GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT THE DEVELOPMENT STRATEGY OF POWER COMPANY No.2 UP TO 2015 AND ORIENTATION TO 2020 Group No: Student’s name: NGUYEN THANH DUY TRAN HUU MINH NGUYEN ĐAC THANG THAI PHONG LINH Class: GeMBA01.E04 HO CHI MINH CITY – 2010 ACKNOWLEDGEMENTS We would like to assure that this Capstone Project Report is the study of our own group Contents and results of research in the capstone project report are honest and they have never been published by scientific projects of other authors AUTHORS NGUYEN THANH DUY TRAN HUU MINH NGUYEN DAC THANG THAI PHONG LINH ========================================== ii TABLE OF CONTENTS Template cover i Acknowledgements ii Table of contents iii List of symbols, abbreviations vii List of appendices viii List of figures, graphs ix List of tables xi Preface INTRODUCTION General context, the necessity and significance of topics 2 The research objectives The research methodology Structures CHAPTER I: THEORY AND KNOWLEDGE REVIEW STRATEGIC MANAGEMENT PROCESS OVERVIEW 1.1 Strategic management 7 1.1.1 Concepts 1.1.2 Requirements of planning and implementing strategies 1.1.3 The role of strategic management 1.1.4 Stages of strategic management 10 1.1.5 Levels of strategic management 11 1.1.6 Mission and objectives definition 11 1.2 The research methodology and strategic tools 16 1.2.1 Macro and micro environment analysis 17 1.2.1.1 Macro Environment 17 1.2.1.2 Micro Environment 20 1.2.2 Internal Environment analysis 23 1.2.2.1 Value chain analysis 23 iii 1.2.2.2 Analyzing factors out of value chain 1.2.3 The strategic tools 24 26 1.2.3.1 External Factor Evaluation Matrix – (EFE Matrix) 26 1.2.3.2 Internal Factor Evaluation matrix – (IFE Matrix) 27 1.2.3.3 Internal- External Matrix (IE Matrix) 28 1.2.3.4 SWOTT Matrix combined for planning strategies 29 1.2.3.5 The Quantitative Strategic Planning Matrix (QSPM) 30 CHAPTER II: PC2’S CURRENT SITUATION ANALYSISTHE EXTERNAL AND INTERNAL ENVIRONMENTAL ANALYSIS - SWOT MATRIX ANALYSIS 2.1 Overall introduction of EVN 34 34 2.1.1 Functions and responsibilities 34 2.1.2 Structure of EVN’s Organization 34 2.1.3 Relationship between EVN with Power Companies 35 2.2 Introduction of Power Company No 2.2.1 History of formation and development 38 38 2.2.1.1 History of formation 38 2.2.1.2 History of development 39 2.2.2 Functions and responsibilities 39 2.2.2.1 Functions 39 2.2.2.2 Responsibilities 40 2.2.3 Organization Structure 41 2.2.3.1 PC2’s organization Chart 41 2.2.3.2 Production technology process 44 2.2.4 Analyzing the results of PC2’s production and business operations in latest years 45 2.2.4.1 Analyzing PC2’s scale and present condition 45 2.2.4.2 Analyzing the results of PC2’s production and core business operations in latest years 46 iv 2.2.4.3 Analyzing Public Telecom services- non-core business line 49 2.2.4.4 Comparing some key factors between PC2 and PC1, PC3 53 2.3 External and Internal environmental analysis 2.3.1 External environment analysis 53 53 2.3.1.1 Macro Environment 53 2.3.1.2 Micro Environment 58 2.3.2 Internal Environmental analysis 61 2.3.2.1 Value chain analysis 61 2.3.2.2 Analyzing factors out of the value chain 75 2.4 EFE Matrix- IFE Matrix- IE Matrix 2.4.1 EFE Matrix 80 80 2.4.1.1 Opportunities 80 2.4.1.2 Threats 81 2.4.1.2 EFE Matrix 82 2.4.2 IFE Matrix 78 2.4.2.1 Strengths 78 2.4.2.2 Weaknesses 78 2.4.2.2 IFE Matrix 79 2.4.3 Internal- External Matrix ( IE Matrix ) 83 CHAPTER III: BUILDING THE STRATEGIES AND SOLUTIONS FOR PC2 - RECOMMENDATIONS AND CONCLUSIONS 86 3.1 Orientation of Vietnam government about the development of electricity sector to 2020, vision to 2050 86 3.2 The development strategy of EVN 86 3.3 The Electric Planning VI of Government 88 3.4 Forecasting and some point of views on restructuring of EVN 89 