Capstoneprojectreportstrategy of bien hoa sugar joint stock company from 2010 - 2015

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GRIGGS UNIVERSITY
GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM





CAPSTONE PROJECT REPORT
STRATEGY OF BIEN HOA SUGAR JOINT STOCK COMPANY
FROM 2010 - 2015



Group 8
Members:
1. Le Minh Chuong
2. Ho Han Dan
3. Le Ngoc Dung
4. Do Hoai Thu
5. Nguyen Hoang Tuan
6. Nguyen Thi Anh Xuan
Class: GAMBA01.C01

HO CHI MINH 2010
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DECLARATION OF AUTHENTICITY

We, all members of Group 8, here undersigned declare that all material
presented in this paper is our own work without any copied material. In efforts to
accomplish this paper, all knowledge obtained from the program was applied
together with information and data released in books, magazines, websites which
were listed in the bibliopoly of the paper.

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ACKNOWLEDGEMENTS

First of all, we would like to express our appreciation to all professors and staff
at Central For Educational Technology and Career Development- Nation University
Hanoi for giving us chance to obtain knowledge in modern advanced business
administration. We highly appreciated their support to help us successfully
accomplish the whole program of International Business Administration Master
held by the Center.
We also would like to thank our classmates from GaMBA01.C01 class who
always supported and encouraged us while completing this paper.
Last but not least, we want to thank Bien Hoa Sugar Joint Stock Company for
its provision of relevant data of both sugar industry and the Company.
The joint paper could not have been completed without the cooperation and
hard work of all members of the Group resulting in deep understanding and high
accord when choosing the topic, gathering information and analyzing them.
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INDEX
Declaration of authenticity 2
Acknowledgements 3
Index 4
List of abbreviation, shortform 8
List of charts, diagrams, graphs 9
Introduction 11

CHAPTER 1: LITERATURE REVIEW 13
1.1. STRATEGY AND STRATEGIC MANAGEMENT OVERVIEW 13
1.1.1. Definition of strategy and strategic management 13
1.1.2. Roles and importance of strategy and strategic management 14
1.2. CONTENTS OF STRATEGIC MANAGEMENT 15
1.2.1. Identifying enterprises‟ vision and mission 16
1.2.2. External environment analysis 17
1.2.2.1. Macro environment analysis 17
1.2.2.2. Industry environment analysis 18
1.2.3. Internal environment analysis 18
1.3. STRATEGY FORMULATION, SELECTION AND IMPLEMENTATION
19
1.3.1. Phase of collecting and organizing data 20
1.3.2. Combining phase 20
1.3.3. Decision making phase 21
1.4. CONCLUSION 22
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CHAPTER 2: PERFORMANCE ANALYSIS FOR BIEN HOA SUGAR
JOINT STOCK COMPANY FROM 2006 - 2010 23
2.1. OVERVIEW ON THE COMPANY AND SUGARCANE INDUSTRY: 23
2.1.1. Company overview 23
2.1.1.1. History 23
2.1.1.2. Business line 24
2.1.1.3. Development history 25
2.1.1.4. Human resource organization 26
2.1.1.5. Determination of mission and vision 27
2.1.2. Sugarcane and sugar industry overview 27
2.1.2.1. Industry value chain 28
2.1.2.2. Industry characteristics 29
2.2. EXTERNAL ENVIRONMENT ANALYSIS 30
2.2.1. Macro environment analysis 30
2.2.1.1. Political factors 30
2.2.1.2. Economic factors 31
2.2.1.3. Sociocultural factors 33
2.2.1.4. Technological factor 35
2.2.1.5. Globalization trend 35
2.2.2. Industry environment analysis 36
2.2.2.1. Potential rivals 37
2.2.2.2. Current rivals 37
2.2.2.3. Power of customers (buyers) 39
2.2.2.4. Power of suppliers 40
2.2.2.5. Threats of substitute products 41
2.2.2.6. The prospect of industry development 41
2.2.3. BHS‟s opportunities and threats evaluation 44

