Building the orientationdeveloping strategies at ho chi minh city power company in the process of model transformation management

Derived from the actual demands of the above authors have selected topics "BUILDING THE ORIENTATION DEVELOPING STRATEGIES AT HO CHI MINH CITY POWER COMPANY IN THE PROCESS OF MODEL TRANSF

GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUISINESS ADMINISTRATION PROGRAM

CAPSTONE PROJECT REPORT

BUILDING THE ORIENTATION DEVELOPING STRATEGIES

AT HO CHI MINH CITY POWER COMPANY IN THE

PROCESS OF MODEL TRANSFORMATION MANAGEMENT

Group 5

Mr Nguyen Thanh Nha

Mr Nguyen Vo Tuan Huy

Mr Banh Duc Hoai

Mr Tran Ngoc Thach

HO CHI MINH CITY, 2010

TABLE OF CONTENT

COVER PAGE 1

TABLE OF CONTENT 2

LIST OF TABLE 4

LIST OF FIGURES 5

PREFACE 6

1 Over view: 6

2 Purpose and scope of research themes: 7

3 Objectives and scope of research: 8

4 Methodological: 9

Chapter 1 : BASIS OF METHODOLOGY 10

1.1 The concept of strategic management and management of change: 10

1.1.1 Concept of strategic: 10

1.1.2 Strategic Management: 11

1.2 Concept and classification business 13

1.2.1 Concept of business strategy: 13

1.2.2 Sort of business strategy 13

1.2.3 The strategic business unit 14

1.3 Business strategies planning Process 16

1.3.1 Identify tasks and mission of the enterprise 16

1.3.2 Define business objectives 16

1.3.3 Internal & External Environmental analysis 17

1.3.4 Analysis of internal environmental factors: 18

1.3.5 Analysis of External environmental factors 19

1.3.6 Setting business strategy: 21

1.3.7 Implemented business strategies solutions 21

1.3.8 Evaluate the effectiveness of the planned strategy 22

1.4 Some matrix and experience to select the strategies 22

1.4.1 External Factors: 22

1.4.2 Internal factors matrix: 23

1.4.3 SWOT matrix 24

1.4.4 Some experience in building business strategies 26

1.5 Human resource management: 27

1.5.1 Attracting and recruiting resource issues: 27

1.5.2 Using and maintenance of human resources issues: 28

1.5.3 The issue of training and developing human resources 28

Chapter 2 : ANALYSIS THE ACTUAL SITUATION OF HCMC POWER COMPANY BEFORE TRANSFORMING THE OPERATION MODEL 30

2.1 Introduction 30

2.1.1 Name and address of company: 30

2.1.2 Process of building and development: 30

2.1.3 Organizational structure: 31

2.2 Overview and analysis of the business three years ago of the company: 32

2.2.1 Business activities: 32

2.2.2 Results make business power: (Source: Report of the 2006-2009 Electricity power Company of HCMC_Vietnam) 33

2.2.3 Total assets, total capital and the value of State capital at July 1, 2009 financial report: 39

2.2.4 Labor at the plan to set up HCMPC (July 1, 2009): 40

2.2.5 Some indicators of business results: 41

2.3 Internal and External Analysis 42

2.3.1 External : 42

2.3.2 Internal Factors Environment (IFE): 49

2.4 SWOT matrix 52

2.4.1 Internal factors: 52

2.4.2 External environment Factors: 54

2.5 Other issues in the business of the Company: 58

2.5.1 Effectiveness of the current model: 58

2.5.2 The existence of restrictions and the current model: 58

2.5.3 Conclusion and the need - proposed new model: 59

Chapter 3 : BUILDING THE ORIENTATION DEVELOPING STRATEGIES AT HO CHI MINH CITY POWER COMPANY IN THE PROCESS OF MANAGEMENT MODEL TRANSFORMATION 62

3.1 Verifiable fact 62

3.1.1 The productions business: 62

3.1.2 Investment in construction: 63

3.1.3 In the field of telecommunications: 63

3.1.4 Strategy brought decisive: 65

3.2 New performance model of the General Electricity Company City: 65

3.2.1 Proposed charter capital at the time of establishment: 66

3.2.2 Organizational structure and management model of the parent company - General Power Company in Ho Chi Minh (HCMPC) 66

3.3 Analysis of the business of HCMPC after conversion: the environmental issues related inside 67

3.3.1 Advantages 67

3.3.2 Difficulty: 68

3.3.3 One of the main goals the establishment HCMPC: 70

3.4 Objectives and prospects in the new model: 73

3.4.1 Basic development goals: 73

3.4.2 Strategic business development objectives: 74

3.4.3 The solutions: 81

3.4.4 Recommendations: 88

CONCLUSION 90

REFERENCES 92

LIST OF TABLE Table 1-1: External Factors Matrix 23

Table 1-2: Internal factors Matrix 24

Table 1-3: SWOT Matrix 24

Table 2-1: Developing customer’s telecommunication, June 2009 37

Table 2-2: The business of the target company (Source: Report of the 2006-2008 Electricity of Vietnam) 41

