Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (291)

INTRODUCTION 1.1 Thesis title: Developing business strategies for Vinh Son – Song Hinh Hydropower Joint stock company 1.2 Rationale In the recent years, besides new advantages and opportunities, businesses of all economic sectors have had encountered many challenges and difficulties, i.e an unstable economic growth rate, an unpredictable market, a restricted market of a number of export goods and services, and especially the global economic recession, etc Meanwhile, competitions in the global, regional and sectoral markets have become fiercer due to the expansion of the international and regional integration and Vietnam’s gaining the150th membership of the World Trade Organization (WTO) During our study at the joint program between the National University and the US Griggs University, we approached modern theories and practical knowledge of business administration around the world Besides, we have been working in the electricity businesses as managers and figured out several existing problems of the sector: the management style has been much influenced by the subsidy system; business administration capacity is poor; goals and contents of the business plans not meet the demand of the current market, which has a significant effect on the survival and development of the business and poses great difficulties in expanding the market shares Therefore, with the knowledge gained, we are aware of our responsibility for developing business strategies so that the relevant enterprises can refer to them Then, the long-term and effective business strategies will be worked out Specifically, we would like to develop business strategies for the Vinh Son – Song Hinh Hydro-power Joint-stock Company in the period of 2010-2015 and the following years with a view to identifying targets or solutions for the company to make the best of advantages and opportunities, and to restrict or address the challenges to survive and develop Those are all the reasons why we came to this thesis 1/83 1.3 - Objectives of the study: Study and systemize theories of business strategy development, raise the awareness of the company about the important and decisive role of the business strategies in its survival and development Develop the optimal selection procedures of business strategies, helping the company to choose the most suitable ones - Use the system of theoretical backgrounds and models for analysis, assess the internal and external environments; then develop business strategies for the company 1.4 Make recommendations on the development strategies of the company Scopes of study The Vinh Son – Song Hinh Hydro-power Joint-stock Company whose shares mostly belong to the state performs in the hydro-electricity field This company was equitized on the basis of the two hydro-power stations Vinh Son and Song Hinh which were built by the EVN This study is mainly focused on the business strategies due to limited time and conditions 1.5 Methodology: - Qualitative measures: expert and individual interviews - Data collection and analysis: Conduct direct interviews with experts Use statistics, specialized information or data Gather data from current and previous plans/reports and the Internet 1.6 Significance of the study: In the market economy of fierce competitions, if the company wishes to gain success, it should formulate its own development strategies to figure out, foresee trends in the market to identify keys to success Then it can make best use of its strengths and be well-aware of its weaknesses It is to understand rivals, customers’ desires, know how to approach the market Accordingly, the company can make creative decisions on 2/83 whether to downsize production or reconsider performances at a certain time and market segment 1.7 Anticipated outcome of the study: Although some limitations as mentioned above exist, the content of the study is closely related to the reality of production and business performances in the Vinh Son - Song Hinh Hydro-Power Joint-stock Company It is believed that a realistic and scientific analysis of the key matters prescribed in the thesis will have a certain effect on the fundamental functions of the company during the renewal and global economic integration process in Vietnam 1.8 Organization of the study: The study includes the Introduction and three chapters The Introduction Chapter I: Theoretical background for developing business strategies for businesses in the market mechanism Chapter II: The current business situation of the Vinh Son - Song Hinh Hydro-power Joint-stock Company Chapter III: Business strategy, conclusion and recommendations References Appendixes 3/83 SUMMARY OF CHAPTER I The contents of this chapter will conduct some theoretical study to provide bases of business competitiveness, strategies of choices and process of strategy formulation This process is composed of the analysis, evaluation of external and internal business environment; the determination of strategy objectives, the establishment of strategic plans and the analysis of the most appropriate plan The applied models are: model PEST (the analysis of macro environment), Five-force model by Michael Porter (the analysis of competitive environment), “value chain” model (the analysis of internal business environment) and model SWOT (general results of strategic analysis to choose the optimal strategy) 4/83 CHAPTER I THE THEORETICAL BASIS OF BUSINESS STRATEGY IN THE MARKET MECHANISM 1.1 Concepts, requirements and contents of business strategic stages 1.1.1 Concept: Historically, the term “strategy”, which means the long-term plans, is used in the military context The strategy was established on the basis of the forecast of what the opponents can or cannot to win a victory Since the mid-century XX, the