LUẬN văn THẠC sĩ đề XUẤT CHIẾN lược KINH DOANH CÔNG TY cổ PHẦN VIỆT AN ANVIFISH

List of AbbreviationsANVIFISH VIET AN JOINT – STOCK COMPANY AOAC ASSOCIATION OF OFFICIAL ANALYTICAL CHEMISTS HACCP HAZARD ANALYSIS AND CRITICAL CONTROL POINTS ISO INTERNATIONAL ORGANIZAT

LUẬN VĂN MBA

ĐỀ XUẤT CHIẾN LƯỢC KINH DOANH CÔNG TY CỔ PHẦN

We would like to thank the Capstone Report Assessment Council who instruct andhelp our Group to complete the Capstone Report on establishing and proposing adevelopment strategy for one company that our Group selected in line with therequirement of the thesis as well

Finally, all our effort would have been in vain if the Class Administrators hadn’t beenspending their very long working days to accompany GaMBA X0210 class to lookafter all matter relating to us and class in whole the studying process

Thank you all Our Group really appreciates the GRIGGS University, the ET Center,and all

List of Abbreviations

ANVIFISH VIET AN JOINT – STOCK COMPANY

AOAC ASSOCIATION OF OFFICIAL ANALYTICAL CHEMISTS

HACCP HAZARD ANALYSIS AND CRITICAL CONTROL POINTS

ISO INTERNATIONAL ORGANIZATION FOR STANTARDIZATION SWOT STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS

QSPM QUANTITATIVE STRATEGIC PLANNING MATRIX

R&D RESEARCH & DEVELOPMENT

VASEP VIETNAM ASSOCIATION OF SEAFOOD EXPORTERS AND

PRODUCERS

List of Figures

Figure 1.1: The value chain……… 19

Figure 1.3: SPACE matrix……….22

Figure 2.1:ANVIFISH Organization……….32

Figure 2.2: Processing Procedure ……….34

Figure 2.3: Graph of net revenue, total assets over the period……… 37

Figure 2.4 CPI movements over the same period last year, in 2008 and 2011………40

Figure 2.5 - Items with the largest turnover ……….41

Figure 2.6: Movements interbank rate from the time the exchange rate adjustment…42 Figure 2.7 Product life cycle………46