Table 2-3: External Matrix elements of HCMC PC 48

Table 2-4:Matrix elements within the Electricity of Vietnam 51

Table 2-5: SWOT Matrix Power Company of HCMC 57

Table 3-1: The objectives of the business transformation activities 71

Table 3-2: Target investment HCMPC after conversion 72

LIST OF FIGURES

Figure 1-1: process planning business strategies 16

Figure 1-2: Environmental activities of enterprises 17

Figure 1-3: The competitive model of Porter 20

Figure 2-1: Structure of HCMC PC 31

Figure 2-2: Market share of telephone in the country 45

Studying the development of the world and region in this stage, it is recognized as the stage of after industry and beginning of developing knowledge economy The economic structure of the world have changed rapidly therefore Viet Nam has to adopt with it as well as taking full of owned potential in order to develop the most accordance economic policy Especially, the corporations, general companies must give out the strategies in order to change the operation model,

be active construction plans for transformation activities in accordance with the law

of economic mobilization of domestic and international

At present, the businesses are equally in business relation to each other in the market However, different type of business is treated unequally under the legal documents system of the government The state owned business run under the State owned Enterprise law 2003 Whereas the other type run under The Enterprise law

2005

General policy of the State has confirmed transfer of state enterprises into limited liability company member is a solution to continue the renovation of management mechanism of state-owned enterprises, clearly distinguishing feature representation rights state owned enterprise management functions, decentralization more for businesses, and require higher liability of enterprises where the State needs

to hold 100% capital

The Decision No 60/2005/QH11 on business law stipulates on November 29,

2005 that no later than four years from July 1, 2006 (on Business Law has effect), the enterprises established accordance with the Law of SOEs 14/2003/QH11 on October 12, 2003 must be converted into a Limited Company or Corporation Therefore, before July 1, 2010, Power Company of Ho Chi Minh City has converted into Company Limited or Corporation However, the Power Company in Ho Chi Minh is the enterprise with 100% state capital, was stopped by the equalization of text: 1332/TTg-DMDN on September 18, 2007 by the Prime Minister, should only one form is converted into Corporation Limited in accordance with the time limits prescribed by law business

2 Purpose and scope of research themes:

To survive and grow in market economies with more competitive pressure, the Electricity of Vietnam, in addition to the implementation of transformation activities, need to build itself a business strategy effective Derived from the actual demands of the above authors have selected topics "BUILDING THE ORIENTATION DEVELOPING STRATEGIES AT HO CHI MINH CITY POWER COMPANY IN THE PROCESS OF MODEL TRANSFORMATION MANAGEMENT”

Based on the theory of strategic management and related process analysis, research on HCMC Power Company, the project directed to:

Evaluation whole situation of production and trading of HCMC Power Company in recent years; identify the difficulties and advantages in the production process, improving the quality of services to customers and increase labor

productivity; the opportunities and challenges in the process of international economic integration to build a new model work for the company

The model works produced new business, continue to identify opportunities and challenges are waiting for business to continue to offer the appropriate solutions

in the new period conversion, directed to stable operation business in the new model

3 Objectives and scope of research:

Objectives:

Objective research topic is the evaluation of a comprehensive real situation

of production and business activities of HCMC Power Company, to find out the advantages, weaknesses, opportunities and threats from the company development strategy to 2020

Why choose the time of the year 2020 because this is a landmark time that the State has set out is to move Vietnam into industrial countries, for the electricity industry there is also the time of completing the grid system

For authors made subject, this is the application of the theory of business administration in a specific situations of life, through the medium tested and advanced knowledge, both useful for the economic Current business is all the more effective

Scope:

Scope of research: Scope of the research topic is to develop theoretical basis for building a business strategy for a basic business For HCM City Power Company's focus analyze a most basic elements that affect the construction business from the proposed model works for HCMC Power Company in accordance with the direction of international economic integration, removing debug the barriers in operation at present, propose business strategies for HCMC Power Company the new period Content of the main topics include the following:

Chapter 1: Theoretical basis of strategic management and building strategic

business establishments and other related arguments: a part of these most basic

concepts involved Also a matrix to help select the business strategy and draw some business from the study of theories on building business strategies

Chapter 2: Situations business HCMC Power Company during the past:

This section introduces the history and development of the company, evaluation summary of production and business situation of HCMC Power Company in recent times, together with the analysis using tools such as M Porter's five forces, the IFE and EFE matrix, SWOT Since then find the opportunities, strengths and weaknesses of the company as a basis for strategic planning of the company later in the

Chapter 3: in this chapter:

- Checking the analysis on the basis of the theory stated in Chapter 2 with the actual business situation of the company in 2009

- Proposed strategic transformation activities HCMC Power Company Setting business strategy of HCMC Power Company after the switch to operate the model of parent company;

- Developing the strategic management and conversion predicts difficulties and obstacles will be encountered,

- Recommendations related to transition to successful

- Conclusion

4 Methodological:

Topics focus on research, analysis of information directly from the Internal

of the HCMC power company in the most basic content

Research and build a matrix selection strategy is done by methods experts, that is consulted several experts deeply knowledgeable about the electricity industry from which to establish criteria and evaluate the criteria The advantage of this method is simple to implement, but this method has drawbacks is the precision usually not higher level than the survey because it is actually derived from the subjective will to the experts However this method is enough to build a good business strategy

CHAPTER I:

BASIS OF METHODOLOGY

To be able to build a business model change for City Power Company in accordance with the Enterprise Law, the general development trend of Vietnam's economy on the path of international economic integration, team based on the theoretical basis of the next theoretical research process, evaluating business:

- Theory of strategic management

- Theory classified business strategy

- Strategic planning process

- Some matrix and experience to choose strategies

1.1 The concept of strategic management and management of change:

1.1.1 Concept of strategic:

In the year 1962 Chandler strategy is defined as "determining the objectives and purposes of the long-term business and the application of a series of actions as well as the allocation of resources necessary to implement this objective”

