Global Advanced Master of Business Administration BUILDING BUSINESS STRATEGY FOR POWER ENGINEERING CONSULTING JOINT STOCK COMPANY (PECC3) 2014 - 2018 Group 1: 1/ Pham Van Tuan 2/ Nguyen Hung Anh 3/ Nguyen The Vinh 4/ Ho Ngoc Quoi HCM City– April /2013 Capstone Project Report – Ga.MBA01.C0112 – Group 05 ACKNOWLEDGEMENT Having carefully and seriously studied and synthesized, our group have completed this topic We confirm that this is the research paper of our own effort The figures disclosed in the assignment are extracted from researches, reports and articles of organizations and individuals and are legitimately referred and used The results presented herein are trustworthy and have not been published in any other research paper Our group would like to express our gratitude to Griggs University, Center for Educational Technology and Career Development (ETC) – Vietnam National University, Hanoi, professors who have enthusiastically instructed us We also would like to thank the staff of the Center for helping us during the course The Group also would like to extend our sincere thanks to Power Engineering Consulting Joint Stock Company (PECC3) that has helped us during the performance, has shared with us useful data and information to accomplish this assignment Ho Chi Minh City, September 20th, 2013 GROUP OF AUTHORS Page i Capstone Project Report – Ga.MBA01.C0112 – Group 05 TABLE OF CONTENTS INTRODUCTION CHAPTER I.THEORETICAL BACKGROUND FOR FORMULATION OF BUSINESS STRATEGY OF ENTERPRISES 1.1 DEFINITIONS OF BUSINESS STRATEGY 1.1.1 Definition of strategy 1.1.2 The fundamentals of strategy 1.1.3 The role of a business strategy 1.2 DIFFERENT TYPES OF BUSINESS STRATEGIES 1.2.1 Corporate-level strategies 1.2.2 Business-level strategies 1.3 BUSINESS STRATEGY PLANNING 1.3.1 Macro environment analysis - PEST model 1.3.1.1 Political and legal environment 1.3.1.3 Socio-economic environment 1.3.1.4 Scientific, technical and technological environment 1.3.1.5 Natural environment 10 1.3.2 Analysis of industry environment – Porter’s Five Forces Model 10 1.3.3 Analysis of enterprise’s internal factors 14 1.3.3.1 Analysis of resources 14 1.3.3.2 Capacity for Research and Development (R&D) 14 1.3.3.3 Production capacity 14 1.3.3.4 Financial capacity 15 1.3.3.5 Marketing capacity 15 1.4 STRATEGY FORMULATION TOOLS 15 1.4.1 External factor evaluation matrix (EFE matrix) 17 1.4.2 Internal factor evaluation matrix (IFE matrix) 17 1.4.3 Competitive Profile Matrix (CPM) 18 1.4.4 SWOT Matrix 19 Page ii Capstone Project Report – Ga.MBA01.C0112 – Group 05 1.4.5 QSPM 20 CONCLUSION OF CHAPTER I: 21 CHAPTER II.ANALYSIS OF BUSINESS SITUATION AND BUSINESS STRATEGY OF POWER ENGINEERING CONSULTING JOINT STOCK COMPANY (PECC3 ) 22 2.1 OVERVIEW ON PECC3 22 2.1.1 General information on the company 22 2.1.2 Establishment and development history 23 2.1.3 Business lines 26 2.1.4 Organisational structure: 29 2.1.5 Business results of PECC3 in the stage of 2010 – 2012 29 2.2 ANALYSIS OF EXTERNAL ENVIRONMENT 31 2.2.1 Macro environment analysis under PEST model 31 2.2.1.1 Political and legal environment 31 2.2.1.2 Economic environment 31 2.2.1.3 Socio-cultural environment 35 2.2.1.4 Scientific, technical and technological environment 35 2.2.1.5 Natural environment 36 2.2.2 Analysis of industry environment 37 2.2.2.1 Analysis of competitive pressure from existing competitors 37 2.2.2.2 Analysis of threats from potential competitors 41 2.2.2.3 Analysis of customer’s pressure 42 2.2.2.5 Analysis of threats of substitues products 44 2.2.2.6 External Factor Evaluation Matrix – EFE Matrix 45 2.2.2.7 Competitive Profile Matrix CPM 47 2.3 ANALYSIS OF INTERNAL ENVIRONMENT OF THE COMPANY 50 2.3.1 Analysis of resources 50 2.3.1.1 Financial capacity 50 2.3.1.2 Infrastructure 55 Page iii Capstone Project Report – Ga.MBA01.C0112 – Group 05 2.3.1.3 Human resources 55 2.3.1.4 Technology, machinery, and equipment 57 2.3.1.5 The work procedures 57 2.3.1.6 Brandname 57 2.3.2.Analysing the capacity of service and product provision: 57 2.3.3 Analysis of the capacity of Research and Development (R&D) 58 