term “strategy” has been commonly used in the field of the macro- as well as micro-economy to build the long-term, comprehensive, basic development plans or the main orientation of the industry, sector or territory Today, the strategy is commonly used and considered as a factor to increase the possibility of success and to minimize failure of the enterprise There currently exist a lot of different concepts of business strategy of which the following are the most popular concepts According to Lajred Chandler, the strategies include the fundamental and long-term business objectives, simultaneously, choosing the methods and process of action, the allocation of necessary resources to implement those objectives (Charles, Hill and Gareth, Jones 1995 “Strategic management”, Washington, page 21) Business strategy is also seen as a collection of long-term goals, policies and solutions of business production, of finance and human factor to qualitatively promote business 5/83 activities to a higher level (Charles, Hill and Gareth, Jones 1995 “Strategic management”, Washington, page 23) Through above concepts, we have a general concept of strategy or business strategy as follows: Business strategy of the enterprise is the optimal choice of coordinating measures (using the strengths of the enterprise) with opportunities and challenges, with business production operations and market analysis in the business environment, resources capacity to achieve the basic, long-term and appropriate goals in accordance with the orientation of business development 1.1.2 Requirements of business strategies: In the fiercely competitive economy, a successful enterprise must have the optimal strategy which must be: - oriented and opened Accordingly, the changes of business environment need to be monitored and forecasted regularly to adjust timely the implementation of strategies or to adjust the strategic goals accordingly in order to help the enterprise promote its competitive advantages, develop its market share and strengthen more business power - centralized in decision making which enable the Board of Directors or even the head of the enterprise has a right to decide the important problems of the enterprise - built on the basis of competitive advantages over the competitors The strategy should allow the enterprises to actively take advantage of the opportunities, strengths to limit risks and weaknesses to a minimum It should also created favorable conditions for stable, long-term business production and continuous development 6/83 Thus, business strategy plays an important role in the development of the enterprise It is a basis for building plans of short-term business production, research and development, training and retraining of human resources Business strategy also creates an enterprise basis for the development of the enterprise as oriented in accordance with the fluctuation of market and production conditions, appropriate for its business strengths 1.1.3 Steps to develop business strategy Strategic management is the process of research and forecasting business environment as well as internal organization, establishing objectives, making decisions, coordinating the functional activities of the enterprises to carry out and inspect the implementation of the decisions to achieve the goals in the present and future (Charles, Hill and Gareth, Jones 1995 “Strategic management”, Washington, page 24) * The strategic activities of the enterprise In the process of building business strategy, firstly we must conduct appropriate activities of the enterprise to cope with the fluctuation of the market, with the competitors; then identify the targets of the enterprise in each stage of the development The establishment of these activities is the indispensable element in the process of the existence and development of the enterprise, especially our country’s economy is in the process of open international economic integration, so it is very important Those activities are described in the following diagram: 7/83 Figure 1.1 The strategic activities of the enterprise Increase sales, expand and develop market, decrease price, improve models, improve product quality Penetrate into new business areas to diversify sources of benefit Enhance the competitiven e-ss and overcome weak points of the enterprise The activities of the enterprise to achieve strategic objectives Penetrate into new market, develop new products and withdraw from the market Cope with market changes and external factors thị Orient research management, product development, sales Strategical ly cooperate with partners Merge with rival enterprises to create competitive strength Maintain fields threatened by competitors * Principles of strategic options for the enterprise - Resources of the enterprise (finance, human resources, technology…) - Diversification of products - Product lifecycle 8/83 - Strategies for competitors - Market demands * Process of building strategies To build the feasible strategy for the enterprise, we must identify competitive advantages, strong and weak points of the enterprise Competitive advantage is a key factor to analyze the situation and build the strategy Competitive advantage is the possibility of strategic vision of business leaders, leading capacity, finance capacity, human resources, product research and development, production line and technology, system of sales network, the relationship with partners, and the adaptability to environmental changes etc Process of building strategies is implemented through the following steps: Figure 1.2 Process of building strategies for the enterprise Vision of mission Analyze external environment - Opportunity - Challenge - Identify objectives - Build strategies - Select strategies Analyze internal environment - Strong points - Weak