FOREWORD Finally, it is time for the course’s completion after fifteen months studying and researching The course was rather short but they left in our hearts the good feeling and highly valuable knowledge Finish this course, we come back to the work and never forget the enthusiastic and interesting discussions in the class The feeling to be nervous when preparing quiz tasks, be palpitated with fear once lecturers ask tough questions at presentation of group tasks, or the parties at the end of each subject, gathering together and be saturated and filled with affection and gratitude between lecturers and students, even he/she is a Vietnamese or foreign lecturer Oh! How beautiful that student time is Give us a thousand times for our sincere gratitude to the lecturers who have brought all your enthusiasm, dedication and best to communicate to us with extensive and practical knowledge Thanks to the extremely valuable knowledge that shall help us live and work in each working position Thank you very much the university, class managers and service personnel have enabled us to complete the course Dear our classmates, Please give a nostalgic moment about our old dear days! MEMBERS OF GROUP 5: SANG – THIEN – VAN – THAO Strategic Management- Topic of Group No.5 ANNEX Sub - cover page Remarks of the company Commitment Annex List of abbreviation List of tables List of figures and diagrams Foreword PREAMBLE: GENERAL INTRODUCTION Figure No Name of Figures Page General background, necessity and significance of the topic 1.1 General Background 1.2 The necessity and significance of the topic "Building Strategic Development of Power Company No to 2015 and 2020 vision" 2 Objectives of research 2.1 Scope of research 2.2 Objectives of research Approaches 3.1 Qualitative research 3.2 Quantitative research Structure of Task CHAPTER I: THEORETICAL BASIS - OVERVIEW OF STRATEGIC MANAGEMENT 1.1 Strategic Management 1.1.1 Concept 1.1.2 Requirements on building and implementing the strategies 1.1.3 Role and importance of Strategies and Strategic Management 1.1.4 Stages of Strategic Management 11 1.1.4.1 Strategy formation 11 1.1.4.2 Strategy implementation 11 Strategic Management- Topic of Group No.5 1.1.4.3 Test and assessment of strategies 12 1.1.5 Levels of Strategic Management 13 1.1.5.1 Company - level strategy 13 1.1.5.2 Business - level strategy 13 1.1.5.3 Function - level strategy 13 1.1.6 Mission and Objective Identification 13 1.1.6.1 Mission 14 1.1.6.2 Objectives/Goals 14 1.2 The methods and tools used to develop strategies 20 1.2.1 Research on macro and micro environment 21 1.2.1.1 Macro environment 21 1.2.1.2 Micro environment 26 1.2.2 Analysis on internal environment 29 1.2.2.1 Value chain analysis 30 1.2.2.2 Analysis on factors outside the value chain 31 1.2.3 Develop strategies on SWOT matrix 33 CHAPTER II: ANALYSIS ON THE CURRENT STATEMENT OF BINH PHUOC POWER COMPANY 35 2.1 Background of Vietnam Electricity Corporation 35 2.1.1 Functions, duties 36 2.1.2 Organization of the corporation 36 2.1.3 Relations between Vietnam Electricity Corp with Power Companies 38 2.1.3.1 Business Manufacturing Plan 38 2.1.3.2 Electricity Business 38 2.1.3.3 Financial Works 39 2.2 Background of Vietnam Electricity Corporation (EVN – SPC) 41 2.2.1 Functions, duties 42 2.2.1.1 Functions 42 2.2.1.2 Duties 42 2.2.2 Organization of Southern Power Company 44 2.2.3 Relations between the Southern Power Company and Provincial Power Companies 45 Strategic Management- Topic of Group No.5 2.2.3.1 Entitlements of SPC 45 2.2.3.2 Obligations of the Southern Power Company 47 2.3 Background of Binh Phuoc Province 48 2.4 Background of Binh Phuoc Power Company 51 2.4.1 Foundation and Development Process of BPPC 52 2.4.1.1 Foundation Process 52 2.4.1.2 Development Process 52 2.4.2 Functions, duties 55 2.4.2.1 Functions 55 2.4.2.2 Duties: Business lines of the Company 55 2.4.3 Organization of Binh Phuoc Power Company 57 2.4.3.1 Organization of the company 57 2.4.3.2 Technological Process of Production 61 2.4.4 Overview of the current statement and business performance at Binh Phuoc Power Company in recent years 62 2.4.4.1 Business Capital, the actual value of the Company and the actual value of the State capital in the Company 63 2.4.4.2 Results on business performance of