2.3.4 Analysis of Marketing capacity 59 2.3.5.Internal factor evaluation matrix 60 2.3.5.SWOT Matrix 62 CHARTER III.PROPOSAL OF STRATEGY AND SOLUTIONS TO IMPLEMENT BUSINESS STRATEGY OF PECC3 IN THE PERIOD OF 2014 – 2018 65 3.1 VISION, MISSION AND STRATEGIC OBJECTIVE OF THE COMPANY 65 3.1.1 Vision 65 3.1.2 Mission 65 3.1.3 Core values 65 3.1.4 Strategic objectives of the Company 66 3.2 ANALYSIS AND SELECTION OF THE STRATEGIC OPTIONS THROUGH SWOT MATRIX 66 3.3 SELECT THE OPTIMAL STRATEGY BY MATRIX QSPM: 75 3.3.1 Select the optimal strategy 75 3.3.2 Analysis of the Thailand market and the competiveness of PECC3 79 3.3.2.1 Some characteristics of Thailand market 79 3.4 SOME SOLUTIONS TO PERFORM BUSINESS STRATEGY SELECTED 84 3.4.1 Solutions to develop products and services 84 3.4.2 Solutions on technology and working process 85 3.4.3 Solutions to develop human resources 86 3.4.4 Solutions on restructuring the organization 88 3.4.5 Solution on Marketing 89 Page iv Capstone Project Report – Ga.MBA01.C0112 – Group 05 CONCLUSION FOR CHAPTER 3: 94 CONCLUSION 96 REFERENCES 97 APPENDIX 99 Page v Capstone Project Report – Ga.MBA01.C0112 – Group 05 LIST OF ABBREVIATIONS No Abbreviations PECC3 EVN BCT PECC2 PECC5 EASIA JSC Explanation Power Engineering Consulting Joint Stock Company Viet Nam Electricity Ministry of Trade and Industry Power Engineering Consulting Joint Stock Company Power Engineering Consulting Joint Stock Company East Asia Investment And Construction Consultant Joint Stock Company Page vi Capstone Project Report – Ga.MBA01.C0112 – Group 05 LIST OF FIGURE Figure 1.2: Analysis Porter’s Five Forces Model 10 Figure 1.3: Model of strategy formulation 16 Figure 2.1: A analysic sheet by revenue period 2010-2012 28 Figure 2.2: Model of administration and management apparatus of PECC3 29 Figure 2.3: A analysic sheet by business results period 2010-2012 30 Figure 2.4: Domestic design and consultancy percent in 2012 40 LIST OF TABLE Table 1.1: SWOT Matrix 20 Table 2.2: Comparison of some criteria between PECC3 and competitors in 2012 39 Table 2.3: Gross profits of works of the company in the stage of 2010-2012 43 Table 2.4: Abridged financial statements of the company in the period of 2010-2012 51 Table 2.5: Some of the finance indices of the Company in the period 2009-2011 53 Table 2.6: The skill matrix of the Company’s staff 58 Table 3.1: Checklist of documents in accordance with norms 86 Table 3.2 Activity plan in period 2014-2018 89 Table 3.4 Estimation for sale volume in conducting new strategy compared with the previous strategy 92 Table 3.5: Budget and human resources plan of the company in the period of 2013-2014 93 Page vii Capstone Project Report – Ga.MBA01.C0112 – Group 05 INTRODUCTION The demand for energy in general and electricity in particular energy for the socio-economic development in Vietnam and Indochina (including Laos and Cambodia) and Myanmar is very large Currently, Vietnam has hydropower plants such as Hoa Binh, Tri An, Son La, Yaly and Nghi Son Thermal Power Plant 1, Ca Mau along with hundreds of hydropower plants, thermal power plants distributed small Northeast weak (thermal), Northwest, Central Highlands, Dong Nai (hydropower) and Ca Mau (thermal) Enter 40% power, Cambodia desperately for incidents in Vietnam http://tintuconline.com.vn/vn/thitruong/20130524065053345/nhap-40-nguondien-campuchia-nhao-nhao-vi-su-co-o-viet-nam.html As it can be seen demand for electricity consumption in particular Vietnam and other countries in the Mekong river region is very large, if the supply is enough not timely it will cause difficulties for people's lives and especially hindering socioeconomic development of the country Besides the demand for electrical energy use, demand for the design, build power projects and power transmission network infrastructure for the entire regoin is also very large PECC3 is a company operates in the field of energy consultancy in Vietnam and the Indochina peninsula region To fully satisfy the demand for electrical construction services consulting for clients with high quality and better price Quality