Luận văn chiến lược kinh doanh của công ty một thành viên cung cấp nước hải dương

LUẬN VĂN CAO HỌC Chiến lược kinh doanh công ty Một thành viên cung cấp nước Hải Dương THESIS MBA BUSINESS STRATEGY OF HAI DUONG WATER SUPPLY SINGLE MEMBER LIMITED COMPANY CONTENTS LIST OF THE ABBREVIATIONS LIST OF DIAGRAMS, GRAPHS AND TABLES DECLARATION ACKNOWLEDGEMENT AUTHORS GROUP FOREWORD Name of the topic Meaning of the study topic Target of the topic Study scope of the topic Study method Major structure of the essay CHAPTER I: BASIC THEORIES OF THE BUSINESS STRATEGIES 1.1 Business strategy overview 1.1.1 Concept 1.1.2 Levels of strategy 1.1.2.1 Company level strategy a Centralized growth strategy b Growth strategy by integration - association c Growth strategy by diversification d Reduction strategy e Innovation strategy 1.1.2.2 Business unit level strategy a Competitive strategies upon competitive strengths b Competitive strategies upon market share position in the market c Investment strategy d Business level strategy upon life cycle of a product 1.1.2.3 Functioning strategy a Manufacturing and operating strategy b Financial strategy c Research and Development strategy d Human resources strategy e Information system administration strategy f Marketing strategy 1.1.3 Business strategy building up process 1.2 Vision, mission and values 1.2.1 Vision 1.2.2 Mission 1.2.3 Target a Kinds of target b Role of the strategic target system of the enterprise c Requirements for the strategic target system d Factors affecting the strategic target system and selection of the strategic targets 1.2.4 Strategy analysis 1.2.5 Analysis of macroeconomic environment a Natural factors b Social factor c Economic factor d Political - legal factor e Technical factor 1.2.6 Analsis of the industry environment 1.2.7 Analysis of the internal environment 1.2.8 Analysis summary table SWOT 1.3 Selection of the business strategy a Selection of strategic plan by analysis of BCG Matrix b Selection of strategic plan by matrix EFE c Selection of the strategic plan by competition image matrix d Selection of strategic plan by the Internal Factor Evaluation Matrix (IEF) e Selection of strategic plan with GREAT model 1.4 Organization of performing the strategy 1.4.1 Organization structure 1.4.2 Control system 1.4.3 Inspection, evaluation and adjustment of the strategy a Target of inspection and evaluation of the strategy b Requirements for inspection and evaluation of the strategy c Contents of inspection, evaluation and adjustment of the strategy CHAPTER II: REALITIES OF BUSINESS STRATEGY OF HAI DUONG WATER SUPPLY SINGLE OWNER COMPANY LIMITED 2.1 General introduction of Hai Duong Water Supply Single Member Limited Company 2.1.1 Establishment and development history 2.1.1.1 Overview of Hai Duong Water Supply Single Owner Company Limited 2.1.1.2 Establishment and development process of the Company 2.1.2 Lines of business 2.1.3 Organization structure and objectives of the departments a Apparatus organization structure b Functions, objectives and relationship in management apparatus 2.2 Results of business operations of Hai Duong Water Supply Single Owner Company Limited 2.2.1 Major products 2.2.2 Results of business operations 2.3 Advantages and difficulties of the Company during production and business 2.3.1 Macroeconomic environment 2.3.1.1 Economic environment 2.3.1.2 Political - legal environment 2.3.1.3 Technical environment 2.3.1.4 Social environment 2.3.2 Industry environment analysis 2.3.2.1 Realities of the industry environment 2.3.2.2 Five competitive forces 2.3.3 Competitive advantages of the Company a Overview of the water industry b Competitive advantages of the Company c The Company position in the industry d Assessment of development orientation of the Company against which of the industry and State policy 2.3.4 Analysis summary table SWOT a Challenges for the Company b Development opportunities c Advantages d Disadvantages e Analysis summary table SWOT 2.4 Present business strategy of the Company 2.4.1 Applying strategy of the Company 2.4.2 Advantages and disadvantages of the present business strategies 2.4.3 Strategy performance in recently years a Capital solution b Consuming price solution c Labor solution d Market solution e Purified water providing solution CHAPTER III: BUILDING UP BUSINESS STRATEGY OF HAI DUONG WATER SUPPLY SINGLE OWNER COMPANY LIMITED DURING THE PERIOD OF 2010 -2015 3.1 Orienting development of the Company 3.1.1 Orienting to develop until 2015 3.1.2 Strategic target 3.2 Specification of vision, mission and values of the Company 3.2.1 Vision 3.2.2 Mission 3.3 Selection of business strategy until 2015 3.3.1 Applicable strategies of the Company to reach the target a Market strategy b Competitive strategy 3.3.2 Orienting strategy of the Company a Long term b Middle term c Short term 3.4 Solutions to perform the strategy 3.4.1 Production technology 3.4.2 Product and price policy 3.4.3 Human resources solution 3.4.4 Marketing solution a Strengthen and increase market