary to do, and what is only suitable to a group of customer rather to all the customers In general, in spite of the difference in expression , the concepts on strategy imply the main following contents: + To determine the short-term and long-term targets of firm + To put forward and select the supporting solutions for achieving the targets + To deploy and distribute resources so as to carry out these targetss 1.1.2 Role of strategy management in a firm The strategy management is the process of studying the current and future factors , planning the firm targets, putting forward, implementing and controlling the decision execution with the aim of achieving these targets in the current and future factors - The business strategy helps the firm to see clearly the opportunities and advantages in business, to make full use of them so as to put forward the suitable strategies, policies aiming at achieving the defined targets - The business strategy helps the administrators to forecast present and potential Since then, based on its potentiality , the firm is more proactive in coping with these risks - The business strategy helps the administrators to use effectively the - available firm resources and to allocate them reasonably The business strategy combines the firm functions in the best way with the aim at achieving the common targets of firm GROUP - GaMBA.01.C0310 Page CAPSTONE PROJECT REPORT 1.1.3 The importance of the strategy management is: - To help the admistrators to be proactive before the factor changes: to know exploiting opportunities so as to relieve threats since then the administrators can bring out solutions, targets which accommodate to - factors and achieve the firm targets To help the admistrators to care about and use effectively the resources (human , financial…) resulting in success and high profits in business - To help the admistrators to fix the short-term development in the longterm background and focus the attention to both the productivity and the efficiency 1.1.4 Strategy planning process 1.1.4.1 Stages of strategy management The strategy management includes main stages which relate and support each other closely :  Stage : Stage of strategy formation Is the process of setting up the business duties, performing study and research so as to determine the internal strengths, weaknesses; external opportunities, threats so as to put forward the long-term targets and to select the alternative strategies The analysis of the current condition shall be based on realistic premises, reliable information – this is the first and - - important step for the success of a strategy The strategy formation includes basic activities : study conducting, intuition and analysis harmonizing , decision bringing forward Study conducting : To determine the important strengths and weaknesses in the fields of functional business The internal factors may be determined following methods such as ratio calculation, achievement measurement, comparison versus the previous stages and versus the branch average Various surveys may be developed and performed so as to study the internal factors such as the personnel spirit, production efficiency, advertisement efficiency and the customer loyalty Intuition and analysis harmonizing : There are many techniques in strategy management which help strategists to unify intuition and analysis in bringing forward and selecting the feasible strategy alternatives, for example: Boston Consultant Group (BCG) matrix, strategic position and activity evaluation (SPACE) GROUP - GaMBA.01.C0310 Page CAPSTONE PROJECT REPORT Important Factors Classification Building the human resources management system Attractive ratings Total ratings Building the Company‟s Culture Attractive Total ratings ratings Building the coordination regulation of the departments Attractive ratings Total ratings Internal factors An International Port located in Cam Ranh Bay Deep sea port - - 8 - - Large area of planning land 4 - - - - Focal sea port for the region 12 - Complete storage system Human resources management Good relations with locality - Great history in the industry Good officers and technicians, skillful workers Laborers‟ Income Marketing policy - - - - 6 6 - 12 12 6 2 4 - - - External factors Political stability The growth rate of GDP in Vietnam is GROUP - GaMBA.01.C0310 Page 77 CAPSTONE PROJECT REPORT high Development speed of the provinces in the South Central and Highlands 3 investment projects in the attractive area of CR port 3 Policy on mineral exploitation The global economic crisis 2 4 2 - The transport system after the port The number of High inflation High interest rate, it is difficult to access the credit capital Fierce competition in the industry 2 - Total 98 99 34 Table 3.9: QSPM analysis of Cam Ranh port – WT strategy group Selective strategies Important Factors Classific Care & after sales service to customers Bringing the company‟s image to customers Company restructure ation Total ratings Attractive ratings Attractive ratings Total ratings Attractive ratings Attractive ratings 16 Internal factors Be international port located within Cam Ranh Gulf GROUP - GaMBA.01.C0310 Page 78 CAPSTONE PROJECT REPORT Be deep-water seaport 16 area 12 Be the clue seaport for the region 12 Perfect warehouse and yard system 2 8 3 achievement within the industry 2 Good technical