reliable PECC3 honored values with the aim of building confidence, trust in quality of service Honesty and sense of responsibility, PECC3 commitment with all partners to ensure consulting quality is the top target to satisfy the increasing demands of customers Page Capstone Project Report – Ga.MBA01.C0112 – Group 05 PECC3 would like to create a typical style for PECC3 officers and employees are dedicated and have high sense of responsibility All members of PECC3 always end strength and wisdom to solve tasks efficiently, serve wholeheartedly to bring satisfaction to customers Facilitate consultation for of the hydroelectric power as well as heat away from residential areas, difficulties in storage devices Developing consultancy market, enhancing brands PECC3 Strengthening capacity development to meet the needs of the domestic and region market During construction consulting, development and operation of power systems, PECC3 strive to use advanced technology Interested consulting market to build power projects in Asia: Cambodia, Laos, Thailand, Myanmar According to a survey of PECC3, potential electricity from renewable energy (RE) in Viet nam is very large, as every year: SHP potential 7,000 MW / year (800 MW new exploitable) biomass power potential of 800 MW (150 MW operators only); biogas power can reach 100 MW (currently untapped any MW) solar power has potential kw/m2 4-5; wind power is only 31.5 MW extraction (feasibility projects will be implemented in the near future will have a total capacity of 2,000 MW) electricity from waste potential 220 MW (currently exploiting new 2.4 MW) Particularly the kind of tidal power from the 200 MW capacity /year and may geothermal 200-340 MW /year, but the two categories we have not exploited at all Not only is expected to increase the power output, renewable energy is to replace fossil NL contributes to reducing adverse environmental impacts Renewable Page Capstone Project Report – Ga.MBA01.C0112 – Group 05 3.4.4 Solutions on restructuring the organization Because of a change in PECC3 ’s strategy aiming to expand to oversea, task assignment among existing departments has also been changed All tasks are assigned by Project Management Office in implementing works for domestic and foreign customers One Deputy Director of PECC3 will be assigned to manage PMO under the guidance of the Board of Directors Details of the divisions described as below - Corporate: Responsible for supporting activities, back office in the company - Technology & Process: Be responsible for research on technology and working process in the company This department will be charged by one current Deputy Director - Technology: To research technique for consulting, designing, etc…such as applying new designing style toward customers, new way to calculate structure for complex construction These studies would be applied appropriately to all company's projects - Quality Control: To control the quality of the company’s products and services The company will ask representatives of QC to involve in the company's projects in order to control the quality of the project - EPG (Engineering Process Group): To work out, establish and revise the working process for all function departments - Training: To plan and coordinate training activities This department will regularly collect information for training from departments, employees in the company and technology trends, market processes to make appropriate training plan training - QA (Quality Assurance): To control processes In each project, representatives from QA will support project member in implementing the project according to standard processes and templates Page 88 Capstone Project Report – Ga.MBA01.C0112 – Group 05 - Graphic Design: To deal with graphic images This department will gather all requirements on image editing for all the other departments The way to receive and handle requirements is basing on tickets, FIFO mechanism - IT: To ensure the infrastructure and device in PECC3 - Security: Be responsible for the problems related to security system, information