share at the districts of Hai Duong province b Protect the market share at Hai Duong City 3.4.5 Financial solutions a Source of funds for production operation b Source of funds to invest in works and projects 3.5 Undertaking performance 3.5.1 Performance route a During the period of 2010 -2012 b During the period of 2012 -2015 3.5.2 Inspection, assessment and adjustment CONCLUSION AND SUGGESTIONS For the management agency of the water industry Solutions to policy and regulations of the Party, State and of the province LIST OF REFERENCE Appendixes Full name and objective of the group members LIST OF THE ABBREVIATIONS Strength, Weakness, Opportunity and SWOT Challenges the analysis instrument relating to the PEST IEF macroeconomic, outside factors Internal Evaluation Factors Strategic plan with model: Gain - GREAT Risk - Expense - Achievable - Time LIST OF DIAGRAMS, GRAPHS AND TABLES DIAGRAM Diagram 1.1: Business strategy building up process Diagram 1.2: Five competitive forces upon M Porter Diagram 1.5: EFE Matrix Diagram 1.6: Internal Evaluation Factors Matrix Diagram 2.1: Organization model of the Company Page 21 Page 25 Page 37 Page 40 Page 49 TABLE Table 1.3: SWOT matrix analysis table of the Company Table 1.4: Application of BCG Matrix Table 1.7: Strategy plan with GREAT model Table 2.2: Business results during three years (2007- Page 34 Page 37 Page 40 2009) of the Company Table 2.3: Customer quantity of the Company Table 2.4: Merchandise water yield Table 2.5: Water losing rate Table 2.6: Major financial criteria Table 2.7: SWOT analysis summary table of the Page 51 Page 52 Page 52 Page 53 Page 54 Company Table 3.1: Target at the end of 2010 and until 2015 Table 3.2: Labor qualification structure Page 68 Page 77 Page 89 Table 3.3: Human resources qualification structure Page 90 DECLARATION We declare that : the topic “Business strategy of Hai Duong Water Supply Single Owner Company Limited during the period of 2010-2015” is studied by us The figures relating to the Company are provided by very Hai Duong Water Supply Single Owner Company Limited Up to now, this is the first time this topic is studied There is no contradiction in interest with the Company among the group members Hanoi, date March 2010 AUTHORS GROUP PERFORM Nguyễn Văn Đoàn (Captain) Phan Sỹ Châu Ngô Ngọc Đông Vũ Trung Kiên ACKNOWLEDGEMENT We would like to gratitude Hai Duong Water Supply Single Owner Company Limited for enthusiasm supporting us as providing figures as well as discussions to carry out the most proper business strategy for the Company We also gratitude sincerely to the Teachers, PhDs and Professors for providing the skills and knowledge of enterprise administration during the training course These are the essential fundamental for us to write this topic and apply into realities and a guidance for us during study performance AUTHORS GROUP FOREWORD Name of the topic: “Business strategy of Hai Duong Water Supply Single Owner Company Limited during the period of 2010-2015” Meaning of the study topic Stable and sustainable development is the desire of the whole society, every nation and socio-economic organization on the whole world At present, the world economy is in the trend of globalization Many countries and organizations have achieved many splendid successes at home and in global, formed the stable and solid foundation for the sustainable development Nevertheless, some organizations failed to take their opportunities, strengths and lacking the solutions to overcome the difficulties and challenges As a result, they declined, went down to the slope without brake even went bankrupt It is because the formed and organized business strategy is not proper with the existing potentials, without careful study of impacts of the internal, external environment, opportunities, strengths, difficulties and challenges to build up the short term, middle term or long term development strategy that is sufficient of theoretical basis and market study realities Vietnamese economy having been integrated into the economy in region and on the world, presented in expansion of the business environment of many enterprises with a lot of the opportunities They still have to cope with many difficulties, challenges and more and more fierce competition At the present market condition, what determines successful of the enterprise is selection of the right way, forming and building up the reasonable, timely business strategy and proper with the objective and subjective conditions of each period and stage For these reasons, the Vietnam enterprises in general and Hai Duong Water Supply Single Owner Company Limited in particular are necessary to contact with the knowledge of business strategy Water industry is one of the fields are in developing process In general, water supply system has been invested in construction at the first to third rate urban areas rather than fourth and fifth rate urban araes and communes In order to guarantee development of the water industry, the State policy encourages