points When building business strategies, depending on the situation of business production, the enterprises can flexibly adopt different steps of building strategies The targets can be first identified, and then environmental analysis; or environmental analysis before 9/83 making targets; or environmental analysis and strategic objectives can be carried out simultaneously Depending on the perspective, we can use models of different strategies * The construction and selection of strategies Targets of the construction and selection of strategies are the establishment of longterm objectives and replacement strategies, a few of which is selected to pursue The construction and selection of strategies help the enterprises achieve its mission as well as objectives which it set forth On the basis of current business strategy, target and mission are combined with external and internal environmental analysis to evaluate and generate support strategies The enterprises cannot choose each alternative strategy in turn because it takes much time and is not efficient Therefore, they need to select a set of strategies supposed as the most optimal to develop It should also carefully consider advantages, disadvantages, costs and benefits which can be brought from this strategy; simultaneously, to master methods and ways of usage, especially the use of models to choose business strategy appropriate for business activities such as: the analysis of strategy in the matrix SWOT External environment Analysis of environment O - Opportunity 10/83 T – Risk / Challenge financial capacity in in order to lower the initiatives, improve departments is not even product cost technology to reduce costs, Force skilled workers reduce the consumption are limited loss, lower product price Equipments need to have big repair and maintenance Financial ability of the company is not active, has to rely heavily on loans Policies on marketing and market development are not strong * Selecting strategy - By using quantitative methods and experts: Through analysis of opportunities, threats, strengths and weaknesses of VSH in the present period and based on strategic goals of the company during the period of 2010 -2015; after consulting with experts in the industry, with management agencies in some departments sectors and board of management of the company, the authors selected the qualitative method for strategies follows: SO 1, SO - 2, ST - 1, ST - and WO -1 to analyze options - Use qualitative matrix with GREAT criteria to choose the optimal strategy for the company: Table 2.5: Qualitative matrix using GREAT criteria 69/83 Strategies SO - SO – ST – ST – WO - Criteria Weight Weighted score Total Weighted score Total Weighted score Total Weighted score Total Weighted score Total 4=2x3 6=2x5 8=2x7 10=2x9 11 12=2x11 Gains (G) 0,3 50 15 40 12 20 40 12 20 Risks (R) 0,2 30 30 40 30 40 Cost (E) 0,3 30 40 12 30 12 40 40 12 Achievability (A) 0,1 50 50 30 40 30 Timing (T) 0,1 40 30 30 30 20 Total 39 38 32 35 31 Score is calculated from 10 to 50, the highest is 50 and the lowest is 10 (excellent, good, pretty average, average, and weak) Based on evaluation results, the company chose the strategy as: Strategy (SO - 1): Invest to expand production scale, increase capacity and reduce manufacturing cost to compete with other enterprises in the field of electricity production Strategy (SO - 2): Focusing on the traditional market which is hydropower * Strategy belongs to the low-cost strategy group with the intention to better than competitors, so the production cost and electricity price is lower than competitors 70/83 * Strategy belongs to the focused strategy group which directly orients at meeting the power need of the country Specifically, further investment will be made in the small and medium size power plants in the Central Highland By pursuing this strategy, the company will maintain its competitive advantage in hydropower production and business To ensure the success of this strategy, the company should invest more hydropower plants such as Thuong Kon Tum, Vinh Son & etc Pursueing this strategy, the company will maintain its competitive advantage in hydropower production and business 3.2 Implementation solutions 3.2.1 Solution on production management Strengthen management in all aspects, improve capacity in labor management, technical management, operation management, undertake periodically maintenance and repair to improve the stability of equipment in production and ensure safety Build capacity for operation workers, and enhance the monitoring of the power plant operation procedures Increase the percentage of commercial electricity by saving solutions, and reduce power loss and waste Research to renovate and upgrade electrical equipment to enhance operational stability of the plant and ensure absolute safety for workers 3.2.2 Solutions in terms of human productivity Labor productivity is one factor that determines the efficiency and cost structure of enterprises The higher labor productivity means lower cost of a product unit Thus, building human capital solutions which are suitable to the business conditions of the business will help business strategies to achieve business efficiencies 71/83 The human resource development plan of VSH is to constantly improving the management capacity, professional capabilities of managers, workers, innovation of management and reduction of production costs If this plan is not implemented well, the production and business of the company will be left behind It is not able to compete due to high price per product affecting the feasibility of chosen strategies Strengthen and supplement human resources for departments in the company, especially management staff and staff for managing and operating in the construction and operation of plants The company