Figure 2.8 M Porter Five Forces analysis………47

Figure 2.9: Market pangasius in 2010 of Anvifish………49

List of Tables

Table 1.1 SWOT Matrix……… 21

Table 2.1: Holder information ……… 32

Table 2.2 Production and sales by type of Anvifish products over the years……… 33

Table 2.3 Sum up the basic financial indicators of Anvifish………36

Table 2.4: Results of production and business activities over the years……… 37

Table: 2.5 Market Pangasius Export data ……….50

Table 2.6: Matrix CPM……….52

Table 2.7 Top 20 enterprises Pangasius 7 months in 2011……… 53

Table 2.8: EFE Matrix……… ……54

Table 2.9 Synthesis of listed companies pangasius industry in 2010……… 57

Table 2.10 Human resource structure………59

Table 2.11 IFE Matrix……… 63

Table 2.12 SWOT Matrix……… 64

Table 3.1: SWOT Matrix……… 68

Table 3.2: SPACE Matrix………72

Table 3.3 QSPM Matrix………74

Table 3.4 Business Plan in Period 2011 – 2014………78

Table 3.5 Predict some business target period 2011-2014………81

ACKNOWLEDGMENT 1

List of Abbreviations 2

List of Tables 4

PREAMBLE 5

1 Purpose of preparing the capstone report about ANVIFISH 5

2 Objects and scope of research 6

3 The purpose of the research: 6

4 Method of study 7

5 Capstone structure 7

CHAPTER I – BASIC THEORY OF STRATEGY MANAGEMENT 8

I Definition of strategy and strategic management 8

1.1 Definition of strategic management 8

1.2 Strategic management role 8

1.3 Characteristics of strategic management 9

II PROCESS ANALYSIS - BUILDING STRATEGY 10

2.1 Process analysis a business strategy 10

2.2 Process formulating strategies 11

CHAPPTER II 24

BUSINESS INFORMATION OF VIETAN JOINT-STOCK COMPANY (ANVIFISH) 24

I General information of ANVIFISH 24

1.1 About ANVIFISH 24

1.2 The current strategy: 26

1.3 Current strategic objectives 27

1.6 Share holder information 28

1.7 Main product of ANVIFISH 29

1.8 PROCESSING PROCEDURE CHART 31

1.9 Overview of the financial situation of companies 32

II Analysis of factors affecting the business of Anvifish 35

2.1 External Environment 35

2.2 Internal environment factors 52

CHAPTER 3 63

PROPOSE STRATEGY AND SOLUTIONS 63

I Develop Anvifish business strategy of 2011-2014 period 63

1.1 SWOT Matrix Analysis 64

1.2 SPACE Matrix Analysis 68

1.3 QSPM Matrix 69

II Propose strategies: 71

2.1 Corporate Strategy 71

2.2 Strategic Business Unit 72

2.3 Functional Strategy 72

III Recommendations 77

CONCLUSION 80

REFERENCES 81

1 Purpose of preparing the capstone report about ANVIFISH

As summarized by the Ministry of Agriculture and Rural Development, exports Fisheries 8 / 2011 of Vietnam is estimated at USD 520 million USD bring the value of 8-month- exports reached 3.7 billion USD, increase 24.4% over the same period lastyear Export exported to the major growth market in both volume and value United States increased 48.8%, China (60.5%), Canada (66.2%) in value Up toAugust, fishing production is estimated at 254 thousand tons, bringing the output of fishing in 8 months reached 1,730 thousand tons, increasing by approximately 1% overthe same period last year 2010, in which the exploitation of the sea to reach 1,619thousand tons

Estimated aquaculture production reached 282 thousand tons in August, bringingthe aquaculture production reached 8 months of 1845 thousand tons, up 5.3% oversame period in 2010, in which pangasius production is estimated

at 704.7 thousand tons

The provinces have big volume export of pangasius including Dong

Tho 99.1 thousand tons, Ben Tre 85 thousand tons, Vinh Long 78.7 thousand tons

The figures show that the role and the great potential of export of aquaticproducts for economic development in the Mekong Delta However, the problems

is economic crisis and the rigorous standards of the import policy in many countriesaround the world, Vietnam enterprises are still facing many difficulties to ensure effective economic projects and their own exports to developing strategies to ensure sustainable development for this area

Currently, Viet An Joint Stock Company is known as one of the business operation

of Vietnam's most successful in cultivating and exporting pangasius abroad, especially

in the U.S market

In 2008, Anvifish has successfully in anti-dumping lawsuit in the U.S., recognized not sell goods dumping pangasius on US market and the tax rate is 0% ,bring Anvifish advantages larger than the enterprise sector, while other enterprises inVietnam are subject to tax is 63.88%

The success of Anvifish is an evidence that, with a correct direction of business strategy, in time and a long-term vision, Vietnam enterprisescompletely confident enough to stand ahead of the competition of economic market ,global scale Furthermore, Vietnam enterprises also rise up to confirm theirposition and build the brand, their images on the international market

Recognizing the importance of business strategy for enterprise in the period of

integration with the global economy, we selected the topic: "Strategy of

Viet An joint stock company period 2011 -2014” to analyze and apply

theoretical knowledge to practical business, thereby, contributes some ideas topromote the development of the export sector

2 Objects and scope of research

Operations and strategic development of ANVIFISH

Scope of the Study: The study focused on operations and strategic development ofViet An Joint Stock Company period from 2011 to 2014

3 The purpose of the research:

Summary all subject of Strategic Management

Analyze and evaluate opportunities, threats, strengths and weaknesses of Anvifishfor strategy recommendations of Anvifish Company

Building strategy for ANVIFISH period 2011 – 2014

4 Method of study

We use applied research methods Based on the business situation and apply thetheoretical model has been learning to make effective solution to solve practicalproblems and support for management decision making Information and datacollected based on the recordkeeping system of ANVIFISH data from multiplesources such as financial statements of companies over the years, the report analyzesthe company's stock, the statistics of VASEP, the statistics of the securities companies,consult the experts and documents on the WEB

5 Capstone structure

The Capstone report is consisted of three main chapters as follows:

Chapter 1: Theoretical basis on Formulating a Business Strategy

Chapter 2: ANVIFISH and External-Internal Factors influencing to the Company’s Business Operation

Chapter 3: Defining the Business Strategy for ANVIFISH for 2011-2014

CHAPTER I – BASIC THEORY OF STRATEGY MANAGEMENT

In terms of history, strategy first used in military field then was introduced in otherareas of social and economic life Currently the strategy is deployed and widelyapplied in management The strategy was actually confirmed as a method of

managing effectively So what is strategy? The strategy is “Strategy is a coordinated

series of action which involve the deployment of resources to which on has access for

the achievement of a given purpose” (Griggs University Lecture Slides)

strategy from the approach many different studies According to Fred R David,the "Strategy is the means to achieve long-term goals." According to Alfred Chandler,Harvard University, "Strategy is the determination of the basic objectives and long-term business, and chooses the ways or actions to distribute the resources needed

to get the goal, "

So, how about Strategic management is? “Strategic management is an ongoing

process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then re- assesses each strategy regularly to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment.” (Lamb, 1984)

Strategic Management helps identify business objectives, its direction as a basis,and the guideline for all production and business activities of enterprises.Business strategy helps to understand and take advantage of business opportunities,and proactive take measures to overcome the risks and threats in thecompetitive market place.