the socio-economic organizations at home and overseas to invest in purifed water supply, in the fact, it is the competition between Vietnam and Hai Duong in water supply area and service Particularly, many foreign specialized water supply organizations with the financial abilities and modern technologies are conducting market survey and want to invest in Hai Duong Therefore, forming and building up business strategy of Hai Duong Water Supply Single Owner Company Limited is suitable, ability of competition is strong enough to survive in market economy is an urgent issue Simultaneously, building up the business strategy is the vital factor of the Company during present period Target of the topic: Study of this topic is to contribute to clarify some basic theory and methodology issues in building up and performing business strategy of Hai Duong Water Supply Single Owner Company Limited This includes analyzing impacts of the business environment on financial business operation, aware clearly of opportunities, challenges, strengths and weaknesses of the Company And then the necessary business strategic measures are proposed to enhance effects of the Company's business strategy during the period of 2010-2015 Study scope of the topic The topic concentrates on Business strategy of Hai Duong Water Supply Single Owner Company Limited during the period of 2010 - 2015 Study method The topic uses some following measures: - Analysis comparison and synthetic method: Analyzing figures from the reports, source of information about Hai Duong Water Supply Single Owner Company Limited - SWOT matrix analysis method: the analysis and settlement technical of the environment study results helping the enterprise to put forward the scientific strategy - Statistical method: Reckon up the tables and draw the conclusions of the trends to evaluate operation situation of the Company and the Industry Major structure of the essay Foreword Chapter I: Basis theories of business strategy 10 includes main strategies: a Consolidating and increasing the market share of districts of Hai Duong province Markets belonging to districts of Hai Duong province have been assessed as a potential richness for development To be able to realize these strategies, in the coming time the managers of the company need to determine the need of adjustment and addition of rational marketing strategies to match this strategy, including: - Expanding the network of clean water supply to the whole province - Applying the proper policies to attract the customers to use the clean water of the company - Applying various advertisements and promotion for new customers and users of the company products like: free installation fee and free fee of water meters etc b Protecting market share of Hai Duong city To implement the strategies of protecting the existing marketshares throug hthe solutions like incresing the quality of the service, adjusting the prices and adjusting the distributioin channels, adjusting the advretisement strategy etc - Makign survey, listening the opinion of the consumers, through which the company is aware of the current and future demands for clean water of the people On basis of the determined demand, the company will build up the water supply plan including: design of the network, defining the capacity of the plant as well as the capital to construct the water supply system etc - Enhancing the service quality for the customers, at the same time a special attention will be given to new customers, the company always seeks the possible measures to persuade and make the customer pleasure (both current and potential customers) - Acquiring the suggestions and contribution in opinion from the customers if of necessity and importance Sincere suggestions and opinion of the customer is a very important and useful source of the information for the management 92 To be able to receive the instant and positive feedbacks from the customers, the company has implemented methods as follows - Opening conferences on products with the presence of the customers; - Organizing the propaganda and guidance of implementation fo changes relating to customers and products at grass root levels (wards, townships and population groups), then summarizing the feedbacks from the customers to adopt specific measures; - Directly inquiring the customers + Strenghthening the introduction of products and advertising the products' image through building up a strong brand name + Training staffs and personnel of marketing and sales in order to attract customers to use the products Enhancing the service quality for the customers The company seeks measures to make the customers pleasure (both current and future customers) - Strengthening the market survey + The company needs to establish a professional section of market research + Establishing groups of market research for each market Market researching section must be master in the qualification to have condition and understanding the characteristics of the market This section will