Chandler is one of the first to initiate strategic management theory Until the 1980s when the strategic management disciplines have become popular, Quinn defined more general: “Strategic planning is a pattern or integrating major goals, policies and action sequences into a cohesive whole is closely”

Then, Johnson and Scholes define the strategy of environmental conditions have a lot of changes quickly: "Strategy is the direction and scope of the organization in order to gain long term competitive advantage for organizations through the format of its resources in the changing environment, easily meet market demand and meet expectations of stakeholders

We found that in all definitions of strategy have appeared phrases denote different aspects should be included in it Therefore, need to have diverse definitions to better understand this area In defining its strategy 5P, Mintzberg general aspects of strategic management as follow:

- Plan: the sequence of actions intended to consistently

- Pattern: being consistent behavior over time, may be intended or not intended

- Position: match between the organization and its environment

- Perspective: how to realize deeply about the world

- Tricks (Ploy): specific ways to trick the opponent

Not only includes many different aspects, to define strategies also vary by level The strategy defines the exact level depending on the nature of opinion Minimum level of three strategies should be identified: strategies for the company, strategic business unit level and strategic functions Company-level strategic direction to the purpose and scope of the overall organization Strategic business unit level regarding how to compete successfully on the market specifically Strategic functions that assist strategic business level strategy and grant the company an effective implementation by the components on the aspects of resources, processes, people and skills needed Currently, the trends of globalization, companies are fast diversifying their activities beyond national borders Since then, global strategy as the choice to confront the problems with international business

1.1.2 Strategic Management:

1.1.2.1 Concept:

People often see senior management, but not all led the strategy as a product

of a rational planning process In many cases, the strategic value can arise from within the organization without a plan first

Strategic management is a set of management decisions and actions determine the long-term performance of a company Management strategies include ongoing action: Review the environment (both inside and outside), develop strategies, implement strategies, evaluate and control strategies Thus, research emphasis on strategies to monitor and evaluate the external opportunities and threats in the context of the internal strengths and weaknesses

Strategic management is derived business policies, management strategies matching the topic with the long-term planning strategies Strategic management is derived business policies, management strategies matching the topic with the long-term planning strategies However, contrary to the strategic management, business policy is oriented general management, primarily in the direction of interest in integration activities between the functions of the organization Meanwhile, strategic management is not only interested in the integration of functions within the same business policies but also emphasizes more on the environment and strategy Therefore, we use the term political strategy rather than policy business

1.1.2.2 Task of strategic management:

Strategies Management including 5 tasks which is related closely is:

- Create a strategic vision of the future describe the image of the company, clearly directed to where the company wants, how the company becomes This provides the main long-term orientation; specify the image that the company wanted to be, transmitted to the company feel about action goals

- Setting goals - metabolism perspective into the strategic implementation of specific results that the company must achieve

- Building strategies to achieve the desired goals

- Implementation and operating strategies have been selected an effective and efficient

- Assessing the implementation and conduct adjustment prospect, long-term direction, objectives, strategies or performance-based experience, the conditions

change, ideas and new opportunities

- Benefits of strategic management:

The study showed that if there is a strategic management research Organization will achieve better performance compared to other organizations do not perform this process If achieved conformity between environments of the organizational and strategies, the structures and its processes will create positive effects on the performance of the organization Benefits of strategic management

have been tested in many different fields, with many companies with different scales, which can short the three most basic points, that is:

- Made clearer strategic vision of the company

- Focus more precisely on what is the significance focused strategy

- Improve awareness of the rapid changes of environment

1.2 Concept and classification business

1.2.1 Concept of business strategy:

By Fred R David, the strategy is the means to reach the long-term goals, also according to historian Edward Mead Earle, "the strategy is the art of controlling and using resources of a country or a coalition of countries aims to ensure and increase the effectiveness of their vital interests" and much the same point Thus, the strategy

is the direction and planning how to achieve the objectives

Business strategy: According to Bruce Henderson, strategist at the same time

as the founder of Boston Consulting Group, "the business strategy is the careful search for a plan of action to develop and combine the competitive advantages of the organization What difference between you and the competition is the basis for your advantage? According to Professor Alfred Chandler of Harvard University defines "Business strategy is the process of identifying the basic long-term goals of the business, selecting the direction of action and allocates resources to implement goals”

In the current competitive environment, we can say business strategy is to identify business objectives, plan and allocate resources of the enterprise to create competitive advantages to achieve business goals the best

1.2.2 Sort of business strategy

1.2.2.1 Classification level strategic strategies:

Strategy for the company: The overall strategy of the company to achieve

the goals of the company

Strategies for Business: It's the strategic part of the business units of the Company, each unit will aim to achieve objectives for functional units and indirectly help the company achieve objectives of the company

The strategic level function: It is the strategic functions of the company, such strategic finance, strategic human resources, marketing strategy

1.2.2.2 Classifying by scope of strategy:

Strategic components: A two-level strategy such as strategic marketing, financial strategies, pricing strategy, distribution strategy, promotion strategy Strategy in common: also known as general strategy, referring to the most important issues, most covering, long-term efficiency and deciding the survival of the enterprise

General strategy and strategic components closely associated together into a complete business strategy

1.2.2.3 Classifying of strategic approach:

Strategic focus: It focuses on the key one It is of decisive significance for the production and business of the company rather than spread resources

Strategy based on the relative advantages: Ideology of strategic planning is based on the analysis and comparison of products or services to its competitors, find out the strengths to make the business strategic planning