the company in recent years 65 2.5 Analysis on strategic issues and administration of the company in recent years72 2.5.1 External environment analysis 72 2.5.1.1 Macro environment 72 2.5.1.2 Micro environment 77 2.5.1.3 Matrix of external factors 80 2.5.2 Internal Environment Analysis 84 2.5.2.1 Value chain analysis 85 2.5.2.2 Analysis of factors outside the value chain 100 2.5.2.3 Matrix of internal factors 106 2.6 SWOT matrix analysis 110 2.6.1 Opportunities – Threats 110 2.6.1.1 Opportunities 110 2.6.1.2 Threats 111 2.6.2 Strengths and Weaknesses 112 Strategic Management- Topic of Group No.5 2.6.2.1 Strengths 112 2.6.2.2 Weaknesses 112 2.7 Matrix of strategy position and performance evaluation (SPACE Matrix) 113 2.8 Grand Strategy Matrix 116 2.9 Strategy Selection 118 CHAPTER III: SOLUTION – RECOMMENDATION & CONCLUSION 125 3.1 Orientation for electricity sector in National Energy Development Strategy of Vietnam up to the year 2020 and vision to 2050 of the Prime Minister 124 3.2 Development strategy of Electricity of Vietnam 126 3.3 Development plan for national electricity for period 2006 - 2015 and vision to 2025 of Binh Phuoc province 127 3.3.1 Objective 127 3.3.2 Objective of electricity sector 128 3.4 Development strategy of Southern Power Company 128 3.4.1 Development strategy 128 3.4.2 Forecasting some key strategic index of EVN - SPC 129 3.4.2.1 Forecast sale electricity in 2015 and vision to 2020 130 3.4.2.2 Forecast turnover – average selling price in 2015 and vision to 2020 130 3.4.2.3 Forecast electricity loss in 2015 and oriented to 2020 130 3.5 Forecasting and matters related to BPPC development strategy 130 3.5.1 Objectives of Binh Phuoc electricity sector 130 3.5.2 Forecasts 131 3.5.2.1 Forecasting Sale electricity to the year 2015 and oriented to 2020 134 3.5.2.2 Forecasting revenue – average price until 2015 and oriented to 2020 134 3.5.2.3 Forecasting power loss in 2015 and oriented to 2020 137 3.6 Identify strategy, vision, mission and target 140 3.6.1 Identify vision 140 3.6.2 Mission 140 3.6.3 Target to 2015 and orient to 2020 141 3.6.4 Analyze SWOT matrix to build strategy for BPPC 143 3.6.5 Strategic solutions 147 3.7 Selecting strategy for BPPC in 2015 and oriented to 2020 148 Strategic Management- Topic of Group No.5 3.7.1 Strategies selected at company level 148 3.7.2 Strategies selected at functional level 148 3.8 Implementing measure and action plan 149 3.8.1 Measures for company leve 149 3.8.1.1 Measures for market development strategy 149 3.8.1.2 Solutions for entering and enlarging international market 150 3.8.1.3 Solution for product development strategy 150 3.8.1.4 Diversify strategy, joint venture, growth by toward integration 151 3.8.2 Measures for functional strategy 152 3.8.2.1 Measures for financial strategy 152 3.8.2.2 Measures for Marketing strategy 153 3.8.2.3 Measures for human resource strategy 155 3.8.2.4 Measures for strategy to develop trade and rural electricity 155 3.8.2.5 Measures for financial strategy 156 3.8.2.6 Measures for telecommunication development strategy 158 3.8.2.7 Measures for power loss reduction 158 3.8.2.8 Measures for electricity agents, departments and the agencies belong to the company 159 CONCLUSION AND RECOMMENDATION 162 RECOMMENDATION 162 For the State 162 For Binh Phuoc province 164 For EVN and Southern Electricity Company 165 CONCLUSION 166 REFERENTIAL DOCUMENTS 169 Strategic Management- Topic of Group No.5 LIST OF FIGURES AND DIAGRAMS Figure No Name of Figures Page Figure 1.1 SWOT general model 20 Figure 1.2 Model of five competitive pressures 26 Figure 1.3 Model of SWOT matrix 34 Figure 2.1 Map of area management of EVN 35 Figure 2.2 Organization of EVN 40 Figure 2.3 Office of EVN - SPC 41 Figure 2.4 Map of area management of PC2 42 Figure 2.5 Organization of SPC 45 Figure 2.6 Office of Binh Phuoc Provincial People’s Committee 48 Figure 2.7 Office of Binh Phuoc Power Company 51 Figure 2.8 Organization of Binh Phuoc Power Company 61 Figure 2.9 Management Area of Power Grid of BPPC 63 Figure 2.10 Diagram of power distribution grid growth in period 2000 - 2009 87 Figure 2.11 Diagram 110kV grid growth in period 2000 - 2009 87 Figure 2.12 Diagram of 110kV grid incidents in period 2000 - 2009 89 Figure 2.13 Diagram of distribution grid incidents