Tài liệu Xây dựng chiến lược kinh doanh cho công ty công nghệ edh

GaMBA01.M0709 Strategic Management LUẬN VĂN THẠC SĨ XÂY DỰNG CHIẾẾN LƯỢC KINH DOANH CHO CÔNG TY CÔNG NGHỆ EDH BUILDING BUSINESS STRATEGY IN 2011-2020 PERIOD FOR EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY 1 EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY GaMBA01.M0709 Strategic Management TABLE OF CONTENTS Page INTRODUCTION 1. General context, the necessity and implication of the research project 2. Objectives of the study 3. Methodology of the study 4. Structure of the Capstone project Chapter 1: THEORETICAL BACKGROUND TO BUSINESS STRATEGY 1.1. Business strategy 1.1.1. Concept and role of business strategy 1.1.2. Basic characteristics of business strategy 1.1.3. System of enterprise’s strategies 1.2. Factors affecting business strategy 1.2.1. Institution - politics 1.2.2. Economy 1.2.3. Socio-culture 1.2.4. Technology 1.3. Building business strategy for enterprise 1.3.1. Vision, mission and main goals 1.3.2. Analyzing affecting factors to business strategy 1.3.3. Methods to evaluate business environment 1.4. Implementing business strategy 1.4.1. Checking goals of business strategy 1.4.2. Rechecking business environment conditions and selected strategies 1.4.3. Organizing implementing apparatus 1.4.4. Resource allocation and adjustment 1.4.5. Forming deployment plan 1.5. Summary and evaluation Chapter 2: REAL SITUATION OF BUSINESS ACTIVITIES AND BUSINESS STRATEGIES OF EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY IN 2 6 6 7 7 7 8 8 8 9 9 10 10 10 10 11 11 11 12 13 14 14 14 15 15 15 16 17 EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY GaMBA01.M0709 Strategic Management 2010-2020 PERIOD 2.1. Overview of EDH Technology Development Joint Stock Company 2.1.1. Process of establishment and development of the Company 2.1.2. Organizational structure of the Company 2.1.3. Business functions and missions 2.1.4. Awards of the Company 2.2. Business activities of EDH in 2008-2010 period 2.2.1. Business performance of EHD in 2008-2010 period 2.2.2. Analyzing production capacity and products of EDH 2.3. Auditing the Company’s position 2.3.1. Analyzing business environment 2.3.2. Analyzing customers and customer segments 2.3.3. Analyzing sectorial environment and competitors 2.3.3.1.Analyzing industrial environment 2.3.3.2. Analyzing competitors 2.3.4. Analyzing internal capacities and SWOT analysis 2.4. Vision and goal of the Company’s business strategy 2.4.1. Mission 2.4.2. Vision 2.4.3. Core value 2.4.4. Strategic objective 2.5. Business strategy of EDH Technology Development Joint Stock Company 2.5.1. Business strategy orientation of the Company 2.5.2. Production strategy and product development of the Company 2.5.3. Marketing and sales strategy 2.5.3.1. Product policy 2.5.3.2. Price policy 2.5.3.3. Product distribution and consumption policy 2.5.3.4. Promotion and sales support policy 2.5.3.5. Advantages in developing strategy and forming thinking strategy within the Company 2.5.3.6. Some shortcomings in developing business strategy of the Company 2.5.4. Training and human resources strategy 2.5.4.1. Stabilizing and maintaining the existing personnel 3 17 17 18 20 20 21 22 28 31 31 34 35 35 38 41 44 44 45 45 46 47 47 48 51 51 52 52 53 53 54 56 57 EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY GaMBA01.M0709 Strategic Management 2.5.4.2. Training and developing human resources 2.5.4.3. Talented people - retaining policy 2.5.5. Operation and quality control strategy 2.5.6. Financial strategy and budget estimate for doing the business strategy Chapter 3: SOME SOLUTIONS AND INITIATIVES TO IMPLEMENT BUSINESS STRATEGY OF EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY 3.1. Summary of chapter 2 3.2. Some solutions and initiatives to implement business strategy of EDH Technology Development JSC 3.2.1. Promoting market research and forecast 3.2.2. Increasing financial resources, improving infrastructure and building the factory manufacturing electric equipments 3.2.3. Selecting strategic products, reforming the sale method and developing target customers of the Company 3.2.3.1. Selecting strategic products 3.2.3.2. Identifying strategic customers to establish suitable policy 3.2.3.3. Improving sale 3.2.3.4. Solutions about organization and human resources 3.2.3.5. Solutions about technology 3.2.3.6. Intensifying checking and monitoring strategy implementation CONCLUSION REFERENCES 57 58 58 60 63 63 64 64 65 66 66 66 67 69 71 71 73 74 LIST OF TABLES AND FIGURE IN THE CAPSTONE PROJECT 1. LIST OF TABLES Page Table 1.1- Strategic vision and historic mission 4 12 EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY GaMBA01.M0709 Strategic Management Table 1.2- Structure of capital stock on December 31, 2010 19 Table 1.3- Balance sheet 22 Table 1.4- Summary of the Company’s income statement 23 Table 1.5- Cost of goods sold 24 Table 1.6- Analyzing financial indicators 25 Table 1.7- SWOT matrix 43 Table 1.8- Projected balance sheet 62 Table 1.9- Projected income statement 62 2. LIST OF FIGURE Figure 2.1- Management apparatus of EDH 19 Figure 2.2- Some images of Golden cups and symbols of EDH 21 Figure 2.3- Customer segments 34 Figure 2.4- Market share 38 3. LIST OF ABBREVIATIONS EDH EDH Technological Development Joint Stock Company GDP Gross Domestic Products EVN Electricity of Vietnam FDI Foreign Direct Investment IEC International Electrotechnical Commission ODA Official Development Assisstance WTO World Trade Organization INTRODUCTION 1. General context, the necessity and implication of the research project According to the development plan of electricity industry in 2015- 2025 period approved by Ministry of Industry and Trade, average growth rate of 5 EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY GaMBA01.M0709 Strategic Management production value of this industry is about 17%-18%/year and the growth of electric export 18%/year to make Vietnam’s electric industry reach an advanced level in the region in the technology for producing transformers, electric motors, generators, medium-voltage (MV) and high-voltage (HV) electrical instruments, electric wire & cable, multi-tariff meters for domestic consumption and export. Electricity and electrical equipment manufacturing industry is one of the most attractive industries. After joining WTO, a big market is opened but competition is tougher. WTO is a playing field in which competitors are foreign companies, Multi-national Corporations with many years of experience, and strong resources; therefore, domestic enterprises need to be reinforced and need to have suitable “Business strategies” to meet the requirements of the new market. At present, most enterprises in this industry of Vietnam have the same weaknesses which are developing and growing from a very specific context of the market - centrally planned, not pursuant to the demand-supply regulation of the market, having no competitive factors, and most companies do not have methodical “business strategies” to make the most use of opportunities and overcome challenges to enhance the competitiveness in a new business environment and optimize the work performance. After 15 years of establishment and growth, EDH Technology Development Joint Stock Company has made strong progress such as winning projects worth billions of VND. Nonetheless, in the current deep international integration process and fierce competition, if the Company does not upgrade itself fully and does not have good “business strategies”, it will go backwards and lose market share in Vietnam. With that idea, our group has chosen the topic “Building business strategy in 2011-2020 period for EDH Technology Development Joint Stock Company” to complete the MBA course - GAMBA and also made contribution to the sustainable development of EDH Technology Development Joint Stock Company. 2. Objective of the study 6 EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY GaMBA01.M0709 Strategic Management The study “Building business strategy for EDH Technology Development Joint Stock Company” aims at clarifying the strengths (core capacities), weaknesses of, opportunities and threats awaiting the Company. Applying theories to build, analyze, and select competitive strategy, at the same time put forth necessary solutions to implement those strategies in 2011 - 2020 period to help the Company develop sustainably and become a leading enterprise in producing electrical equipments in Vietnam. 3. Methodology of the study Method of approach: Dialectical materialism and historical materialism. Primary documents include original document on enterprise management, financial statements, annual review reports and regulations of the Company; Secondary documents such as annual document (copy versions) of Vietnam Trade Association, documents from the Government and relevant agencies, information from newspaper, website, etc. Conducting direct interviews with the Board of Directors and heads of Departments Method of analyzing and processing data: Analyzing, summarizing and comparing. 4. Structure of the Capstone project Apart from the introduction, conclusion and references, the contents of the capstone project is divided in to three main chapters as follows: Chapter 1: Theoretical background to the development and business strategy for EDH Technology Development Joint Stock Company. Chapter 2: Real situation of business and business strategies of EDH Technology Development Joint Stock Company in 2010-2020 period. Chapter 3: Some solutions to implement business strategy of EDH Technology Development Joint Stock Company. 7 EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY GaMBA01.M0709 Strategic Management Chapter 1 THEORETICAL BACKGROUND TO BUSINESS STRATEGY 1.1. Business strategy 1.1.1. Concept and role of business strategy Strategy The term “strategy” originated from Greek and was initially used in the field of military to imply big and long-term plans which were set out based on the certainty about what the opponent could and could not do. Strategy is a plan consisting of long-term (3;5;10 years, etc.) goals to point out the development orientations of an organization in the long-run, big and important policies to attract, allocate resources and make the most use of those resources; and major decisions to realize those goals. There are different definitions of strategy, but in the most general way, strategy is defined as “a series of complex actions aiming at mobilizing resources so that an organization can attain a certain purpose”.1 Business strategy According to D.Bizrell and the group of author, “Business strategy is a general plan leading or orienting enterprises to the expected target. It is the basis to work out policies and procedures of operations”. 2 In enterprises, “Business strategy is an art of designing, organizing means to achieve the long-term goals of an enterprise and has a relation with the changes in business and competitive environment”. Role of business strategy Helping enterprise to be well-aware of their purposes and orientations to set the basis and the guideline for all business and production activities of the enterprise. 1 Source: Document of “Strategic Management”, Global Advanced Master of Business Administration Program (B1 - T1) 2 Source: Document of “Strategic Management”, Global Advanced Master of Business Administration Program (B2 - T1) 8 EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY GaMBA01.M0709 Strategic Management Helping enterprises grasp and make use of opportunities and take active measures to overcome risks and threats in the competitive market. Contributing to raising efficiency of resource use, enhancing competitive position to ensure the sustainable development of the enterprise. Providing firm bases for mapping out appropriate policies and decisions on business with the changes of the market. 1.1.2. Basic characteristics of business strategy Business strategy helps define the basic goals and business orientations of enterprise in each period. The characteristic of orientation of strategy ensures that enterprise can develop continuously and sustainably in the changing business environment. Maximally mobilizing and optimally exploiting and using resources of the enterprise at present and in the future, promoting its advantages and grasp opportunities to gain competitive advantages, having emulative thought and achieving success. Business strategy of enterprise is reflected during a continual process and often formed in a long period (3; 5; 10 years, etc.). 1.1.3. System of enterprise’s strategy Level of business strategy in an enterprise Functional level strategy: it is the strategy aiming at improving the efficiency of basic activities in the Company such as production, marketing, material management, research & development of human resource. Business level strategy: it is the overall commitments and actions helping enterprise gain competitive advantages by tapping its core capacities into value of specific products and reflecting the belief of enterprise in the destination and the modes that it can gain competitive advantages compared to its competitors. Global strategy: it is the strategy in which Company sells its products or services to the outside of its domestic market. The expansion into the global market allows the Company to raise profitability by new methods which domestic companies do not have. 9 EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY GaMBA01.M0709 Strategic Management Corporate level business strategy: determines actions that Company implements to gain competitive advantage by selecting and managing a group of different business strategies in some sectors and markets of products. Types of enterprise’s business strategy The system of enterprise’s business strategies includes growth strategy of enterprise, business strategy of SBUs and functional strategy. Three main business strategies that are often used include cost-leadership strategy, product differentiation strategy and centralization strategy. Growth strategy consists of concentrated growth strategy (market penetration strategy, market development strategy, product development strategy); Integration growth strategy (Merging strategy, acquisition strategy and joint venture strategy); Strategy for diversifying activities of enterprise (concentric diversification strategy, horizontal diversification strategy, mix diversification strategy). 1.2. Factors affecting business strategy 1.2.1. Institution - politics Political stability is the foundation for economic activities to develop, creating an attractive investment environment for business sectors with the engagement of both national and international investors. 1.2.2. Economy The underdeveloped or developed economy has a strong influence on business operations of enterprises. It decides the purchasing power (demand) and via that, more or less affecting supply. The developed economy also helps enterprises grow and vice versa, underdeveloped economy constrains the development of enterprises. 1.2.3. Socio-culture The population, structure, age, custom, standard and income have a significant influence on the development of enterprises. Vietnam’s population is approximately of 86 million people with the average income per capita of 1.200 USD/person/year. GDP of Vietnam over the past years had high growing rate with the average growth rate of 7-8%; therefore, the demand for using electrical machines, equipments and facilities has increasingly required substantial and diverse sources of supply. 10 EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY GaMBA01.M0709 Strategic Management 1.2.4. Technology The world is in an industrial revolution. A series of new technologies have been introduced and integrated in services and products. Vietnam is rated as one of nations having quick growing rate in applying technology for human, especially in areas of information technology and telecommunication. Besides, we should also mention the influence of information technology such as the Internet and globalization-related factors that have become a macro affecting factor to electricity industry. 1.3. Building business strategy for enterprise 1.3.1. Vision, mission and main goals Vision of an organization is particularly important for managers to set the basis for setting long-term goals as well as defining specific functions for implementing them. Vision can be introduced or stated under the form of a slogan or a guideline. The common features of enterprises’ goals are expressing the expectation to reach certain results and associated with a specific period in a strategic period. According to Philipte Lasserre, strategic goals include all things relating to the workload such as scale, growth rate, market share, etc. and all related to interest such as revenue, cost, and profit, etc. To determine the functions of strategy: Enterprises have to answer the questions such as: who wants to be satisfied? When and how? Strategic goal of business is the particularly important opening phase in implementing business administration. That goal is defined obviously and specifically is an important factor bringing success for enterprises. Given goals must be adjustable to suit the changes of environment to avoid threats and make use of opportunities. Nevertheless, when changing goals, we need to be cautious as these changes have to be in line with corresponding changes in strategies as well as in action plans. 11 EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY GaMBA01.M0709 Strategic Management Table 1.1- Strategic vision and historic mission - Strategic vision refers to business - Mission declaration of almost orientation in the future of the Company companies focuses on current business “Where will we go?” activities “Who are we and what are we doing?” - Markets needed catching up with - Current products and services - The future central is technology, service or customers - Customers’ demand - The expected model - Technology and business capacity 1.3.2. Analyzing affecting factors to business strategy Analysis of external environment factors External environment is a system of complicated factors always having opportunities and threats to enterprise. The fluctuation of these changes is out of the control of the enterprise and they have mutual influences to business management. Therefore, to make use of opportunities, control threats, raise efficiency and reduce damages in strategy management process, businesses have to analyze carefully environment factors including: micro environment and macro environment. Macro environment includes five factors as: politics, law - government; economy; socio-culture; technology and nature (PESNT analysis). Micro environment includes the analysis of new entrants; rivals; buyers; suppliers; and substitute products. Internal environment factor analysis Internal environment factor analysis is the foundation for business to understand their own strengths and weaknesses in comparison with competitors; furthermore, it also helps managers catch up with opportunities in each phase. In the other words, internal environment factor analysis is to “understand yourself and other”, from that strategy managers have foundation to define mission, propose goals and form strategies adapting to internal and external environment of organization. 12 EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY GaMBA01.M0709 Strategic Management The analysis of strengths and weaknesses of internal environment is implemented by means of following basic contents: analyzing and evaluating resources as human resources, material resources as production capital, workshop, machines, material and information about business environment; Invisible resources include guidelines in business; business strategy and policy adapting to environment; effective organization structure; prestige of managers; prestige of business in development process; the confidence and faithfulness of customers; Analysis of functional departments in organization includes: marketing department; human resources management department; finance-accounting department. All enterprises have strengths and weaknesses in sectors. Internal strengths and weaknesses together with external opportunities and threats are the basic features which enterprises need to pay attention to when building strategy. If business wants to define strengths, weaknesses; they have to compare with others in the same industry and base on the working results. Strengths of business are the better features than competitors which competitors are not easy to own. Furthermore, strengths create the competitive advantages for business. Weaknesses are shortcomings of enterprises needing to be corrected when enterprises want to build strategy. 1.3.3. Methods to evaluate business environment Methods are usually used - The summary table about business environment - Internal and external factor evaluation matrices - SWOT matrix analysis - Opportunities and threats SWOT analysis Internal environment factors of an enterprise can be classified as Strengths (S), Weaknesses (W), external environment factors is classified as Opportunities (O) and Threats (T). This analysis in strategic environment is call as SWOT matrix analysis 13 EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY GaMBA01.M0709 Strategic Management SWOT matrix analysis provides useful information in balancing resources and capacity of the Company with respect to competitive environment. Therefore, it is a tool to select strategy. Strengths: Strengths of an enterprise are resources and capacity used as foundation in raising competitive advantages. Weaknesses: if enterprise does not have strengths mentioned above, enterprise will have weaknesses Opportunities: The external context can create new opportunities to grow and develop. Threats: The changes of external environment can bring threats to the enterprise. SWOT analysis S-O strategy: Pursues the most suitable opportunities with strengths W-O strategy: Overcomes weaknesses to pursue opportunities S-T strategy: Defines the ways which enterprise can use their advantages to mitigate damages with respect to external threats W-T strategy: Establishes a defensive plan to prevent weaknesses of enterprises from the influence of external environment. Competitive capacity evaluation: Evaluates competitive capacity of business, we usually use MC KINSEY matrix. 1.4. Implementing business strategy 1.4.1. Checking goals of business strategy The Company needs to consider and evaluate selected strategic goals whether suitable or not and the capacity to deploy it. 1.4.2. Rechecking business environment conditions and selected strategies In the current phase, there are many changeable environmental factors affecting a sector and businesses in sector such as demography, economy, politics, culture, science and technology, and globalization. 14 EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY GaMBA01.M0709 Strategic Management With more and more competitive markets, value chain is an important tool to improve competitive capacity of each business. Globalization and free economy brings a lot of uncertainties which strategy planning has to analyze. 1.4.3. Organizing implementing apparatus Organizing implementing apparatus is the process of defining the needed tasks; establishing departments, divisions and assigning for units and individuals; creating the relationship in internal organization to implement the strategic goals effectively. Efficient organization is to ensure the good implementation of management capacity and serving for general targets of business. Depending on functions of business, organization model will be selected to establish as: on line model, functional model and complex model. After that, managers will implement the organization of machinery including 7 steps: defining target of business; analyzing jobs; founding departments; appointing officials; allocating mission; cooperating to formulate functions; assessing and reorganizing. 1.4.4. Resource allocation and adjustment Resources are a Company’s assets including tangible and intangible ones such as capital, machine, skill, trade mark, human capital, finance, manager with relations. Therefore, enterprises have to adjust human capital suitably and scientifically. Enterprises should also define criteria which are rare, value and difficult to imitate. Core capacity is resources and capacity bringing competitive advantages for a Company. It creates the competitive differences and shows characteristic of them. As a result, the Company will know how to balance challenges and make use of opportunities in the future. 1.4.5. Forming implementation plan Comprehensive business strategy of enterprises has the orientation for all of activities and it contains following steps: Strategy planning: defining mission, vision and core value; analyzing and forming strategy. 15 EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY GaMBA01.M0709 Strategic Management Strategy concretizing: defining strategic target and key ideas; defining targets and measurement tools as well as strategic initiatives. Planning: Improving operation process, sale, resource capacity and budget providing Deploying: Action plan of functions Monitoring and evaluating: evaluating strategy and deployment work Testing and correcting strategy Analyzing strategies: using the analysis model of factors of strategy 1.5. Summary and evaluation Enterprises have to sum up and evaluate the process of setting up and implementing business strategy annually to find out factors for the success as well as limitations for necessary adjustments. 