system, etc… - Business Development: Be responsible for business plan, Sales Marketing Currently, the Chairman will be temporarily in charge of this activity to show the company's commitment in implemeting the new strategy - Delivery (PMO): Be responsible for implementing projects A Deputy General Director will manage daily operations of this department With a number of projects, Delivery Directors will support the Deputy Director in running the project/project team 3.4.5 Solution on Marketing After evaluating PECC3 ’s opportunities in Australia, Germany, Japanese market, the company's sale department should take the steps as the following plan to initially put a foot into this market It is noted that this is the plan not only to expand new strategy but also to maintain the activities in existing traditional market No Action Plan Priority level Time Establishing the an outsourcing construction designing and consulting center in Laos, Thailand Recruiting qualified staffs Educating and Training The certificate for information security and continuity in business PECC3 Thailand Advertising and promoting the business in Thailand Upgrading IT infrastructure Supporting activities 02.2014 03.2014 04.2014 1 07.2014 09.2014 10.2014 03.2014 12.2014 Table 3.2 Activity plan in period 2014-2018 Page 89 Capstone Project Report – Ga.MBA01.C0112 – Group 05 Besides the preparation of necessary infrastructure in terms of internal view as above, the company’s Board of Directors also sets aside a budget to develop market with an aim to have an impact on the Japanese customers’ habits and attitudes These works will be taken over by an experienced Australia, Germany Japanese expert Besides the preparation of necessary infrastructure in terms of internal view as above, the company’s Board of Directors also sets aside a budget to develop market with an aim to make impact on the Australia, Germany Japanese customers’ habits and attitudes These works will be taken over by an experienced Australia, Germany Japanese expert Because of new operation, PECC3 will apply "to detect stone to cross the river" strategy for marketing activities Specific funding for these activities will depend on the approval of the Board of Directors in each quarter but will not exceed 25% of annual funding approved by the Finance Department of PECC3 The promotion activities may have many objectives such as strengthening the awareness about the company’s brand, enhancing the trust on Power services, improving the company’s image These are a few tools to promote the marketing activities which the company conducted in the Australia, Germany Japanese market with its representatives in Australia, Germany Japan: - To hold events Sponsoring or organizing events that make large social effects Associating PECC3 brand with these events - Putting newsletter Newsletter may allow PECC3 to report on the new service, price and its different activities, especially social activities – to build up sympathy view of the public community for the company’s image The newsletter will be sent to a number of Australia, Germany Japanese newspapers, radio, TV when it is possible Having both feet on the ground, with some advantages, such as competition price, Page 90 Capstone Project Report – Ga.MBA01.C0112 – Group 05 skilled human resources with well trained and latest version software used for designing, which can get high efficiency PECC3 penetrades Thai Land market by participating in the design and consultant new projects of energy sources such as wind, tidal and solar energy The fields that Thai companies not have the advantages or they not want to this business Meanwhile, other foreign companies not have competitive advantages compare to PECC3 such as China due to poor quality, while the other companies from the developed countries have the price too much expensive - Workshop The workshop was seen as a commercial aspect of product and service introduction Quarterly, CDC Japan will organize seminars on construction designing and consulting The speakers are retired experienced Australia, Germany Japanese experts; the