link other sections like production section, financial section etc and with strategic planning section to adopt the plan for production time 3.4.5 Financial solution Through the analysis of financial status of the company to realize the targets and objectives, the strategic models as mentioned in the essay, the financial solutiosn will be placed in first position In 2010 - 2015 period, this is the time company focuses the ability to construct large scale projects, thus it requires a good financial source With the current condition of capital source ofor the business production remains limited against the investment level of the projects in the near future andin 2010 - 2015 period, to develop the business then mobilization of the 93 capital the company must ensure a proper growth of the capital, ensuring the financial source for a stable and developed busines and production ctivities, not losing the financial balance when strenghthening the investment for development of water supply infrastructre every year Therefore, soluton for financial source ro implement the development strategy of the company in 20102015 period as follows a Financial source for production activities Practically, result of business production of the company over recent years show that the annual growth rate of more than 15%; interest rate of previous year is higher than next year, and life condition of personnel and staffs have been ensured The above - mentioned financial source is mainly attributed to result of clean water business Therefore, financial source to ensure business production is the revenue of water consumers b Financial source to invest the projects * For short term investment: mainly using the capital development for production, capitals of amortization of basic construction, capital source for overhauling to make investment and rehabilitation of technology, building up the works and replacing the backward machines and equipments etc In case of urgency and need of mobilizing the short-term credit capitals with smal amount of the capital * For medium term and long term investment: According to the decree No 117 of the Government and policy of the state, the field of water supply has been given a priority by the government and listed in ODA capital using objects, concessionary loans from Vietnam Development Bank, thus solution for financial source for investing and constructing the projects as follows - For water supply projects for townships and urban areas of districts (urban area of and levels): using 90% of concessionary loan of the World Bank (WB) in a duration of 20 years, grace period of years, interest rate of 3% per year The counterpart capital of 10% for preparation of investment, compensatio nof land clearance and costs supported by the policy bank of the province 94 - For large - scale project to have the investment of mixed capital source: + Seeking the sponsorship capital source (ODA) of the developed nations like Netherland; Finland; Germany, Japan etc mechanism of the donorship of each country is different from each other, the minimim level of the donorship is of 35% of total investment, maximum one is 90% of the total investment + Remaining part of the counterpart capitals: provincial budget capitals supports 50% and the company gets concessionary loan of Vietnam Development Bank of 50% Additionally, requesting the budget of the province to support the loan interest rate during the construction time - Other investment cases: investment of water supply system outside of the fence of the industrial park, industrial groups according to the provincial policy, the province supports 50% and remaining 50% born by the company, so as to condition of having sufficient infrastructure to attract the domestic and foreign investors Water supply system in the fence will be invested by the employers to make a synchronous investmen together with the techncial works To ensure the financial source according to the abobe mentioned solutions, the company needs to implement the following solutions: + It is necessary to use flexibly various kinds of the capitals and existing funds of the company, mobilizing inmaximumlevel the stagnant capitals sources in the production and business, such as assets to be liquidized and inventory etc + Making maximum use of the budget capitals supported by the province for water supply: supporting in the land clearance and compensation, a part of the capitals will be used to build up and supporting the loan interest rate as well as budget for investing the water supply pipelines to fence of the industrial park etc - Maintaining the implementation of decentralizing the accounting balance management and financial management for subsidiaries according to the existing accounting regime, content of periodical inspection, guiding teams to record and managing books, invoices, well implementing the statistics and meeting the need of analysis, assesisn gof the operation status as well as financial condition of the enterprise 95 - Accounting