2.2.3.1. Opportunities and opportunity ranking 44
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2.2.3.2. Threats and threat ranking 47
2.2.3.3. External factor evaluation (EFE) matrix for BHS 50
2.3. INTERNAL ENVIRONMENT ANALYSIS 52
2.3.1. BHS‟s internal environment analysis, in application of value chain model 52
2.3.1.1. Company’s position in the industry 52
2.3.1.2. Technology 53
2.3.1.3. Materials 53
2.3.1.4. Current production and consumption capacity 55
2.3.1.5. Research and Development (R&D) 56
2.3.1.6. Marketing activities: 58
2.3.1.7. Brand name, trademark and patent registration 58
2.3.1.8. Product quality testing 59
2.3.1.9. Cost production management 60
2.3.1.10. HR quality 61
2.3.1.11. Financial capacity 62
2.3.2. BHS‟s internal environment analysis 64
2.4. BHS’S BUSINESS STRATEGY FORMULATION AND OPTIMAL
STRATEGY SELECTION 65
2.4.1. Combined SWOT Matrix 65
2.4.2. BHS‟s optimal strategy selection 69
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CHAPTER 3: BUILDING THE STRATEGIES FOR BIEN HOA SUGAR
JOINT STOCK COMPANY STAGE 2010 - 2015 AND IMPLEMENTATION
71
3.1. STRATEGY OF PRODUCTION COST REDUCTION 71
3.1.1. The content of strategy 71
3.1.1.1. Short-term target 71
3.1.1.2. Long-term target 72
3.1.2. The solution of strategy 72
3.1.3. Implementation Plan 73
3.2. INCREASE OUTPUT SUGAR CANCEMATERIALS STRATEGY 76
3.2.1. The content of strategy 76
3.2.1.1. Short-term target 76
3.2.1.2. Long term target 78
3.2.2. The strategy solutions 78
3.2.3. Implementation Plan 79
3.3. SEP UP STRATEGY AND DEVELOPMENT COVER DISTRIBUSTION
SYSTEM 81
3.3.1. Content of strategy 81
3.3.1.1. Short-term target 81
3.3.1.2 Long term target 82
3.3.2. Strategy solutions 83
3.3.3. Implement plan 83
3.4. SOME RECOMMENDATIONS FOR IMPLEMENTING A SUCCESSFUL
STRATEGY 86
3.5. THE LIMITATIONS OF BIG ASSIGNMENTS 87

CONCLUSION AND RECOMMENDATIONS 88
REFERENCE DOCUMENTS 90
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LIST OF ABBREVIATION, SHORTFORM

BHS: Bien Hoa Sugar Joint Stock Company
Company: Bien Hoa Sugar Joint Stock Company
TMN: Tons sugar-cane per day
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LIST OF FIGURES

Figure 1.1. Process of strategical management 14
Figure 1.2. Michael Porter‟s 5 Forces Framwork 18
Figure 1.3. Diagram of main activities and supporting activities 19
Figure 1.4. SWOT Matrix 21
Figure 2.1. Organization chart of BHS 26
Figure 2.2. Sugarcane - sugar industry value chain 28
Figure 2.3. PEST analysis model 30
Figure 2.4. Sugar import tariff from 2008 36
Figure 2.5. Five competitive factor model of M. Porter 36
Figure 2.6. Sugar output in many seasons 38
Figure 2.7. SWOT matrix for BHS 66
Figure 3.1. Step of building covering distribution system 82

Figure 3.2. Step of implement covering distribution strategy 83
Figure 3.3. The Steps of implement marketing strategy 84
Figure 3.4. Designing of distribution strategy 84
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LIST OF TABLES