Strategic attack creativity: Business strategy based on the new exploitation in order to gain the advantages to the competitors

Free Strategy: The strategic does not aim the key elements but exploiting the factors surrounding the critical factors

1.2.3 The strategic business unit

1.2.3.1 Competitive strategies by M Porter

Leading Strategy by low cost: A strategy to create competitive advantage

through low cost, low-cost is used for setting the price lower than the competitors in order to attract almost customers who are sensitive of price to increase profits

Differently strategies: A strategy to create products, services and marketing

program is distinctly different compared with its competitors to attract customers

Mixed strategy: combining low cost with differently strategies

1.2.3.2 Competitive strategies for business unit based on market share in the

+ Strategies to expand the total market demand: is the ability to make the most consumed products

+ Strategies to protect market share: Defense leadership position by always reviewing strategies to protect its positions, often using the solution as always rectification activities to keep costs low, perfect service, in order to retain customers; diversification of products or innovative continuous

+ Strategies to expand market: share snatching, acquisition of smaller rival units, attacking the weak competitor

1.2.3.3 Competitive strategies for business units that challenges the market:

Often used for units that are second, third, fourth level in the market but it has strong potential It can attack the leading units and other units to increase market share To do this, it needs to identify goals, competition and select the appropriate strategy to attack, perhaps strategies such attack in front, attacking the flank, or attack line round

1.2.3.4 Strategies for the unit following the market:

That is the weak unit which is not enough strong to cope with the strong unit,

so it tries to follow the strong units Strategies can be selected such as simulated completely, that is totally imitating strong units; partly simulation, that is only

partially mimic and improve the simulation, i.e., imitating and improvements to suit with itself

1.3 Business strategies planning Process

According to the handbook, the Harvard business strategic planning process is shown below:

Figure 1-1: process planning business strategies

1.3.1 Identify tasks and mission of the enterprise

Every business has duties or mission specific, all the activities of the enterprise must be directed to their duties Therefore, the production and business strategy must also derive from the tasks of the business Function as a basis for business strategy and objectives of the strategy is aimed at completing the tasks of the business

Thus, the first work of the strategic planning process for the production of business is to identify the task or mission of the business is what

1.3.2 Define business objectives

The next step of the process of strategic planning of production and business goals is to identify production and business enterprises Goal is the result or destination that a business will look forward to It is the basis of the first and most important strategy to build the planning of producing and business

Task or mission of the business is general Goal is to concretize the task or mission of the enterprise For example, the Bank's mission is to mobilize capital and loans Therefore, specific objectives of the bank are how much the Bank will mobilize and loan, for how long the duration, number and kind of customers

Objectives are built on the basis of duty and mission of the business and environmental factors inside and outside the enterprise Objectives must be consistent with the conditions both objective and subjective, that is, should be considered construction and adjustment based on the environmental factors both inside and outside the enterprise

1.3.3 Internal & External Environmental analysis

Regardless of a business or an industry are also put in a certain environment, encompasses both subjective factors (the internal environment) and other objective factors (external environment) To analyze the environmental factors of internal and external, we can use data available through surveys or studies from inside and outside the enterprise

Figure 1-2: Environmental activities of enterprises

Macro Environment

Micro Environment

Internal Environment

1.3.4 Analysis of internal environmental factors:

The environmental factors are the main factors in the subjective; affect the production activities of business enterprises, including factors that impact positively and negatively These factors have a positive impact is the strongest point of the enterprise, as the skilled employees, professional modern production lines; abundant financial resources; strong brand, famous, These factors have negative impacts is the weakness of the business, such as production line obsolete, old; financial resources tight,

Analyzing the environmental factors is to analyze the strengths and weaknesses

To analyze strengths, we gather all the factors that dominated the enterprise, analysis, comparison with competitors and evaluate the level of creating business advantages for companies of every element that the only element that brings advantages for the enterprise should make the most, factors that should make the next

The main factors of the internal environment are:

resources, organizational structure, maintenance policy and development of human resources

- Financial resources, including such factors as: financial capacity, financial management, accounting systems

- Production capacity, including factors such as line production technology, production scale, product quality, production cost,

Management capacity, including such factors as: Capacity production management, quality management, business management, human resource

management, raw materials management

- Marketing and sales: including factors such as market research development, system distributors, after sales service

1.3.5 Analysis of External environmental factors

External environment Factors is the objective factors, which affect the production activities of enterprises, including positively and negatively factors These positive factors are the opportunity for business, as market demand increases, support policies of the State, the moderator of the macro-economic state These negative factors are the threat to enterprises, such as the drop in market demand; new competitors, rising of raw materials price

Analyzing the external environmental factors is to analyze the opportunities and risks of the business

To analyze the threat, we set all the elements from the environment outside the enterprise Analyzing and assessing the adverse impact to the business processes of each business factors, and points out factors that have adverse impact for businesses that need to avoid, what factors need to continuous interest

External Environmental factors can be divided into two kinds of environment and micro-environment

macro-To analyze the opportunity, we gather all the elements from the external environment that can bring business opportunities to experiment Analyze and evaluate opportunities brought by these factors, and indicate what is the best opportunity to be captured immediately, the opportunity should make next

The macro-environmental factors: macro-economic environment affect the production and business of the enterprise: including factors such as economy, politics, science and technology

The micro-environmental factors: Mainly competitive pressure in the economy market Enterprises often face the competitive pressure A very effective tool to analyze the competitive pressure is the model of 5 competitions of Porter