16 EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY GaMBA01.M0709 Strategic Management Chapter 2 REAL SITUATION OF BUSINESS ACTIVITIES AND BUSINESS STRATEGIES OF EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY IN 2010-2020 PERIOD 2.1. Overview of EDH Technology Development Joint Stock Company 2.1.1. Process of establishment and development of the Company General information Name in Vietnamese: Công ty cổ phần Phát triển kỹ thuật công nghệ EDH, abbreviated name: EDH3 International transaction name: EDH Technology Development Joint Stock Company Number of employees : 250 people Equity : VND 126 billion Address of production factory: Ngoc Hoi Industrial Zone, Thanh Tri District, Hanoi Tel : 043 7830058 Fax: 04 3 7830059 Email : [email protected] Website : www.edh.vn Logo : Process of establishment and development The Company was established with the first name of Hoang Ha 1 Co., Ltd established on July 15, 1995 with the charter capital of VND 1.2 billion and 10 employees working in the field of officially trading and distributing low-voltage (LV) electric equipment of Siemens and Schneider firms. 3 Source: www.edh.vn 17 EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY GaMBA01.M0709 Strategic Management In 1997, producing and launching first panels to Vietnam market, at the same time building 450m2 of factory on the area of 1300m2 in Thanh Xuan, Hanoi to install panels and substations. In 1998, the number of employees rose to 40 people, income was over US$ 1 million and it was the first year when the Company implemented from designing, supplying equipment to producing panels and installing a big project: The System of electricity supply of 04 MBA 1000kVA and 02 current generators 750kVA of Vietnam Television. In 2000, the Company was renamed EDH Technology Development Joint Stock Company, raising the charter capital to VND 10.2 billion, producing and supplying primary equipment, secondary equipment and installing electric works up to 110kV. The Company implemented the quality control under ISO 9001:1994 Standard issued certificate by AFAQ ASCERT (France). In 2005, The Company built a factory for producing electric equipment over the area of 6,600m2 and invested in new production and outsourcing line of light sheet mental and EDH Electric Equipment Factory on the area of 14,000 m2 in Ngoc Hoi Industrial Zone, Thanh Tri, Hanoi and signed contract with Siemens Group (Germany), Siemens Sales Region, licensed to use information and intellectual property right to manufacture SIVACON type tested panels in Vietnam, raising annual income to US$ 7 million. In April 10, 2007, the Company was equitized, raising the charter capital to VND 126 billion, the number of employees to 250 people and revenue in 2010 to over US$ 25 million. 2.1.2. Organizational structure of the Company EDH is operated under the form of a joint stock Company. The Company’s charter was approved by the Shareholders’ General Assembly for the Company’s establishment in April 30, 2007. 18 EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY Strategic Management GaMBA01.M0709 Table 1.2- Structure of capital stocks on December 31, 2010 (Source: Accounting Department of EDH) Volume of stocks Value (VND) Proportion Founding shareholders 6,624,901 66,249,010,000 52,58 Stocks of external shareholders 4,050,000 40,050,000,000 32,14 Stocks of internal shareholders 1,925,099 19,250,990,000 15,28 Total stocks 12,600,000 126,000,000,000 100 Criteria (%) Figure 2.1- Management apparatus of EDH (Source: General & Administration Dept. of EDH) SHAREHOLDERS’ SHAREHOLDERS’ MEETING MEETING BOARD BOARDOF OFDIRECTORS DIRECTORS EXECUTIVE EXECUTIVE BOARD BOARD GENERAL GENERAL DIRECTOR DIRECTOR VICE GENERAL DIRECTOR VICE GENERAL DIRECTOR VICE GENERAL DIRECTOR VICE GENERAL DIRECTOR Manager of General & Administrat ion Dept. Manager of Materials and Importexport Manager of business Manager of Project Chief Accountant Director of Lab Technical Director Factory Director R&D Director (Source: EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY) 19 EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY GaMBA01.M0709 Strategic Management 2.1.3. Business functions and missions Main business lines of the Company are as follows: Producing and trading in machines, equipment, cables and wires; Producing, trading and distributing electric, electronic and refrigeneration electric equipment; Producing and trading in machines, equipment and materials of agriculture, construction and traffic; Installing electric works up to 110kV; Consulting and investing in electric works; Designing power lines and substations for electric works; Producing, outsourcing, installing and repairing mechanical and electric products; Trading real estate, leasing offices, housing and yards; Purchasing, selling and installing equipment for construction works. 2.1.4. Awards of the Company ISO Golden Cup 2007 awarded by Vietnam General Confederation of Labor and Ministry of Science and Technology. Golden Lotus Cup 2007 awarded by Vietnam Union of Science and Technology Associations. Golden Cup "Trademark - Brand" 3rd time in 2008 awarded by Vietnam Fatherland Front, Vietnam association of small & medium enterprises; and Radio the Voice of Vietnam. Golden Cup of "Talented and Moralistic Businessmen” Prize, 2nd time in 2008 awarded by Vietnam Fatherland Front, Vietnam Association of Small & Medium Enterprises and; Radio the Voice of Vietnam. Golden Cup of “Vietnam Typical Enterprises” Prize 1st time, Golden Cup of “Outstanding leader” Prize 1st time, Golden Cup of “Outstanding leader” Prize 2nd time in 2009 awarded by Ministry of Trade and Industry, Ministry Health, MoLISA, Ministry of Culture, Sports and Tourism; and Radio the Voice of Vietnam. 20 EDH TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY