Chapter 2: ACTUAL SITUATION ANALYSIS OF DA NHIM – HAM
2.3 Internal enviroment analysis of DHD
2.3.2 Resources and potential ability analysis, identify core values
2.3.2.1 Analyzing resources and potential ability of the Company a. Visible resources
Financial resources:
Total value of assets is over 8200 billion and equity capital of 4000 billion, a company with big capital and assets. When equitization, the company has self financing and the right to use idle capital to invest.
Liabilities are long-term loans by JBIC ODA with low interest rates.
Facilities resource:
The company has four hydroelectric power plants, spread over three geographical areas of Ninh Thuan, Binh Thuan, Lam Dong, specialized machinery and equipment have great values, working facilities are fully equipped, comfortable.
Four hydroelectric plants on two different river basins, can support each other to avoid the risks in production.
With a capacity of 642.5 MW and electricity production of 2.6 billion kWh annually, Da Nhim-Ham Thuan-Da Mi hydroelectric company contribution 4.1%
to total power consumption output of the country. The volume of the hydro power company is ranked at No. 3 on the scale of the capacity after Hoa Binh hydropower and Ialy hydropower. With the 3rd scale, the Company constitute an important role in providing electricity for the country, moreover, the prices is cheapper compared to new power, so this is a valuable resource of EVN.
Characteristics of Vietnam's power sector are hydropower accounts for a large
capacity in the rainy season and shortage in the dry season. Two-cluster plants Da Nhim-Song Pha and Ham Thuan-Da Mi have different basins and also different in the rainy season can create a big advantage for companies involved in electricity bidding to ensure offering product at registered capacity.
Resources of organizational structure and management system
Company applied the 9001-2000 quality management system in operation since 2007 and always improve continuously. In this situation, when expansing to other business objectives, company need improve and improve the management system further.
After equitization, company reorganized structure to fit the business strategy in the new period. The company has oriented and prepared the conditions for equitization as the scheme has been approved for EVN
The company has 5 rooms, 2 blending house and 1 technical service center. Parts are held tightly, regulate the functions and responsibilities clearly (structure of organizing as attached annex)
The company reorganized the structuer by combining the repair and maintenance room and projects room into Da Nhim repair service center. This model aims to promote the strength and support each other in their work, what for repairing and maintaining four factories of the company and provides repair services for small hydroelectric companies. This is a new model to concentrate the repair and maintenance forces of four plants, creating conditions for employees to learn experiences from each other and have conditions to work with the different technology.
Management system according to functions and cross-coordination between units, the company established Da Nhim repair service center to take repair, maintenance duties for the Company and provide technical services for the power plants in the region. Structing company towards a dynamic and flexible manner.
b. Intangible resources Personnel resource:
The company has a young workforce, dynamic and full of intellectual enthusiasm with a total of 321 people with full of professional field such as Electric, construction, marine work, engineering, telecommunications, topography, irrigation, geology, hydrologic, economics, financial accounting, law and computer science trained at the domestic and international University. Some staff participated in various short-term training courses at advanced countries in the world such as America, France, Japan, China, Australia, Singapore, Thailand and Italy have been certified.
To facilitate communication and working skills with foreign experts, the company has organized the English training courses for personnel/employees in the international arena better working. Many personnel/employees have been trained at advanced professional classes: Consultant supervision, work execution; Fostering bidding skills, Project management in construction of works; completion and payment and settlement of works and the company continues to facilitate the staff taking into specialized training course every year to meet and catch advanced equipment technology, always control the situation.
Table 2.6 Structure of qualification in the company
STT Qualification Number (people) Percentage
(%)
1. University or upper 101 31.5
2. Colleges 6 1.9
3. Intermediate 84 26.2
4. Technical workers 89 27.8
5. Unskilled worker 40 12.6
Total 320 100
The company has a young and assertive leadership, highly professional and prestigious in the electricity sector. Well-organized management system of the
company plays an important role for improving the quality of electricity supply to customers.
Reputation of the company
Da Nhim-Ham Thuan-Da Mi Hydropower Company, which has original is Da Nhim hydroelectric plant, is the first factory and the first birthplace of the south hydroelectric power plants, the plant their operation over 40 years. Many technicians have grown from Nhim and successed in other Southern hydroelectric power plants such as Tri An, Thac Mo, Dai Ninh, Srepok...
Personnel/employees of Da Nhim hydroelectric plant have takeovered Ham Thuan- Da Mi hydroelectric plant nearly 10 years. Through managing three large factories stably in the region personnel/employees in the company has accumulated many valuable experiences. A number of small hydroelectric plants in the region was reliable, and signed with the company to perform the works as: set up equipment bidding documents, equipment installation and construction supervision, equipment installation, supply training services in operation, repair and maintainance.
The company always ensures the quality of product and service to customers, the success of the company has confirmed the company's reputation in the Central Highlands.
2.3.2.2 Identifying the core values which created competitive advantage for company
The company identified the core capabilities by four criteria: excellent value, rare, hard to imitate and not easy to replace.
The most important resources are facilities and geographic location of the company;
four plants operate highly effectively as a very precious resource. Because the resources is limited and investment must in priority order so the old hydroelectric plant often be built at convenient locations and get more efficient. Not any competitor has the similar excellent value resource. The company determined that that is the first core competence of the company.
The second resource is also important, human resources, the company locates in a remote place, and it is not easy to build a certain powerful force. While a number of works are under construction, expanding the job opportunities for young force with high qualification. So the company takes care for personnel/employees very well, have preferential policy for people with high technical level. The company builds the plan to open short-term training classes, seminar to supplement knowledge in accordance with the development strategy of the company in each period. This is the 2nd core capability of the company.
The 3rd core capability that is financial resources of the company: doing business with Join stocks company model has created opportunities for companies to be self- control in finance, actively use capital to invest. That is an opportunity for the company to develop additional services related to the electricity sector and investment in clean energy is wind power.
The company identified that their three core capabilities are its sustainable competitive advantages. Company builds their business strategy based on these core competences. This will ensure the business strategy of the company is executed successfully.