in period 2000 - 2009 89 Figure 2.14 Diagram of Labor structure by level 91 Figure 2.15 Diagram of customer growth in period 2000 - 2009 94 Figure 2.16 Diagram of commercial electricity columns in period 2000 - 2009 96 Figure 2.17 Diagram of commercial electricity of five economic sectors in 2009 97 Figure 2.18 Diagram of commercial electricity of five economic sectors in 2000 2009 97 Figure 2.19 Diagram of power losses of BPPC in period 2000 - 2009 99 Figure 3.1 Diagram of BPPC sale electricity and direction function for period 1998 2009 133 Figure 3.2 Forecast diagram of billed electricity from 2010 to 2020 134 Strategic Management- Topic of Group No.5 Figure 3.3 Diagram of revenue and direction function for period 2000 - 2009 135 Figure 3.4 Forecasting growth revenue for period 2010 - 2020 135 Figure 3.5 Diagram of power loss 2000 - 2009 and forecast function 137 Figure 3.6 Power loss rate chart in 2010 - 2009 138 Figure 3.7 SWOT matrix for strategy building 147 ====================================================== Strategic Management- Topic of Group No.5 LIST OF TABLES Table No Name of table Page Table 2.1 Results on business performance of BPPC in period 2005 - 2009 66 Table 2.2 Wire infrastructure and transformer station of BPPC in period 2005 - 200966 Table 2.3 Volume and capital for basic construction investment of BPPC in period 2005 - 2009 67 Table 2.4 Some main targets of business performance 2005 - 2009 69 Table 2.5 Macro economic Data of Vietnam in period 2004 - 2008 60 72 Table 2.6 Volume of transmission lines and transformer stations managed 86 Table 2.7 Status of grid incidents 88 Table 2.8 Structure of labor qualification 91 Table 2.9 Disposition of employees in Binh Phuoc Power Company 92 Table 2.10 Number of customers buying power of BPPC in period 2000 - 2009 94 Table 2.11 Commercial electricity under economic sectors of BPPC in period 2000 - 2009 95 Table 2.12 The proportion of commercial electricity in period 2000 - 2009 96 Table 2.13 Power losses of BPPC in period 2000 - 2009 99 Table 2.14 Accounting Balance Sheet in period 2005 - 2009 100 Table 2.15 Report on the business results of BPPC in period 2005 - 2009 101 Table 2.16 Results on financial analysis of BPPC in period 2005 - 2009 101 Table 2.17 Assessing matrix of internal factors of a company 108 Table 2.18: Competitive Criteria of BPPC and the Cambodia Royal Electricity and a small power company 109 Table 3.1 Sale electricity 1998 - 2009 131 Table 3.2 Forecasting sale electricity for period 2009 - 2020 132 Table 3.3 Revenue – average price from 2000 - 2009 134 Table 3.4 Forecast revenue – average price from 2010 until 2020 136 Table 3.5 Power loss 2000 - 2009 137 Strategic Management- Topic of Group No.5 company Focusing on attracting international investment and motivating economic sectors to take part in developing electric source, on the basic of National network, must ensure main role in producing and supplying electric for national economy and people’s life Accelerate buying electric of Lao and studying connection to electric network and exchanging electricity with countries in the region Develop received plans for low voltage network to sell electric directly to the users 3.8.2.5 Measures for automatic strategy Differing strategy for product, improve product’s quality, rapid solving problem, increase reliability in power supply to reduce power cut-off, improve management for the company by new technology Objectives + Until 2017: Automation model will help to form a new electric distribution network, flexible structure and one management system for trading of the company which is effective and ready for entering in opened electric market + Until 2020 and the following years: with assistance of automatic tools, BPPC will establish a sustainable developed company, having enough capacity for entering in electric competitive market, as well as ensuring trading activities which yield most effectiveness Finance - Investing in automation is only applicable for identified project - Feasible technically and financially, this is possible for finding good sponsor - Control the capital source, cost and risks strictly Strategic Management- Topic of Group No.5 168 Implementing rout for automation Period 2010: prepare to establish Limited company, and