and balance wil be ensured to be in accordance with ordinance in statistics and policy regime of the state in current time, with accurate data ad paying great attention to role of management accounting, analysing and reflecting quickly the result of business and production on monthly sand quaterly basis, as well as consulting for the company director to consider and approving the decision in timely and exact manner - Enhancing the inspection of acounting of various units, trainign and guiding the specialism for accountants and economic personnel; - Managing and using capital sources in right purpose and effectiveness so as to develop the capitals - Every year the company has plan for accummulating the capitals to develop and reinvestment, expanding the production and business - Establishing the joint venture and cooperation with design consulting and construction to consolidate and develping the financial capacity of the enterprise Benefit of the implementation If the solution of finance is effectively implemented, it will create opportunity for the company to realize the objectives in strategy of 2010 - 2015 period In that time the company wil be the leading unit for supplying the water for 100% of urban areas of Hai Duong province, having condition to enhace the company to a new height Cost for implementation and time of recovery: Cost for implementing the solution for finance mainly focus on cost of the invetment through the loan from banks, which is calculated sufficiently during the project establishment These costs will be recovered within the project life circle 3.5 Implementation 3.5.1 Road map for implementation To implement the strategy for the company development in 2010-2015 period, it is necessary to follow the roadmap as follows a 2010-2012 period 96 - Implementing the short-term and medium term objectives - Implementing the water supply system planning of the province in 20102015 period and orientatio nof water supply by 2020 - Preparing and completing the water supply project system for the whole province and urban areas, which is to be completed in 2010 and early 2011 - Rehabilitating the technology, increasing the capacity of existng water plants, which include the followings: + Phu Thai Water Plant with the capacity of 2,000 m3/day up to 5,000 m3/day + Kinh Mon Water Plant with the capacity of 2,000 m3/day up to 3,000 m3/day + Chi Linh Water Plant with the capacity of 2,000 m3/day up to 5,000 m3/day + Nam Sach Water Plant with the capacity of 3,000 m3/day up to 5,000 m3/day + Cam Giang Water Plant with the capacity of 3,000 m3/day up to 5,000 m3/day + Binh Giang Water Plant with the capacity of 1,000 m3/day up to 3,000 m3/day Making effort to put these water plants into operation in 2011 + Thanh Mien Water Plant with the capacity of 3,000 m3/day + Thanh Ha Water Plant with the capacity of 2,000 m3/day + Gia Loc Water Plant with the capacity of 5,000 m3/day + Minh Tan - Phu Thu Water Plant with the capacity of 5,000 m3/day - Regarding other main lines of the business: + Developing the design and construction, striving to reach an amount of 30 billion VND in 2012 + Developing and expanding the pured water enterprise with capacity of 10 m3 per day, striving to reach a turnover of more than billion in 2012 - Completing the preparation of the project investment as follows: Cam Thuong 2, water plant southward the city, Pha Lai Town Water Plant 97 - Giảm tỷ lệ thất thoát xuống 18 % b In 2012 - 2015 period - Newly constructing the projects, makign effort to put these water plants into operation in 2015 + Cam Thuong Water Plant with the capacity of 30,000 m3/day + Water plant southward the city with the caapcity of 20,000 m3/day + Pha Lai Water plant with the capacity of 5,000 m3/day - Reducing the ratio of loss of water to less 15% - With other lines of the business + Developing the design consulting center, enterprise of constructing anf installing projects having brand name both at home and abroad, striving to reach a turnover of more than 40 billion VND by 2015 + Developing and expanding water pured plant with the capacity of 20 m3/day 3.5.2 Checking, assessing and adjustment - Checking and assessing Checking, assessing and adjusting the necessary business strategy for the whole planning and implementing the business strategy Generating a synchronous mechanism and smooth operation without a wasting in time and labor so as to re-structure the whole enterprise, this is first requirement for any planning Therefore, it is necessary to adopt plan for checking and mentioning the objects, content and standard as well as method, time of the inspection Inspection, assessment and adjustment of the business strategy must be started from the strategic ideas which will be carried out during the strategy implementation Plan for inspection and assessment of the business strategy will mention the landmarks of periodical inspection and assessment as well as unusual inspections To inspect and assessing the business strategy of the company in 20102015 