Building the Development Strategy for the Hochiminh city Electric Power College in the period 2010 - 2015

GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT BUILDING THE DEVELOPMENT STRATEGY OF HO CHI MINH CITY ELECTRIC POWER COLLEGE PERIOD

Building the Development Strategy

for the Hochiminh city Electric Power College

in the period 2010 - 2015

CAPSTONE PROJECT REPORT

GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM

CAPSTONE PROJECT REPORT

BUILDING THE DEVELOPMENT STRATEGY OF

HO CHI MINH CITY ELECTRIC POWER COLLEGE

PERIOD 2010 - 2015

Group No.: 11

1 Vu Tuan Quynh (Group leader)

2 Le Viet Bac

3 Nguyen Kim Thom

4 Bui Quoc Viet

Class: GeMBA01.E04

HO CHI MINH CITY, 2010

INTRODUCTION

After serious study in the training program Master of Business Administration International (abbreviations as GaMBA) Technology Center of Training and Employment System - Hanoi National University associated Griggs University - United States training institutions in Vietnam This stage to make great graduation exercises, Our group of 11 - Class GeMBA01.E04 (study at Ho Chi Minh city) have

4 members

1 Vu Tuan Quynh Male Manager of

Network Faculty

Ho Chi Minh city Electricity Power College

2 Le Viet Bac Male Director

Information Technology centre (Branch in Southern)

3 Nguyen Kim Thom Female Deputy Manager

of Training Dept

Ho Chi Minh city Electricity Power College

4 Bui Quoc Viet Male Chief Accountant An Binh bank

(Ho Chi Minh city)

Together to build theme: "Building the development strategy of the Ho Chi

Minh city Electric Power College in period 2010 – 2015”

For education, strategy and strategic management help schools especially universities and colleges to satisfy the maximum demand of human resources for society, improving qualifications, and ability to train in conditions self-limited and ensure lives of staff - teachers – employees

Wishing to contribute to building a strategy for school operations effectively,

to enhance competitiveness, vitality and continuous development, major exercises, including graduates of our 03 chapters:

 Chapter 1: Systematic theoretical basis of strategic planning

 Chapter 2: Analysis of the operating environment of HEPC

 Chapter 3: The solution strategies for HEPC development period from 2010 to

2015

Thank to the lecturer; members of the specialist; managing board; The Office and Departments helped us finish this great good exercise

OVERVIEW OF THE CAPSTONE PROJECT REPORT

1 Objective

Ho Chi Minh City Electric Power

College is previously known as Gia Dinh

Engineering College According to Decision

No 5314/QD-BGD&DT, dated 21st May

2005, by the Minister of Education and

Training, the college was upgraded and

renamed the Ho Chi Minh city Electricity

College

Ho Chi Minh City Electricity College a

unit attached to the Electricity of Vietnam The main tasks of the college are training technicians and secondary level to satisfy labor demand in electricity sector

in the South of Vietnam During this time, Vietnam trend is along with the development of the economy - our country towards international integration and advocated the socialization of education and training sector in Vietnam change to competitive market Many training institutions during the year with more training curriculum modern, advanced to meet the needs of society and the students themselves Increasing numbers of special training establishments are foreign elements

As a result, the college needs to develop strategy effectively to enhance competitiveness, survival and continuous development Wishing to contribute to building a strategy for college development, we carry out a research with the title:

"Building the development strategy of Ho Chi Minh city Electricity Power College period 2010 - 2015”

2 Research objectives:

- Theoretical systematic for strategy development

- Activity environment analysis of Ho Chi Minh City Electricity Power College

- Development orientation for the college in 2010 – 2015

3 Research results

- Take out targets and tasks for strategy development of the college by year 2015

- Propose some solutions and recommendations to implement effectively strategy

4 Scope of research

- Environment factors of activities in the College

- The education and training activities of other training institutions operating in the

same field in the south Vietnam

6 Research content

In the context of the current market, college can grow further in scale and quality of training Thus, there is a need to prepare both theory and practical in order to help the College develop to a higher position

Besides the opening – conclusions and recommendations parts, this study includes three chapters:

- Chapter 1: Establishment of general reasoning strategy development and strategic

activities of the College – University

- Chapter 2: Analyzing the HEPC reality situation in recent years

- Chapter 3: Building strategic development of Ho Chi Minh city Electric Power

College period 2010 – 2015

Ho Chi Minh City

Ho Chi Minh city Electricity Power College Internal Factors Evaluation matrix

External Factors Evaluation matrix SWOT matrix

Table 1.1: Macro environment factors

Table 1.2: Environmental impact evaluation

Table 1.3: SWOT matrix

08

11

14

Table 2.1: Human resource in each department and faculty

Table 2.2: Structure of teaching staff in each professional department

Table 2.3: Teaching staff in HEPC

Table 2.4: Training field of HEPC

Table 2.5: Training scale in HEPC period 2006 – 2009

Table 2.6: Quantity of researching themes in HEPC period 2005 – 2009

Table 2.7: Quantity and classification of books in HEPC library

Table 2.8: Major revenue sources of HEPC

Table 2.9: Construction area

Table 2.10: Internal Factor Evaluation matrix (IFE)