on 01/01/2011 will formally operate (i.) Enlarge, improve and complete SCADA/DMS for whole network 110kV (ii.) Equip for measurement/recording automatic consumed index (remote: AMR) for big customer and transfer stations properly (iii.) Study to build stage 1, with pilot project, accumulative system between automation root to operate electric network (SCADA/DMS) and other administration Period 2013-2016: prepare for step - grade 2/whole sale market to compete on the regulated implementing route by the Government (i.) Enlarge and complete SCADA/DMS for network 110kV and distribution network in urban area having population over 500.000 inhabitants (ii.) Complete measurement/ remote automatic recording system on the area of the company (iii.) Building stage two the accumulated system for automatic operating the network (SCADA/DMS), other administration (FMIS/CMIS/ERP…) and prepare for connecting online system for electric market Period 2017-2020: prepare for step - grade 2/ whole sell market for competition and going to step 2-grade 3/retail market for finished electricity - Enlarge and complete SCADA/DMS for whole network 110kV and distribution network throughout area of the company - Complete accumulated system for automatic operating the network and administration (see Figure 9), ready for connecting online system in the electric market Strategic Management- Topic of Group No.5 169 3.8.2.6 Measures for telecommunication development strategy - Build and develop electronic in the company, using internet for all transaction of BPPC such as solving electric demand, queries, and electronic commerce - Improve Video Conferencing system of the company to execute and instruct 03 grades in trading activities - Organize training to improve knowledge of advance telecommunication - Complete core network system, connecting throughout the company with other electricity - Improve software and implementing accumulation for management data system of whole company 3.8.2.7 Measures for power loss reduction - Enhance the big repair, basic construction, technical management, trading management, checking illegal connection, periodic meter replacement - Consider completing electric network structure 110 kV, preventing overload for line and station 110 kV in area managed by the company - One of important targets of the company is to reduce power loss, especially in transmission and distribution - Power loss includes shortage during transmission (technical loss) and loss due to illegal connection (commercial loss), which need specific measures to reduce it - Clearly master additional charge, planning electric network to set out program, measures for overload and receive additional charge - Have measure to control loss and loss fluctuation - Have common standard for loss from transformer or transmission line Strategic Management- Topic of Group No.5 170 - Standardize technical features of materials, equipments and main equipments on network - Repair, improve old and deteriorated electric network - Prevent overload for station 110 KV and build new station to shorten radius of additional charge - Gradually improve measurement system toward automation, using multi-price meter, prepaid meter by electronic card - Planning parallel network - General check for customer, coordinate with local authorities to solve illegal connection, continue implementing installing panel to reduce loss and ensure quality of power supplied to customer 3.8.2.8 Measures for the Power Companies; the departments and branches of the Binh Phuoc Power Company - Solidify, stabilize new model of organization structure The staff of the electricity agents at district, town are now shortage and weakness Some agents due to narrow working place, few people that its organization structure is not full as regulated - Prepare function, tasks, relation between agents; between belong agencies with the company - Decentralize and give power for belong agents such as recruiting new staff, signing labor contract, appointing, transferring, awarding, punishment, salary increase for staffs Decentralize financial management, material management, allowable to solve electric demand, signing electric sale contract and other economic contracts with partners Allow to decide investment in new