Business strategy contributes to improving the efficient use of resources; enhancethe competitive position of businesses to ensure sustainable development ofenterprises

Business strategy creates a solid basis for the proposed policies and decisions onproduction and business in accordance with the changes of market

Therefore, to understand: "What is Strategy?" We must answer three questions:

1 - What were the goals? Achieve what?

2 - What is a resource? (Strengths and weaknesses)

3 - How to do? (Action, mode of implementation)

Previously, the strategy system in the enterprise was divided in 3 levels: CorporateStrategy, SBU (Strategic Business Unit), and Functional strategy

I.3.1 Corporate Strategy: refers to the overarching strategy of the diversified

firm Such a corporate strategy answers the questions of "which businessesshould we be in?" and "how does being in these businesses create synergy

and/or add to the competitive advantage of the corporation as a whole?" to

define a company’s domain of activity through selection of business areas inwhich the company will compete

Among above mentioned strategic levels, corporate strategy has alwaysbeen paid attention to and played the most important part in orienting,strategies of the next levels The corporate strategy can be classified intothree types: Growth strategy, Hold & Maintain strategy, Harvest or Diveststrategy.

I.3.2 Business-level strategy pertains to domain direction and navigation, or how

businesses should compete in the areas they have selected Sometimes

business- level strategies are also referred to as competitive strategies

I.3.3 Functional-level strategies include marketing strategy, new product

development strategies, human resource strategies, financial strategies, legalstrategies, supply-chain strategies, and information technology managementstrategies The emphasis is on short and medium term plans and is limited tothe domain of each department’s functional responsibility Each functionaldepartment attempts to do its part in meeting overall corporate objectives,and hence to some extent their strategies are derived from broader corporatestrategies

2.1.1 Mission and main objectives

The first step of the process of strategic management is to define the missionand key objectives of the organization Mission and goals of thebusiness primarily provide a context for building strategies

- Mission Describe the reason for the organization exists and what it will do

- The major objectives determined what the business hopes to meet the medium andlong term scope

2.1.2 External Environment

of the opportunities and risks from the environment outside the organization Thereare two types of external environment is an important relationship crossing together:

- Macro environment: This includes consideration of factors such as macro-economic,social, government, legal, international and technology can impact organizations

- Sector Environmental: A review of competition in the industry structure, includingthe competitive position of the central organizations and its main competitors, as well

as the stage of development

2.1.3 Internal Environment

Objective analysis of internal environment is in order to find out the strengths andweaknesses of the business To create and sustain competitive advantage requiresbusinesses to achieve remarkable effective, quality improvements and avoid thecustomers The power of business brings it to excellence in the field of business,whereas the weakness can lead to worse performance

2.1.4 Choosing Strategy

Define the strategic plan with the strengths, weaknesses, opportunities and challengesidentified by the enterprise, thereby identifying the strategic direction, creating theappropriate match between resources and the ability of businesses to the needs of theenvironment in which businesses are operating

2.2 Process formulating strategies

Develop strategy has three main stages closely related and complements each other:

• Strategy formulation: includes developing a vision and mission the

development of business tasks, identify opportunities and risks to

setting stretch goals term, generate alternative strategies and select specific strategiesfor change.