According to the model diagram in Porter's competitive, enterprises must

always bear in competitive pressure, including: competitive pressure from rivals in the industry; competitive pressure from new competitors; pressure from customers; pressure from suppliers and pressure from the product or service instead (Map 1.3 Diagram of the competitive model of Porter)

Figure 1-3: The competitive model of Porter

Competitive pressure from existing rivals: In the business always exists several business enterprises which have the same product? Therefore, to survive and develop, these enterprises are always looking for ways to create advantages for themselves to occupy the position among competitors, so a business must always

be competitive pressure from existing rivals

Pressure from customers: Customers always ask companies to best meet their needs They require both product and price, so they are bargaining with enterprises

so that getting the best product with the lowest cost Thus, business always is pressure from the ability of customers to negotiate

Pressure from suppliers: That is the input pressure To conduct business,

companies always need to raw materials and services from other providers Therefore, always be under pressure to negotiate from the suppliers

Pressure from new competitors: They are potential competitors will appear and create a pressure for the business side

Pressure from the replaceable products and services: The products and services will change the demand on the market, so will affect business processes of enterprises

1.3.6 Setting business strategy:

Pursuant to the objectives of the enterprise, the situation of internal and external of the enterprise to establish business strategy includes the following basic

- Choose products and services to supply the market goals

- Building strategic marketing mix for market and product selected

o Product strategy: Identify types, number of product supply, quality, price, size, design and other issues related to the product so that meet the requirements of target market and can achieve the goals of the enterprise

o Pricing strategy: Develop prices mechanisms with payment to meet customer requirements

o Distribution strategy: Organizing the distribution channels to bring products

to goal market quickly

o Promotion strategy: This strategy supports building brands, improving image business to attract more customers

1.3.7 Implemented business strategies solutions

That is the solution of human and financial resources, organizational business management, production management in order to achieve the business strategy

has been established Or in other words it is the sort and arranges the resources of the Company to successfully implement strategic business options, such as:

- Order business organizational structure appropriately

- Allocate financial resources

1.3.8 Evaluate the effectiveness of the planned strategy

An effective business strategy is consistent with the socio-economic situation, in accordance with the state and enterprises can take advantage of good opportunities to achieve business goals So evaluate the effectiveness of marketing strategy is very important Evaluate the effectiveness of strategic business primarily in the following steps:

implementing officially Because, as mentioned earlier, business strategy is decisive to the success or failure of the business, so it must be careful verification

- Evaluate the performance of the business phased implementation strategy business to find out the deficiencies, the shortcomings of the strategy, from which there is a modified and supplemented in time

1.4 Some matrix and experience to select the strategies

1.4.1 External Factors:

1.4.1.1 Concept:

External factors Matrix is to evaluate the external factors that affect the operation of the company, including the opportunities and threaten the company

1.4.1.2 How to build matrix:

Up listing all the external environmental factors that affect the operation of the company, assessing the impact or the importance of each factor by the weighted score, total points weighted of all elements in one or 100%

Assessing the company's response to these factors by classifying the elements

from 1 to 4, in which 4 means the companies have responded the best and 1 being the lowest

Followed by graded the importance of each factor by the weight of the points classification, respectively, and then add up the points again to the importance of finding critical points of the company Significant higher total score is 4 and the lowest is 1, and average is 2.5 points

In the case of four points is that the company is to capture the best opportunities and best threat control from outside If the total score is 1, a company that does not grasp the opportunity and cannot control the threat from the outside

Table 1-1: External Factors Matrix

Level

List the external

1.4.2.2 How to build the matrix:

Up listing all the environmental factors that affect the operations of the company, assessing the impact or the importance of each factor score by the weight, total weight of points all elements equal to 1 or 100%

Assessing the company's response to these factors by classifying the elements

from 1 to 4, in which the four means the companies have responded the best and 1 being the lowest

Followed by graded the importance of each factor by the weight of the points classification, respectively, and then add up the points again to the importance of finding critical points of the company Significant higher total score is 4 and the lowest is 1, and average is 2.5 points

In the case of four points is that the company has much strength and can overcome weaknesses If the total score is one that the company has no strengths and cannot overcome their weaknesses

Table 1-2: Internal factors Matrix

Level

List the internal

Table 1-3: SWOT Matrix

1.4.3.1 Internal Factors

Those are internal factor of the enterprise, including positive factors (strengths) and negative factors (weaknesses), as financial resources, human resources, geographical location or technology

Strengths (Strong): These are the factors that create the strong advantages for enterprises in production and business, such as Human resources with high quality, strong capital, advanced technology, well known brand names To promote the strength, enterprises need to list the strengths and then evaluate where is the strength or core competence of enterprise

Core capability is the foundation for the adjustment or new strategic plan, which is

a term professional expertise or skills in the company's main areas of operation, the enterprise capacity has the advantage over competitors, which customers appreciate By David Collis and Cynthia Montgomery, core competence is assessed in the following factors:

Opponents difficult to copy or imitate

S – T : Promoting strengths to evade risk

W (WEAKNESS)

Weaknesses of the business

W - O : Overcome weaknesses to take advantage

of opportunities

W - T : Engraving for weaknesses to evade the risk

- Really a competitive advantage over other competitors

Core capability of Weakness (weak): In addition to these strengths, business always exist weaknesses That reduces the competitiveness of enterprises compared with other competitors, such as outdated technology, poor management, or capital limited Just as the strengths we need to list and evaluate each for vulnerabilities, check point weakest, then finding out the remedy