3.4.1 Forecasting work in the period 2010- 2015 and orientation to 2020 89 3.4.1.1 Forecasting sales electricity 89 3.4.1.2 Forecasting revenue and average selling price 92 v 3.4.1.3 Forecasting electricity losses 94 3.4.1.4 Limitations of the forecast methods using statistical tools 96 3.4.2 Some point of views on restructuring of EVN 3.5 Vision, mission, objectives and strategic plans 97 103 3.5.1 Vision 103 3.5.2 Mission 104 3.5.3 Objectives 105 3.5.4 SWOT matrix combined to formulate strategies 106 3.5.5 The strategic alternatives 108 3.6 Selection of strategies for PC2 109 3.6.1 QSPM Matrix 109 3.6.2 The corporate level strategies 117 3.6.3 The functional level strategies 117 3.7 Solutions to implement the strategies 117 3.7.1 Solutions to implement the corporate level strategies 117 3.7.2 Solutions to implement the functional level strategies 120 3.7.3 Planning implement and investment capacity the strategies of PC2 128 RECOMMENDATIONS AND CONCLUSIONS 130 Recommadations 130 Conclusions 130 REFERENCES and APPENDICES 133 =========================================================== vi LIST OF SYMBOLS, ABBREVIATIONS - ADB: Asian Development Bank - AFD: Agence Franỗaise de Dộveloppement - APEC: Ascia-Pacific Economic Cooperation - ATM: Automated Teller Machine (cash machine) - ASEAN: The Association of Southeast Asian Nations - CMIS: Customer Management Information System - IT: Information and Technology - EVN: Electricity of Vietnam - FDI: Foreign Direct Investment - FMIS: Financial Management Information System - GDP: Gross Domestic Product - GENCO: Generation Company - GNP: Gross National Product - JBIC: Japan Bank for International Cooperation - JICA Japan International Cooperation Agency - LAN: Local Area Network - ODA: Official Development Assistance - PC2: Power Company number - ROA: Return on Assets - ROE: Return on Equity - SADA: Supervisory Control and Data Acquisition - SMS: Short Message Service - SRPC: South Regional Power Company - SWOT: Strengths- Weaknesses- Opportunities- Threats - VND: Vietnam Dong (Vietnamese currency) - WAN: Wide Area Network - WB: The World Bank - WTO: The World Trade Organization vii LIST OF APPENDICES Appendix list Appendix 01: Appendix’s Name Page Calculation of PC2’s financial ratios in 2006-2007-2008 Appendix 02: 135 Capital contribution of PC2 to the join stock 137 Corporations Appendix 03: Electricity supply situation of PC2’s provinces/city 138 in 2008 Appendix 04: Vote for the expert’s opinions 139 =========================================================== viii LIST OF FIGURES AND GRAPHS Figures list Figure’s name Page Figure 1.1 SWOT general model 16 Figure 1.2 Model competitive pressures 20 Figure 1.3 The structure of IE matrix 28 Figure 1.4 Model SWOT Matrix combined to formulate strategy Figure 2.1 Map of EVN’s geographical management 34 Figure 2.2 Organizational chart of EVN 37 Figure 2.3 Head office of Power Company No.2 38 Figure 2.4 Map of PC2’s geographical management 39 Figure 2.5 Organizational chart of PC2 44 Figure 2.6 Line Chart of the distribution grid growth of PC2 in the period 2000-2009 Figure 2.7 30 63 Line Chart of the 110kV grid growth of PC2 in the period 2000-2009 63 Figure 2.8 Line Chart of the 110kV grid fault performance 64 Figure 2.9 Line Chart of the distribution grid fault performance 64 Figure 2.10 Pie Chart of the labor structure of PC2 in 2009 66 Figure 2.11 PC2’s monthly meeting via video conferencing system 68 Figure 2.12 Column chart of PC2’s Customers in the period 2000-2009 69 Figure 2.13 Column Chart of PC2’s sales electricity in the period 2000-2009 Figure 2.14 Pie Chart of PC2’s Sales Electricity in 2009 71 72 Figure 2.15 Column Chart of PC2’s Sales Electricity in the period 2000- 2009 73 Figure 2.16 Line Chart of PC2’s electricity losses in the period 