development period, it is necessary to implement the following measures: - Establishing a section of inspection and assessment belonging to 98 planning and business department so as to assess the implementation of the business strategy of 2010-2015 period - Inspection and assessment of the business strategy in 2010-2015 period is divided into phases: 2010 -2012 period and 2012-2015 period To assess the result of the implementation of the business strategy according to the specified periods - Periodically assessing every month and inspecting the advantages and difficulty during the implementation of the strategy or suddenly checking in each period of time Content of the assessment includes: + Result of the implementation of the strategy + How the business strategy of the competitors is changed? + How is about the reaction of the competitors against the business strategy of the company? + How the enterprise link more effectively with the competitors? + What are other weakness of enterprises? what are they? + What are other opportunity the enterprise have? + What are risks for the enterprise? - On basis of the conclusion of the business strategic assessment, the leadership must implement the necessary adjustment so as to change somewhat objectives of the business strategy Adjustments relate to solution for implementation of the defined objectives During the adjustment of the strategy, it may adjust from general objective system, adjusting each part of the business strategy, adjusting solutions for implementing the business strategy Adjusting periods of the implementation as well as adjustment of the action plan, including objectives and plan to be suitable with the business strategy and implemented part of the strategy, adjusting the solutions for implementing the adjusted objectives CONCLUSION & RECOMMENDATION 1- Regarding the water sector management agencies 99 Current condition of water sector management agencies remain a lot of insufficiencies, a top agency for water sector management is absent Enterprises involving in water supply in different local area is controlled by different management apparatus, e.g controlled by transportation department, construction department or PPC For this reason, the water supply sector throughout the country lacks a synchronization; accordingly proposals and requests of the water supply enterprises always must be subject to the processing by water supply associations of local areas, Vietnam water supply association, thus it has not been radically resolved Therefore, Vietnam Water Supply Association requests the Government to consider to establish a water sector management organization across the country, e.g Vietnam Water Management Bureua will unify the management of water supply enterprises throughout the country, it is also the manegent agency and consulting for the Goverment to resolve the regulations and policies as well as all the matters pertaining to water sector Solutions for the policy and rules of the Party, the State and the provicial authority Clean water is a necessary product and commodity for the daily life and production activities of the people, it is also a natural resource of the country, thus exploitation and consumption of clean water must be rational and appropriate The State manages in term of technical standard, environment and orientation of price of clean water so as to gradually eradicate the subsidiary in investment capitals, rehabilitation and upgrading of the urban water supply system, creating favorable conditions for water supply enterprises to effectively operate To produce the clean waters, it is necessary to own necessary input factors like salary, materials, energy and other costs in money etc Currently, water supply enterprises are managing and using a very big system of fixed assets which has been formed from various capital sources both at home and abroad, each and every source of the capital has its own priority policy such as receiving the non-refundable financial support, Official Development Assistance (ODA), capital source disbursed by the state budget, credit loan from banks etc 100 On the other hand, investment ratio of establishing assets of water plants in each period and each project is very different from each other, which is in a range of 300 USD/m3 to over 600 USD/m3 of the capacity Due to different sources of the assets and investment ratio, water supply enterprises shift into accounting of business, they must calculate the amortization in price cost which is very different from each other, in case of the assets under loan and borrowing, calculation and extrating the consumption into price cost will be very high, influencing the price cost of business of the enterprise, even they falls into loss On the other hand, investment and construction of water supply plants normally must be prioritized in the master planing of socio-economic development of a zone or province, thus the design and construction must calculate the amount of water supplied for the future