work, rehabilitation work, repair, and upgrade network and other work within allocated fund Motivate and create conditions for them to develop their strengths and capacity Strategic Management- Topic of Group No.5 171 - Enhance training and retraining, particularly key staffs Build the staffs well in health and knowledge Strategic Management- Topic of Group No.5 172 Summarize target by year and plan for investment measures to carry out strategy: Billed Year electric (million kWh) Average Revenue Price (million (USD) USD) Loss (%) ROA (%) Investment cost (million USD) 2000 4,224 0.032928 139.096 11.48% 2001 5,006 0.033074 165.593 11.34% 2002 6,148 0.034764 213.753 10.37% 2003 7,398 0.038851 287.421 9.63% 2004 8,820 0.039226 345.977 9.10% 2005 10,430 0.039173 408.608 8.23% 2006 12,313 0.039665 488.413 8.10% 0.65 32.46153846 2007 14,714 0.042531 625.819 7.90% 2.37 2008 16,979 0.042929 728.928 7.27% 1.05 39.64102564 2009 20,741 0.045328 940.150 6.80% 4.00 56.41025641 2010 24,700 0.046971 1,160.190 6.41% 5.00 69.23076923 2011 29,415 0.048673 1,431.730 6.04% 6.00 80.51282051 2012 35,030 0.050437 1,766.824 5.69% 7.00 112.8205128 2013 41,717 0.052265 2,180.347 5.36% 7.50 130.7692308 2014 49,680 0.054159 2,690.653 5.05% 8.00 153.8461538 2015 59,164 0.056122 3,320.359 4.76% 9.00 166.0000000 2016 70,458 0.058155 4,097.528 4.49% 10.00 230.7692308 2017 83,907 0.060263 5,056.547 4.23% 11.00 297.4358974 2018 99,924 0.062447 6,240.023 3.99% 12.00 358.9743590 2019 118,999 0.064710 7,700.489 3.76% 13.00 461.5384615 2020 141,715 0.067055 9,502.775 3.54% 14.00 538.4615385 43.8974359 Table 3.7 Summarized targets and investment fund for period 2009-2020 Strategic Management- Topic of Group No.5 173 CONCLUSION AND RECOMMENDATION I RECOMMENDATION Recommendation for the State + Energy is very important for the economy of a country If we want the economy develop in stable and sustainable way, the State should have policy and strategy to develop energy in the long term After the Government decided to dissolve Ministry of Energy, the electricity industry dropped into the passive and confused situation Although the Government assign to Ministry of Industry and Commerce (formerly Ministry of Industry) manage the Electricity Industry, but this Ministry has overloaded in managing many industries, and not enough capacity to propose the good polity to the Government in developing energy of country They cannot carry out well industrialization - modernization The Government should reestablish Ministry of Energy The Ministry will manage electricity but also other energies such as coal, gas, wind, heating, etc… and all other energy Immediate we need to to restructure the electricity industry, soon set up competitive electricity markets in operation, attracting investment from all economic sectors, both domestic and foreign investors to participate in power development, increasing proportion of non-state investment + Electricity Law was born after a period of implementation has revealed many are not appropriate in the current period, we firstly propose the Government separate public sector and trading sector for electricity Before the Electricity Law, Government policy was that the state and people worked together, which meant that the electricity sector invested in network and transfer station, local authority used their budget to invest in low voltage station, user invested from the voltage network to their house If this mechanism reduces the pressure on funding for the power industry, we can use the funds for priority investment and development of electricity transmission grids, and solve most of queries of people Number of people using national electric network increase a lot every year Strategic Management- Topic of Group No.5 174 Since the Electricity Law issued, supplying power for remote household living in rural area is difficult, because Law regulates that electricity sector must invest until the end user, while electricity industry is in fund deficit, so we must consider effectiveness of investment While the local authority and people would like to use their money to invest in to solve their urgent demand for power, it is in contrast to the Law Therefore, the State need to have more specific policy for any ineffective business fields and propose the