personnel, skilled workers 3 9 Incomes of employees 2 - 6 2 4 2 2 3 9 Big planning land Human resources administration Marketing policy Good relationship with local government With depth of Exterior factors Stable politics GDP growth speed of Vietnam is high Developmental speed of the provinces of Southern Central of Vietnam, Tay GROUP - GaMBA.01.C0310 Page 79 CAPSTONE PROJECT REPORT Nguyen System of traffic behind the port 3 3 12 - Number of invested projects in region attracts CR Port Policies on mineral exploitation Global economic crisis 2 4 2 4 2 High inflation High interest rate of bank Critical competition within the industry 107 159 118 According to the analysis and ratings of QSPM matrix for the strategic groups, we can see that:  For SO strategic group: + The total attractive ratings of the market exploitation strategy: 142 ratings + The total attractive ratings of the market expansion strategy: 186 ratings + The total attractive ratings of the service diversification: 170 ratings  For ST strategic group: + The total attractive ratings of the marketing strategy: 170 ratings + The total attractive ratings of the human resources development strategy: 152 ratings + The total attractive ratings of the development of appropriate price strategy: 147 ratings  For WO strategic group: GROUP - GaMBA.01.C0310 Page 80 CAPSTONE PROJECT REPORT + The total attractive ratings of the building of the human resources management system: 98 ratings + The total attractive ratings of the building of the company‟s culture : 99 ratings + The total attractive ratings of the building of the coordination regulation of the departments: 34 ratings  For WT strategic group: + The total attractive ratings of the Care & after sales service to customers: 107 ratings + The total attractive ratings of the bringing of the company‟s image to customers: 159 ratings + The total attractive ratings of the Company restructure: 118 ratings 3.2.7 Strategy selection for the company According to the analysis and assessment of the business environment situation of Cam Ranh port through the matrixes, the group has identified the opportunities, risks, strengths and weaknesses of the company, combined with the development orientations, objectives of Cam Ranh port in the near future, then, the preferred strategies for Cam Ranh port to 2015 and the development orientation to 2020 are: (1) Market expansion strategy (2) Service diversification strategy (3) Human resources development strategy (4) Marketing strategy (5) Existing market exploitation strategy (6) Company restructure strategy (7) Company‟s culture building (8) Strategies to Boost the Image to Clients (9) Reasonable Pricing Strategies  The Plan for strategy implementation:  The immediate strategy is to expand the market, develop the marketing strategy, specific marketing plan for each stage and propose the most effective implementation measure Building the price strategy to be flexible to suitable to each commodity group and region The implementation criteria of the strategy at this stage is: “Expanding the GROUP - GaMBA.01.C0310 Page 81 CAPSTONE PROJECT REPORT market on the basis of effective development and exploitation of the existing market”  The medium term strategy is to invest in the infrastructure for the sea port: ports, loading and unloading facilities, storage, technical infrastructure to strengthen the competitiveness, increase the handling capacity both in variety and yield Expand services offered to customers, building logistics to increase revenue, reduce costs Restructure the company, equitize the subsidiary enterprises to increase the autonomy, reduce the subsidy mechanism Build the human resources development strategy and company‟s culture strategy  The long term strategy is to continue to develop intensively the business activities of the company, build Cam Ranh port to become a brand matching with the place name known by the world “Cam Ranh port on Cam Ranh Bay” By 2020, Cam Ranh port will become the focal port in the region (type 1) according to Decision no 2190/QD-TTg dated 24/12/2009 of the Prime Minister on approving the development planning of Vietnam seaport system to 2020 and the orientation to 2030 3.3 Solutions on strategy performance: 3.3.1 Solution group on human resources To ensure the sustainable development of the Company, the human factor is one of the leading important factors So it is necessary to continue to innovate the training and retraining method to soon have a strong staff of economic management, technical management that are dynamic, creative and ethical, with skill and spirit to own the modern technology, to acquire the advanced manufacture technology; build a team of skillful workers and technicians to constantly improve the labor productivity, business efficiency for integration into the region and the world To accomplish this goal, it is necessary to have the following solutions:  Human resources planning: Based on the development orientation of the company, the situation of science and technology development to determine the human resources needs for the company in sufficient quantity and quality assurance  Human resources selection: Establish the recruitment regulation to ensure recruiting sufficient quantity, right position, quality assurance on the basis of planning the human resources needs Establish