Table 2.1. Financial ratios from 2004 to 2010 of BHS 25
Table 2.2. Forecast of GDP growth rate in some regions and countries in 2009 and
2010 in comparison with the growth rate in recent years 33
Table 2.3. Evaluation of BHS‟s opportunity effects 45
Table 2.4. Evaluation of threat effects to BHS 47
Table 2.5. BHS‟s opportunities and threats 49
Table 2.6. EFE Matrix 51
Table 2.7. List of main suppliers for the company 54
Table 2.8. BHS‟s cost structure, in comparison with other companies within the
industry 60
Table 2.9. BHS‟s financial ratios through years 62
Table 2.10. In comparison with other HSX-listed companies within the industry 63
Table 2.11. BHS‟s strengths and weaknesses 64
Table 2.12. GREAT model for BHS‟s optimal strategy selection 70
Table 3.1. Implementation of strategic plans to reduce production costs 74
Table 3.2. Implementation of strategic plan to increase production of cane raw
material 80
Table 3.3. Route of work 85
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INTRODUCTION
1. Thesis: STRATEGY OF BIEN HOA SUGAR JOINT STOCK COMPANY
FROM 2010 - 2015.
2. Current situation, necessity and application of thesis:
Sugar canes and sugar production have long existed in agriculture-based
Vietnam. Sugarcane industry, however, has just appeared since the 90s. Due to
historical and low-efficient characteristics (high cost, lots of risks), the sugarcane
industry, mainly dominated by state-owned enterprises, has not drawn much
attention from private sector.
So far, after 20 years of development, the sugarcane industry of Vietnam has
still been small, fragmentary, low-efficient, and protected by quotas and import
taxes. Nevertheless, under commitments of WTO integration schedule and other
regional commitments such as CEPT (AFTA), Vietnam will make the industry
competitive soon.
Value chain of the Vietnam sugarcane industry is generally equivalent to that
of other sugar-producing countries. Still, because domestic production fails to meet
its demand, Vietnam has to import sugar annually.
As a result, the global sugarcane industry will approach to a same playing field
with the same rules, will survive and develop under economic regulations. If the
local sugar-producing industry in general and Bien Hoa Joint Stock Co., Ltd
(“BHS”) fail to improve their competitive capability to meet domestic demand and
compete with other external rivals, integration will become threats rather than
opportunities.
3. Purpose and scope of study:
Study purpose: Studying/ Surveying BHS‟s production and consumption, then

comparing and evaluating the company‟s competitive capability.
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The purpose is to study strategy formulation background, strategy formulation
process and optimal strategy selection to help BHS identify its strategy which is
most suited to current conditions and situations. Thence, suggestions and solutions
are come up with to improve BHS‟s strategy formulation process under current
situation and suggest strategy implementation schedule for the 2010-2015 period.
Increasing BHS‟s competitive capability is the ultimate purpose.
Scope of study: Having a thorough study on analyzing, formulating and selecting
BHS‟s solutions and strategy implementation schedule for the 2010-2015 period.
4. Implantation method:
- Gathering information, primary and secondary data
- Method of comparison, analysis, combination and generalization.
- Data and information are based on figures, information released in the media,
websites and data of sugarcane industry provided by BHS.
5. Structure of thesis:
The work includes the opening and 03 chapters. The main contents of each chapter
are as follows:
Chapter 1: Literature review
Chapter 2: BHS‟s performance analysis for the 2006 - 2010 period
Chapter 3: BHS‟s strategy formation for the 2010 - 2015 period and action
plan
Conclusions and recommendations
Bibliography
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CHAPTER 1: LITERATURE REVIEW