has to plan the structure of labor demand according to the need for each profession; have plan to organize training, retraining, supplementary training for both direct and indirect employees in the company, especially technical workers and specialized engineers who are still lack Plan to train and plan every leadership position from company level to departments to meet the growth of production and business 3.2.3 Financial solutions Save costs and reduce the price to increase the company competitiveness to enter the competitive electricity market in the coming years Actively seek for investment projects, loans, investors to expand production and develop business Effectively use capital depreciation and annual profit Thanks to the fairly large amount of financial resources which is deducted from the depreciation capital of around 150 billion per year, Vinh Son-Song Hinh Hydropower Joint Stock Company is able to participate in the construction of and operate a hydroelectric power plants with large capacity The company should speed up research and prepare investment to develop some hydropower plants in the central region such as: Upper Kon Tum hydropower plant construction project Dong Cam hydropower plant construction project 72/83 Vinh Son and Vinh Son hydropower plants construction projects Financial activities have profound influence over the activities of the whole enterprise The enterprise’s financial status is shown by some indicators such as indicators of liquidity, debt, operation and profit Research financial situation of companies helps to evaluate the strengths or weaknesses of the company, then build solutions for development and limit the risk VSH should implement well the following major financial solutions: - Optimize profit through analysis of sector competitors such as analysis of the indicators of flexibility, efficient use of capital and profitability etc - Manage debt and reducing debt collection time; - Strengthening capital generating activities: Need to diversify the methods to have capital to ensure financial resources for production and business of the company To recover and mobilize capital, the company can perform a number of measures as follows: Firstly, manage revenues, ensuring accurate and sufficient collection and avoid accumulated debt Secondly, maintain good relationships with the bank guarantee held by reputation, to support regular bank Thirdly, mobilize capital from shareholders with a reasonable plan for mobilization and gives the most benefit to shareholders Take advantage of opportunities in the stock market Fourthly, maximize cost savings 3.2.4 Technical solutions 73/83 In the coming time, the company continues to strengthen and improve organization and increase production efficiency in business Vinh Son-Song Hinh hydropower plants through specific works as below: Upgrade Vinh-Son lake to increase water capacity, increasing production capacity of the plant with estimated total investment capital of about 30 billion, to increase power output of the plant to 35 million kWh/year Due to the technical complexity, the surveys and project formulate were delayed To overcome this difficulty, the company should urgently coordinate with the Consultancy and transfer of irrigation technology Company to complete the project document The Lake C upgrading project was put into use in late 2007 Measures to upgrade Song Hinh lake has a total investment of around 100 billion aiming to increase the reservoir capacity, reduce discharge of excess water and increase electricity volume of Song Hinh hydropower plant of about 60 million kWh per year 3.2.5 Solutions to expand technical services and operation of hydropower plants Vinh Son-Song Hinh Hydropower Joint Stock Company has a team of managers and technical staff who have qualifications and practical experience of over 10 years of working This is the strength of the company to provide a new type of service is to provide management services for hydropower plants This is a very special and developing market Currently, the Government encourages all economic sectors to participate in investment and exploitation of powers so this type of service will be expanded and developed Many investors have capital, ability to import machinery and construct plant; however, they are weak and have limited experience operating and managing power plants This is a potential market for the management team and skilled staff of VSH 3.2.6 Solution to provide energy auditing service 74/83 This type of service is relatively new in Vietnam It includes survey, collect and analyze data on energy consumption of enterprises, buildings, production processes or power consumption system etc with an aim to edit power energy, set up power saving opportunities to save energy more efficiently through a preliminary and overall energy audit According to EVN, it will save 600 billion per year and provides effective power savings from 30-40% by the electricity industry through the energy audit The audit does not cost much but high effectiveness The figure shows the huge meaning of energy audit In the immediate term, in order to have an effective solution for power consumption agencies, it is required to issue regulation on energy audit and administrative offices and public utility units will be applied the audit This will bring benefit to the users and the country Vinh Son-Song Hinh hydropower joint stock company should consider this type of service and supplement it to its business areas 3.2.7 Constructing new hydropower plants Pursuant to the Decision No 110/2007/QD- TTg on July 18, 2007 by the Prime Minister on the planning of the National Power 2006-2015 taking into account the year 2025, VSH has set up plans which are approved by EVN and the provincial People's Committees Below is the list of