the salary and bonus GROUP - GaMBA.01.C0310 Page 82 CAPSTONE PROJECT REPORT regulation appropriate to the purpose of recruiting talented people; encouraging and retaining the qualified people much contributing to the company‟s operation  Human resources training and development: According to the operation and production demand to regularly conduct the training and retraining, cooperate with developed big ports to train the technical workers Contract with specialized training schools to update the new science and technology knowledge Focus on training the key management officers, have plan for studying and training at foreign schools offering domestic training or overseas training  Performance and adjustment assessment: Annually, review the human resources management work, supplement the arising manpower demands, and check the recruitment, training to have suitable amendment  Perfecting the task of working norm Evaluations of solutions: - When setting the concrete, real working norm, it helps the ports with - putting forward the levels of output for the phases during their processes of operation and service in a short time The salary payment is reasonable and calculated correctly with the quantity, working quality, and encourages the devoted, enthusiastic working spirits of the employees  Perfecting the task of personnel recruitment To complete the recruitment procedures, standards in recruitment To foresee the future demands upon the operation scale of correlative diversified service The Ports hold the re-check the existing number of employees, quality of employees, and based on this basis, the number of optimal employees is adjusted For the high rank employees within the Ports, the cadres of the departments have the function of managing the service activities of the Ports This is the section of labor that its sources for recruitment is very difficult, so the current solution of the Port is that one side still making recruitment (according to the standards of Recruitment Council), on the other side traning the cadres in the form of shor-term, long-term training in order to ensure the common requirement on the personnel of the Ports Evaluations of solutions: GROUP - GaMBA.01.C0310 Page 83 CAPSTONE PROJECT REPORT The solution of perfecting the personnel recruitment has unsignificant effects on the results, progresses of loading and unloading, activities of service of the Ports - The adjacent force of employees is initiative and supplied with - knowledges, professional skills which are improved higher, especially the employees working in the block of production For the high-rank employees, they ensure to meet the actual requirements such as knowledges and experiences which are higher improved in order to make the guidance decisions, contributing to promote the activities of the Company - - Perfecting the task of labor organization For direct laborers: Regularly follow the working norms setup for this labor section in order to get the methods of amendment, modification timely, from that point, the regime of salary payment must be rational For indirect laborers: with the consideration and re-arrangement of laborers, the salary of this section will be raised It needs to arrange again the cadres with management ability, competence and to train the team of staffs about foreign language, professional skills  Doing the task of training, learning well - There are types of concentrated training, learning from 12 months, courses from and above intermediate levels (which are called long-term training) The courses of cultivating the short-term professional speciality, professional skill conversion for the personnel belonged to the sections of converting, re-training the professional skills, drivers…  Improving the income level for employees Evaluations of solutions: Through the improvement of employees‟ salary, it will be the motive power for the employees to enhance their working output - The regime of rational salary contributes in adjusting the production reasonably, determines the stability of the personnel team within the Ports - The cement of interests among each employee and whole collective group within the Port is ensured GROUP - GaMBA.01.C0310 Page 84 CAPSTONE PROJECT REPORT - Creating a strong collective team and the production is developed, resulting in raising the prestige of the Port, lastly, the economic effectiveness is better, the income of the laborers is raised more 3.3.2 Solution group on Marketing  Develop a complete marketing strategy based on the corporate development strategy to 2015 and orientation to 2020 The target is to maintain the existing market, develop and expand the new market  Every year, there is marketing plan according to the market segment, identify the target market and have solution and plan for the implementation Advertise the capability, potential, advantage of Cam Ranh port to domestic as well as foreign customers to increase the productivity and types of goods through the port  Use several promotion tools such as Website of the company; e-mail; word of mouth (WOM); media for the performance  Analyze the new mechanism, policy, the competitors to adjust the suitable production and business strategy 3.3.3 Solution group on Investing (1) Stage to 2015:  Investment in the project of Port 2: Currently, the packages have been started: 180m of main bridge; dredging the front area of the port; upgrading the traffic roads and power and water technical infrastructure with the investment of 210 billion dongs, to the third quarter of 2012, it will be put into operation and can receive, develop vessels with tonnage to 50,000 DWT According to the analysis of commodity market of the region, the economic development situation of the whole country and the area in the South Central - Highlands, the interest rate of the commercial loans at the present is (20% / year), while the Corporation only funds for the project 200 billion dongs (in the form of increasing charter capital), the group would like to propose the investment plan as follows:  Continue to implement the deployed packages to soon put into operation, delay the implementation of the next packages of the project  The annual source of depreciation of the project of port and the existing asset depreciation; the source of capital mobilized from staff and officers GROUP - GaMBA.01.C0310 Page 85 CAPSTONE PROJECT REPORT and the external partners will be invested in the loading and unloading facilities at the wharf and storage Based on the goods demands to invest in storage to be suitable to the planning and design to prevent the pressure of high interest payment as present  Invest in storage facilities and other projects  Call for goods owners with the goods imported and exported via the port together with the company to invest in the storage system within the 9-hectare area that has been licensed for investment: Like customers specializing in wood‟s chip for export, customers specializing in liquid (petrol, oil , gas, asphalt) At present, the area in Cam Ranh port is receiving the investment incentives (the land rent is not paid within years after the project is completed and put into operation; tax incentives )  Mobilize capital from internal resources of staff & officers and partners, equipment suppliers to invest in 01 mobile crane at the quay to coordinate with the fixed 40T crane to crane goods of 80T and container  Invest in the stable concrete yard area to be able to receive the equipment shipments for wind power projects, thermal power, and industrial equipment of Ninh Thuan and Binh Thuan provinces  Continue to invest and improve the facilities and equipment, handling tools to improve the handling capacity of the categories of steel, agricultural products and goods in bulk and packed goods (2) Stage to 2020  Based on the goods sources and the situation of social and economic development to carry out investing in Port with the function as a general port Port will become specialized container terminals  Build complete storage system according to the detailed planning with the land use area of 31 hectares  Invest in loading synchronously and unloading facilities, technical infrastructure 3.3.4 Solution group on producing management strategy Apply the production systems of Toyota; lean production system; continuous improvement (KAIZEN); 5S on the production line of the company for the purpose of:  Reduce the production costs and the costs to customers; GROUP - GaMBA.01.C0310 Page 86 CAPSTONE PROJECT REPORT  Improve the service quality, reduce the damages to goods;  Reduce the excess production operation to increase the productivity of loading and unloading, reduce the vessel‟s waiting time, increase the prestige for the company Apply ISO standard to the production procedure and inspection procedure 3.3.5 Solution group on financing In the condition that the company can operate mainly thanks to the capital mobilized from outside, in order to minimize the cost of capital, the company will flexibly find the financing sources with appropriate interest rates Some companies that can be considered for mobilization like:  Source of capital from venture and association  Source of capital from the financial market  Appropriation capital  Loans from bank To be able to fully and timely mobilize the capital in business, the company needs to implement the following measures: - Develop the capital mobilization strategy to be appropriate to the market condition and business environment of each period - Create trust for capital suppliers by enhancing the prestige of the company: stability and rationalization of financial indicators, timely debt payment - Demonstrate the capital use purpose by giving the business results and the effectiveness of the capital turnover in the past year and the long-term prospect - Turn the advantages about the commercial location, land ownership into the financial resources as a counterbalance in the joint venture - Strengthen the management of receivables; minimize the amount of appropriated capital - Have measures to efficiently use the temporarily idle cash Therefore, the organization, management and use of capital in cash have an important meaning for the business operation of the company in general and the efficient use of capital in particular, the exploitation and looking for the - investment opportunities for other activities promise lots of profits like the financial business, real estate Speed up the construction, promote and advertise the brand of Cam Ranh port basing on the strong brands to mobilize capital: Call for staff and GROUP - GaMBA.01.C0310 Page 87 CAPSTONE PROJECT REPORT officers, strategic partners, carriers … to contribute capital for