• Strategy Implementation: require companies to set annual targets, set out policies to

encourage staff and allocation of resources to the strategy

• Strategy Evaluation: monitoring the results of operations set up and implements the

strategy This step involves measuring the performance of identified individuals andorganizations, and takes actions necessary adjustments

Three stages may reflect the cycle of Planning Implementation Evaluation (Plan

-Do - Check) in modern management, is widely applied in business management today

With a range of research topics, the authors will focus in depth on the stage strategyformulation Based on the actual data for the analysis of business models we willoffer conclusions Important techniques to form strategies that can be incorporatedinto decision-making process include three stages: Phase 1 is to undertake research,

also known as input stage Phase 2 is combined and analyzed to formulating strategies: matching stage and phase 3 stage selection / decision strategies

2.2.1 Strategy formulation

The tools used for this phase include the matrix evaluation of external factors(EFE), the matrix image and competitive CPM, matrix internal factor Evaluation(IFE), value chain analysis

2.2.1.1 EFE Matrix (External Factor Evaluation)

External Factor Evaluation (EFE) matrix method is a strategic-management

tool often used for assessment of current business conditions The EFE matrix is agood tool to visualize and prioritize the opportunities and threats that a business isfacing

External Factor Evaluation (EFE) matrix method is a strategic-management tooloften used for assessment of current business conditions The EFE matrix is a goodtool to visualize and prioritize the opportunities and threats that a business is facing.

Developing an EFE matrix is an intuitive process which works conceptuallyvery much the same way like creating the IFE matrix The EFE matrix process uses thesame five steps as the IFE matrix:

List factors: The first step is to gather a list of external factors Divide factors

into two groups: opportunities and threats

Assign weights: Assign a weight to each factor

Rate factors: Assign a rating to each factor

Multiply weights by ratings: Multiply each factor weight with its rating This

will calculate the weighted score for each factor

Total all weighted scores: Add all weighted scores for each factor This will

calculate the total weighted score for the company.

External factors can be grouped into the following groups: Social, cultural,demographic, and environmental variables, Economic variables, Political, government,business trends, and legal variables

Below we can find examples of some factors that capture aspects external to thebusiness These factors may not all apply to the business, but we can use this listing as

a starting point:

Percentage or one race to other races, Per-capita income, Number and type of special

Economic factors: Growth of the economy, Level of savings, investments, and capital

spending, Inflation, Foreign exchange rates, Stock market trend, Level ofcompetitiveness (see the Michael Porter's Five Forces model)

Political, government, business trends & legal factors: Globalization trends,

Government regulations and policies, worldwide trend toward similar consumption patterns, Internet and communication technologies (e-commerce)

2.2.1.2 CPM (Competitive Profile Matrix)

Competitive profile matrix is an essential strategic management tool to comparethe firm with the major players of the industry Competitive profile matrix shows theclear picture to the firm about their strong points and weak points relative to theircompetitors The CPM score is measured on basis of critical success factors, eachfactor is measured in same scale mean the weight remain same for every firm onlyrating varies The best thing about CPM that it includes your firm and also facilitates

to add other competitors make easier the comparative analysis

IFE matrix only internal factors are evaluated and in EFE matrix external factors areevaluated but CPM include both internal and external factors to evaluate overallposition of the firm with respective to their major competitors

The competitive profile matrix consists of following attributes mentioned below

Critical Success Factors, Rating, Weighted Score and Total Weighted Score

2.2.1.3 IFE Matrix (Internal Factor Evaluation)

Internal Factor Evaluation (IFE) matrix is a strategic management tool forauditing or evaluating major strengths and weaknesses in functional areas of abusiness

IFE matrix also provides a basis for identifying and evaluating relationshipsamong those areas The Internal Factor Evaluation matrix or short IFE matrix is used

in strategy formulation

The IFE Matrix together with the EFE matrix is a strategy-formulation tool thatcan be utilized to evaluate how a company is performing in regards to identifiedinternal strengths and weaknesses of a company

The IFE matrix can be created using the following Key internal factors,

Weights, Rating, Multiply

When a key internal factor is both strength and a weakness, then include thefactor twice in the IFE Matrix The same factor is treated as two independent factors inthis case Assign weight and also rating to both factors

To explain the benefits, we have to start with talking about one disadvantage IFEmatrix or method is very much subjective; after all other methods such as the TOWS

or SWOT matrix are subjective as well IFE is trying to ease some of the subjectivity

by introducing numbers into the concept

Intuitive judgments are required in populating the IFE matrix with factors But,having to assign weights and ratings to individual factors brings a bit of empiricalnature into the model

2.2.1.4 Value Chain Model

The purpose value chain model is to analyze the internal operations of acorporation in order to increase its efficiency, effectiveness, and competitiveness Itdoes this by identifying the value that each part of the business adds to the final output

There are two types of activities in an organization, primary activities andsupporting activities The primary activities are the main activities that add additionalvalue to the output of the organization The supporting activities support the primaryactivities and include functions such as admin, finance, the diagram below details thevalue chain in a typical manufacturing organization.