1.1. STRATEGY AND STRATEGIC MANAGEMENT OVERVIEW:
1.1.1. Definition of strategy and strategic management:
Concept of strategy:
1. Strategy is the determination of basic term goals and objectives of an
enterprise, and the adoption of course of action and the allocation of
resources necessary for carrying out those goals. (Alfred Chander)
2. Strategy defines as the pattern or plan that integrates an organization‟s major
goals, policies and action sequences into a cohesive whole. (James B. Quinn)
3. Professor William J. Glueck defines strategy as “a unified, comprehensive
and integrated plan, designed to assure that the basic objectives of the
enterprise are achieved.”
4. Michael L. Porter, who first introduced competitive advantage theory,
defines strategy as:
 First, strategy is the creation of a unique and valuable position,
involving a different set of activities.
 Second, strategy is choosing and making trade-offs in competition.
 Third, strategy is to forge fit among the various activities of the
company.
Hence, strategy is firstly related to goals of the enterprise. Secondly, strategy is
the implementation approach of actions and decisions which are in close relation as
well as integration method of those actions and decisions. The strategy of
enterprises must exploit basic strengths (including resources and capacities) and
make a consideration on external environment‟s opportunities and threats.
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Concept of strategic management:
1. Strategic management is a study and analysis process of company‟s internal
and external environments, which are existing or potential; and the
identification of company‟s objectives, as well as strategy planning,
implementing and testing in order to achieve expected goals by utilizing its
resources effectively.
2. Strategic management process:

Figure 1.1. Process of strategical management
(Source: Textbook - Strategy Management of Griggs University)
1.1.2. Roles and importance of strategy and strategic management:
In part, strategy makes economic organizations more sensitive and active
against market‟s forecasts and volatility. As a result, their right decisions are made
and their business activities are controlled to increase their competitive advantages
and gradually assure their strong position in the market regime.
 Strategy can be considering “code of conduct” for enterprises and the
ultimate goal for all members to achieve.
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 Strategy is the represence of enterprise’s value.
 Strategy give enterprise leaders planning and vision in the future.
 Strategy is the creation in corporate management.
 Strategy is the presence of corporate position.

In his book of “Competitive strategy”, Michael Porter identified that
“Competitive strategy is in the relation between the company and its market”.
As important as it is, an enterprise must build its long-term business strategy
necessary for its stable and developed business in the future. Nevertheless, due to
non-stop volatility of business environment and change of corporate resources in
line with each strategic period, enterprise strategy must be flexible and changeable
to fit with current situation.
1.2. CONTENTS OF STRATEGIC MANAGEMENT:
Strategy is built from the enterprise‟s missions, which is a base to identify the
objectives and jobs-to-be-done for its customers as well as other related partners.
Based on these missions, the management will set up the objectives. These
objectives clearly show the corporate missions and are used to develop action plans
and process evaluation. These objectives are led by real knowledge in both external
marketing/ business environment and corporate internal capabilities. In common
cases, strategic planning starts by thorough research and analysis, and at the same
time conducts a process through which the management can figure out the
prioritized activities that the corporate need to solve for a long-term success.




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It is crucial for different departments of the corporate to be involved in
strategic planning, given that they have diversified knowledge in terms of
capabilities and the competitive environment they are working in, therefore can
deliver lucid suggestions for what the corporate should do. Furthermore, the

departments involved in the strategic planning have better capabilities in supporting
and executing the proposed plans. Departments are actually the center to execute the
plan, they have the leadership, human resources and necessary skills for effective
execution.
By together executing the predefined process, the management and department
managers ensure to establish a suitable plan, which is solid and has high chance of
success, no matter if the plan comes from the whole organization or an individual
department.
The execution of the strategy needs to be in conformity with the processes of
the whole organization. Both the management and department managers need to
have high concentration in executing the strategy, since a perfect strategy could
mean nothing if it is not properly executed by the organization management.
1.2.1. Identifying enterprises’ vision and mission:
The vision & mission define the desired or intended future state of an organization
or enterprise, the long-term objectives the enterprise aims to, which are the base to build
the policies, business plan for short-term.
Identifying the vision is to figure out the state that the enterprise wants to
achieve. The statement figures out future vision when the enterprise achieves its
objectives and purposes. The statements of vision should identify the final
destination of the enterprise.
In order to achieve success, Davidson pointed out the 6 crucial elements that a
vision should have, including: Proposing future direction; Focusing on the benefits
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of consumers; Being practical; Creating the motivations; Comprehensive
communication is crucial; Always supervising & evaluating.
A vision statement outlines the values and rules on enterprises, which is a key

element in the strategic planning process. The mission of the enterprise is the reason
for its existence in the market, for what kind of products and services that it will
bring to the customers and community. The decisions during the process of strategic
planning should always be in synergy with the mission statement.
The mission statement is the foundation for the vision of an enterprise. Mission
statement may be a motivation for the enterprise‟s staffs to communicate its
purposes and values to the customers and community.
1.2.2. External environment analysis:
1.2.2.1. Macro environment analysis:
The PEST model focuses on the research of external environment factors‟
impact on the enterprise. Those factors are:
 Political
 Economics
 Sociocultural
 Technological
These are the four factors that have direct impact on the economy, which are
external to the enterprise and the industry, whom have to be impacted by these
factors as an objective factor. Enterprises will outline relevant policies & businesses
in accordance with those impacts.
Nowadays P.E.S.T model has been extended to the S.T.E.E.P.L.E matrix
(Social/demographic, Technological, Economics, Environmental, Policy, Legal,
Ethical) and been gradually completed as an irreplaceable standard for external
environment analysis of enterprises.
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1.2.2.2. Industry environment analysis:
Industry environment analysis using Michael Porter‟s framework involves 5

forces on enterprises, also called 5 competitive forces, which are: The bargaining
power of suppliers, The bargaining power of customers, The threat of new entrants,
The threat of substitute products and The existing competitors.













Figure 1.2. Michael Porter’s 5 Forces Framework
(Source: Competitive Strategy written by Michael E.Porter
and published by: Hanoi Science and Technology)
1.2.3. Internal environment analysis:
Internal corporate environment is often evaluated based on Functional
departments such as: Finance; Human Resources; Operating Management;
Organization Structure; Marketing; Research/ development; IT.


Competitive Rivalry within
industry

Competitive Rivalry between
existing enterprises

New entrants

Supplier
Substitute product
Customer
Distributor
Threat of new entrants
Challenge of substitute
products/ services
Bargaining
power

Bargaining
power
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Figure 1.3. Diagram of main activities and supporting activities
(Source: Textbook - Strategy Management of Griggs University)
The analysis of internal corporate environment will enable us to figure out the
Strengths (S) and Weaknesses (W) of the organization. Thereafter, the chosen
business strategies need to maximize the strengths and solve the weaknesses of the
enterprise.
Similar to the technique of analyzing external factors, “Internal Factor
Evaluation” matrix (IFE) is utilized to quantify the internal state of the enterprise.
1.3. STRATEGY FORMULATION, SELECTION AND IMPLEMENTATION:
There are 3 phases to formulate the business strategy and each of these utilizes

different tools.
Phase 1: Phase of collecting and organizing data
This phase summarizes the basic information that has been collected and organized
to formulate the business strategies. This phase uses a tool called EFE matrix.
Phase 2: Combining phase
This phase selects, arranges and combines external and internal environment
factors to figure out the feasible strategies. This phase will utilize the tools below:
the SWOT matrix – strengths - weaknesses, opportunities - threats (called as
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SWOT)
Phase 3: Decision phase
This phase uses the single tool called Quantitative Strategic Planning Matrix
(QSPM). QSPM takes the inputs from stage 1 analyses, evaluates them objectively
among alternative strategies in phase 2, and then decides what the optimal business
strategy for the enterprise is.
1.3.1. Phase of collecting and organizing data: Matrix

EFE matrix is established following 5 steps follows:
- Step 1: List down the influential factors in the industry that the company is
doing business in, including opportunities and threats.
- Step 2: Assign a weight to each factor, using the scores from 0,0 and 1,0
(increasing level of importance) with the sum of the scores adding to 1. The
importance level depends on the industry that the enterprise is doing business in.
- Step 3: Assign a rating to each factor, using the scales between 1 and 4,
indicating how effective the company responds to the factor. 4 = superior. 3 =
above average. 2 = the response is below average. 1 = the response is poor.

- Step 4: Calculating the weighted score for each factor (by multiplying each
factor weight with its rating in step 2 & 3).
- Step 5: Calculating total weighted score for the company by using scores in step
4.
The total weighted score will be 4 at highest and 1 at lowest. Average score is 2.5.
The higher the total weighted score is, the better the enterprise responds to the
external factors.
1.3.2. Combining phase: SWOT Matrix
The SWOT analysis framework is a tool to combine Strengths (S), Weaknesses
(W), Opportunities (O) and Threats (T) to formulate 4 types of strategies:
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- SO strategies: use the internal strengths to pursue external opportunities
- WO strategies: utilize external opportunities to overcome internal weaknesses
- ST strategies: use corporate‟s strengths to avoid or reduce the external threats
- WT strategies: these are defensive plans to reduce the internal weaknesses and
external threats.
A SWOT matrix is illustrated by the below figure:


S
List Strengths
W
List Weaknesses
O
List Opportunities
S-O strategies

W-O strategies
T
List Threats
S-T strategies
W-T strategies

Figure 1.4. SWOT Matrix

1.3.3. Decision making phase:
QSPM utilizes the inputs from phase 1 (information collecting & organizing
phase) and the matrix in phase 2 (combining phase), thereafter evaluates objectively
the alternative business strategies.
The strategies chosen to input into QSPM are not every strategy found in phase
2.
To build QSPM, 6 steps below need to be followed as follows:
- Step 1: List down the S, W, O, and T from EFE matrix.
- Step 2: Organize each factor to match with EFE matrix.
- Step 3: Analyze the matrix in phase 2 and identify the alternative strategies that
will be further evaluated.
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- Step 4: Calculating Attractiveness Scores (AS) for each factor : the scores are
between 1 and 4, with 1 = not attractive, 2 = some what attractive, 3 =
reasonably attractive, and 4 = highly attractive.
- Step 5: Calculate the Total Attractiveness Scores (TAS) by multiplying the
weights (step 3) by the Attractiveness Scores (step 4).
- Step 6: Calculate the Sum Total Attractiveness Score for each strategy.

The most attractive strategy is the one with highest Sum Total Attractiveness in step
6.
Overall, enterprises should always identify their annual and long-term objectives
during business process. Business strategy is the direction and detailed steps to
achieve those objectives.
1.4. CONCLUSION:
Chapter 1 discusses about the general concepts about strategy and strategic
management, setting the base to formulate, select and implement the strategy. This
is the necessary literature review to analyze the state of Bien Hoa sugar joint stock
company in chapter II. At the same time, this will help to outline the suggestions to
implement the strategy for the company for the 2010 - 2015 period.


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CHAPTER 2: PERFORMANCE ANALYSIS FOR BIEN
HOA SUGAR JOINT STOCK COMPANY
FROM 2006 - 2010

2.1. OVERVIEW ON THE COMPANY AND SUGARCANE INDUSTRY:
2.1.1. Company overview:
2.1.1.1. History:
Bien Hoa Sugar Joint Stock Company was established in 1969 with its first
sugar manufacturer with a capacity of 400 tons. At that time, its key products were
light brown sugar, liquor and jute bags. Its sugar refinery factory has become into
operation from 1971-1972.

Bien Hoa Sugar Manufacture was officially changed its name into Bien Hoa
Sugar Company since 1994.
For business expansion, in 1995, Bien Hoa Sugar Company invested to
increase its production capacity of refined sugar at Bien Hoa from 200 tons/day to
300 tons/day and started building Tay Ninh Sugar Manufacturer (is now known
Bien Hoa – Tay Ninh Manufacturer). After being designed, constructed, and
installed for more than 2 year, on 26/03/1998, Tay Ninh Sugar Manufacturer was
officially put into operation with a capacity of 2,500 tons sugarcane/day. Its
capacity reached to 3,500 sugarcane tons/day in 2001. In 1997, Thanh Long
sugarcane farm was set up with an area of 960 hectares. In November 2007, the
Company made an acquisition of Tri An Sugarcane Company to form Bien Hoa –
Tri An Sugar Manufacturer.
Under Decision No. 44/2001/QĐ-TTg of the government president on
transferring Bien Hoa Sugar state owned company to a joint stock company on
27/03/2001. Its equalization process was made with an approval from Dong Nai
Planning and Investment Department. After its business certification was issued on
16/05/2001, Bien Hoa Sugar Joint Stock Company was officially established.
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The Company’s head office and branches as follows:
 Head office: Bien Hoa 1 Industrial Zone, An Binh Ward, Bien Hoa City,
Dong Nai province.
 Manufacturers and enterprises: Bien Hoa - Tay Ninh sugar manufacturer;
Bien Hoa - Tri An Sugar manufacturer; Thanh Long Agriculture Enterprise.
 Branches: Ho Chi Minh city; Da Nang and Can Tho city
 Subsidiaries: Bien Hoa - Thanh Long One Member Co., Ltd; Hai Vi One
Member Co., Ltd.

2.1.1.2. Business line:
Some main information on the Company:
 Company name: Bien Hoa Joint Stock Company
 English name: Bien Hoa Sugar Joint Stock Company
 Short name: BSJC; Securities code: BHS
 Head office address: Bien Hoa 1 Industrial Zone, An Binh Ward, Bien Hoa
City, Dong Nai province.
 Website: www.bhs.vn; Email:
 Telephone: 061. 3836199; Fax: 061. 3836213
 Logo:
 Charter capital: VND 185,316,200,000
The Company’s main business activities, including:
 Producing and trading sugarcane products, sugar-using products and
products made from by-products and deficient products of sugarcanes;
purchasing and selling machines, equipment, sugarcane tools.
 Repairing, maintaining and installing equipment for sugarcane industry.
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 Lending warehouses; Building civil and industrial construction work.
 Purchasing, selling, being an agent, consigning agricultural products,
industrial food, and materials for sugarcane industry.
 Transportation services, F&B (Food and Beverage) services, and wine
trading.
 Real estate trading; producing and trading alcohol.
 Agricultural cultivation and mechanization services.
2.1.1.3. Development history:
Performance and business results during many years:

Since its establishment of joint stock company, its business performance has
been not stable, mainly due to unsustainable sugarcane and raw sugar materials. The
sugar market has been very complicated because of being affected by foreign sugar
market and illegal import, price fluctuation of agricultural products (rubber, rice).
From 2004 until now, indicators of turnover, earnings before tax, equity capital,
registered capital as follows:
Table 2.1. Financial ratios from 2004 to 2010 of BHS
F: billion VND
Year
Revenue
EBT
Registered capital
Equity capital
2004
485.790
18.757
81.000
64.684
2005
543.335
37.286
81.000
108.628
2006
767.947
51.528
162.000
353.311
2007
643.351

53.633
168.477
376.513
2008
792.245
(43.121)
185.316
331.060
2009
1,191.283
128.123
185.316
425.466
06M - 2010
846.379
61.813
185.316
447.169
(Source: BHS’s financial statement from 2004 - 2010)
In general, the performance of this company guarantee profits at the minimum
level with the ratio of benefit over equity capital of 14%/year.
The ratio of profit over equity capital accounts for more than 23%. The ratio of
profit over revenue reaches more than 3.6%.