Government to reform the Power Law suitable with the changes of competitive structure at present and in the future + Serious lack of electricity in last time has many factors, among which price is the most important one The State had subsidies the price for long time; it has not included enough the production cost With such low price, it cannot motivate the user to save electricity Beside, calling for investment by the Government must incur so many old machines and equipments, which use a lot of energy It is clear to see by comparing GDP growth and billed electric growth rate (elasticity) In developed country, 1% GDP growth, ≤ 1% of billed electric growth In Vietnam, 1% GDP growth > 2.5% (2.5percentage) of billed electric growth Price in Vietnam is very cheap, nobody wants to invest in source and electric network, even electricity sector cannot borrow money from the bank because of unable to pay back loan By this reason, we strongly recommend the Government should stop the subsidy electric price and let to the market that impulse the user save power because it affects their spend The old machine or equipments should not import to Vietnam Companies should improve their technology, old equipment and machines, more investors want to invest in electricity if they can see more profit, local and international bank will lend more money to electricity producers to develop source and electric network Of course, power will not in shortage as current, monopoly of electricity sector will be gradually deleted, Now, user are free to select their power supplier, alike telecommunication sector Strategic Management- Topic of Group No.5 175 For Binh Phuoc province + Existing rate of electric user in the province is lower than other provinces With less fund allocated every year from EVN - SPC, the company cannot meet imperative demand for electricity of people in the province Thus, leadership of the province is kindly requested to recommend to Government should give preferential policy for Binh Phuoc province, alike special assistance for other highland provinces, to supply electricity for to increase number of electric users in the province The State should use state budget to invest 85%, the remaining will be from electricity sector + The safety border for the grids faces to many difficulties because the local authority has a right to supply land for people closing the road They build their houses, factories and planting tree within safety corridor for electricity network, which is very dangerous for human being and electric problem often happens on the network due to high tree or worker carelessly cause problem while they are building the house Therefore, when the province grants land for citizens, there is enough space for grid system + At present, to invest in one electric work is very difficult and complicated Firstly, funding source, complicated procedures for fund application, must full fill all basic construction procedures, cannot implement due to no enough space This is extremely difficult, the investor want to compensate at low price, affected person want higher compensation price, and local authority did not help the investor Any person who claims will give the higher compensation rate On the other hand, some affected person plant tree, construct right after the investigation mission to get more compensation, but local authority pretend neglect, that increase total cost of the investment work and in long time, 2-3 year, even cancel the project In such circumstance, our team recommends local authority as follows: - Issue the compensation rate is reasonable, fair, and transparent - Do not allow constructing and planting tree within the delineate area Strategic Management- Topic of Group No.5 176 + During last time, the province leadership set up many good policies for investment attracting This group would like to remind the leadership should be carefully consider for investors, especially heavy polluted sector, or companies using old technology, old equipments and machines, consume much energy etc - People living on scattered place that requires much investment cost for infrastructure, this is cannot be done It should save land for developing industry, the province should plan new residential area and the government will invest