Table 2.11: Training and development plan of EVN human resources to

2015

Table 2.12: Population of Viet Nam period 2001- 2008

Table 2.13: The training industries and specialized field of universities

and colleges

Table 2.14: Compared with the size of a typical Universities

Table 2.15: Expenses for study of the types of training

Table 2.16: External Factor Evaluation matrix (EFE)

Table 2.17: Summary of strengths, weaknesses, opportunities and

Table 3.1: Strengths - Weaknesses - Opportunities – Threats

of the Ho Chi Minh city Electric Power College

Table 3.2: SWOT matrix

Table 3.3: Formation of development strategic plans

Table 3.4: QSPM matrix for SO strategies

Table 3.5: QSPM matrix for ST strategies

Table 3.6: QSPM matrix for WT strategies

Table 3.7: Develop training scale period 2010 – 2015

Table 3.8: Development of teacher and lecturer team period 2010-2015

Table 3.9: Roadmap recruitment of teachers / lecturers 2015

Table 3.10: Number of teachers/lecturers sends to study annual

training plan

Table 3.11: Plan funding for training and development team

Table 3.12: Diversification of industry training

Table 3.13: Plan funding for training, retraining and improve

the teachers, lecturers and staffs Table 3.14: Plan of expenditure

LIST OF FIGURE Page

Figure 1.1: Strategy decisions

Figure 1.2: Relationship of five tasks management strategy

Figure 1.3: The process of comprehensive strategic management

by Fred R David

Figure 1.4: The factors that constitute the environment of the organization

Figure 1.5: The competitive advantage

Figure 2.1: Logo of the Ho Chi Minh city Electric Power College

Figure 2.2: Structure of HEPC organization

Figure 2.3: Analysis of HEPC internal environment

Figure 2.4: Structure of human resource in HEPC

Figure 2.5: Teaching staff in HEPC

Figure 2.6: HEPC’s training scale period 2006 – 2009

Figure 2.7: The HEPC revenue sources (without EVN fund)

Figure 2.8: Students perform exercises on the LV -HV practical site

Figure 2.9: Model of facility project – campus 1

Figure 2.10: Model of HEPC facility project – Campus 2

Figure 2.11: The ratio of the customers training demand (%)

Figure 2.12: The customer’s ideas about Strengths, weaknesses,

opportunities, threats of HEPC

(The ratio of completely agreement %)

Figure 3.1 a: Model combines internal and external environmental factors

Figure 3.1 b: The sources establish the competitive advantages

Figure 3.1: Forecasting the training scale (Regular training)

Figure 3.2: Forecasting the training scale (In-service training)

Figure 3.3:Development of teachers and lecturers period 2010 - 2015

Gantt diagrams for the diversification process of new training industry

CONTENT STATEMENT – INTRODUCTION – OVERVIEW ………I – X

ABBREVIATION – LIST OF TABLE – LIST OF FIGURE ……… XI – XIII

CONTENT……… XIV – XVI Chapter 1: GENERAL STRATEGY THEORY AND STRATEGY

DEVELOPMENT OF COLLEGE … 1

1.1 Strategy overview 1

1.1.1 Strategy concept 1

1.1.2 The concept of strategic management 4

1.1.3 Process of strategic management 5

1.1.4 Strategy types and strategic management 6

1.2 Some features of educational activities 17

1.2.1 Features of educational in Viet Nam ……… 17

1.2.2 The matters are interested in building the college strategies … 18

1.3 Summary 21

Chapter 2: CURRENT SITUATION OF HO CHI MINH CITY POWER COLLEGE 22

2.1 Introduction of Ho Chi Minh city Power College 22

2.1.1 Name - Logo 22

2.1.2 Contact address 22

2.1.3 Establishment and development ……….……… 22

2.1.4 Functions and tasks ……….……… 23

2.1.5 Structure of organization …… 24

2.2 Analysis of HEPC internal environment factors 26

2.2.1 Human resource organization 27

2.2.2 Training management 31

2.2.3 Science research and change programs 37

2.2.4 Information and library system 39

2.2.5 Finance - Accounting 40

2.2.7 Marketing 48

2.2.8 Culture of organization 46

2.2.9 Internal environment factors evaluation matrix (IFE) 50

2.3 Analysis of external environmental factors 53

2.3.1 Macro- environment analysis 53

2.3.1.1 Economic factors ……… 53

2.3.1.2 Politics and law factors ……… 57

2.3.1.3 The factors of Society - Culture – Population ……… 57

2.3.1.4 The factors of engineering and technology ……… 61

2.3.2 Micro-environment analysis ….……… 64

2.3.2.1 Customers ……… ……… 64

2.3.2.2 Colleges and Universities in Ho Chi Minh City and Southern of Viet Nam ……… 66

2.3.2.3 Suppliers ……… 68

2.3.2.4 Indirect competitors (The foreign college in Vietnam and in abroad) ……… 68

2.3.2.5 Alternative services … ……… 69

2.3.3 External environmental factors evaluation matrix (EFE) ………… 70

2.4 Summary … 72

Chapter 3: BUILDING STRATEGY DEVELOPMENT FOR HO CHI MINH CITY ELECTRIC POWER COLLEGE PERIOD 2010-2015 … 75 3.1 Vision, mission and core values 75

