South Asia Gateway Terminals ( Pvt ) Ltd. , better known in the transportation and ports universe as SAGT is a Strategic Business Unit ( SBU ) of a Sri Lanka 's prima pudding stone called John Keells Holdings PLC. The group as a whole has been independent for more than 130 old ages, forcefully committed to private ownership and private dividends, and trusting on foresight, expertness and unity for success and growing.
SAGT is owned by a pool of local and foreign leaders in transportation, commercialism and finance. John Keells Holdings being the chief stockholder the pool consists of four others.John Keells RetentionsA.P.
Moller GroupEvergreen International SAPeony Investments SASri Lanka Ports AuthoritySAGT was initiated in September 1999 by manner of subscribing an understanding between the above mentioned constitutions. After that it took over the operations of the historic Queen Elizabeth Quay ( QCT ) in the Port of Colombo on the 5th of September 1999 on a 30 twelvemonth Build-Own-Transfer ( BOT ) understanding. This is one of the largest foreign investings in Sri Lanka was completed in 2003 after holding three stages of the undertaking. A Each of the stages involved the renovation of a position at the QCT and included renewal, steel pile, reinforced concrete decking, new pavings, reefer stacking countries, electrical substructure and the debut of the most modern container managing systems.
At present SAGT handles the most figure of lading vass which enters the Colombo Port. Selected transportation lines have made understandings with SAGT to keep a certain degree of duties for a certain period and the contracts are renewable. Main clients of the Company includes,Maersk LineMalaysia International Shipping CorporationMitsui O.S.K. LinesOrient Overseas Container LineMediterranean Shipping CompanyHapag-LloydNippon Yusen Kaisha ( NYK Line )Besides there are some feeder lines every bit good apart from the chief clients stated above.
Bengal Tiger LineSea ConsortiumFar Shipping LineOrient Express LineAt the minute SAGT has the most advanced terminus handling equipment and tracking engineering in the universe. This includes the followers,16m entree channel15m Alongside deepness940m position length3 container positions5,544 Ground slots inclusive of 540 joint point7 Super Post Panamax Quay Cranes ( including foremost and merely `` duplicate lift '' quay Crane in the Port of Colombo )3 Post Panamax Quay Cranes31 Rubber Tyred Gantry Cranes ( 28 with 1 over 5 & A ; 6 plus and 3 with 1 over 6 & A ; 6 plus 1 stacking )70 A Terminal Tractors & A ; 68 Dawdlers2 Reach Stackers2 Empty Animal trainers1 40ton Fork LiftAt the minute SAGT is bring forthing the highest of all time container throughput in the Port of Colombo.
What is a Scheme?Scheme is a full blown action program capable of traveling the company in the intended way, turning its concern, beef uping its ability to vie, and bettering its fiscal public presentation.The best indicants of a company 's scheme are its actions in the market topographic point and the statements of the senior directors about the company 's current concern attacks, future programs, and attempts to beef up its fight and public presentation. Every company must be willing and ready to modify its scheme in response to altering market conditions, progressing engineering, and the fresh moves of the rivals, switching purchaser demands and penchants, emerging market chances, new thoughts and mounting thoughts that the scheme is non working good.A company 's scheme is partially proactive and partially reactive.
A proactive determination has to be made to better the company 's fiscal public presentation and procure a competitory border. Reaction scheme is needed to unforeseen developments and fresh market conditions.
2.0 SAGT 's Strategic Vision StatementTo be the best Marine container terminus in the South Asia part and to be rated among the best container terminuss in the universe.In a company 's vision statement there should be some certain features involved. Such as,Does it include a way for the company to headIs the statement flexible plenty to provide to the of all time altering concern environmentIs the vision short plenty to pass on to each other and retrieve itIs the vision focused plenty to supply counsel to the senior personal of the companyTherefore the manner I see it the vision statement of SAGT has a clear way to be the best in Asia and so in the universe.
And it 's flexible plenty to provide to the concern environment. Then the vision statement is short plenty to pass on. Besides it is steering the determination shapers of the company to exactly accomplish what they want. Therefore in my position this company has a vision statement where the company can execute truly good in the hereafter.
0 SAGT 's Mission StatementTo construct and run a first installation at the Port of Colombo supplying superior container terminus services to clients in a safe and consistent mode, guaranting highest degree of productiveness, efficiency and value for money. To put new criterions and implement best patterns for the benefit of the Port & A ; Shipping industry, thereby run intoing outlooks of our stockholders and supplying model workplace environment to our employees.A mission statement should be descriptive of how to place the company 's merchandises or services and stipulate the purchaser needs it seeks to fulfill ; the client groups or markets it is endeavoring to function and its attack to delighting clients. In my sentiment above mission statement clearly focuses on what the company does and besides it tells us the narrative of how SAGT is traveling to function the clients.
SAGT has identified the client needs that are why they are speaking about a superior container terminus and seeking to develop a universe category installation. Therefore what I see is that SAGT has covered all the primary parts a mission statement should include.
4.0 Internal Environment Analysis
1 SWOT AnalysisSWOT analysisA is aA strategic planningA method used to measure theA Strengths, A Weaknesses, A Opportunities, andA Threats involved in aA projectA or in aA businessA venture. It involves stipulating the aim of the concern venture or undertaking and placing the internal and external factors that are favorable and unfavorable to accomplish that aim.Figure 01
StrengthsA strong substructure installation than Sri Lanka Ports Authority ( SLPA ) , chief rivalA strong trade name name within the Ports and Transporting industry.A strong client base which have been retained from the induction of the company.High cost advantages than the chief rivalWell trained work force which can execute their work with maximal efficiencyStrong fiscal backup from the chief group
FailingsUnionized work force ensuing in work arrestsDue to the high usage of the machinery machine dislocation clip is highPort is in a high security zone therefore outside parties can non entree easy
OpportunitiesVessel services can be won from the chief rival due to the efficiency in the workCan seek to widen the bing client base by offering discountsDecrease in trade barriers will increase the gross for the company
MenacesIncrease in competition with two new ports in Sri LankaCustomers dickering power for the duties are turningNew regulative systems may come up
2 Value ChainFigure 2A company 's value concatenation identifies the primary activities that create client value and the related activities. A company 's value concatenation consists of two wide classs of activities.Primary activities - that are foremost in making value for clientsSupport activities - that facilitate and heighten the public presentation of the primary activities.In this company inbound logistics can be taken as the containers handled from the vas to the pace and the operations can be taken as managing the containers within the pace by gauntry Cranes, lading the container to a terminal tractor, turn uping the exact place where the container should be kept. Out bound logistics can be as despatching the container to another vas or despatching it in to the state.
In gross revenues and marketing it includes offering new duties to clients and seeking to retain the clients every bit good. In the services subdivision it includes such as managing differences against the bills by clients. Therefore in my sentiment company can better on the primary activities through decrease in container handling clip so that Cranes will be able to manage more containers for a certain period. Therefore by making that excess gross will be generated and those gross can used to offer discounts for bing clients every bit good as to pull new clients or can be transferred to the stockholders.Secondary activities for this company are really of import since those are the basic demands to increase the net income border.
Infrastructure installations are the most of import. Human resource direction is really important since to run the Cranes particular accomplishments are required and hence uninterrupted preparation for the staff is needed. Besides the work force is more than 500 employees so therefore it is non a little undertaking to pull off all. Technology developments are of import since mundane new engineering is found so in order to keep a universe category installation engineering should be upgraded. Procurement can be defined for this company as buying parts for machinery which breaks down. Therefore what I see is that SAGT has the right secondary activities of a value concatenation which can be put frontward to help the primary activities and thereby increase the border.
5.0 External Environment Analysis
5.1 Porter 's Five ForcesFigure 03Porter 's five forcesA is a model for the industry analysis and concern scheme development developed byA Michael E. PorterA ofA Harvard Business SchoolA inA 1979.
It draws uponA Industrial Organization ( IO ) economicsA to deduce five forces that determine the competitory strength and hence attraction of aA market.