all infrastructures such as electric, road, school, medical station Recommendation for EVN and Southern Electricity Company - Should have development strategy based on orienting social and economic development strategy of the Government and real conditions of the electricity, popularize for belonging agents to know and give comments Basing on selected strategy and set out measures to build the plan gradually, objectives for short, medium and long term - Percentage of electricity shortages in recent years is not large, about 5-6% of total demand, but because of the management was not good, saving on electricity has not been reasonable, and the information and propaganda about the lack of electricity also too slow and too weak It is not clearly in cutting and reducing electric that causing urgent matter in people and public opinion of social To solve the power shortage in the near future EVN proposal for maximum exploitation of existing sources of electricity, including power plants use fuel oil with high production costs, raise diesel backup power source of enterprises Shorten repair time; rationally arrange the schedule repair existing units to increase power output Continue to maximize the amount of electricity imported from abroad Of course, this will cause input prices to rise EVN should be a reasonable explanation for the Government and the ministries concerned to accept subsidies or raising electricity prices - There is a suitable fund for developing electrical source and network to meet demand for future Immediate focus on removing obstacles to capital, to speed up the building process, new electrical sources operate quickly Strategic Management- Topic of Group No.5 177 - There is the method to instruct strictly the implementation of the Grid General Chart development of Government at stage VI in right progress, to ensure enough power for whole society - Strengthen the organization and improve the instruction, coordinate smoothly with other agencies - There is the plan to strengthen the independence for belong agents II CONCLUSION In economic changing and integrating the global economy, electricity is key industry of the country, which needs reform for get firm foundation for economic growth Moreover, electric market and electricity will be formed will make the environment more competitive, to build development strategy for BPPC to have measure for improving competition ability, develop rapidly, sustainable and ready for international integration By such requirements, this topic focuses on measure for development strategies for BPPC in 2015 and oriented to 2020 By using scientific studying method, collecting the data and information, by this topic we particularly researched and analyzed the operation of BPPC during ten years and combine with micro & macro sectors to forecast the future in order to build BPPC strategy, which is feasible on practice in few years The big exercise brings out the contribution as follows: Setting objectives means that identifying where the company is, where want to go? By analyzing internal and external environment of the company will help to get strengths, weakness, opportunities and threats, which may affect strategy of the company We build plan, goals to determine the way that Company will go to achieve On basic of studying orientation of the Government for electricity industry up to 2025 and the development strategy for the industry until 2015, oriented to 2025 to build the vision, mission and objectives for the company to identify suitable strategy for the Strategic Management- Topic of Group No.5 178 company Using statistical method to forecast function of important indicators such as billed electricity, average price, revenue, and power loss for period from 2010 to 2020 of the whole company Measure set out in big exercise is to build and select two strategic groups: 04 strategies for company level and 07 functional strategies, including: Strategy at company level - Marketing development - Entering and enlarging international market - Product development - Alliance, joint venture, diversifying business fields, toward integration Selected functional strategy - Financial strategy, lowest cost strategy - Marketing - Human resource, invest in people, training and developing - Pricing