guests are representatives for Australia, Germany Japanese designing and consulting and construction companies - Press Always try to make PECC3 company appear on newspapers When newspapers are published, the sale department will photocopy it into many copies and send to their friends, customers and suppliers This is an important information channel, with high reliability and wide sphere of influence The above information shows that Thai market is high potential for investors in Vietnam like PECC3 Currently, when projects of conventional power sources such as hydropower, thermal power has leveled off, then Thailand is promoting the projects using renewable energy sources such as tidal power (tidy), wind, solar energy With above solutions, the company's business target during the period 2013 - 2018 is proposed as follows: Page 91 Capstone Project Report – Ga.MBA01.C0112 – Group 05 Unit: 1000 USD 2014 Q1 Q2 2016 2017 2018 36 180 240 300 360 72 360 480 600 720 Q3 Q4 Structure…(mm) 30 Graphics,… (mm) Estimation 12 2015 60 11 2.5 2.5 3.0 3.0 3.0 3.3 3.6 4.5 1.2 1.2 1.2 1.2 1.2 1.2 1.5 1.8 2.2 2.5 structure… 0 0 90 108 594 864 1200 1620 Graphics, … 0 0 72 86.4 540 864 1320 1,800 Total 0 0 162 194.4 1,134 1,728 2,520 3,420 structure… 10 12 15 20 25 30 Graphics, … 20 24 30 40 50 60 Total Staff 2.5 Graphic price,… Revenue Structure price 30 36 45 60 75 90 Table 3.3 Some business KPIs of the company in the period of 2014-2018 By comparing the results of sales predictation of new strategies to the sales of current traditional market, with expected growth of 10% per year from 2013 to 2018, we have the following comparison: Unit: 1000 USD Current market New strategy Proportion 2011 871.4 0.0 N/A 2012 958.6 0.0 N/A 2013 2014 2015 2016 1,054.4 1,159.8 1,275.8 1,403.4 356.4 1,134.0 1,728.0 2,520.0 25% 49% 58% 64% 2017 1,543.8 3,420.0 69% Table 3.4 Estimation for sale volume in conducting new strategy compared with the previous strategy It can be seen that if the business plan in the new strategy is well implemented, PECC3 will be able to achieve sales volume of more than 100 billion VND in 2017 - A desirable figure for any Vietnamese designing and consulting company 3.4.6 Solution on Finance Basing on the business plan of PECC3 given above, the Board of Directors of PECC3 will allocate fundings for appropriate support activities on the implementation of the selected strategy Then, the finance department will calculate the essential factors of property structure, the company’s current capital and make plans to prepare appropriate capital resouce for approved activities The plan is divided into two separate parts: Page 92 Capstone Project Report – Ga.MBA01.C0112 – Group 05 PART A: To prepare facilities, research the market and establish partners Australia, Germany, Japan with a total budget of 250,000 USD PART B: To upgrade procedure, technology and staffs serving the partners Australia, Germany, Japan through research activities, experience learning and indepth skill training with a total budget of 180,000 USD Prepare facilities, research market and establish partners Australia, Germany, Japan A To conduct preparati on activities partners Australia, Germany, Japan B Marketing & partners Australia, Sale (one year) Germany, Japan (one year) Cost Staff Fundi Cost (USD) (people ng (USD) ) (USD ) Market research Cost (USD ) 50.00 Staff Tim (peopl e e) (day ) 100.00 90 100.0 00 To prepare wind power service packages Technology and Organizationa procedure research l re-structure Service Cost (USD) Total Com menc e Funding (USD) 250.000 Imp leme ntati on Quart Dire er/Ye ct/co ar oper ation Dire Quart ct/co er Ioper 2013 ation Education and training Total Com menc e Quart er/Ye ar Staf Time f (day) (pe opl e) Cost (USD) Staff (peop le) Fundin g (USD) Cost (US D) Funding (USD) To outsource designing and 80.000 consulting 180 10.000 75 20.000 110.000 To outsource 20.000 drawings 90 5.000 10 10.000 35.000 To outsource structure 20.000 calculation 60 5.000 10 10.000 35.000 Quart er I2013 Quart er II2013 Quart er I2014 Table 3.5: Budget and human resources plan of