Rivalry among bing RivalsSince there is merely a chief rival for now which can suit more vass than SAGT at a clip there is a competition between them. Therefore to get the better of this SAGT should supply better services to clients so that they are attracted to the company and to increase the efficiency of the workers so that more vass can berth at SAGT. Therefore the competition I would state is mean.
Dickering Power of SuppliersIn the transportation industry providers to help the concern are merely a few specialised companies. Therefore the competition amongst them is really high. SAGT has a little say in what they want. Therefore what I say is to utilize a stamp procedure to take a provider so that the company can place its capablenesss to engage a provider and to maybe negotiate and come down on the providers monetary value towards what the company is anticipating to pay for that peculiar provider. Therefore once more I see an mean competition.
Dickering Power of CustomersPresently in the Port of Colombo there are merely two constitutions, SAGT and SLPA. So hence any party who wants imports or an export done has to travel through these companies somehow or the other. Therefore what I see is that the bargaining powers of clients are really low. And besides for SAGT to retain the clients without traveling to SLPA they have to give lower duty rate and more discounts than the rival.
Menace of New EntrantsNow a twenty-four hours constructing a port is really much difficult work. But due to the recent roar in the economic system there are ports coming up elsewhere in the state every bit good.
Therefore in the short term the menaces of new entrants are really low, where as in the long term menace of new entrants are really high. Therefore what SAGT should make is that they try to spread out on the gross side in the short term every bit much as they can and so bask those benefits in the long tally to retain the client base so that they can go on their concern successfully.
Menace of SubstitutesThere is merely one replacement for SAGT. Therefore outside parties can non dicker much over who to travel for.
Therefore in the short tally menace is really low and in the long tally as I mentioned above it is high. What SAGT should make is that they should advance the trade name name every bit much as they can and be flexible to the clients.
5.2 PEST Analysis
SecondSocial FactorsFigure 04
Political FactorsPolitical factors for this sort of a concern are high.
Since SAGT is inside the authorities owned country, and besides it 's a BOT company which need to acquire transferred back to the province.
Economic FactorsImports and exports play a large function in the economic system. When the economic crisis was go oning statistics in the company website show that there were low throughput rates during that clip. Therefore economic system plays a critical function in this concern.
Social FactorsPersonal betterments like to be more efficient in the work environment is a major factor to the growing of the company. Therefore the company should regularly take part employees in ego development work stores.
Technological FactorsTechnology plays a immense function in this sort of a concern. Company should be on top of the latest engineering to derive a competitory advantage over the international every bit good as the local rivals.
6.0 AimsAims are an organisation 's public presentation marks, the consequences and outcomes direction wants to accomplish. They function as yardsticks foe mensurating how good the organisation is making.
Strategic AimsTarget for at least to derive five new clients for a peculiar fiscal twelvemonth.Alternatively of utilizing general duties try to utilize a customized duty system to each client.To cut down the machine dislocation clip by half by conveying in new machines.
Fiscal AimsTo accomplish an ten sum of throughput for a fiscal twelvemonth.To increase the dividends payment to the stockholders by a Y sum.
To increase the capital investings by ten sum to convey in new machines.
7.0 Competitive SchemesCompetitive scheme concerns the particulars of direction 's game program for viing successfully and procuring a competitory advantage over challengers.Broad Differentiation StrategyOverall Low Cost Provider StrategyA wide cross subdivision of purchasers
Best Cost Supplier StrategyFocused Differentiation StrategyFocusedLow Strategy A narrow purchaser sectionLower Cost DifferentiationSAGT is more into a focussed distinction scheme, where they target a specific client base for a long period of clip.
Whereas the chief rival is covering across a big subdivision of clients. Therefore my suggestion would be to travel off from the niche market to a more differentiated market.
8.0 DecisionFinally I would wish to indicate out that the current schemes are good within the range of the company and if they go on executing as they do now they will most surely reach the marks. But in the long tally company should seek to concentrate on retaining the market portion as new competition is constructing up.
We can clearly see that the current schemes are good defined and good carried out.