approved investment projects 3.2.7.1 Upper Thuong Kon-Tum hydropower plant This project belongs to the cluster of hydropower projects in Se San River, located upstream of Pleikrong work (110 MW-under construction), Ialy (MW-720 are being constructed), Se San ( 260 MW - under construction), Se San A (110 MW - under construction) and Se San (36 MW - under construction) are the works have been 75/83 considered in the decision of 110/2007/QD- TTg on July 18, 2007 by the Prime Minister on the planning of the National Power 2006-2015 to be considered in 2025 With the installed machine capacity estimated from 220 MW, hydro-electric Upper Kon Tum will provide the average power output of 1094 million kwh annually for the region Central and the South through the national power grid system + Investor: Vinh Son - Song Hinh Joint stock hydro power company + Duration: completed investment projects from 2009 to 2014 + Methods of raising capital: - Minimum 30% of capital is the capital of the Company and EVN - Maximum 70% of capital is commercial loan, including local currency loans for construction and installation costs and other expenses (interest rate is projected at 12% per year), foreign currency loans to buy equipment costs (with interest rates projected at 8% per year) 3.2.7.2 Vinh Son Hydropower Project 2: - Design capacity: 100 MW - Annual average power: 365 million Kwh - Total investment: 2.300 billion - Progress of construction: 2009-2013 - Minimum 30% of capital is the capital of the Company and EVN - Maximum 70% of capital is commercial loan, including local currency loans for construction and installation costs and other expenses (interest rate is projected at 12% per year), foreign currency loans to buy equipment costs (with interest rates projected at 8% per year) 3.2.7.3 Vinh Son Hydropower Project 3: 76/83 - Design capacity: 30 MW - Annual power average: 102 million Kwh - Total investment: 660 billion - Progress of construction: 2009-2011 - Minimum 30% of capital is the capital of the Company and EVN - Maximum 70% of capital is commercial loan, including local currency loans for construction and installation costs and other expenses (interest rate is projected at 12% per year), foreign currency loans to buy equipment costs (with interest rates projected at 8% per year) 3.2.7.4 Dong Cam hydropower project: - Design capacity: 120 MW - Annual average power: 430 million Kwh - Total investment: 2118 billion VND - Progress of construction: 2009-2013 - Minimum 30% of capital is the capital of the Company and EVN - Maximum 70% of capital is commercial loan, including local currency loans for construction and installation costs and other expenses (interest rate is projected at 12% per year), foreign currency loans to buy equipment costs (with interest rates projected at 8% per year) 3.2.8 Strengthening administration of changes in the implementation of strategies In the process of implementing business strategies, changes are an indispensable objective Most of the changes in production technology, people, and organizational structure etc affect the results of production and business of the company To adjust 77/83 timely production target and better manage the changes, the Company should perform the following tasks: - Predict responses and level of reaction can occur when changes in production and business activities are made - Help employees understand and reach consensus on undertaking changes to reduce the potential reactions - Create excitement in the implementation of normal strategies even when there are big changes 3.2.9 Creating environment culture supporting the implementation of strategies Strategies are often set up on the basis of the existing culture The recent studies confirmed that cultural change in consistent with new strategies is often more effective than changing a strategy in consistent with the current cultural environment The fundamental problems to change the cultural environment are to build cultural standards, provide training and application of encouraging measures, specifically: - Identify relevant cultural factors and secondary factors in the business Organizations exchange, discussion and review in order to reach agreement on central principle in the cultural environment - Determine the importance of cultural products and their suitability with the chosen strategies, then predict and evaluate risks that can happen in the co corporate culture - Determine cultural factors that are importance for the implementation and evaluation of strategies Project appropriate cultural changes to strategy change 3.3 Some recommendations * Macro policies 78/83 Currently, companies operating in the construction of projects are facing with many obstacles during the production process because many mechanisms and policies are not issued in time by the government, overlapped and not consistent with actual market economy The state should have measures to increase electricity price according to the approved agenda so that EVN and VSH have capital to invest in electricity projects to reduce difficulties for investors The state should approve special mechanisms to implement projects in order to ensure sufficient electricity for economic and social development Local banks gather capital for loan in electricity projects * For Vinh Son-Song Hinh Joint Stock Hydropower Company - To strengthen and ensure financial capacity to perform strategic objectives including: + Stabilizing power production in two hydropower plants + Expanding and reforming reservoirs to increase production of electricity + Long-term investment to implement the hydropower projects on upper-Kon Tum, Vinh Son and Vinh Son hydropower plants etc - To expanding business and areas - To promote the experience and advantages in service operation and management of hydropower