the investment and development of port and logistics service, find incentive capital from the international credit institutions, including the borrowing a part of commercial capital - Establish the long term plan for internal accumulation from Cam Ranh port In calling for investment capital, it is necessary to pay attention to the holding company, Vietnam National Shipping Lines is an indispensable partner in the strategy of looking for the financial resources for the development of Cam Ranh port 3.3.6 Solution on restructuring the company  Gradually assign the authority and responsibility to the enterprises for direct production (loading and unloading enterprise, service enterprise) for the enterprises to take the initiative and have creativity in work After that, equitize the service enterprises in 2013 and loading and unloading enterprise in 2015  Establish more marketing departments to specialize the marketing work in the company, implement the local marketing and international marketing works  Establish the Research and Development Department to research the market, build the development strategy, monitor the performance and adjustment of the strategy when the macro and microeconomics have any changes  Establish the working regulations between the companies and its subsidiaries  Establish the coordination regulation among the functional departments within the company 3.3.7 Solution group on culture of company Building the Company‟s culture according to the following steps: (1) Determine the action standards and criteria of the company (2) Carry out the implementation (3) Continue to supplement and improve (4) Inspect and assess again 3.4 The work of inspection and assessment In the process of establishing the business and development plan of the year on the basis of development strategy of the company, the Research and Development Department inspects and assesses the results and adjusts the strategy to be appropriate to each stage GROUP - GaMBA.01.C0310 Page 88 CAPSTONE PROJECT REPORT GROUP - GaMBA.01.C0310 Page 89 CAPSTONE PROJECT REPORT CONCLUSION Vietnam is a maritime nation belonging to the region with high speed of economic development and vibrant maritime transport market, convenient travel of vessels, quick and easy exchange with the continents In the new opportunity of the country, with the economic growth, the trading is enhanced, the cargo transport by seaway increasingly accounts for a large proportion, the role of the maritime industry, especially the seaport development activity is becoming more and more important, and it has strategically great potentials in the economic development of Vietnam‟s sea To wake up those great potentials of the country, to make the maritime economy really play an important role becoming a key economic sector in the country‟s economic structure, the problem here is to strongly develop the nationally maritime system and synchronously build some ports meeting the region and the world‟s standards, especially the deep water ports in all three regions of the country, creating the large open doors to the sea to trade with the world In which, about the characteristics of maritime geography, Cam Ranh is a deep water sea port of the central coast region that is adjacent to the international maritime routes, it has appropriate location for the establishment and development of a modern seaport system Based on the systematically collective analysis of the common maters on the operation and development situation of Vietnam‟s seaport system as well as the updated information analyzing the prospect for the seaport service market in the coming years, and based on the information sources, the actual data of Cam Ranh Port Limited Liability Company, the thesis: “The development strategy of Cam Ranh port to 2015 - Vision to 2020” analyzes the current status of the operation of the company, interprets the matters of the researched content, sets the arguments to recognize scientifically and seriously the strengths, weaknesses, potential opportunities as well as challenges need to be solved in order to have necessary conclusions, judgments, then, have necessary measures to improve the competitiveness and expand the service market in the development strategy of Cam Ranh port from now to 2015 - vision and orientation to 2020 The design of business strategy model of the company is the initial planning stage, it has several subjective factors, and it definitely needs some finished amendments and supplements in the stage of organization and implementation For the development business strategy model of Cam Ranh port GROUP - GaMBA.01.C0310 Page 90 CAPSTONE PROJECT REPORT from 2011-2015 to turn from the theoretical meaning into real one, the organization implementation role is very important, from the senior executives to basic level, they all must have action plan aiming at fulfilling the immediate goal that is to reinforce the investment in the depth, soon overcome the backwardness on the technical, technological knowledge, quickly increase the cargo turnaround capacity, maximally reduce the costs, and the long-term goal is to synchronously improve and modernize the technical facilities, ensure the high competitiveness in the economic integration REFERENCES English Documents of all subjects of Griggs University Teaching materials, slides of the professors under the program of Griggs Review documents of Dr Nguyen Van Dang about the strategy management Michael E Porter (2009), “Competitive Strategy”, Young Publishing House, Hanoi Fred R David (2006), “Concept of strategy management”, Statistics Publishing House, Hanoi Operation Charter and business reports of Cam Ranh port from 2007 to 2011 Reference from Vietnam Maritime Magazine Final report of the Vietnam Maritime Administration Concept of Strategy Management – of FRED R.DAVID Statistics Publishing House 2006 10 Reference from the Websites of Statistics Department, Maritime Administration, Vietnam Seaports Association GROUP - GaMBA.01.C0310 Page 91 [...]