3.1.1 Vision 75

3.1.2 Mission 76

3.1.3 The core values 76

3.2 Goals for HEPC development 77

3.2.1 The general development goals 77

3.2.2 The specific development goals 77

3.3 SWOT analysis and QSPM matrix ……… 81

3.3.1 Strengths - Weakness - Opportunities and Threats 81

3.3.2 SWOT matrix (Strengths - Weaknesses - Opportunities - Threats) 82

3.3.3 Strategy selection through Quantitative Strategic Planning Matrix 85

3.4 Solutions for strategy development ……… 91

3.4.1 Point of view for solution implementation 91

3.4.2 The general solutions…… 92

3.4.3 The specific solutions … 93

A DIFFERENTIATION STRATEGY 94 3.4.3.1 To diversify training scale and training type 94

3.4.3.2 Diversification of industry training 99

3.4.3.3 Improve teaching methods to improve the quality of training … 102 B STRATERGY OF ENTRY MAKET 109 3.4.3.4 Reorganize staff structure of the college together reward policy ……… 109

3.4.3.5 Development services are not many customers known … 110 C REORGANIZATION STRATEGY 112 3.4.3.6 Reorganize staff structure of the college ……… 112

3.4.3.7 Facilities solution 116

3.5 Gantt diagrams for the diversification process of new training industry … 119 3.6 Recommendations to the parties of strategy development 120

3.6.1 Board of management 120

3.6.2 The departments and centers directly under college management …121 3.6.3 Electricity of Vietnam 123

3.6.4 The authorities (Ministry of Education and Training, ) 124

3.6.5 Enterprises, the electricity distribution and transmission companies 124 3.6.6 Sponsors ……… 125

3.6.7 Students – pupil; Old students – alumnus 125

CONCLUSION ……… 126

REFERENCES MATERIALS ……… XVII – XXIX

APPENDIX 1: Questionnaire and survey result ……… XX – XXVI APPENDIX 2: The equitization in HEPC XXVII – XXVIII

Chapter 1

OVERVIEW OF STRATEGY

AND OPERATIONS STRATEGY OF COLLEGE

1.1 OVERVIEW OF STRATEGY

1.1.1 Concept

“Strategy” concept, which originated from the military thousand years ago, is familiar to people, especially for leaders of organizations This concept has been studied and applied to the development of many areas at different levels, especially in business and education in the University

There are many definitions of strategy depending on the perspective of each author Alfred Chandler described corporate strategy as the determination of long-term goals and objectives, the adoption of courses of action and associated allocation of resources required to achieve goals” (1)

The word "strategy" has been used implicitly in different ways even if it has traditionally been defined in only one Explicit recognition of multiple definitions can help people to manoeuvre through this difficult field Mintzberg provides five definitions of strategy:

 Plan - some sort of consciously intended course of action, a guideline (or set

of guidelines) to deal with a situation

 Ploy - really just a specific manoeuvre intended to outwit an opponent or

competitor

 Pattern - If strategies can be intended (Whether as general plans or specific

ploys), they can also be realized In other words, defining strategy as plan is

not sufficient; we also need a definition that encompasses the resulting behavior: Strategy is a pattern - specifically, a pattern in a stream of actions Strategy is consistency in behavior, whether or not intended The definitions

of strategy as plan and pattern can be quite independent of one another: plans may go unrealised, while patterns may appear without preconception

 Position - specifically a means of locating an organization in an

"environment"

 Perspective - its content consisting not just of a chosen position, but of an

ingrained way of perceiving the world

Johnson and Scholes defined the strategy in the environmental conditions that have changed rapidly: "Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations" (2)

Strategy definitions differ in level, scope and content The strategy includes at leat three-levels: corporate strategy- directly related to the overall purpose and scope of the organization, business strategy – directly related to market competition, function strategy – help the company-level strategy and business strategy implemented efficiently based on resources, processes, people and skills In content aspect, there are also many strategies such as competition strategy, competitive advantage strategy and customer strategy, etc

In business, competitive strategy of an organization aims to achieve conformity between internal potential resources and external environment factors The difference

in potential resources of many companies create competitive advantage that may be declined over time by the environment changing The important actions are discovering new opportunities, preventing and repelling potential threats, limiting current weaknesses, and shifting to new areas with appropriate strategy decisions The discussion is presented in figure 1.1

Figure 1.1: Method of planning suitable strategy (3)

(3): FRED R VAVID, 2003, Treatise and Strategic Management, Statistics Publishing

Through the above definitions, the importance of strategy role is shown clearly

- Firstly, strategy helps the organization define its objectives and select the appropriate way to achieve goals as well as determine the position during the implementation to achieve its goals From there, administrators and staffs can determine the necessary activities to achieve the goal