demand, most of designed capacity after completion of the contsruction is bigger than the current demand In other words, the enterprises and plants in concern must predict and adopting suitabel steps and policies toward the development and consumption of the people as well as other production lines Hence, if excluding incomplete investment, ailing status of the management, some water supply plants fail to maximize the design capacity as currently happening in the country, this can be regarded as an objective reason Deriving from the above mentioned characteristics, the Government needs to study to adopt appropriate policies for water supply enterprises so as to ensure a sufficient supply of clean water as well as enhancing the quality of clean waters, meeting demand for using clean water as well as considering the business effectiveness of the enterprises Those policies consists of the following: Firstly, permitting the water supply enterprises to inspect and doing inventory as wel as re-defining the value of the whole fixed asset system under management and use, which must be categorised according to each source This will lay foundation for makign summary and reported to the Government to evaluate the real value of the plant, reflecting the present capital amount, facilitating the extract amortization into the price cost 101 Secondly, researching technical standards in term of duration of use of each type of the fixed asset, this is aimed to lay basis for the state to issue the level of extracting the annual average amortization for each list of fixed assets, such as: pumping machine, water supply pipeline system, water treatment system etc For some objective cases, the state may permit the enterprises of water supply to calculate and extract the amortization according to the reallyconsumed capacity Thirdly, making investment for water supply also means the investment for infrastructure, thus time of recovering the capitals is always slow and needs to be prioritised by the Government Investment projects of re-borrowing of the state via ODA (Official Development Asistance) that the state lends the enterprises, then the state may consider and allow the enterprises to borrow and paying debts according to the signed agreements or giving loans at the lowest interest rates or protracting the duration of paying debts, which will be equivalent to the re-defined average amortization time Fouthly, the competent authorities of the state wil review and promulgating the system of technical economic targets, which will lay foundation for construction plants to build up the targets of cost, researching to build up the scales and salary levels of water supply enterprises and some works not yet included in the enterprise Fifthly, basing on technological procedure and actual technical standard of production activity, the state needs to study and promulgating a rational rate of water loss, so as to strenghthen the financial management of the enterprise Sixthly, the state should consider and permitting water supply enterprises to exempt or appying the lowest rate of tax under the law The above mentioned content are some proposals in finance which is necessary to shift the current water supply enterprises into the business models according to the resolution of the 3rd Central Party Congress - Policy of clean water must be ensured to recover all the costs and fees and profits; it is necessary to accummulate and renewing as well as developing 102 the value of fixed assets This means a need of having capitals for rehabilitation, upgrading, making investment and expanding of the fixed assets To equitization of water supply enterprises in effective manner, the price of clean water must be revised in accordance with joint circular No 95/2009/ TTLTBTC-BXD-BNN dated May 19th 2009 and price framework according to decision No 100/2009/BTC dated May 20th 2009 of the Financial Ministry - Amending the insufficiencies in profit targets as mentioned in circular No 95/2009/ TTLT-BTC-BXD-BNN dated May 19th 2009, like the regulation in minimum profit target of 3% against the capitals of the owner, the capital of enterprise when geeting loan to make investment or capitals of the shareholders investing when equitizing the enterprise, so how is the target of the profict calculated - Building up a roadmap of equitizing each part or equitizing small water supply stations, which will effectively operate and attracting the investment capitals of shareholders to draw the capitals of the owners (the state capitals) to make investment for major projects and works of water supply, this is also aimed to alleviate the burden of capital of the state budget as well as difficulty of the enterprises - Policy of support and investment capital priority for the projects, water supply works, reducing and exempting tax of land use for water supply projects, exempting tax of land use fee for such projects in case of new investment and construction, and even the current projects and works involving in water