... Weaknesses (2) O – Opportunity - List of opportunities T – Threat - List of threats (3) (4) SO strategies - Use of Strengths to make full use of ST strategies - Overcoming the risks by making full use of opportunities (1+3) Strengths (1+4) WO strategies - Limiting the Weaknesses to make full use of opportunities (2+3) WT strategies - Minimizing the Weaknesses to avoid threats (2+4) Factors need to be... Information system The information will connect all functions in the business and supply premise to all administrative decisions It is the basis of all organizations It shows essential competition disadvantages or advantages Assessment of strengths or weaknesses on the internal information of a firm is an important aspect of the performance of the internal supervision The information system is the important strategy. .. the personnel spirit and the administrative mind Supervising : relates to all administrative activities so as to ensure the practical results will be suitable and consistent with the planned ones GROUP 4 - GaMBA.01.C0310 Page 17 CAPSTONE PROJECT REPORT Main activities are: quality supervision, financial supervision, supervision of sales, stored commodities, and expenses, analysis of changes, bonus and... such as: The performance of QSPM matrix requires an intuitive judgment and basing on experiences The discussion between administrators, staff in the analysis and strategy selection process may arise many different opinions 1.3.2 Some experiences in the business strategy selection The buildup of a business strategy to a firm is not simple as it is subject to many factors in the past, the present as well... Competitor s company 1 assess the important strengths and weaknesses Competitor s company of 2 the functional business units It affects the firm business production activity To build up the matrix, we willfactors proceed with a list stating all internal The success factors which may affect theThe firmimportance business production activity as defined in the internal assessment of the firm Rank To assess the... highest reaction Classification of internal factors : 1 – weakest, 2 – slightly weak, 3 – slightly strongest, 4 – strongest QSPM matrix has many strengths such as helping to combine the internal-external suitable factors into the decisive process; the strategic groups may be studied continuously or simultaneously without limiting the number of strategies to be assessed but it also has some limitations such... weaknesses which cannot be repaired Table 1.3: Internal factor evaluation - IFE Internal factors Importance Classification Important point List of internal factors Total 1.3.1.4 SWOT evaluation SWOT matrix is an important combined tool which helps the administrator develop 4 types of strategy : - Strategy of strengths - opportunity (SO) - Strategy of weaknesses– opportunity (WO) - Strategy of strengths –... importance of each factor by marking weighted point;The the important total weighted ratingspoint of all factors equals to 1 The classification shows the respective importance of all these factors as Rank regards the success in theThe firmimportant industry ratings Rank The important ratings List the factors of the total important ratings GROUP 4 - GaMBA.01.C0310 Page 19 CAPSTONE PROJECT REPORT To assess... weaknesses (ST) - Strategy of weaknesses – weaknesses (WT) The combination of internal and external factors is the most difficult duty of the SWOT matrix development; it requires a good judgment and there will not be a good combination The SO strategy uses the internal strengths of a firm to make full use of the external opportunities Normally the establishments will pursue the WO, ST or WT strategy so... classified point Then, add up the total important points to each variable so as to determine the total important points of the firm: the highest is 4 , the lowest is 1 and the average is 2,5 point The total important point of 4 shows that the firm is getting strengths and may make good for weaknesses Adversely the total important point of 1 shows that the firm has no strengths and gets many weaknesses ... SO strategy group 73 Table 3.6: QSPM analysis of Cam Ranh port – ST strategy group 74 Table 3.7: QSPM analysis of Cam Ranh port – WO strategy group 76 Table 3.8: QSPM analysis of Cam Ranh. .. functions in the business and supply premise to all administrative decisions It is the basis of all organizations It shows essential competition disadvantages or advantages Assessment of strengths... SWOT matrix S – Strengths - List of Strengths (1) W - Weaknesses - List of Weaknesses (2) O – Opportunity - List of opportunities T – Threat - List of threats (3) (4) SO strategies - Use of Strengths