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

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
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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
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 Page 5

LIST OF FIGURES
Figure 1-1: process planning business strategies 16
Figure 1-2: Environmental activities of enterprises 17

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.
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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

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
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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:

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:
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- 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:

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
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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

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.
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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
market:

In business operation, each unit occupies different positions in the market, so
each unit has its own strategic that fits its position.
Strategy for the business unit leading the market: In every business has a
business unit which is considered to be leading the market, this unit has the largest
market share and leading competitors. To maintain this leading position, the unit
must have its own strategy:
+ 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

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.
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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,

To analyze the weaknesses we gather all the elements are disadvantages of the
business, analysis, comparison with competitors and assessing the adverse impact
to the business processes of each business factors, and indicate any factors that
negatively impact most businesses need to overcome concerns immediately, factors
which need to overcome.
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:
- Manpower and Organization: Include factors such as quality of human
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
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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

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,
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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
contents:
- Identify and select opportunities that can help companies achieve business
objectives set forth.
- Select target market of the enterprise. It helps businesses take full the best
opportunism.
- 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

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
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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 External factors

Essential
Level


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 Internal factors

Essential
Level

Sort

Importance score
List the internal
environmental
factors:
Total:
1,00
1.4.3. SWOT matrix
SWOT matrix is a tool that brings together the components of the internal and
external factors of the enterprise and associated factors into business strategy as
follows:

The strengths of the
business
S - O : Promoting
strengths to take advantage of
opportunities
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