strategy, direct distribution (retail), indirect distribution (wholesale), price stabilization, price increase, price reduction - Network automation - Telecommunication development - Electricity loss reduction What are the specific steps of the company? What should the company done to achieve targets? This topic has given methods and action plan for each strategy Strategic Management- Topic of Group No.5 179 With above contribution, the topic systemizes and supplements scientific basis and actuality of strategy development for the company BPPC can this strategy to contribute their small efforts to developing economy- culture - society of the country However, due to limited time and scope of research, the topic did not carefully study the electricity industry of other countries to apply in Vietnam Electricity and in Binh Phuoc Province Content and measure of this strategy for the company are just in principle and orientation During implementing, there is the short, medium and longterm plan, which is suitable with the fact of the period Strategic Management- Topic of Group No.5 180 REFERENTIAL DOCUMENTS Lectures of Strategic Management of PhD Le Van Bay Lectures of Strategic Management of Griggs University Strategy of Business Policies - PhD Nuyen Thi Lien Diep, MA Pham Van Nam - Statistic Editor Duong Ngoc Dung (2008), Competitive Strategy according to Theory of Micheal E Porter, HCM Collective Editor Đao Duy Huan (1996) Business Strategy of Enterprises in Market Economy PhD - Educational Editor Đao Duy Huan (2006), Administration in Globalization, Statistic Editor, Page 78-108 Đao Duy Huan (2007), Administration in Globalization, Statistic Editor Nguyen Đinh Tho (2008), Study of graduated composition in Business Administration - Status and Solution, Culture - Information Editor Nguyen Huu Lam- Đinh Thai Hoang- Pham Xuan Lan-1998- Strategic Management of Competitive Advantages Development - Educational Editor 10 Nguyen Ngoc Tho (2007), Modern Business Finance, Statistic Editor, Page 9, 119-143 11 Nguyen Tan Phuoc (1996) Business Strategy and Policy Statistic Editor 12 Nguyen Thi Lien Diep & Pham Van Nam (2006), Business Strategy and Policy, Social - Labor Editor, Ho Chi Minh city 13 Nguyen Thanh Hoi (2005), Human Resources Administration, Statistic Editor 14 Nguyen Quoc Tuan (2006), Human Resources Administration, Statistic Editor 15 Tran Kim Dung (1998), Human Resources Administration, Educational Editor 16 Thuy Trang (2007), “Business Environment; Looking at Viet Nam from 10 criteria”, VnEconomy Magazine 17 Tran Van Chanh, Ngo Quang Huan - Business Financial Administration Editor of HCM National University 18 Vo Thanh Thu, Nguyen Thi Mỵ - 1997- Economy and Analysis on Business Operation - Statistic Editor 19 Statistic Yearbook 1995-2000 of Power Company No Strategic Management- Topic of Group No.5 181 20 .Business Strategy and Policy 3rd edition, Gary Smith, Danny R Arnold and Bobby Bizzel 21 Concepts of Strategic Management 5th edition, Fred R David (Englewood Cliff, NJ: Prentice Hall), 1995 22 Competitive Strategies, Michael E Porter - Technical Science Editor - Ha Noi 1996) 23 Business and Management Strategies, Philippe Lasserre and Joseph PuttiNational Political Editor - Ha Noi 1996) 24 Industries and Competitors”, The Free Press 25 Michael E.Porter (1980), “Competitive Strategy - Techniques for Analyzing 26 The Institute for Strategy and Competitiveness, http://www.isc.hbs.edu/ 27 QuickMBA Strategic Management, http://www.quickmba.com/ 28 SAS Group (2006), “SAS Group Facts”, http://www.sasgroup.net; 29 Zikmund, W.G (1997), “Business research methods”, 5th ed, Dryden Press, Strategic Management- Topic of Group No.5 182 ... necessity and significance of the topic "Building Strategy Development of Binh Phuoc Power Company to 2015 and vision to year 2020" We think that the topic "Building strategic development of Binh Phuoc. .. Strategic Management- Topic of Group No.5 15 For these reasons, the topic "Building strategic development of Binh Phuoc Power Company to 2015 and vision to year 2020" is very practical and has great... Phuoc Power Company to 2015 and vision to year 2020? ?? is very necessary for all Electric power Companies in general and Binh Phuoc Power Company in particular, it is also a requirement of the