- Secondly, strategy helps organizations realize strengths and weaknesses in the internal organization as well as opportunities and risks from external environment Then, the organization can promote the strengths and limit the weaknesses in order to take advantage of opportunities and minimize risks for organizations

- Thirdly, strategy not only helps the organization make appropriate decisions to deal with environment changing but also improves organization performance

- Last, strategy helps organization choose appropriate competition advantages in a flexible environment as well as find out the way to survive and grow to enhance the position of organization

Threats Weaknesses

1.1.2 The concept of strategic management

Strategic management is the process of research and analysis internal and external environment of organization in current and future; establish long-term goals for the organization as well as implement and test strategy in order to use resources effectively and achieve the desired objectives

Strategy management includes 5 tasks that are closely related:

1 Creating a perspective strategy - describes future model of the organization It

provides a long-term orientation; specifies the model that organizations want to

be and guides activities to achieve the goals

2 Setting goals – concretizes perspective strategy into the detail goals that require

5 Evaluating the implementation and conducting adjustment-for long-term

orientation, objectives, detail strategies and performance based on experience, the conditions, ideas and new opportunities

Figure 1.2: Relationship of five tasks of management strategy (4)

(4): Assoc Prof PhD Le The Gioi, Dr Nguyen Thanh Liem, MA Tran Huu Hai, 2009, Strategic Management,

Building strategies to achieve

Implementation and operating strategies chosen

Evaluate the implementation, monitoring, repair or adjust Đánh giá thực hiện, theo dõi, sửa chữa hay điều chỉnh Recovery

1, 2, 3, 4 (if)

Improvement / change (if)

Repair

(if)

Repair (if)

Improvement / change (if)

Requirements of strategy management:

- Creating competitive advantages

- Limiting the risks

- Determining objectives and analyzing the ability

- Analyzing business environment

- Giving replacing solutions and supporting tools

- Combining planned strategies and new strategies

Benefits of strategy management tested in many fields with many kinds of companies include three most basic points as follow:

1 Making future strategies of company clearly

2 Focusing precisely on what is the significance of the strategy

3 Improving realization of environment changing

1.1.3 The process of strategic management

Process of overall strategy management by Fred R David widely used includes three stages: strategies forming, strategies implement and strategies evaluation It is shown in the following figure

 Strategy creating stage includes determining tasks of business, indicating

internal strengths and weaknesses, identifying external opportunities and risks, setting long-term goals, creating alternative strategies and selecting a specific strategy to pursue

 Strategy implementation stage requires the company setting annual targets,

establishing policy, encouraging staff and allocating the resources

 Strategy evaluation stage involves measuring the performance of individuals

and organizations as well as giving necessary adjustment

Figure 1.3: The process of comprehensive

(5): FRED R VAVID, 2003, Treatise and Strategic Management, Statistics Publishing

1.1.4 Strategy category and strategy approaches

There are many kinds of strategies and strategy approaches depending on the size, market, products and position of the company Based on characteristics and conditions, each company can choose its own strategy to maximize the resources and minimize the risk to achieve the goals

Depending on level and scope of use, strategies are divided into three strategy levels including the strategy for the company; strategy for business unit (SBU) and the strategy for the division in the manufacturing operations, marketing, human resources management, financial the accounting, technology, research and development, information technology

In the aspect of content, strategies can be one of the followings:

Carry out the external factors

to identify opportunities and risks

Establish long-term goals

Set annual goals

Carry out the internal factors

to determine the strengths and weaknesses

Selection strategies

to pursue

Set forth policies

Measurement performance evaluation

Reallocated resources

Formation strategies Implementati on strategies

Feedback

Assessment strategies

 Direct competition strategy that applied to cope with existing and potential competitors; competitive advantage strategy that created to take advantage of every opportunity and improve reputation of the company

 Function strategy that supports for company strategy and business strategy

 Customer strategy considers customer the most important factor and satisfies the customer demand

 Focusing strategy highlights typical aspects of company

 Advantage and disadvantage strategy applied to cope with competitors

 Ideal strategy or avoid strategy compete indirectly with competitors by making new markets, products and services

1.1.4.1 Strategic formation

Strategic formation is the first stage in the strategy management process including develop tasks of business, identify opportunities and risks from external environment, indicate the strengths and weaknesses from internal environment, setting long-term goals, create alternative strategies and select the optimal strategy for implementation

1) Environment research

Operating environment is defined as internal and external factor interaction that directly or indirectly effects on the organization operation It is considered that the environment is limited space in which organizations survive and grow

The factors that constitute the organization environment always effect the organization operation in many aspects at different levels These factors may have positive or negative impacts to organization They may be external factors creating opportunities or challenges for business or internal factors helping the business identify the strengths and weaknesses compared to its competitors

Figure 1.4: The factors that constitute the environment of the organization (6)