Figure 1.1: The value chain

(Source: http://www.data2dollars.com/Value_Chain)

2.2.2 Matching stage

This is the second phase, focusing on realistic strategy by arranging,combining the critical internal and external factors These strategies will be chosen

to be the preferred alternative and feasible

The techniques used in this phase include Threat SWOT analysis, strategic position and action Evaluation Matrix (SPACE), theBoston consulting group Matrix (BCG)

Strengthen-Weakness-Opportunity-2.2.2.1 SWOT Analysis Matrix

SWOT analysis, method, or model is a way to analyze competitive position ofyour company SWOT analysis uses so-called SWOT matrix to assess both internaland external aspects of doing your business The SWOT framework is a tool forauditing an organization and its environment

SWOT is the first stage of planning and helps decision makers to focus on keyissues SWOT method is a key tool for company top officials to formulate strategicplans Each letter in the word SWOT represents one strong word: S = strengths,

W = weaknesses, O = opportunities, T = threats

SWOT model analyzes factors that are internal to your business and also factorsthat affect your company from outside Strengths and weaknesses in the SWOT matrixare internal factors Opportunities and threats are external factors

SWOT can be used in conjunction with other tools for strategic planning, such asthe Porter's Five-Force analysis

The concept of determining strengths, weaknesses, threats, and opportunities isthe fundamental idea behind the SWOT model To present the model in a moreunderstandable way, scholars came up with so-called SWOT matrix SWOT matrix isonly a graphical representation of the SWOT framework

(Source: Maxipedia.com)

The above is a schema of how SWOT works You start at the top level and godown to details When this is filled with content, it gets the shape of a matrix, such asexample below:

Table 1.1 SWOT Matrixes

(Source: Maxipedia.com)

SWOT matrix makes understanding the model easier

Strengths and weaknesses are internal value creating (or destroying) factors such asassets, skills, or resources a company has at its disposal relatively to its competitors

Opportunities and threats are external value creating (or destroying) factors acompany cannot control but emerge from either the competitive dynamics of theindustry or market or from demographic, economic, political, technical, social, legal,

or cultural factors

Factors related to each aspect of the SWOT model depend very much of thenature of your business SWOT for a manufacturing company will be different from aSWOT for an internet start-up.

2.2.2.2 SPACE Matrix Strategic Management Method

The SPACE matrix is a management tool used to analyze a company It is used

to determine what type of a strategy a company should undertake

The Strategic Position & Action Evaluation matrix or short a SPACE matrix is

a strategic management tool that focuses on strategy formulation especially asrelated to the competitive position of an organization

The SPACE matrix can be used as a basis for other analyses, such as the SWOTanalysis, BCG matrix model, industry analysis, or assessing strategic alternatives(IE matrix)

To explain how the SPACE matrix works, it is best to reverse-engineer it First,let's take a look at what the outcome of a SPACE matrix analysis can be, take alook at the picture below The SPACE matrix is broken down to four quadrants

where each quadrant suggests a different type or a nature of a strategy: Aggressive,

Conservative, Defensive, And Competitive

This is what a completed SPACE matrix looks like:

Figure 1.3: SPACE matrix

This particular SPACE matrix tells us that our company should pursue an

aggressive strategy Our company has a strong competitive position it the market with

rapid growth It needs to use its internal strengths to develop a market penetration andmarket development strategy This can include product development, integration withother companies, acquisition of competitors, and so on

The SPACE Matrix analysis functions upon two internal and two externalstrategic dimensions in order to determine the organization's strategic posture in theindustry The SPACE matrix is based on four areas of analysis

Internal strategic dimensions: Financial strength (FS) and Competitiveadvantage (CA)

External strategic dimensions: Environmental stability (ES) and Industrystrength (IS)

These factors analyze a business internal strategic position The financialstrength factors often come from company accounting These SPACE matrix factorscan include for example return on investment, leverage, turnover, liquidity, workingcapital, cash flow, and others Competitive advantage factors include for example thespeed of innovation by the company, market niche position, customer loyalty, productquality, market share, product life cycle, and others

2.2.3 The decision stage:

As 3rd Phase of the strategy formulation process, at this stage, the strategy will bebased on the analysis results from the stage input to select the optimal strategy toimplement practical There are many methods, forms and tools to support strategicchoice stage, but this thesis group please selects the product vertical intergration

Vertical intergration is the process of modification, creation of a variety ofproducts from traditional products available, and modified and imported variety of thesame products, abundance in types and design from the raw materials to processedproducts This is one of the basic methods to improve their competitiveness in themarket

Conditions for selection of vertical intergration: The ability

to leverage the existing core capabilities and potential to strengthen the market Thelevel of common use infrastructure, such as leverage offices, humanresource, transportation, warehousing, distribution system