2000-2009 Figure 2.17 IE Matrix of PC2 74 85 ix Figure 3.1 Line Chart of the sales electricity of PC2 in the period 1998-2009 and trend equation on chart Figure 3.2 Chart of PC2’s sales electricity forecast in the period 2010-2020 Figure 3.3 93 Line Chart of PC2’s electricity losses in the period 2000-2009 and trend equation on chart Figure 3.6 92 Chart of PC2’s revenue forecast in the period 2010- 2020 Figure 3.5 90 Line Chart of the revenue of PC2 in the period 2000-2008 and trend equation on chart Figure 3.4 90 95 Chart of the electricity losses forecast of PC2 in the period 2010-2020 Figure 3.7 95 SWOT Matrix combined to building strategies 107 ========================================================== x - To organize periodic checks of all source meters, interconnection meters, to co-ordinate with software setting work of electronic meters in order to update management files To monitor regularly interconnection meters and to check more often the customer meter with large consumption and abnormal variation - To complete the AMR project and customer management via AMR system - To utilize the public substation efficiency in CMIS program in order to define power losses on low voltage networks and perform efficient handling solutions - To propagandize and encourage the implementation of electricity loss reduction for employees and to co-ordinate with local authorities to propagandize for inhabitants - To co-ordinate with local authorities to strengthen management works and to handle the cheat among customers 3.7.3 Planning implement and investment capacity the strategies of PC2 3.7.3.1 Synthesis of the goals through the years and expected plans for capital investment to implement the strategy are summarized in (table 3.13) Table 3.13: Planning investment capacity to implement the strategies from 2010 to 2020 ( Source: We calculated ourself) 2000 Sale Electricity (Million kWh) 4,224 2001 5,006 644.95 3,229 11.34% 2002 6,148 677.90 4,168 10.37% 2003 7,398 757.59 5,604 9.63% 2004 8,820 764.91 6,746 9.10% 2005 10,430 763.87 7,967 8.23% 2006 12,313 773.46 9,524 8.10% 0.65 633,000 2007 14,714 829.35 12,203 7.90% 2.37 856,000 2008 16,979 837.12 14,214 7.27% 1.05 773,000 2009 883.89 18,247 7.09% 4.00 1,100,000 2010 19,534 24,214 915.93 22,624 7.04% 5.00 1,350,000 2011 28,771 949.12 27,919 6.83% 6.00 1,570,000 2012 34,184 983.52 34,453 6.64% 7.00 2,200,000 2013 40,616 1019.16 42,517 6.47% 7.50 2,550,000 2014 48,258 1056.10 52,468 6.30% 8.00 3,000,000 2015 57,338 1094.37 64,749 6.15% 9.00 3,237,000 2016 68,126 1134.03 79,903 6.01% 10.00 4,500,000 2017 80,945 1175.13 98,605 5.87% 11.00 5,800,000 Year Average selling price (VND/kWh) Revenue (Billion VND) Electricity Loss (%) 642.09 2,712 ROA (%) Investment Capacity (Million VND) 12.31% - 128 - 2018 96,175 1217.72 121,683 5.74% 12.00 7,000,000 2019 114,270 1261.85 150,163 5.62% 13.00 9,000,000 2020 135,771 1307.58 185,308 5.50% 14.00 10,500,000 3.7.3.2 Planning implementation strategies of PC2 Table 3.14: Roadmap implementation strategies of PC2 Source: We established ourself Strategies Market development strategy Market Penetration strategy Product development strategy Backward integration strategy Financial strategy Marketing strategy Human resource strategy Rural electrification strategy Grid Automation strategy IT development strategy Electricity losses reduction strategy 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 10 11 10 11 5 6 10 11 1 6 4 5 Note: - White Cells mean the time strategic feasibility study - Numbered Green cells are the time to implement the strategies - Blue cells mean the strategies go on stable - 129 - RECOMMENDATIONS AND CONCLUSIONS RECOMMENDATIONS We would like to recommend to the government: - Should have the policy and strategic long-term energy - Should have some mechanism for corporations groups with high characteristics such as Petro Vietnam, Vietnam Post and Telecommunications, Electricity of Vietnam - Should have the mechanisms, policies, macro-management regime consistent, longterm and stable - Should have early the mechanism to separate between public services with the business of electricity sector We would like to recommend to Electricity of Viet Nam: - Should have the capital plans to ensure appropriate development generation and power grid to meet the demand of customers and economic development in the future - Should have the direct measures to ensure progress of the Viet Nam electricity development phase - Should enhance and consolidate the command, coordination units of EVN, stable organizational structure for the Power Corporations - Should have the plans and measures to enhance the independence and autonomy of the distribution companies We would like to recommend to Power Company No.2: - Based on the strategies were selected and based on the measures set out, step by step building plans, short-term goals, medium and long-term goals - Should find opportunities of support of the governing body in all aspects, especially the capital - Should have quickly the resolution of the electricity needs of customers - Modernization of management - To study the overall planning in the power grid management companies rearrangement substations and transmission, distribution lines for property CONCLUSIONS During the renovation and economic way of international economic integration of - 130 - the State, the electricity sector is one industry of the country to spearhead innovation and a step ahead to provide the basis for the development of country economy Moreover, electricity market gradually formed and the electricity sector will actually operate in a competitive environment, so building the development strategies for PC2 and solutions will improve competitiveness, rapid growth, strength firm to prepare for the electricity market integration and international economic effect The capstone project researched to build the solutions for the development strategy of PC2 up to 2015 orientation to 2020 In the methods of scientific research, the capstone project goes on to study and analyzes the situation of production and business activities of PC2 to build the development strategies for PC2 The capstone project has brought the following contributions: Where we are now Researching, analyzing the external environment, in order to indicate the strengths, weaknesses, opportunities and threats These might affect the construction of PC2 strategy Analyzing and evaluating the activities of PC2 in the latest years Where we want to be Using statistical methods on the data string forecast the trend functions for the important goals of PC2, such as sales electricity, revenue, electricity loss in the period 2010-2020 Researching orientations of the Government for the electricity sector’s development strategy to 2015 and orientation to 2025 to build the vision, mission and objectives of PC2 and to determine strategies for PC2 How to get there The capstone project sets out the development strategies plans, builds and selects the strategies for PC2, including: The corporate level strategies: i The market development Strategy ii The penetrate and expand international market Strategy iii The product development Strategy iv The strategic links, diversified industries, backward integration - 131 - The function level strategies i The financial Strategy, ii The marketing Strategy iii The Human resources strategy iv The business and rural electrification development strategy v The Automation network strategy vi The Information technology strategy vii The Reduce electricity loss strategy Building Specific steps for PC2 to get there PC2 should to achieve the goals The capstone project has also made the solutions, action plans for each strategy With major contributions above, the capstone project has additional systems and facilities for scientific and practical strategies simultaneously into practical applications for PC2 to integrate the market economy in the future However, due to limited time and scope of research, the capstone project has not studied of the electric sector of other countries and extensive to apply to the Vietnam electricity sector Contents and solutions for PC2 strategies also provide principles and orientation The strategies should be implemented into the specific plans for long-term, medium term and short-term / - 132 - REFERENCES and APPENDICES Vietnamese books Chiến lược sách kinh doanh - PGS.TS Nuyễn thị Liên Diệp , Th.s Phạm văn Nam - NXB Thống kê Dương Ngọc Dũng (2008), Chiến lược cạnh tranh theo lý thuyết Micheal E Porter, Nhà xuất tổng hợp TP.Hồ Chí Minh Đào Huân (1996) Chiến lược kinh doanh doanh nghiệp kinh tế thị trường – PTS – NXB Giáo dục Đào Duy Huân (2006), Quản trị học tồn cầu hố, Nhà xuất Thống kê, trang 78-108 Đào Duy Huân (2007), Quản trị chiến lược tồn cầu hố, Nhà xuất Thống kê Nguyễn Đình Thọ (2008), Nghiên cứu cho luận văn tốt nghiệp ngành quản trị kinh doanh – Thực trạng giải pháp, Nhà xuất Văn hóa – Thơng tin Nguyễn Hữu Lam- Đinh thái Hồng- Phạm Xuan Lan-1998- Quản trị chiến lược phát triển lợi cạnh tranh-NXB Gíao Dục Nguyễn Ngọc Thơ (2007), Tài doanh nghiệp đại, Nhà xuất Thống kê, trang 9, 119-143 Nguyễn Tấn Phước (1996) Chiến lược sách kinh doanh –– NXB Thống kê 10 Nguyễn Thị Liên Diệp & Phạm Văn Nam (2006), Chiến lược & sách kinh doanh, Nhà xuất lao động – xã hội, TP Hồ Chí Minh 11 Nguyễn Thanh Hội (2005), Quản trị nhân sự, Nhà xuất Thống kê 12 Nguyễn Quốc Tuấn (2006), Quản trị nguồn nhân lực, Nhà xuất Thống kê 13 Trần Kim Dung (1998), Quản trị nguồn nhân lực, Nhà xuất giáo dục 14 Thùy Trang (2007), “Môi trường kinh doanh; Việt Nam nhìn từ 10 tiêu chí”, Tạp chí VnEconomy - 133 - 15 Trần văn Chánh , Ngô Quang Huân –Quản trị tài doanh nghiệp –NXB Đại học Quốc gia TP Hồ Chí Minh 16 Võ Thanh Thu, Nguyễn Thị Mỵ - 1997- Kinh tế phân tích hoạt động doanh nghiệp –- NXB Thống kê 17 Niên giám Thống kê 1995-2000 Công ty Điện lực Vietnamese translated books 18 Business Strategy and Policy (Sách dịch sang tiếng Việt có tên: Chiến lược & sách lược kinh doanh - Nhà XB Tp.HCM) 3rd edition, Gary Smith, Danny R Arnold Bobby Bizzel 19 Concepts of Strategic Management ( Sách dịch sang tiếng Việt có tên Khái luận Quản trị chiến Lược - Nhà XB Thống kê) 5th edition, Fred R David (Englewood Cliff, NJ: Prentice Hall), 1995 20 Chiến lược cạnh tranh Michael E Porter - Nhà xuất Khoa học kỹ thuật Hà Nội 1996.) 21 Chiến lược quản lý kinh doanh Philippe Lasserre Joseph Putti- Nhà xuất trị quốc gia- Hà Nội 1996.) English books Industries and Competitors”, The Free Press Michael E.Porter (1980), “Competative Strategy – Techniques for Analyzing 3.The Institute for Strategy and Competitiveness, http://www.isc.hbs.edu/ 4.QuickMBA Strategic Management, http://www.quickmba.com/ SAS Group (2006), “SAS Group Facts”, http://www.sasgroup.net; Zikmund, W.G (1997), “Business research methods”, 5th ed, Dryden Press, - 134 - Appendix 1: Calculation of PC2’s financial ratios in 2006-2007-2008: ( Source: We calculated ourself) 1- Liquidity Ratios 1.1 Curent ratio (time) = Curent assets/curent liabilites 2006 : 3098/4288 = 1,37 2007 : 3588/3225 = 1,11 2008 : 2945/2817 = 1,05 1.2 Quick Ratios = (Curent assets – Inventories)/curent liabilites 2006 : 1848/2262= 0,82 2007 : 2258/3225 = 0,70 2009 : 1987/2817 = 0,70 2- Assets management ratios 2.1 Sales-to-total assets ratio (times) = Net Revenue/Total Assets 2006 : 9891/9072 = 1,09 2007 : 13073/10855 = 1,20 2008 : 14923/10806 = 1,38 2.2 Sales-to-Fixed assets ratio (times) = Net Revenue/fixed assets 2006 : 9891/5974 = 1,66 2007 : 13073/7267 = 1,80 2008 : 14923/7861 =1,90 2.3 Sales-to-equity ratio (times) = Net Revenue/Equity 2006 : 9891/4784 = 2,07 2007 : 13073/5331 = 2,45 2008 : 14923/5728 = 2,61 2.4 Inventory Turnover time (days) = 365xInventories/ Cost of Goods Sold 2006 : 365/7,28 = 50,16 2007 : 365/9,01 = 40,51 2008 : 365/14,24 = 25,63 2.5 Accounts Receivable Turnover Ratio (times) = Revenue/Account Receivable 2006 : 9891/530 = 18,66 2007 : 13073/547 = 23,90 - 135 - 2008 : 14923/592 = 25,20 2.6 Accounts Receivable Turnover time (day) = 365/ Accounts Receivable Turnover Ratio (days) 2006 : 365/18,66 = 19,56 2007 : 365/23,90 = 15,27 2008 : 365/25,20 = 14,50 3- Debt Management Ratios 3.1 Debt ratios (%) = Liabilities/Equity 2006 : 4288/9072= 47,3% 2007 : 5525/10855 = 50,90% 2008 : 5077/10806 = 47% 3.2 Long-term debt to capital mobilization ratio (%) = Long-term Liabilities/ (Longterm Liabilities + Equity) 2006 : 2026/6810 = 29,75% 2007 : 2300/7631 = 30,14% 2008 : 2260/7988 = 28% 3.3 Equity to capital mobilization ratio (%) = Equity/ (Long-term Liabilities + Equity) 2006 : 4784/6810 = 70,25% 2007 : 5331/7631 = 69,86% 2008 : 5728/7988 = 71,71% 4- Profitability Ratios 4.1 EBIT to revenue ratio (%) = EBIT/Revenue 2006 : 59/9891 = 0,60 % 2007 : 257/13073 = 1,97% 2008 : 113/14923 = 0,76% 4.2 Net Profit Margin ratio (%) = Profit after tax/Revenue 2006 : 40/19891= 2,01% 2007 : 184/13073 = 1,40% 2008 : 72/14923 = 0,48% 4.3 Return on total assets ratio (ROA) = EBIT/Total Assets 2006 : 59/9072 = 0,65% 2007 : 257/10855 = 2,37% 2008 : 113/10806 = 1,05% 4.4 Return on Equity ratio (ROE) = Profit after tax/Equity 2006 : 40/4784 = 0,84 % 2007 : 184/5331 = 3,45% 2008 : 72/5728 = 1,26% - 136 - Appendix 2: Capital contribution of PC2 to the joint stock Corporations ( Source: Synthetic Department of PC2 – 2009) Charter No Company’s name Capital contribution capital commitment Southern Hydropower Joint Stock Amount VND) (million (million VND) (%) 687.000 206.000 30,0 1.200.000 150.000 12,5 835.000 242.000 29,0 115.000 44.850 39,0 450.000 20.250 4,5 Company Middle Hydropower Joint Stock Company Investment - Trade - Services Electricity JSC Electrical Equipment VI-NA-SINO JSC Investments - Business Ho Chi Minh City Power Company JSC Sesan Hydropower JSC 1.664.000 83.200 5,0 Song Ba Ha Hydropower JSC 1.280.000 64.000 5,0 Srepok Hydropower JSC 3.600.000 181.000 5,0 Vina EVN Land Saigon - Vina 1.500.000 37.500 2,5 10 International EVN JSC 2.400.000 24.000 1,0 11 Dai Viet Securities Joint Stock 250.000 18.000 7,2 Company - 137 - Appendix 3: ELECTRIC SUPPLY SITUATION OF PC2’S PROVINCES/ CITY IN 2008 ( Source: Sales Department of PC2 – 2009) Househo lds in 2008 No Households have electricity in 2008 Development rate of number of households have electricity in the period 2004-2008 Rural Provinces/ City Sum Househo lds Rate (hộ) (hộ) SUM Rural number of households Rate Sum number of household (%) (hộ) (%) (hộ) Growth Rate Number of household s (%) (hộ) (%) Growt h rate Lâm Đồng 254,453 233,464 91.75 139,703 87.48 57,178 7.28 28,050 5.76 Ninh Thuận 119,464 116,771 97.75 76,555 96.69 17,940 4.26 10,975 3.94 Bình Thuận 246,874 227,668 92.22 140,568 90.12 46,106 5.82 30,374 6.28 Bình Phước 192,599 160,320 83.24 130,686 80.31 55,103 11.10 53,189 13.9 Tây Ninh 267,379 258,612 96.72 216,335 96.54 52,457 5.83 47,245 6.35 Bình Dương 369,828 366,024 98.97 261,184 98.61 193,039 20.61 141,285 21.4 Bà Rịa - Vũng Tàu 218,144 218,121 99.99 116,475 99.98 63,141 8.92 33,861 8.97 Long An 346,770 337,594 97.35 275,746 96.82 67,891 5.77 56,321 5.88 Tiền Giang 400,454 398,382 99.48 345,697 99.41 49,199 3.35 41,210 3.22 10 Bến Tre 337,399 320,332 94.94 288,935 94.51 87,661 8.32 86,331 9.28 11 Trà Vinh 237,663 211,083 88.82 178,076 87.40 50,207 7.03 45,428 7.64 12 Vĩnh Long 235,798 231,208 98.05 195,900 97.76 19,708 2.25 13,696 1.83 13 Đồng Tháp 379,610 369,164 97.25 307,528 96.78 83,171 6.59 66,910 6.33 14 An Giang 467,455 457,136 97.79 326,070 96.93 55,551 3.29 27,214 2.20 15 Kiên Giang 340,948 306,897 90.01 224,335 87.63 55,253 5.09 47,294 6.10 16 Cần Thơ 240,096 239,507 99.75 116,184 99.62 31,028 4.73 25,883 8.76 17 Hậu Giang 164,397 143,873 87.52 117,091 85.77 13,037 3.22 9,110 2.74 18 Sóc Trăng 267,380 252,789 94.54 205,833 93.40 63,820 7.55 60,945 9.17 19 Bạc Liêu 169,344 140,759 83.12 97,819 78.79 47,931 10.97 40,878 14.4 20 Cà Mau 264,367 235,673 89.15 180,538 86.64 66,568 8.65 56,084 9.75 5,520,422 5,225,377 94.66 3,941,258 93.36 1,175,990 6.58 922,283 6.89 Total - 138 - Appendix 4: Vote for the expert’s opinions THE CAPSTONE PROJECT “THE DEVELOPMENT STRATEGY OF POWER COMPANY No UP TO 2015 AND ORIENTATION TO 2020” To collect data for the "building development strategy for PC2 to 2015 and orientation to 2020, we sent to you experts "poll vote " Hope you Mr / Ms please give us their comments objectively by checking the cross (x) the appropriate box below Completely unimportant Less Important Important More Important Very Important O1 GDP growth: 6-:-8% high and stable; O2 The political stability 5 5 O7 Cambodia Market expansion O8 EVN Purchase electricity of Laos with the cheap price O9 The orientation of the electric planning VI of Government O10 The diversity policies of the business activities O11 Accessing to advanced technologies quickly T1 High responsibility of Electricity sector (Electricity Law) T2.Customer’s requirement on high reliability and quality power supply T3 Selling Electrical Price depend on Government T4 Buying Electrical Price depend on Electricity of Vietnam 5 5 O3 Sales electricity forecast: 17% -: - 20% in the period 2010-2020 O4 Rapidly rising of the industrial parks and FDI O5 The State policies on demand stimulus, industrialization and modernization O6 Getting loans from international credit organizations: WB, ADB, ODA T5 The competition of distribution electricity in the future T6 The wholesale electricity competitive market will begin in 2015 and the retail electricity market: will begin in 2022 T7 Large gap between peak and low load - 139 - T8 Huge investment capital for the rural electrification T9 Disaster and variation of natural environmental T10 Master degree or doctor degree is inadequate to PC2 scale T11) Too much debt S1 Monopoly of electricity sector S2 Large market of 20 provinces southern Vietnam S3 Professional management level and good technical experts, good skill S4 Human resources development is interested S5 Information technology is interested S6 Company business management is concentrated accounting S7 Training technology and new techniques are often held S8 Cultural organization: civilization, work on time, modern 5 5 5 5 W7 Research and development works are not interested properly W8 Electricity losses rate haven’t been expected W9 High transportation cost due to too large business zones S9 High responsibilities of Managers and employees S10 Communist Party, Labor Union, Youth Union are actively supporting Company activities W1 Some customer is not treated as a King (God), lost the goodwill of customers W2 Some local distribution department has not achieved power efficiency and electricity losses W3 Some Distribution Department Relationship is not closely with local Government W4 Electricity quality is not stable and sometime electricity goes out W5 Lack of electrical engineers as well as weak ability staffs couldn’t meet the need for remote areas W6 Level of information technology is not uniform in the units - 140 - General results for expert’s opinions EFE Matrix Total score of 21 experts Opportunities O1 GDP growth: 6-:-8% high and stable; O2 The political stability O3 Sales electricity forecast: 17% -: - 20% in the period 2010-2020 O4 Rapidly rising of the industrial parks and FDI O5 The State policies on demand stimulus, industrialization and modernization O6 Getting loans from international credit organizations: WB, ADB, ODA O7 Cambodia Market expansion O8 EVN Purchase electricity of Laos with the cheap price O9 The orientation of the Vietnam electricity development VI stage O10 The diversity policies of the business activities O11 Accessing to advanced technologies quickly Threats T1 High responsibility of Electricity sector ( Electricity Law) T2.Customer’s requirement on high reliability and quality power supply T3 Selling Electrical Price depend on Government T4 Buying Electrical Price depend on Electricity of Vietnam T5 The competition of distribution electricity in the future T6 The wholesale electricity market competition: in 2015 and the retail electricity market: in 2022 T7 Large gap between peak and low load T8 Huge investment capital for the rural areas T9 Disaster and variation of natural environmental T10 Master degree or doctor degree is inadequate to PC2 scale T11) Too much debt mean Weight 85 80 4.05 3.81 0.050 0.047 85 4.05 0.050 91 4.33 0.054 85 4.05 0.050 70 3.33 0.041 65 50 3.10 2.38 0.038 0.029 70 3.33 0.041 60 70 2.86 3.33 0.035 0.041 85 4.05 0.050 92 4.38 0.054 90 80 85 4.29 3.81 4.05 0.053 0.047 0.050 70 3.33 0.041 82 87 75 3.90 4.14 3.57 0.048 0.051 0.044 70 3.33 0.041 70 3.33 80.81 0.041 Max score 21x5 = 105 - 141 - General results for expert’s opinions IFE Matrix Total score of 21 experts mean Weight S1 Natural monopoly of electricity sector 100 4.76 0.055 S2 Large market of 20 provinces and cities southern 100 4.76 0.055 S3 Technical quite firm; skilled professionals capable of good 100 4.76 0.055 S4 Human resources development is interested 100 4.76 0.055 S5 Information technology is interested 100 4.76 0.055 S6 Manage the Company's business accounting focus 90 4.29 0.049 S7 Training technology and new techniques are often held 90 4.29 0.049 S8 Cultural organization: civilization, work on time, modern 100 4.76 0.055 S9 The employee is ready to work out, not all are S10 Communist Party, Labor Union, Youth Union are actively supporting Company activities Weaknesses 90 4.29 0.049 90 4.29 0.049 W1 Some customer is not treated as a King (God), lost the goodwill of customers 100 4.76 0.055 W2 Some Power business has achieved power efficiency-time losses due to light ratio of customers living large electricity prices low 95 4.52 0.052 W3 Some Distribution Department Relationship not closely with local Government 95 4.52 0.052 W4 Electricity quality is not stable and sometime electricity go out 95 4.52 0.052 W5 Engineers and weak ability staffs couldn’t meet the need for remote areas 95 4.52 0.052 W6 Level of information technology (IT) is not uniform in the unit 95 4.52 0.052 W7 Research and development works are not interested properly 95 4.52 0.052 W8 High energy losses 100 4.76 0.055 W9 High transportation cost due to too large business zones 95 4.52 0.052 86.90 Strengths Max Score 21x5 = 105 - 142 - ... the capstone project ? ?THE DEVELOPMENT STRATEGY OF POWER COMPANY No UP TO 2015 AND ORIENTATION TO 2020? ?? is very practical and meaningful for management board of Power Company No.2 in order to adapt... purposes of the capstone project -2- In the above context, we propose this project ? ?The development strategy of Power Company No.2 up to 2015 and orientation to 2020? ?? This is a necessary subject and. .. development strategy for the Power Company 2; and research on prospects of restructuring direction of EVN; and analyze how EVN’s will strategy affect to the business development strategy of the