(6): Assoc Prof PhD Le The Gioi, Dr Nguyen Thanh Liem, MA Tran Huu Hai, 2009, Strategic Management, Statistics Publishing

To build strategies or to make decisions, organizations must pay attention to researching, analyzing and forecasting environment The basic techniques for environmental analysis include: Scanning, Monitoring, Forecasting and Assessing

Macro environment analysis

Macro environment includes objective factors that are not under the organization control but strongly effect micro-environment of organization Although not directly related to business profit, macro-environmental factors create opportunities and risks for organizations The main factors should be analyzed in the following table:

Table 1.1 Macro environmental factors

Demography – Population

– Age structure – Geographic allocation

– Ethnic community – Income distribution

Risk from potential competitors

Threat of substitute products

Negotiating capacity of suppliers

Ability to negotiate the buyer’s

existing company

Economics

– Inflation – Interest – Trade balance – Budget balance

– The rate of personal savings – The savings of enterprises – GDP

Politics –

Law

– Antimonopoly law – Tax law

– Adjustment philosophy

– Labor law – Policy and educational philosophy

Culture –

Society

– Female labor force – Diversify labor – Attitude and quality of worker

– Environmental issue – Work shift and favorite career – Change in conception of services product

Technology

– Product innovation – Technology application

– Private company concentration and government support for R&D

Micro-environment analysis

Micro-environment including factors outside the organization, orients the competition between organizations and directly relates to the completion to achieve the objectives of the organizations Michael Porter has launched model of five competitive pressures, including customers, competitors, potential competitors,

suppliers and substitute products

 Customers are most powerful if the business of organization depends on them

while they are independent of the company In such cases, customers are threatened factor

 Potential competitors are considered as an argument of function for the height of

entry barriers If entry barriers are high, competitors enter difficultly the market

 The company has shown the level of competition between the functions of a

competitive industry structure, demand conditions and barriers to leaving the industry The stronger demand conditions make competition between companies

is more peaceful and create opportunities for expansion When weak demand, competition may be fierce, especially in the case of industry concentration leaving the industry with high barriers

 The suppliers have the highest negotiate right if company depends on them while

they are independent from the activities of the company In such case, the suppliers are threatened factor

 The substitute products are products that have similar features compared to

company products satisfy same demands The more similar between company product and substitute products are, the lower the ability to ask high price is Thus, lower profits in the industry

Normally, the companies are grouped by strategy The companies in the same group pursue the same strategy or similar strategy Companies in different groups pursued different strategies Members of the same strategic group are the most direct competitors Thus, each strategy group of will identify its own opportunities and risks If the company shifts to another group, it must pay very high cost Feasibility of this shift depends on the height of the mobile barriers

Five pressure competition model and strategy group express the static picture

of competition and ignores the role of innovation that can revolutionize the industry structure and change completely the power of the different forces This model also ignored the characteristic individual companies Attractive strategy group is not an only one factor that contributes to profitable organization The profit and loss of an organization also depends on other factors

Analysis of internal environment

Internal environment include all elements and systems insides the enterprise Analysis of these factors helps enterprises to identify potential and existing sources and create sustainable competitive advantage as well as identify obstacles in maintaining the advantage Competitive advantage can lead to innovation, efficiency, quality and customer satisfaction

Satisfy customer outstanding

(7): Assoc Prof PhD Le The Gioi, Dr Nguyen Thanh Liem, MA Tran Huu Hai, 2009, Strategic Management, Statistics Publishing

Internal factors need to be analyzes include the human resources, manufacturing, research and development, financial accounting, marketing, etc Analyzing the internal factors help to response a series of questions such as what are advantages and disadvantages of company, what are resources and capabilities of the advantages and disadvantages? What are main resources that allow companies to maintain sustainable competitive advantage? What are the resonance between product factor and market factor? Internal environment analysis helps the planners determine the current strategy of the business and develop strategy plans for future

Competitive advantages

Low cost Individual

Outstanding quality

Outstanding improvement

Satisfy customer outstanding Outstanding

efficiency

Environmental impact analysis table

Based on the analysis of internal and external environmental factors, integrated impact of environmental factors on the company activities is summarized

in table 1.2 The table structured in matrix form with the rows describing the factors and the column describing the importance of factors to the development of the company Weight columns show the level of the company's response to the factors

Table 1.2: Environmental impact evaluation

= 1, very important

Total value is 1

= 4, very good respond

= 4, very good respond

= 3, good respond

= 3, good respond

= 2, fair respond

= 2, fair respond

= 1, weak respond

= 1, weak respond

Factors evaluation process is presented by five specific steps below:

Step 1: Select the important factors and describe them in the table Step 2: Category the importance of each factor from 0.0 to 1.0

Importance of each factor depends on the level of its influence to the success of companies in the industry

Step 3: Identify the weight of each factor

Step 4: Multiply the importance and the weight of each factor to

determine its point

Step 5: Sum point of all factor to determine the total score of the matrix

As a result, the External Factor Evaluation Matrix (EFE) is presented in the following table:

Main external factors Importance Weight Point

Total point

Total score of the matrix is maximum at 4 points and minimum at 1 point

On the basis of points, assessment can determined as follows:

 If the total score of company is 4, the company response very well to the opportunities and risks

 If the total score of company is 2.5, the company response fairly to the opportunities and risks

 If the total score of company is 1.0, company response weakly to the opportunities and risks

Competitor analysis table

The construction of the competitor matrix helps the organization recognize the major competitors in the industry as well as evaluate the strengths and weakness of competitors This matrix reflects the expansion of the external factor evaluation matrix

Based on comparison of the company's total score (A) with the major competitor score in the industry to assess the competitiveness of the company

Internal factor evaluation table

The construction of internal factor evaluation table helps enterprises identify strengths and weakness Then, the appropriate policies are established to take full advantage of strengths as well as to overcome limitation of weakness

Internal Factor Evaluation Matrix (IFE)

Internal factors Importance Weight Point

Total

Matrix assessment of internal factors (IEF: Internal Factor Evaluation Matrix): Total score of the matrix is maximum at 4 and minimum at 1

Based on total score, assessment can be made as follows:

 If the total score less than 2.5, company is weak in internal evaluation

 If the total score more than 2.5, company is strong in internal evaluation

There are many technical tools to serve the research such as SWOT matrix, SPACE matrix, BCG matrix, and GE matrix, etc In this study, SWOT model is

applied to form strategies that represented in following section:

– SWOT matrix (strengths, weakness, opportunities and threats) is a matrix with one axis describing the strengths and weaknesses; another axis describing the opportunities and threats of organizational activities The cells are the intersection of two describes the idea to take advantage of opportunities, exploit the strengths as well as reduce threats and overcome weakness

– SWOT matrix, internal environment analysis table and external environment analysis table are the basis to form ideas for strategy

Table 1.3: SWOT matrix

Basically, there are four types of combination to create coordinated logic pairs

If strategy based on strengths and opportunities combination (SO) is developed, it will bring large advantage to the organization If strategy based on weaknesses and opportunities combination (WO) is developed, it offers idea of taking full strengths

to reduce weaknesses If strategy based on strengths and threats combination (ST) is developed, it offers idea of defense to minimize weaknesses and avoid risk

In fact, SWOT matrix can be used to form the idea of strategy to take full advantage of opportunities, promote strengths; avoid threats and shield weaknesses Then, detail strategy is combined with the principle of advantage to exploit the opportunities and avoid risk as well as promote strengths and weaknesses during the strategic implementation

Combination plan Used combination plan Proved result of

To perform above discussion, Quantitative Strategic Planning Matrix

(QSPM) is used as an effective tool

QSPM model carried out by following steps:

Step 1: List external opportunities and threats, internal strengths and

weaknesses This information is taken from IFE and EFE matrix

Step 2: Sorting internal and external factors by the importance following the

EFE and IFE matrix model

Step 3: Grouping the strategies and putting on the top of the matrix

Step 4: Determining attractive score of each factor in the strategy by

following evaluation:

+ 1 point: not attractive + 2 points: less attractive + 3 points: attractive + 4 points: very attractive

Step 5: Calculating attractive score of each strategy by multiplying with

weight score as the total number of attractions by multiplying the important score for attractions corresponding to each factor

Step 6: Calculating attractive score of each strategy in QSPM by adding the

attractive score of all factors Strategies in high score will be more attractive than others will

1.2 SOME FEATURES OF EDUCATIONAL ACTIVITIES

1.2.1 Features of educational in Viet Nam

According to Article 2 of the educational law in 2005, main educational goal

is to educate and help Vietnamese people to develop comprehensively; including ethical issues, knowledge, health, aesthetic appreciation, occupation, the faithfulness to the national independence and socialism, to shape and to improve personal dignity, virtue, and quality for the cause of building and protecting the motherland

The main difference between an educational organization and a business is that its product is human Colleges have to ensure the first target of educating and the second target of benefit which aims at improving the standard of living for staff members including income, incentive, and enhancing investment in infrastructure in order to improve the quality of teaching and learning

1.2.2 Main concerns of schools when establishing a strategic operation

a The State has considered education as national principle and had many policies

to develop education (Article 9) Obstacle of joining in an industry is now eliminated because of the policy that allows individuals and organizations with

enough conditions to establish schools (Article 11, 12) This will enhance the competitive pressure from potential opponents For examples, many hundreds of public and private colleges have been established since the Educational Law in