Above are some of the theoretical concepts and analytical tools of strategicmanagement group that will use when analyzing the situation and provide solutions

in the next chapter

QSPM Matrix

Quantitative Strategic Planning Matrix (QSPM) is a high-level strategicmanagement approach for evaluating possible strategies Quantitative StrategicPlanning Matrix or a QSPM provides an analytical method for comparing feasiblealternative actions The QSPM method falls within so-called stage 3 of the strategyformulation analytical framework

When company executives think about what to do, and which way to go, theyusually have a prioritized list of strategies If they like one strategy over another one,they move it up on the list This process is very much intuitive and subjective.The QSPM method introduces some numbers into this approach making it a little more

"expert" technique

The Quantitative Strategic Planning Matrix or a QSPM approach attempts toobjectively select the best strategy using input from other management techniques andsome easy computations In other words, the QSPM method uses inputs from stage 1analyses, matches them with results from stage 2 analyses, and then decidesobjectively among alternative strategies

Stage 1 strategic management tools: is used to identify key strategic factors.This can be done using, for example, the EFE matrix and IFE matrix

Stage 2 strategic management tools: After we identify and analyze keystrategic factors as inputs for QSPM, we can formulate the type of the strategy wewould like to pursue This can be done using the stage 2 strategic management tools,for example the SWOT analysis (or TOWS), SPACE matrix analysis, BCG matrixmodel, or the IE matrix model

Stage 3 strategic management tools: The stage 1 strategic managementmethods provided us with key strategic factors Based on their analysis, we formulatedpossible strategies in stage 2 Now, the task is to compare in QSPM alternativestrategies and decide which one is the most suitable for our goals

The stage 2 strategic tools provide the needed information for setting up theQuantitative Strategic Planning Matrix - QSPM The QSPM method allows us toevaluate alternative strategies objectively

Conceptually, the QSPM in stage 3 determines the relative attractiveness ofvarious strategies based on the extent to which key external and internal criticalsuccess factors are capitalized upon or improved The relative attractiveness of each

strategy is computed by determining the cumulative impact of each external andinternal critical success factor.

CHAPPTER II.

BUSINESS INFORMATION OF VIETAN JOINT-STOCK COMPANY

(ANVIFISH)

I.1 About ANVIFISH

Company's name: VIET AN JOINT-STOCK COMPANY

Transaction name: ANVIFISH JOINT-STOCK COMPANY (ANVIFISH CO.)

Add: National Road 91, Thanh An Village, Long Xuyen City, An Giang Province.

Chairman: Mr LUU BACH THAO – General Director

Tel: (84 - 76) 932545; Fax: (84 - 76) 932554; Email: anvifish@vnn.vn

Branch of Anvifish Joint – Stock Company in Ho Chi Minh City

Add: No 34, Phan Dinh Giot St, Ward 2, Tan Binh District, Ho Chi Minh City

Tel: (84 - 8) 8487358; Fax: (84 - 8) 8487357; Website: anvifish.com.vn

(Source: Anvifish.com.vn)

ANVIFISH JOIN STOCK COMPANY is specialized in processing and exportingfrozen aqua-cultural products Main products are Pangasius section, a natural gift toMekong Delta Provinces, Vietnam special An Giang – a cradle of PangasiusHypophthalmus and Bocourti

This food is more popular in the world nowadays What made the market liked?That is delicious, white (pink) color, cheap – suitable with buying power of everybodyand most important that ANVIFISH‘s product meet requirements on food safetyhygiene of the market

With 3rd position of export value of pangasius in 2010, AVF desire to meet higherand higher need on quality and export and national market, ANVIFISH set up

privately a strategy development with slogan:

“Clean from baby fish, farm, producing, processing to dining table”.

of supermarkets in Europe and the Americas

■ Anvifish become a fish processing enterprises in Vietnam with 02 processing plants with a total processing capacity is 250 tons / day and raw materials up to 123ha (01 fish farming and the 5 associated) - and is now investing more new farming 100haproactive input materials source In addition, Anvifish owns cold storage system with a

■ after six years engaged in the export processing sector, Anvifish in position 03 fishexporting companies in Vietnam led Export value of Anvifish increasedfrom 32 million in 2007 to 47 million in 2008, to 57.9 million in 2009; then to 62million USD in 2010.