production 79/83 CONCLUSION Demand for capital is huge in the electricity sector in order to response to demand in the electricity market in Vietnam where the supply is less than demand and EVN is the largest electricity supplier in the market Hydropower plays a particularly important role in power supply The strategy of the power sector in the coming years is to maximize the resources to build power plants so as to meet the increasing demand in the society Currently, the electricity industry is moving toward a competitive electricity market in which EVN acts the role of intermediary in power transmission and power plants compete on price in supplying electricity to the market Analysis of financial resources to made decision on investment decisions is necessary for the electricity industry because Vietnam is a developing country where the need for electricity for production and life is huge The electricity growth rate in the past years is appropriate at 15% per year, beyond the supply capacity of the electricity sector The growth trend is predicted to be stable and will last until 2010 Having the additional power charge of 15% year average, the electricity demand reached 61.4 billion kwh in 2006, 71.012 billion kwh in 2007 and 93 billion kwh in 2010 and 201 to 250 billion kwh by 2020 According to the calculation of the electricity sector, the electricity demand by 2015 in Vietnam will be times higher than the current demand (about 190 billion kwh) In addition, the additional charge is forecasted to be at 15-17% per year The policy of socialization investment by the government has opened up investment opportunities in this field On the one hand, the current severe situation of power shortage and the power shortage risk in the coming years indicates the necessity to provide additional power The geography of Vietnam is characterized by a dense river system which is favorable for the development of hydropower Hydropower is still dominant (approximately 80/83 50%) in the country total electricity supply in our country at present In the future, to meet the increased electricity demand during the period of 2006-2010, it is required to build and expand 42 hydropower plants with total capacity of 4,827 MW In the next 20 years, it is planed to build hydropower plants in most areas which are suitable for hydropower plant The total capacity of hydropower plants in 2020 is expected to reach approximately 13,000-15,000MW Power sector is essential for the national economy, serving production and business services and meeting the needs of daily life The development of the electricity industry lays the foundation for the industrialization and modernization of the country in particular and the development of the economy in general Vietnam's economy is growing at a rate of 8% on average per year Together with the growth in the economy, the demand for electricity increased by about 12% per year Thus, the supply in electricity industry will have always be less than the demand until 2020 In addition to operating current power plants, the State encourages foreign and domestic investors to participate in the construction of the power plants in the method of independent power plants (IPP), the Build Operate and Transfer (BOT) and joint ventures with foreign countries The investment decision to raise production capacity at Vinh-Son-Song Hinh hydropower plants, long-term investment to build and operate Upper Kon-Tum hydropower plan, Vinh Son 2, Vinh-Son hydropower plants etc are in line with the preferential investment policies of the Government by tax reduction and exemption policies for enterprises and land rent exemption and reduction because hydropower is the typical production industry that is located in disadvantaged, remote and mountainous areas The problem left is the method of raising capital, production and business management to bring about the highest economic efficiency The model of Vinh Son-Song Hinh Joint Stock Hydropower Company is the first pilot equitization It proved the suitability, and ability to mobilize capital for many economic sectors, 81/83 confirmed the brand and reputation of EVN for domestic and international investors in investment cooperation Based on the theory of strategic management learned and the application of the theories of competition, the models of developing competition strategies, the external model analysis model, the internal analysis of the enterprise and analysis based on such matrices as EFE, IEF, SWOT; thesis has developed the business strategy for VSH in the short and long-term as well has chosen the business strategy for the company until 2015 We hope that the research results of this thesis will contribute to help leaders of VSH better grasp opportunities, promote the superior competitive advantage, minimize risks, has the solution to remedy the challenges for production and business operations of the company so that it grows stability and sustainability However, due to limitations of expertise and experience, time research, incomplete information and documents; there may have some errors in the analysis and evaluation in this project We sincerely hope to receive many comments from the lecturers and fellow-subjects to our capstone project for further improvement Our warmest thanks! 82/83 REFERENCES Strategic Management - Le The Gioi- Nguyen Thanh Liem- Tran Huu Hai Statistic Publisher, 2007 Competitive Strategy - Michael E.Porter - Tre Publishing House Competitive Strategy in accordance with Micheal E.Porter’s theories - Duong Ngoc Dung - General Publisher, Hochiminh City Strategic Management - Charles, Hill and Gareth, Jones 1995 Strategy and business policy - Nguyen Lien Diep and Pham Van Lam 1998 StatisticsPublisher Website: - www.vshpc.evn.com.vn - 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