2001

b The State increases its investment for education, encourages and ensures

interests and legal benefits of economic components within and outside the country for educational investment The national budget keeps an important role

in the source of educational investment (Article 13) However, although the budget for education has been supported continuously in recent years, it can not make up the increase of spending, including salary payment, usual spending, spending for infrastructure and equipment For public schools, the State has stabilized the school fees in order to ensure the social welfare Therefore, they have to find many ways to increase the source of revenue such as to increase training scale, to vary in job trainings by enhancing its targets, widening forms

of associate training without increasing the investment in infrastructure, content

of training This leads to bad results in quality, in some cases, decreased quality The competition among public schools is a race for quality and result Meanwhile, the form of private schools is such a huge threat to public schools because private schools have power of finance, management and they are not tied to school-fee policy, training programs Therefore, private schools concentrate on the high prices with best quality

c Educational activity is defined as social activity which is specially concerned by

the whole society School activities are carefully supervised from the level of precinct to ministry, from students to parents and public press Therefore, schools have to closely follow Educational Law and policies of the State If any school violates the Law, the State will strongly intervene in order to eliminate a situation in which public or private schools have to be closed The number of

obstacles in which people leave their jobs is high, especially emotion; hence, the competition for price is high

d Education and training in Vietnam, although there were many efforts in

decentralized management institutions for College - University of the direction

of increasing autonomy and social responsibility However, in practice there are still inadequate

- The management of the Ministry of Education and Training for school is too rigid and not effective Power delivery is not enough; it is also delivered under the demands of the College - University and social pressure

- No route in the implementation of autonomy and social responsibility of the College - the University; thus appear spontaneous phenomenon or "break the rules" causes many troubles in the direction and implementation Autonomy and social responsibility of the College - the University in our country today must be seen as main motivation, leverage to quickly develop the College – University education It also is the effective solution to remove the mechanism “Beg - Give” that still exists today heavily in management education in general and management education colleges - the University in particular

- The adaptive mechanisms to the College - the University is also conducted in the drip method, lack of synchronous and difficult to implement Along with that, it should be impoved and deployed the model of autonomy and social responsibility that the National Universities are currently enjoyed for all College - University in the whole country

e With socializing education, the number of private schools has increased with

varied occupations that can adapt to the process of the new integration, open economy, and fast development Meanwhile, students have more options in choosing schools, industry, competitive examinations Beside that, students nowadays require a high-quality training service which is corresponding to paid

high fees Power of buyers, according to M Porter’s year model, has increased significantly

f Innovating and advancing education and training have become a crucial issue

which is concerned by the society The quality of training depends on many factors; including content, teaching method, educational program, especially textbooks and teaching documents, quality and quantity of lectures, infrastructure Until present, suppliers have not been powerful enough; however,

in the near future, their voice will stress more importance to the issues of teaching method, textbooks and teaching documents, recruiting and hiring lectures

g According to the project of privatizing colleges and universities which is issued

by the State to Ministry of Education and Training, in 2010, a model of privatizing 15 to 20 colleges and universities will be completed

- Target of privatizing colleges and universities is to widen socialization within educational industry, enhance the self management for colleges and universities and increase social investment for infrastructure Besides, the privatizing colleges and universities will satisfy the demands of high-quality human resource in order to adapt to the environment of the fast development, stability, increased competition and to take advantage of integrating to WTO

- Simultaneously, by privatizing colleges and universities, the State will concentrate to invest for main universities and colleges in remote and poor areas If universities and colleges want to keep prestige, they have to innovate themselves, especially increase the quality of teaching and training

- If education is put into a situation of integration, it is a special form of service Integrating the national education to the international education by self innovating will create more opportunities for foreign investors to invest

in educational industry in Vietnam that brings about a wholesome

1.3 SUMMARY

The role of strategy and strategic management is very important Strategy planning spends much time and effort, but the benefits are also

large If strategy is based on unreal data, the objectives won’t achieve

In education, strategy and strategic management helps colleges and universities satisfy the labor demand of social, improve quality of education, and ensure lives for teachers and staffs in the college

Currently, according to Decree 43/CP, public colleges are independent in finance Therefore, strategic building and management help the college determine strengths and weakness in order to cope with the environment changing From there, the school can make the appropriate decision in the present and future

First benefit of good strategy is supplying labor force for social

and exercising self-control in finance and making decisions as well as respondent It also follows overall objectives of Ministry of Education and Training

Chapter 2 THE HO CHI MINH CITY ELECTRIC POWER COLLEGE REALITY OPERATION IN THE LAST TIME

2.1 OVERVIEW OF HO CHI MINH CITY ELECTRIC POWER COLLEGE 2.1.1 Name

- Vietnamese name: TRƯỜNG CAO ĐẲNG ĐIÊ ̣N LỰC TP HỒ CHÍ MINH

- English name: HOCHIMINH CITY ELECTRIC POWER COLLEGE

- Abbreviation: Vietnamese CDH ; English HEPC

2.1.2 Contact information

- Address: 554 Ha Huy Giap, Thanh Loc Ward,

District 12, Ho Chi Minh city

- Tel: 08.38919013 or 08.32155661

- Website of: www.hepc.edu.vn

- Email: hepc@hcm.vnn.vn

2.1.3 HEPC establishment and development

HEPC previously known as Gia Dinh Technology College In year 1976, according to Decision No.101/TTg by the Prime Minister and: 05/VPQD by the Ministry of University and Secondary college, HEPC is taken over by the Ministry

of Electricity and Coal and directly managed by the Southern Power Company

In year 1997, according to Decision No 818/QD-TCCB by the Minister of Industry, the HEPC was upgraded and renamed the Electrical Engineering School 2 (EES 2) attached to Power Company 2 (PC 2)