(Source: Anvifish.com.vn)

ANVIFSH‘s factories:

1 An Thinh Processing Enterprise, processing capacity: 100 tons material fishdaily, frozen system with 4 chains IQF 500kg/h/l; 4 frozen cabinets capacity2.000kg/h/l

2 Viet Thang Processing Enterprise, processing capacity: 100 tons material fishdaily, frozen system with 4 chains IQF 500kg/h/1; 4-frozen-cabinet capacity2.000kg/h/1

3 Warehouse and Transport enterprise, capacity: 3,500 tons finished – production

Branch of Anvifish join stock company in Ho Chi Minh city professional unit,ANVIFISH were issued for ISO 9001:2000; ISO 17025:2005; ISO 22000:2005;HACCP; HALAL; SQF 2000; BRC; IFS; EU CODE DL 359; EU CODE DL 75; SQF1000; Iso Golden Cup; Title of good manager in 2007

Further, to control product quality prior to the markets, also assess commodityorigin in due time, ANVIFISH set up a modern lab, being issued VILAS code 241,with possibility to check the microorganism, antibiotic norms in food

ANVIFISH undertake to improve quality and innovate technology to make ourbetter and better quality product, to meet all customer’ needs, assure food safety,intensifying occurrence of ANVIFISH’s products in the world market

I.2 The current strategy:

• Develop Anvifish into a company with a closed value chain, including farming areawith Global GAP standards, the processing plant meets international standards, coldstorages systems and system products production line, bring high-value products such

as fatty pangasius, products containing collagen and build a system of distributioncompanies in key markets

• Expand market share in the U.S

I.3 Current strategic objectives

• Promote the application and improve the quality management system in the entireproduction and business operations of the Company to meet on a strict condition of allmarkets

• Emphasis on research farmed species adapted to the environment Mekong Delta will

be submerged and sea level rise in the future

•Invest heavily in technology to improve productivity and enhance product quality andquality manpower

• Focus primarily on the U.S market

I.4 Development progress:

Time of establishment and the milestones in the development of the Company asfollows:

 08/2004, establish An Giang- Basa Company

 12/2004, change the name to Viet An Company

 04/2005, officially launching

 02/2007, establish Viet An Joint Stock company

 Early 2006: 10 billion Dong

 Middle 2006: 30 billion Dong

I.5 ANVIFISH Organization chart:

Figure 2.1: ANVIFISH Organization (Source: Anvifish.com.vn)

I.6 Share holder information

Table 2.1: holder information

(Source: Anvifish)

TT Content Number of share (%) Number of

I.7 Main product of ANVIFISH.

The main products are pangasius fillet, cut pangasius, frozen pangasius of allkinds In particular, pangasius fillet is quite diverse and are classified inmany different criteria such as color, size, weight customer demand and exportmarkets Existing products meet the quality standards of the most difficult markets

Product structure, Anvifish have 04 main products are pangasius fillet T1, T2,T3, T4 In particular, T1 and T2 have higher quality and prices due to products havebeautiful white meat, low fat and moderately sized T1 and T2 are mainlyexported to the United States and the EU (accounting for 35-50% revenue T1,T2 accounted for 40-55%) while T3 and T4 (possibly T2) were exported

to Russia Second-and by-products are mainly sold to the local processing unit with alow value

Table 2.2 Production and sales by type of Anvifish products over the years

(Unit: ton & USD)

TT Product

2009 2010 3 months 2011 Volum

I.8 PROCESSING PROCEDURE CHART

PRODUCTS GROUP NAME: Pangasius Hypophthalmus, Pangasius Bocourti FILET

BLOCK/ IQF

Figure 2.2: Processing Procedure (Source: Anvifish)

I.9 Overview of the financial situation of companies

By the end of 2010, the Anvifish in one of three leading enterprise in manufacturing,

enterprises, so our group would like to present a financial indicators to reflect the

operations of Anvifish

Table 2.3 To sum up the basic financial indicators of Anvifish (Unit: million dong)

1 Target capital structure

2 Target asset structure

Current Assets / Total Assets 0.71 0.63 0.68 0.85

3 Indicators of liquidity

4 Indicators of operational capacity

5 Target profitability

Operating profit margin from production

(Source: Anvifish finance report)

Figure 2.3: Graph of net revenue, total assets over the period

(Source: Anvifish finance report)

Table 2.4: Results of production and business activities over the years

(Unit: million dong)

Enterprise Cost Management 11,523 20,113 34,619 6,039

Corporate Income Tax Current - 7,964 9,456 1,563

Income Taxes Deferred - - 673 - Profit after tax 7,424 74,874 80,955 20,149

Minority interests - - 15 - Net profit of parent

Following this data, we can see:

- Total average assets increased 48% / year; this one particular characterindustry is increasing receivables and inventory Compared to other businessesother industry, debt still accounts for a large proportion of the total assets ofAnvifish (about 73%, compared to the industry average is 41%) and mainly short debtlimit (about 98% of total liabilities) The control of accounts receivable is not goodcombined with a high proportion of debt affect the cash flow net of propertybusiness

- Profit after tax average growth of 23% / year, gross profit increased continuously,reached an average of 19% / year, higher than the industry average 2.5% (industryaverage is 16.5%) this is the index signaling a good business ability of the business byactively controlling the price, quality and quantity of inputs, increasing the

the processes advanced production technology of modern management

However, three months in 2011 due to bank interest expenses increased causedAnvifish net profit decreased over the same period last year (particularly in the threemonths of this year, Anvifish have to pay more than 25 billion bank interest, higherthan 25% over the same period last year)

- Revenue increased over 30% average / year: Especially in 2009 and 2010 was aperiod of the world economic crisis; exports have problems but still reached Anvifish billion in sales in 1200 3 months of sales in 2011 companies reached 300 billion,reaching 30% of the plan year

- The percentage of cost of sales and business management costs remain the industryaverage (respectively 8.2% and 1.7%) is one of the top five leading enterprise of thefisheries sector, expressed management capabilities, well-organized process fromindirect to direct the stage production, contributing to increases profitability of thebusiness

- Corporate income tax rate reached 20%, was reduced 50% in the period

2010-2012, and decreased to 50% for each additional year of export growth Thesepreferential policies of the State and also the motivation to focus Anvifish businessproduction, increases export volume.

To achieve the above results is the efforts of the entire company inparticular have smart leaders in the restructuring of the export market Generally, pangasius fillet exports to the U.S market often reaches the highest(around 3 USD / kg), followed by the EU, Australia, Russia and otherAsian countries The restructuring of the export market to the United States was also afactor to improve operating profit margin of businesses by raising the average sellingprice per unit of product

2.1 External Environment

2.1.1 Macro environment

Macro environment analysis help to see the opportunities (Opportunities)and challenges (threats) affecting the business enterprise's present and future Elements

of the macro environment is affecting Anvifish the following major factors:

social environment, environmental technology and the Global Environment

2.1.1.1 Macro-economic

- Inflation: CPI 7 / 2011 compared to last month suddenly speed up 1.17%,

highest in 15years; over the same period is 22.16%, the highest since beginning of thisyear and very high in the world Food groups with the largest increase of 3.2% 7-month-CPI increased 16.89% over the same period and increased 14.61% from thebeginning in 2011

Figure 2.4 CPI movements over the same period last year, in 2008 and 2011.

(Source: VnEconomy.vn)

- Economic growth: Economic growth in the second quarter than first quarter at 7.4%

GDP growth rate for six months in 2011 reached 5.57%, compared to 5.43% in 2010.Growth in Hanoi and Ho Chi Minh higher than the national average at 9.3% and 9.9%

year, total exports reached $ 51.5 billion, up 33.5% over the same period and thetotal import value increased to reach $ 58.1 billion, up 26.2% over the sameperiod The trade deficit in July was the lowest since early of this year $ 200 milliondue to the support of the export of gold 7- month-tradedeficit is $ 6.64 billion, equal 12.9%of total imports and exports Excluding items ofgold, 7-month trade deficit is $ 8.4 billion, with exports 16.9%

In 2010, export turnover of Vietnam reached USD 71.6 billions, up 25.5% compared

to 2009 in which 18 items exported over $ 1 billion with a total turnover of 54,595million, up 76% nationwide total Position change in turnoverfor the year, with export growth will have more items in the top 1 billion Seafoodexport situation in 2011 can say many positive signs In six months in

2011, has 10 items reached largest exports (from $ 1 billion ormore) which ranks fourth fisheries reached USD 2.61 billions In particular,according to the chart

Figure 2.5 - Items with the largest turnover (billions USD)

Source: General Department of Customs

The foreign exchange market: no longer second rate status, limiting speculation USD

and USD supply is no longer stressful By the end of July, inter-bank exchange ratestability with the chain 17 sessions continued unchanged at 20,608 VND / USD.Exchange rates of commercial banks in 20.560-20610d/USD Exchange ratestability to facilitate the central bank bought $ 4.5 to 4.8 billions, rising foreignexchange reserves to1.6 months of imports

Figure 2.6: Interbank rate from the time the exchange rate adjustment