supply The market-oriented economy in the opening door and intergrity tendency brings a lot of opportunity and challenges for the enterprises In a tendency of the movement and development in all the aspects of the daily life, the economy and the society, it requires each enterprise and each individual to continuously strive, if not they will be left behind or even will be excluded from the playground due to the advanced and modern equipments and technologies, as well as ideas and new strategy of business operation In the context of the growing - strongly economic development of the economci powers in the world, the national economy of Vietnam is facing and must adapt to the current 103 situation, in which each enterprise will be a decisive factor to the succeed of the national economy of Vietnam, as welll as self confirming the status of enterprise as well as the enterprise Trademark holds a very important role in the business operation, it helps the enterprises to obtain confidence from the customers who will keep peace in mind to consume the products High prestige of the trademark will bring the competitive advantage and development of the market of an enterprise, especially the trademark becomes well-known for the consumers Additionally, the trademark has been regarded as an intellectual property of the enterprise, it owns a much higher value than fixed assets in many cases, this has been proved through practical situatio An enterprise owning a good brand name and fame will be not only expressed via the product but also via the human factor during the relationship with the customers In the context of the integrity at present as well as the accession of Vietnam into WTO at late 2005, brand names of Vietnam already and will have to compete with renowned trademarks throughout the world relating to all kinds of the commodities with high qualification of marketing, conduct according to the regulations as well as their own products LIST OF REFERENCE Vietnamese: The Communist Party of Vietnam (1996), the document of 8th National Delegates Congress, National Political Publisher, Hanoi The Communist Party of Vietnam (2001), the document of 9th National Delegates Congress, National Political Publisher, Hanoi Fred R.David (2000), Overview on strategic administration, Hanoi Strategic Publisher, Hanoi Gillis M and other authors (1990), Economics of the development, the central institute for economic management 104 Lasserre P., Putti J (1996), Strategy for management and business, National Political Publisher, Hanoi Pham Vu Luan (1997), Commercial business management, Hanoi University of Trade Porter M (1996), Competition strategy, Scientific and Technical Publisher, Hanoi Nguyen Tan Phuoc (1999), Strategic management and business policy, Dong Nai Publisher, Ho Chi Minh city Smith G D (1997), Strategy and tactics of the business, Statistic Publisher, Hanoi 10 Nguyen Van Thang, Vu Thanh Hung (1999), Strategic management, Business Management Institute, Hanoi National Economics University 11 Thietart R A (1999), Strategy of enterprise, Youth Publisher, Hanoi 12 Dr Phan Dang Tuat (2000), the state-run enterprise in period of the industrialization and modernization, National Political Publisher, Hanoi 13 Far East Economic Journal, dated December 23rd 1999 14 Summarized report of Hai Duong Clean Water Trading One Member Co., Ltd in 2008, 2009 15 Development plan of Hai Duong Water Supply Single Member Co., Ltd in 2010-2015 period Foreign language: Hill W L Ch & Jones R G (1995), Strategic management, Houghton Mifflin Company Pearc J A & Robinson R B (1995), Strategic management, irwin R D., Inc 105 APPENDIX Name & task of the team members - Writing overall thesis - Collecting documents of Hai Duong Water Supply Single Member Co., Ltd -Allocating and controlling jobs of the team - Checking schedule of work and content of the members - Representing the team to present the big Nguyen Van Doan assignment - Writing chapter 2, chapter - Writing the table of content - Checkign spelling errors and tabulations Phan Sy Chau of big assignment - Making Slide for the presentation - Suggestions for detail thesis - Collecting documents - Involving in giving suggestions for all Ngo Ngoc Dong the parts in concern - Writing chapter - Writing conclusion and recommendation - Revising for final time of big assignment - Analysing the financial capacity of the Vu Trung Kien company 106 ... Development of product/service such as: quality improvement, changing product composition, diversifying product design, changing style, increasing quantity and quality of the product supporting services…... strategies to confirm their prestige and attract the loyalty customers etc c Investment strategy Investment strategy is understood as quantity and type of the resources must be invested in order to... realize sometimes The social factors including: life quality, lifestyle, flexible of the consumer, occupation, population, population density and religion etc c Economic factor The economic factor