Figure 2.1: Logo of the Ho Chi Minh city Electric Power College

In year 2000, according to Decision No: 25/2000/QD-BCN by the Minister of Industry, HEPC was directly managed by Electricity of Vietnam

In year 2005, according to Decision No 5314/QD-BGD&DT by the Minister

of Education and Training, the HEPC was upgraded and renamed Ho Chi Minh city Electric Power Company (HEPC) and directly managed by Electricity of

Vietnam Corporation (EVN)

2.1.4 Function and tasks

2.1.4.1 Function

– First function is training human resources at the college level and lower level on Electricity and other specialized field that follow framework of national education systems, certificates, and credits system and other training provisions

of Education Law

– Second function is doing research and applications on science and technology to serve demand of learning, teaching, production, and management in power sector and other socio-economy activities

– Last function is re-training for managers, engineers, technicians, and other professional career that satisfy requirement of EVN human resource plan and training contracts with other organizations inside and outside power sector

to improve the quality of labor training to serve the demand of power sector and social-economic development in accordance with law

– To coordinate and cooperate with political-social organizations, science research center and other production, trade, and services agents in education and science-technology research from domestic or abroad

– HEPC need reorganize and train teachers to improve the quality and to ensure the quantity of teachers following standard requirement of the Ministry of Education and Training and EVN

– Manage and take care of material and spiritual life for staff, teachers and students Make favorable conditions for staff, teachers and students participate

in union and social activities

– To retrain and improve knowledge for managers, engineer and economy, higher level training for staffs inside or outside power industry Train the key industries for EVN and other social organization

– To organize information activities in the forms of seminar, workshop, scientific conference, survey and learning - visiting tour

– To develop healthy educational environment, to organize other training and education activities followed education goals and career training programs that are allowed by the EVN, Ministry of Education and Training and Ministry of Labour – Invalids and Social Affairs

– To organize students enrolment and students management followed regulation of training, testing and graduating in the Education Law and career teaching law – To implement other tasks assigned by superiors

– To implement the HEPC quality policy:

"Training content associated with reality;

Graduated students must satisfy using units”

2.1.5 Structure of organization

Structure of HEPC organization includes:

a One rector and one vice-rector

b Science - Training Council and other consultant councils

Figure 2.2: Structure of HEPC organization

c Professional departments

– Organization – Administration department

– Training department

– Student Management department

– Finance – Accounting department

– Science Management and International cooperation department

FINANCIAL AND ACCOUNTING

DEPARTMENT

STUDENT MANAGEMENT DEPARTMENT

FOREIGN LANGUAGE AND INFORMATICS CENTER

SCIENCE MANAGEMENT AND INTERNATIONAL COOPERATION

DEPARTMENT

d Faculties

– Basic Sciences - Economics faculty

– Basic Engineering faculty

– Power network faculty

– Electro-mechanics faculty

– Other faculties directly managed under laboratory, the practice factory

e Foreign Language and Informatics Center

2.2 ANALYSIS OF INTERNAL ENVIRONMENT FACTORS

Figure 2.3: Analysis of HEPC internal environment

This study focus on identifying strengths and weaknesses of HEPC through the assessment of main operations and other activities of the college as follows:

– Analysis of internal environmental factors such as: human resources, management activities, marketing, training program, research and development, information system

– Analysis of HEPC's financial situation

Finance-Accounting

department

Human resource R&D Information system

Administration

Marketing

2.2.1 Organization of human resource

Table 2.1: Human resource in each department and faculty

2- Organization and Administration department 29

4- Student management department 10

5- Finance and accounting department 05

6- Science management and international

cooperation department

04

7- Basic sciences and economic faculty 13

11- Foreign language and Informatics center 03

(Source: HEPC Administration dept.)

Currently, total number of staff, teachers, and employees of HEPC is 149 people including 115 male and 34 female Within this total, 18 people are managers and deputy managers of department and faculty (16 people take part in teaching task) Trainers that directly take part in teaching include 89 people; 42 people do other jobs in the college Besides, there are 32 visiting teachers signed contract with HEPC

Figure 2.4: Structure of human resource in HEPC Managers (12%) – Teachers (60%) - Other Staff (28%)

Staff officer of HEPC includes 42 people accounting for 31% of the workforce Most of the staff has been trained and arranged in the position with specific tasks in the effective organization

Numbers of teachers signed long-term contract are 102 people accounting for 69%, with 14 teachers hold more than one position

Structure of teaching staff of professional departments in the college is presented in table 2.2

Table 2.2: Structure of teaching staff in professional departments

of people

Ratio (%)

5 Political; Law; Physical training; National defense 5 4,9

6 Mathematic; Physic; Chemistry; Computer 6 5,9

7 Foreign language and informatics center 3 2,9

(Source: HEPC Administrative dept.)

Table 2.3: Teaching staff in HEPC

List Total Doctor Master University College

Regular or long term