Opportunities: It is advantageous factors from the outside of the enterprise, which can make to development, such as demand increases, new policies of the State, scientific and technical

Strategies from the SWOT matrix:

- Combine S - O: Promoting strengths to take advantage of opportunities

- Combine S - T: Promoting strengths in order to evade the risk

- Combine W - O: Overcome weaknesses to take advantage of opportunities

- Combine W - T: Overcoming weaknesses to evade risks

1.4.4 Some experience in building business strategies

Business strategy is a meaningful factor vital to business organizations, but the construction business strategy is not easy because it depends on many factors including past, present and predict the future as well as specific areas of business to approach accordingly

In the process of analysis and learn about building materials business strategy,

we can draw experience to build appropriate business strategy are as follows: Objectives must be consistent with the situation of the unit and the external environmental factors, to avoid setting goals is not realistic or objective

inconsistent

Collect and analyze information to find out the advantages of core units as well as

to exploit the weaknesses to overcome

Since the resources are limited, companies should only focus on strategies provide the most effective and to ensure uniformity, and between strategies and solutions implemented

1.5 Human resource management:

Today, human resource management of an organization, a business formed the basis of personal roles, the position is assigned differently, but the work requirements of the organization, business are linked together to strive for a certain goal, to reach the achievements of organizations, businesses that set out Thus, human resources is difference with other resources of the business (financial, capital, resources, equipment, etc ) and plays a key role for the success of the business

Human resource management is more definitely difficult and complicated than the management of resources in the process of business, because man is a lively subject, a subject much has changed both in terms of wills, emotions, desires, interests, personality conflicts, etc

Management of human resources in the period of integration and development

in the global economy now focus on the issues as follow:

1.5.1 Attracting and recruiting resource issues:

Position in the market and future development of the business are factors that attract human resources outside Supply of basic resources for businesses today is the training schools Through a comprehensive review of human resources available, businesses will surely see the clear picture of just admit, has lacked Admit some sort of position change business; admit the labor force due to start the process of rhythm changes, development of production technology Lack of specialists and engineers have the experience, capability, high level of expertise,

lack of engineers for key positions, but the training does not meet spot Recruitment, therefore, does not stop with the test team engineers that new graduates need to organize the first selection for candidates for positions in shortage, the wage regime, treatment after recruitment, respectively

1.5.2 Using and maintenance of human resources issues:

Administrators need to know that development and implementation of uniform policies directed to encourage staff to work efficiently, maintain the development of labor relations in good business In the context of today, leaders of enterprises concern the problem is how to keep good staff, stability of human resources because of the stronger attraction from the outside of the market and they found that factors most important to keep a good working environment is professional, friendly, employees have the opportunity to affirm the capacity and development, then the treatment regime, pay award

For the management and administration, the administrators know that the method based on the supervision and command strict inappropriate It was replaced

by a method of management to focus more humanism, a method able to stimulate self-reliance, creativity and emphasis to corporate culture In addition, notably the work of human resource management has been present throughout the department Head of departments have staff under, so participants are human resource management, particularly planning, organization, leadership and test their force personnel Role of senior management personnel also need to be respected, many good employees would leave the applicant may be derived from not only satisfied with the method of management of the staff directly responsible for

1.5.3 The issue of training and developing human resources

Training and human resource developments are key elements to meet the strategic objectives of the organization Quality staff to become a key competitive advantage of businesses

To the investment process training is really effective, business need to orient staff to choose the topic in-depth training Since then, gradually formed and

extended staff specialized in fields related to the operation of the business If lacking of direction, the topic was selected by students cannot really practical for typical requirements of the enterprise, or may lead to overlapping content Result is that although staff more highly qualified but lack the specialized staff in areas related to strategic operations and business development

Thus, the use of human resources in place so that effectively, continuously improving productivity with the final objective is to improve overall effectiveness

of the organization of the business

CHAPTER II

ANALYSIS THE ACTUAL SITUATION OF HCMC POWER

COMPANY BEFORE TRANSFORMING THE OPERATION MODEL 2.1 Introduction

Ho Chi Minh City Power Company is a member company of the independent accounting Electricity Corporation of Vietnam (now Vietnam Electricity Corporation)

2.1.1 Name and address of company:

- Name: HOCHIMINH CITY POWER COMPANY

- Name in short: HOCHIMINH PC

-Vietnamese name: Power Company in Ho Chi Minh City

- Address: No 12 Nguyen Thi Minh Khai - Ward Dakao - District 1 - Ho Chi Minh City

- Tel: 22.100.627 - 22100628-22100633

- Fax: 08-22100629 or 08-38241616

- Website, e-mail (if any): http://www.hcmpc.com.vn

2.1.2 Process of building and development:

On December 21, 1977 Minister of Power and Coal (Vice Minister Pham Khai) issued Decision No 2479/DT/TCCB3 about moving into the mining branch power and economic accounting within the office used its own seal

On May 9, 1981 the Ministry of Electricity to rename the agency under the Ministry

of units Electricity: Power Company Southern Electric Power Company and 2 Department of Management and distribution changed to Ho Chi Minh City

On 08/7/1995 DOE decided to establish State-owned Enterprises Power Company

in Ho Chi Minh City under the General HCMC Power Company (now the Electricity of Vietnam)

Power Company in Ho Chi Minh City, previously known as the Department of Management and distribution of Ho Chi Minh City was established on August 7,