the company in the period of 2013-2014 Page 93 Imp leme ntati on Dire ct/co oper ation Dire ct Dire ct Dire ct Capstone Project Report – Ga.MBA01.C0112 – Group 05 Total funding spent on selected strategy is $ 430,000 equivalent to 43% of PECC3 ’s expected revenue in 2012 PECC3 ’s Board of Directors has allocated 50% of the expected profit in 2012 (equivalent to $ 100,000) to implement initial step of A and B work above-mentioned and has proceeded to mobilize short-term loans for the remaining funding according to divergence payment Together with analysis above and as mentioned in chapter 2, CDC’s BOD get the risk by investing $ 250,000 to explore partners Australia, Germany, Japan within year and based on their thinking, the amount is worth to try to jump in new market PECC3 comes to partners Australia, Germany, Japan by some pilot Power projects from these relationships, hence the risk is not so high when PECC3 start from scratch In addition, $ 180,000 is invested to training and it has the main goal is strength the capabilities of resources to serve for not only Japanese customers but also US, European and as well as Vietnam customers This investment is not risk at all because it will turn PECC3 resources to be professional resources and it helps the productivity and quality of PECC3 moving to next levels It’s worth CONCLUSION FOR CHAPTER 3: Thus, on the foundation of scientific theory on business strategy and the basis for chosing business strategy when analyzing the PECC3 company's operating environment, Chapter analyzed the company’s SWOT matrix, formed strategic plans and used the QSPM matrix model in order to offer trading strategy for PECC3 in the coming period which is "The strategy in providing construction power consulting Power services in the partners Australia, Germany, Japan" then considering strategy " Partnering with reputable foreign designing and consulting companies" to exploit better the partners Australia, Germany, Japan ―Strategy in exploiting the domestic construction consulting market" and "Strategy in providing ing and consulting services in the Myanmar market" have not been selected in the present time but it is necessary to wait until signs of the recovery and the stability back to the global economy in general and Vietnam in particular Page 94 Capstone Project Report – Ga.MBA01.C0112 – Group 05 The above-mentioned solutions will be implemented in the period from now to 2018, then PECC3 is completely able to gain healthy and sustainable development based on the revenue brought from the partners Australia, Germany, Japan through Power consulting service activities Page 95 Capstone Project Report – Ga.MBA01.C0112 – Group 05 CONCLUSION Basing on business strategy theory along with the analysis and assessment on the company’s situation in Vietnam construction designing and consulting joint stock company, using data systems, information and collected data, the research team was able to evaluate PECC3 company according to EFE, IFE, CPM, SWOT matrix to clearly see the strengths, weaknesses, opportunities and threats in today and tomorrow business environment By analyzing the internal and external factors in combination with the SWOT matrix, the team has found out strategic solutions by QSPM matrix, then assessed and selected the optimal strategic plan for the company Simultaneously, the research team has proposed solutions to implement that strategy to accomplish the goal of becoming the leading company in , drawings, structural calculations, etc in Vietnam with total workforce of 300 people in 2018 In this thesis, we want to apply the knowledge on business we learned in making contribution to the success and sustainable development of PECC3 joint stock company in the future During the period implementing the theoretical research and analyzing current situation of PECC3 Company, the team has received the enthusiastic assistance and support of PECC3 company’s Board of Director, especially Mr Pham Phu Hoa, the chairman of PECC3 The team would like to send our sincere thank for the precious help to Mr Pham Phu Hoa and all the members of the PECC3 company in the previous time However, developing and applying competitive strategy is also a relatively new problem for today business research, especially applied to the real situation of Vietnam Moreover, because of the limitation of research level as well as the time, the problems that the thesis will participate in solving inevitable shortcomings, limitations and certain subjectivity Therefore, the team are looking forward to receiving comments to make the subject practical and Group would like to thank the Council's comments helped the team post more complete! Page 96 Capstone Project Report – Ga.MBA01.C0112 – Group 05 REFERENCES -Training modules of MBA Griggs - ETC Center, Viet Nam National University, Hanoi; - Fred R David, Strategic Management, Fourteenth Edition, The PEARSON; - Audited Financial Statements years 2009-2011, PECC3 ; - Research and Training Institute - "Construction & implementation of business strategy - the way to success" - Labor Publishing House, Hanoi 2005 - To Hoang Dung, Nguyen Cong Vinh and colleagues, "Solutions consulting capacity building design building materials meet the requirements of industrialization and modernization, regional integration and international "- Report on the subject of scientific research and technological development, number RD-0602, Hanoi 2005 - Nguyen Van Đang - "Innovation management models in construction consulting companies in the trend of economic globalization," presentation at the "Workshop on the Vietnamese construction consultancy with integration - VECI 2000 - Luong Van Tu (Deputy Minister of Commerce) - "Competitiveness of technical consulting services in the context of international economic integration" - Speech at the General Assembly for the second term association construction consultancy Vietnam, in April / 2005 - Pham Chi Lan (Research Committee of the Prime Minister) - "Improving the competitiveness of Vietnamese enterprises in international integration" - Speech at the General Assembly for the period II construction consultancy associations male, 4/2005 - Nguyen Canh Chat "advisory opinion of the association building construction FIDIC improve international competitiveness" (extract of FIDIC documents issued in 2004), speech at the conference to strengthen capacity consulting services for integration, Hanoi, 4/2005 Page 97 Capstone Project Report – Ga.MBA01.C0112 – Group 05 - Ministry of Construction - "Strategy for development of science and technology building in 2010 with a vision to 2014" - Hanoi, 2000 Page 98 Capstone Project Report – Ga.MBA01.C0112 – Group 05 APPENDIX AUDITED FINANCIAL STATEMENTS OF PECC3 JOINT-STOCK COMPANY IN THE PERIOD 2010-2012 AND THE FIRST MONTHS OF 2013 BALANCE SHEET CURRENT ASSETS A Cash and cash equivalents Cash I Cash equivalents Accounts receivable II Account Receivable Prepayments to suppliers Other Account receivable Provisions for bad debts Other current assets Short-term prepaid III expenses Taxes receivable Other current assets LONG-TERM ASSETS B Fixed assets II Tangible assets Historical costs Accumulated depreciation Intangible assets Initial costs Accumulated amortization Other receivable Construction-in-progress III Long-term investments Investments in affiliates V Other long-term assets Long-term prepaid expenses TOTAL ASSETS 2010 5,448,500,224 1,735,402,762 1,735,402,762 2,806,240,548 3,571,730,183 450,536,187 67,247,712 (1,283,273,534) 906,856,914 21,206,982 885,649,932 22,473,886,800 21,992,057,690 10,209,856,872 13,851,858,800 (3,642,001,928) 10,545,833,265 10,545,833,265 2011 4,793,913,918 1,453,254,769 653,254,769 800,000,000 2,459,106,104 3,389,594,708 58,200,000 47,696,065 (1,036,384,669) 481,829,110 881,553,045 8,138,380 873,414,665 30,716,965,550 28,380,486,032 13,821,606,100 17,680,359,210 (3,858,753,110) 14,532,099,932 14,539,069,629 (6,969,697) 26,780,000 2,000,000,000 2,000,000,000 336,479,518 481,829,110 27,922,387,024 Unit: VND 2012 2013 336,479,518 35,510,879,468 1,236,367,553 Page 99 Capstone Project Report – Ga.MBA01.C0112 – Group 05 A I II B I LIABILITIES AND OWNER'S EQUITY ACCOUNT PAYABLE Current liabilities Short-term debts and loans Account Payable to suppliers Advances from customers Taxes and other obligations to the State Wage payable Accrued expenses Other payable Bonus and welfare funds Long-term liabilities Long-term debts and loans Deferred income tax OWNER'S EQUITY Owner's equity Capital Retained earnings TOTAL LIABILITIES AND OWNER'S EQUITY 2010 14,455,338,964 9,841,946,860 1,520,105,264 2011 19,211,289,993 14,604,489,178 5,390,727,274 406,325,950 3,823,605,360 575,472,820 2,721,202,958 1,973,489,078 1,673,265,726 569,461,170 (124,305,688) 4,613,392,104 4,535,342,104 78,050,000 13,467,048,060 13,467,048,060 12,114,340,000 1,352,708,060 1,413,733,978 878,142,851 3,625,140,925 68,372 4,606,800,815 4,528,750,815 78,050,000 16,299,589,475 16,299,589,475 16,114,340,000 185,249,475 27,922,387,024 2012 35,510,879,468 BUSSINESS RESULTS Unit: VND No 10 11 Criteria Sales Deductions Net sales Costs of goods sold Gross profit Financial income Financial expenses Interest Selling expenses Administrative expenses Net operating profit Other incomes 2010 21,490,593,439 727,754,544 20,762,838,895 12,787,591,348 7,975,247,547 16,628,199 327,012,749 327,012,749 4,825,465,070 2,839,397,927 1,137,233 2011 18,299,625,974 33,636,984 18,265,988,990 11,961,521,953 6,304,467,037 25,505,439 1,833,337,811 1,833,337,811 4,181,407,403 315,227,262 519,126 2012 Page 100 Capstone Project Report – Ga.MBA01.C0112 – Group 05 12 13 14 15 16 17 18 Other expenses Other profit Profit before tax Corporate income tax Deferred income tax Profit after tax Earnings per share (EPS) 65,928,138 (64,790,905) 2,774,607,022 727,748,148 2,046,858,874 1690 69,291,295 (68,772,169) 246,455,093 61,205,618 185,249,475 130.36 CASH FLOW STATEMENT Unit: VND I II III Cash flows from operating activities Profit/ (loss) before tax Adjustments for: Depreciation of fixed assets Provisions Interest expenses Operating profit/ (loss) beforechanges of working capital Increase/ (decrease) in receivables Increase/ (decrease) in payables Increase in prepaid expenses Interests paid Income tax paid Other gains Other disbursements Net cash flows from operating activities Net cash flows from investing activities Purchases and construction of fixed assets and other long-term assets Receipts of loan interests, dividends and profit shared Net cash flows from investing activities Cash flows from financing activities Issue of ordinary share Dividend paid 2010 2,774,607,022 2011 2012 246,455,093 538,494,645 349,806,625 327,012,749 802,651,420 (246,888,865) 1,833,337,811 3,989,921,041 1,623,099,904 2,912,519,537 (168,039,447) (848,086,048) 0 2,635,555,459 607,722,113 (207,383,200) 128,071,573 (1,610,200,513) (81,602,044) 100,000 (17,000,000) 7,509,414,987 1,455,263,388 (6,531,005,661) (7,739,315,177) (650,692,925) (6,531,005,661) (8,390,008,102) 0 4,000,000,000 Page 101 Capstone Project Report – Ga.MBA01.C0112 – Group 05 Short-term and long-term loans received Loan principal amounts repaid Dividends and profit paid to the owners Net cash flows from financing activities Net cash flows during the year Beginning cash and cash equivalents Effects of fluctuations in foreign exchange rates Ending cash and cash equivalents 7,145,000,000 (5,694,552,632) 7,470,200,687 (3,606,169,966) (1,211,434,000) (1,211,434,000) 239,013,368 1,217,422,694 6,652,596,721 (282,147,993) 517,980,068 1,735,402,762 0 1,735,402,762 1,453,254,769 Page 102 ... Long-term debt 38 ,31 8,9 03, 464 7,596,548,6 53 10 ,37 6,506,2 23 EQUITY 62,746 ,33 1 ,33 8 83, 1 43, 697, 633 71,7 73, 728,9 93 59,067,469, 037 Equity 62,746 ,33 1 ,33 8 83, 027,402,691 71,7 73, 728,9 93 53, 875,844,109... in: - Office: 32 Ngo Thoi Nhiem street, Ward 7, District 3, HCMC - Tel : + 8 4-0 8 -3 9 30 7157 - Fax : + 8 4-0 8 -3 9 30 7 938 - Email : info@pecc3.com.vn - Website: www.pecc3.com.vn - Charter capital 33 ,810,000,000... No 33 5/Q-BCN on equitizing Power Engineering Consulting Company to Power Engineering Consulting Joint Stock Company - Over 30 years of operation and development, Power Engineering Consulting Joint