1976 is a unit belonging to Southern Power Company (now the Public Electricity of 2) - Ministry of Electricity and Coal, including Office 2007, 2005 and 2002 the exploitation of power team with a total staff of less than 1000 employees, operating under the regime of economic accounting depends, is the management, distribution, business improvement and development of the grid in the area in Ho Chi Minh City Since then the period of socio-economic development towards industrialization and modernization, Power Company of Ho Chi Minh City has continuously building and developing the multi-sector orientation, based on human abundant resources, qualified professional capacity with high operating larger scale, more modern and more standardized

2.1.3 Organizational structure:

The company consists of director, deputy directors, chief accountants, 16 room (under the Agency Company), Station Health Corporation and Subsidiaries (Electricity 15, 2002 Project Management Unit, Factory 02, 03 Center, 01 power plant), the structure of Fig 2.1

Figure 2-1: Structure of HCMC PC

2.2 Overview and analysis of the business three years ago of the company: 2.2.1 Business activities:

- Import and export of materials, electrical equipment, other services related to the electricity industry;

- Consulting to build power supply voltage 220kV; Consulting, design and construction of the transmission line and transformer station to supply power voltage 220kV;

equipment;

- Consultant to monitor construction quality;

- Consultant to monitor construction and installation works for grid voltage to 110kV;

information technology;

technology Investment consultant construction of the information technology;

- Leasing office;

- Business services auction property;

- Business property (excluding brokerage, valuation, real estate trading floor);

- Business travel domestic and international;

- Purchase of materials, electrical equipment (compact lights);

- Service provides information on the Internet (except for agency business access services, internet access)

2.2.2 Results make business power: (Source: Report of the 2006-2009

Electricity power Company of HCMC_Vietnam)

2.2.2.1 Ensure adequate electricity supply for economic and social

development, contributing to overall GDP growth of the city To maintain position as one of the company's key distribution Group in the South

Number of customers using the average electricity growth over 6% per year, total electricity customers using City in 2009 to the end of the 1.75 million customers

The production of commercial electricity is always meeting and exceeding planned targets Affairs Group, the average growth of 7% per year (2009 to reach 13 billion kWh) Accounting for 19-20% of commercial electricity output of the country, and one of three power distribution companies of the Group's largest 11 companies a total distribution Also, make sure the company is completing plans to save electricity - save on 1% of commercial electricity output per year, maintaining elasticity coefficient of electric energy at approximately 0.6 - in accordance with guidelines about energy security of the Government is increasingly using electric energy saving and effective coefficient of elasticity reduced electric energy at <1

2.2.2.2 Grid development and continuous improvement techniques to improve

power distribution

By the end of 2008, net transfers by the HCMC Power Company management is 367.76 km and 11.02 km 110kV transmission line 110kV underground cable to provide 35 intermediate stations 110kV with a total installed capacity of MBT is 2,756 MVA Power distribution networks in the area include City 4,879.461 km medium-voltage lines, 9345.502 km low-voltage grid, and distributed 21,067

transformer stations with total capacity of 7,355 MVA Mass scale grid growing as above, but the company has always ensured that:

Most of the online play is 15kV operation with high-level backup, ensuring the ability to transfer in case of problems, cutting work Low voltage grid operated stable, the MBT distribution 15 / 0.4 kV to ensure power supply, work transfer, should phase low voltage network is monitored and implemented periodically to ensure the distribution of transportation MBT in the optimal mode

The rate for electricity transmission and distribution has dropped to a level from 7% to 6% and always lower than planned EVN delivery (from 7.21% in 2006 decreased to 6.18% in 2008; in 2007 is lower than 0.23% and 0.32% lower in 2008 than planned targets)

Capacity problems grid and transformers distributing at least 20% lower than the target delivery EVN Specifically, in 2008 the first year the company implemented assessments to provide computing power through the grid reliability indices SAIFI (times interrupted power supply of an average customer on system in one year), Saidi (Time interrupted power supply of an average customer on the system in one year) for each other Electricity strive to make In addition, the company also conducted the investigation cause problems by the method of analyzing tree problem (FTA) to determine the primary cause of the problem, thereby implementing effective measures to reduce incidents Results showed the reliability Grid up 16% compared to 2007 performance problems and power distribution networks down 37% compared to 2007

2.2.2.3 There are important steps in the stages of business power, positive

impact to the relationship with customers

From January 2007 to September, business processes the OSS application is deployed in all Electricity; 2008, the Company continued to apply business models and new forms of income and credits form to improve labor productivity, contribute significantly to shorten the time of service and answer customer

questions, which services primarily as add new electrical design for living on a mix

of 4.7 / hour meter and 3 phase is 5.1 days / hour meter

Beside of the collection program between the Electric Power, the company has grown from 220 collection points outside of Electricity in 2007 to collect 629 points

in late 2008 including 421 points collected from 10 major banks in the City Bank for Foreign Trade (VCB), Industry and Commerce (ICB), East Asia (DongA), Asia (ACB) ., 183 payment of the City Post Office ) and collected 25 points in Electricity) Also deployed form of payment via ATM card of the two banks VCB and ICB (3,000 machines), payment messages, Internet

By 2008, collected through this method achieved 850 billion - almost doubled compared with 2007, contributing to improved working cashier, reduce existing debt

The last survey in 2008 also showed the level of customer satisfaction with the services of the company fairly well Where: The rate of customers for five or more points from the 96.07%, rate of customers for less than 5 points is 3.93%

2.2.2.4 Implementation results of investment to build and repair:

The company has achieved the goal to ensure that capital pressing in, using capital savings - effectively and meet the delivery progress of the plan annually Follow correct policy of the Government and the Corporation for the cost savings, ensuring efficient use of capital, the company primarily focused investment capital and overhaul capital to perform works to solve overload, off grid problems

on the City

It has been disbursed 1,439.8 billion - reached 92.4% of the plan Completed

in 2008 alone disbursed 101% of the plan, this is the first year ever since, investment working disbursements reached or exceeded in Only 3 years from 2006

to 2008, the Company completed construction and building 220kV - 250MVA Vinh Loc substation; and 39km of 110kV line key - the volume of investment 550MVA

In addition, the company also made plays electric distribution grid works with a

total volume increase of 3,463 station/2,619MVA, 1,027km medium voltage grid, 1,812 km low-voltage grid

Overhaul Cost: Overhaul Plans delivered to the period 2006-2008 is 373.6 billion, the company made more per year from 10-20% reduction norms, and made complete 100% in volume and settlement plan was 373.6 billion (84% plan)

2.2.2.5 Telecommunication business:

The company has to operate telecommunications as General Agent of the mark in the area EVNTelecom City gradually into a stable, business interest and create momentum for the development of subsequent years

Telecom business activity is gradually stable, profit of next year’s are higher than previous years and gets the given plan, in the year of 2007 profit 1%, in 2008 profit is 2% in the total profit of the Company Although rate is still low, it show trend of development in the next years

After two years starting from 2005 to 2006 and prepare, in 2007, with major promotions in the year, the number of subscribers thrive, focusing on E-Mobile package and the package E-Com, the number of customers increased mutation to 122,376 subscribers in the year - up 88% compared to 2006 But not at the inadequacies occur as though the customer charges arising low rise, customers do not address explicitly, the clients leave the network more From 2008, with an emphasis on developing client quality rather than just running the numbers, the company developed its 77,008 subscribers, bringing total subscribers by the end of

2008 is 265,520 subscribers, of which the service is 262,006 CDMA subscribers (up 99%), services E-Tel 1965 is a subscription service is E-Net 1549 subscription

To improve the quality of service in 2007-2008, the company has launched 261 BTS, increasing three times the number of stations existing in 2006, bringing the total up to 345 existing stations and total stations length of optical fiber management is 1139.8 km In addition, the Company also completed infrastructure investment service provider E-Tel, E-Net ADSL and put into use for 19 points residential, apartments, office buildings

It can be said in 2007, the year marking the start and excellent start to the effective operation of the telecommunications power business turnover of telecommunications services in 2007 reached 120.7 billion - up five fold times compared with 2006, the company 1.2 billion profit 2008, turnover reached 164.7 billion - up 36% compared with 2007, profit 1.8 billion

Until June, 2009, total customers developed of the company is 54,870 subscriber, equivalent 71% Development quantity of year 2008, raising total numbers of customers of overall company is 320,391 subscriber, ARPU index only gets very low with 95.000 VND/subscriber

Table 2-1: Developing customer’s telecommunication, June 2009

- In the business work, telecommunication services are pressed by customer development in plans of EVN and HCMPC that give regional power They only care about developing customer quantity; they do not care its effectiveness They are not concentrating actively to develop customer in small hole of the market

- They do not use all low fees advantage Some software programs such as fee collection, promotion, beginning and ending equipments management is not strict (import, export, inventory) Besides, the company does not support much in customer analysis evaluation, machine in low quality This cause leads to high repairing warranty fees

- Promotion program is issued by subjective ideas of EVNTelecom They do not based on market survey result, not analysis capacity of other suppliers and not evaluate after promotion programs to get experience for the next programs, not give promotion policies after selling

2.2.2.6 On the results of general activities:

Company has maintained business operations effectively and immediately with interest in the most difficult conditions

The average price for electricity each year are exceeding planned targets and strive to achieve the target delivery EVN in 2006 by 13 VND / kWh compared to the plan, in 2007 increased 9.2 e / kWh compared to the plan, 2008 12d/kWh increase compared to the plan, higher average selling price of the entire corporation

on 200 per kWh, electricity sales of the company's strong growth over the years and accounts for nearly ¼ of all electricity sales corporation

In 2006-2008 the company will exceed the target profit corporation plans to transport 11%: 2006 pre-tax profit of the company was 190.9 billion - profit rate on capital is 10% in 2007 profit 133 billion - profit rate is 7%, 2008, in the context of general economic difficulties at home and abroad, commercial output growth lowest

in years, but the company still has interest is 96 billion - profit rate is 5% Simultaneously, the company also completed the obligation to pay the state budget

in accordance with the provisions of the tax amount paid in three years is 473 billion, VAT is 244.3 billion, corporate income tax is 132,4 billion

2.2.3 Total assets, total capital and the value of State capital at July 1, 2009

financial report:

Where:

Include:

Capital and the value the State capital in enterprises:

Materials, equipment stagnant, poor, sacrificing quality: 21,740 million VND

Where:

- Materials and equipment poor, sacrificing quality: 17,534 million VND

Excess assets, the lack of inventory:

Fixed assets not to be used wait for liquidation:

Where:

Public debt receivable, payable:

Include:

Fixed assets formed from the welfare fund:

Have:

2.2.4 Labor at the plan to set up HCMPC (July 1, 2009):

- On the university: 28 people

- University: 1597 people

- College, intermediate: 703 People

- The different levels: the 5064

* Classification according to level:

* Distribution by gender: