Development strategy of con river sugarcane joint stock company period 2011 - 2015

Development strategy of Con River Sugarcane Joint Stock Company for the period of 2011-2015

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GRIGGS UNIVERSITY
GOLBAL EXECUTIVE MASTER OF BUSINESS ADMINISTRATION
PROGRAM



CAPSTONE PROJECT REPORT

DEVELOPMENT STRATEGY
OF CON RIVER SUGARCANE JOINT STOCK COMPANY
PERIOD 2011 - 2015


Group 9
Student’s name:
1. Pham Tuyen
2. Nguyen Ngoc Vo
3. Pham Hong Son
4. Nguyen Phuong Thang

Ha Noi, 2010


Development strategy of Con River Sugarcane Joint Stock Company for the period of 2011-2015

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ACKNOWLEDGMENT

Our group wishes to show deep gratitude to teachers and lecturers of
Griggs University and Centre for Training Technology and Career System of
Ha Noi National University which can create good condition for our learning,
studying and exchanging valuable knowledge in recent time.
We wish to show our gratitude to Managing Board of Con River
Sugarcane Joint Stock Company and cadres, employees of the company who
have created good condition for us to collect data in the process of topic
study.
ON BEHALF OF THE GROUP


Pham Tuyen







Development strategy of Con River Sugarcane Joint Stock Company for the period of 2011-2015

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COMMITMENT

The followings are our commitments – this is the study project of the
whole group to build up development strategy in Con River Sugarcane Joint
Stock Company, which is one production unit within the area of one of our

group members. All study data and results in this assignment are honest and
faithful to reality.


ON BEHALF OF THE GROUP


Pham Tuyen








Development strategy of Con River Sugarcane Joint Stock Company for the period of 2011-2015

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TABLE OF CONTENTS
Page
ACKNOWLEDGMENT 2
COMMITMENT 3
TABLE OF CONTENTS 4
SYMBOL AND ABBREVIATIONS …………… 7
LIST OF TABLE 8
LIST OFLIST OF FIGURE 9
PREFACE 10
CHAPTER I:

BASIS OF THEORY AND PRACTICE ……………………… 12
1.1. Definition of strategy 12
1.2. Analysis of PEST and five-force model of M.Porter 13
1.2.1. Pest 13
1.2.2. Five-force model of M.Porter 15
1.3. Internal analysis of enterprises 17
1.4. Formation and choice of strategies 18
1.4.1. Matrix for external factor evaluation 18
1.4.2. Competitive Profile Matrix 17
1.4.3. Matrix for internal factor evaluation 19
1.4.4. General matrix for internal and external factors 20
1.4.5. SWOT matrix 21
Conclusion of chapter I 22
CHAPTER II. ANALYSIS OF BUSINESS ENVIRONMENT OF CON RIVER
SUGARCANE JOINT STOCK COMPANY 23
2.1. General introduction of Con river sugarcane JSC 23
2.1.1. Formation and development 23
2.1.2. Functions and duty 24
2.1.3. Management and organizational structure 25
Development strategy of Con River Sugarcane Joint Stock Company for the period of 2011-2015

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2.1.4. Trading activities in recent years 27
2.2. Analysis of business environment 29
2.2.1. General introduction of Vietnamese sugarcane sector 29
2.2.1.1. Reality 29
2.2.1.2. Quantity 30
2.2.1.3. Materials 31
2.2.1.4. Consumption capacity 33

2.2.1.5. Development capacity of Vietnamese sugarcane sector 35
2.2.2. Pest analysis 35
2.2.2.1. Political and legal factors 35
2.2.2.2. Domestic and foreign economic factors 38
2.2.2.3. Natural and geographical factors 40
2.2.2.4.Technical and technological factor 41
2.2.3. Business environment analysis (M.PORTER)………… 43
2.2.3.1. Customers 43
2.2.3.2. Providers 44
2.2.3.3.Current competitive opponents 45
2.2.3.4. Potential competitive opponents 46
2.2.3.5. Replaced products 47
2.2.4. General matrix of external factors evaluation 50
2.2.5 Competitive profile Matrix of SJC 51
2.3. Analyze internal problems of SJC 52
2.3.1. Human resource 52
2.3.2. Finance 53
2.3.2.1. Analysis of capital and capital using 53
2.3.2.2. Analyze financial norms and trading results 56
2.3.2.3. Analysis of financial norms and rate 57
2.3.3. Marketing activities 61
2.3.4. Technology and equipment 63
2.3.5. Material zone 63
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2.3.6. Economic infrastructure 66
2.3.7. General matrix of internal factors evaluation 67
CHAPTER III. CHOICE OF BUSINESS STRATEGY FOR SJC PERIOD

2011 – 2015 ……………………………………………… 69
3.1. Build up strategies via S.W.O.T 69
3.1.1. Strengths and weaknesses 69
3.1.2.Opportuntities and threatens 70
3.2. External and internal factors evaluation 72
3.3. Choice of strategies for SJC during 2011 - 2015 72
3.3.1: Vision and mission 72
3.3.2. Choice of strategies via matrix for defining QPSM 73
3.3.3. Strategy content 77
3.3.3.1. Product diversification 77
3.3.3.1. Development of sugarcane material zone 78
3.4. Some methods to implement strategies during 2010-2015 79
3.4.1. Solution of investment 79
3.4.2. Solution of human resource 80
3.4.3. Solution of raising effect of using capital and asset 81
3.4.4. Solution of science and techniques 83
3.4.5 Solutions to build sustainable relationships with sugarcane farmers 84
3.5. Schedule for implementation of the strategy 84
SUGGESTION AND CONCLUSION………… 85
REFERENCES 88





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LIST OF SYMBOL AND ABBREVIATIONS
No.
Full form of abbreviation
Symbols and
abbreviated names
4
Cadres and employees
CB - CNV
5
Administration council
HĐQT
6
Con river sugarcane joint stock company
SJC
7
Short term
NH
8
Long term
DH
9
Asset
TS
10
Owner
CSH
11
Fixed assets
TSCĐ
12

Enterprises
DN
















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LIST OF TABLE
No.
Mark
Name of table
1
Table 1.1
Matrix table of external factors
2

Table
1.2
General table of internal factors
3
Table 2.1
Labors in SJC
4
Table 2.2
Data of trading activities of SJC from 2007-2009
5
Table 2.3
Sugarcane output of nations in 2009
6
Table 2.4
Material cost of some nations
7
Table 2.5
Labor productivity (tons sugar/labor)
8
Table 2.6
Development index of Viet Nam during 2000 - 2009
9
Table 2.7
Matrix for external factor evaluation of SJC
10
Table 2.8
Competitive Profile Matrix of SJC
11
Table 2.9
Analysis of capital and capital using of SJC in recent

years
12
Table 2.10
Report on trading results by 31/12 of recent years of SJC
13
Table 2.11
Production results of sugarcane
14
Table 2.12
Matrix of internal factor evaluation
15
Table 3.1
QSPM of SJC according to S/T group
16
Table 3.2
QSPM of SJC according to W/O group
17
Table 3.3
Chemical and physical norms of SJC

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LIST OF FIGURE

No.
Mark
Name of Figure
1

Figure 1.1
Factors of external environment of enterprise
2
Figure 1.2

Analysis of PEST
3
Figure 1.3
Five-force model of M.Porter
4
Figure 1.4
Internal and external factors of enterprise
5
Figure 1.5
SWOT matrix

6
Figure 2.1
Organizational diagram of SJC
7
Picture 2.2
Organizational diagram of trading activities of SJC
8
Picture 2.3
Vietnamese area of growing sugarcane and annual
growth
9
Picture 2.4
Sugarcane productivity according to ecological area
10

Picture 2.5
Porter model applied to SJC
11
Figure 3.1
SWOT matrix of SJC
12
Figure 3.2
Internal and external factors of SJC







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PREFACE

1. The reason to choose the topic
In front of violent competitive market, each member must have ready
preparation with effective strategies for sustainable development and existence. An
enterprise with right and suitable trading strategies can base on internal resources to
make use of opportunities from external environment or avoid risks and limit
weaknesses then it can have enough competitiveness to stand tall within the market;
Con River Sugarcane Joint Stock Company is a State-owned enterprise which has
been transferred into the form of joint stock company then it can get more
difficulties and challenges then before without State’s protectionism. Con River

Sugarcane Joint Stock Company must try its best to keep market share and
development; and this is the reason that makes our group decide to choose the topic
“Development strategy in Con River Sugarcane Joint Stock Company for the period
of 2011 to 2015" as the capstone project.
2. Purposes and significances of the topic
Purposes: Applying studied theory together with realistic analysis to give
effective development strategies for Con River Sugarcane Joint Stock Company
from present until 2015.
Significances: based on scientific basis, such assignment is made with the
expectation to contribute effort to the company’s development within working area
of a group member and the development of Tan Ky district in particular and Nghe
An province in general.
3. Study object and scope
Study object: Development strategy of Con River Sugarcane Joint Stock
Company for the period of 2011 to 2015.
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Study scope: Study of business environment of a sugarcane enterprise and
build up business strategy of Con River Sugarcane Joint Stock Company.
4. Study methods
Via many methods such as qualitative and quantitative methods together with
methods of analysis, statistics and experts, such assignment is implemented in Con
River Sugarcane Joint Stock Company to have the most comprehensive and
accurate results; based on that assignment can find out effective strategies.
5. Topic structure
Apart from preface, structure of assignment including 3 chapters:
Chapter I: Theoretical and practical basis of business strategy.
Chapter II: Analysis of realistic situation of business activities in Con River

Sugarcane Joint Stock Company.
Chapter III: Development strategy for Con River Sugarcane Joint Stock
Company from 2011 to 2015 and conclusion.












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CHAPTER 1

BASIS OF THEORY AND PRACTICE TO BUILD DEVELOPMENT
STRATEGY OF CON RIVER SUGARCANE JOINT STOCK COMPANY
FOR THE PERIOD OF 2011 – 2015
This program has indicated the theory basis for building development strategy
for SJC. Mentioned theory basis in this program including the following contents:
 Definition of strategy and trading strategy
 Analysis of PEST and five-force model of M. Porter
 Internal analysis of enterprise according to function
 General matrix of factors of external and internal environment

 Analysis of SWOT to choose strategy
1.1. Definition of strategy
Trading strategy is related to economic sector which is expressed via many
different methods, as follows:
- According to Fred David, trading strategy is medium to reach long term
targets; trading strategy can include development of geography, diversification of
activities, ownership, development of product, market penetration, cost reduction,
liquidation, joint venture (Fred R. David, definition of strategic administration,
translation edition, Statistical Publishing House, 2006).
- According to Alfred Chandler - Harvard University, trading strategy is to
define basic targets of an enterprise at the same time draft and choose method,
action plan and allocation of necessary resources to implement such targets.
- According to M. Porter, trading strategy is the art to build up competitive
advantage for defenses.
- According to G.Arleret, trading strategy is to define methods and medium to
reach defined targets via policy.
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Then, trading strategy is a collection of targets, policy as well as plans to reach
such targets which can show trading strategies that company will implement and
which trading sectors that company will implement.
In general, definitions of trading strategies can have difference but basically it
includes the following contents:
Strategy to collect decisions: targets, methods, policy, resource allocation…
and action plan to reach long term targets, promote strengths and weaknesses of
organization; help organization to receive opportunities and overcome external risks

in the best way.
1.2. Analysis of PEST and five-force model of Michael Porter
1.2.1. PEST analysis
The purpose of analysis of PEST and five-force model of Michael Porter is
to define opportunities and threatens of enterprise.
Analysis of PEST and five-force model of Michael Porter is to analyze factors of
external environment of enterprise which are expressed in the following model:
Figure 1.1 Factors of external environment of enterprise

Economic factor The whole economic environment Political and legal factors

Internal environmental of sector

Customers Current competitive opponents

Providers Replaced products Potential opponents

Technical and technological factors Social and cultural factors

To analyze national trading environment, in this assignment we use theory of
PEST including assessment of politics (P), economics (E), society (S) and
Enterprise
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technology (T) to find out opportunities and threatens for enterprises operating in
such trading environment.
Economic factors can play the most important role which can impact on
enterprise’s trading; it includes factors such as economic growth rate, exchange rate,

inflate rate, interest policy, economic policy…if economic growth is high then
exchange rate will increase, inflate rate is stable; suitable interest policy, economic
policy can create equal playground for enterprises which will be the opportunity for
enterprises. On the contrary, such factors will create challenge for enterprises
operating in such economy.
Figure 1.2 Analysis of PEST












Political and legal factors will be the basis for formation of other factors of
trading environment which means basis for politics and legal environment for
(Political)
Stable politics, labor law,
tax policy, legal system
and legal environment
(Economics)
Change of GDP
Rate of economic growth
rate
Interest, inflate
Unemployment

Cycle of economy
(Social)
Population
Allocation of national
income
Living style
Culture, people’s
qualification
Customs, tradition
(Technological)
Discover new technology
Rate of technological transfer
Governmental cost for R&D
Market of technological products
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business environment; such factors including institution for political and legal
system; stable political institution, clear methods can create opportunity for
enterprise’s development and vice versa.
Social factors can impact slowly on business environment but greatly impact
on market demand but change of customers, tradition and habit of consumption.
Technological and technical factors play important and decisive roles in
business environment of enterprise; the world is in revolution of technology; a
series of new technology appear which will be connected to products and services;
Then we must consider how technological factors impact on trading sectors in term
of technological development rate, governmental investment…
Factor of integration: apart from above factors, when studying influence of
external environment we must consider factor of integration which will become

macro factors impacting on sector; nobody can deny trend of globalization which is
also the challenge for enterprises in business development.
1.2.2. Analysis of five-force model of Michael Porter
To analyze sector’s environment then we can use five-force model of
Michael Porter. Such model has mentioned 5 forces to bring opportunities or
threatens in sector including (1) providers, (2) current competitive opponents, (3)
potential competitive opponents, (4) customers, (5) replaced products. One of five
forces can bear influence from other factors which must be studied to create a full
picture of sector’s competition. Mutual impact among 5 forces can create
opportunities and threatens for enterprises within the sector which is shown in the
following diagram:




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Threatens of newly
Participated person

Bargain capacity
of buyer

Replaced threatens

Bargain capacity
of provider

Newly
participated
person
Competitive
opponents
Competitive
intensity

Replaced
products
Buyers
Providers














Figure 1.3 Five-force model of M.Porter
Competitive opponents in the sector:
When mentioning competition among enterprises, we must consider the level
of competition among enterprises in the sector; a sector with high competitive level

then capacity to reduce competitive price is very high which can lead to profit
reduction threatening to enterprises; factors to decide competitive level of a sector
can include sector’s growth rate, quantity of enterprises and their relative scale, the
height of sector’s barriers, different products among enterprises.
Threatens of newly participated members:
Such threatens are defined by “the height of participation’s barriers”; if
participation’s barriers are high then the power to threaten from potential opponents
can reduce and more opportunities will be given to enterprises; Decisive factors of
participation’s barriers including economic scale, difference of products and
faithfulness with label, distribution channels, absolutely advantageous cost.
Power of buyers (customers):
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In the correlation between enterprises and customers, if customers are
“weak” then enterprises can increase price to increase profit; on the contrary,
customers can be “stronger” than enterprise.
Power of providers:
Providers have capacity to require price increase or reduction of product
quality which is stronger than enterprise; providers can be stronger in cases when
providers do not have many replaced product within market of industrial
commodity which forces enterprises to choose them; when trading sector of
enterprise is not important to providers; when providers have advantage in
specializing products which make enterprises difficult to choose a replaced
provider; when providers can join in trading sector of enterprise to compete directly
with enterprises.
Threatens from replaced products
According to M. Porter, replaced products are products of competitive
opponents in the trading sectors which can have the same function to meet the

similar demand of consumption of customers. Existence of products out of product
boundary can increase common trend of customers to change into other alternatives
such as: trend for buyers to replace; relative price of replaced products; realization
level of different products, available products within the market.
1.3. Internal analysis of enterprise
Analysis of enterprise can discover strengths and weaknesses of enterprise to
build up target system and suitable strategies to make maximum use of strengths
and turn them into special capacity as well as limit weaknesses; Author will analyze
internal environment on some following fields:
 Production and technology
 Marketing and sale
 Financial analysis
 Human resources analysis
 Material resource analysis
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1.4. Strategy formation and choice
1.4.1. General matrix of factors in external environment
After analyzing opportunities and threatens arisen from external environment we
can use matrix to assess external factors evaluation (EFE matrix) to summarize and
assess influences of such factors on enterprises; development process of a matrix of
external factors including 5 steps:
 Step 1: Make list of decisive factors for enterprise’ success.
 Step 2: Define importance from 0 (unimportant) to 1.0 (very important) for
each factor. Total classification level is 1.0.
 Step 3: Classify from 1 to 4 for each factor to see the method that how
current strategies of enterprise reflect with such factors, out of which, 4
reactions are good, 3 reactions are above average level, 2 reactions are

average and 1 reaction is low.
 Step 4: Multiply between two norms of importance of each factor with its
classification to define importance.
 Step 5: Connect all important points of factors to define total importance
point of each enterprise
Main external factors
Importance level
Classification
Importance points












Total
1.0



Table 1.1 Matrix table of external factors
The highest total importance point of an enterprise can be 4.0 and lowest is
1.0. Total importance point is 4 which shows that enterprise is reacting well with
current opportunities and threatens in environment. In other words, strategies that

enterprise use can be effective for current opportunities which can minimize
threaten and possible negative influence from external threatens. Total importance
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point is 1 which shows that strategies that enterprise has given cannot make use of
opportunities or avoid external threatens.
2.4.2 Competitive Profile Matrix of SJC
Set this matrix to identify the comparative evaluation of companies with
major competitors in the industry. The comparison is based on the factors affecting
the competitiveness of companies in the industry. Thereby it gives the
Administration recognized the strengths and weaknesses of the company with
competitors, identify competitive advantages for the company and weaknesses
should be overcome.
1.4.3. General matrix of factors in internal environment
Using matrix to assess internal factors to summarize analysis, assessments of
strengths and weaknesses of factors which impact on internal activities of
enterprise; development process of matrix for internal factor evaluation is similar to
EFE matrix which is just different in 3 steps: we can classify 1 as the biggest
weakness, 2 as the smallest weakness, 3 as smallest strength and 4 as biggest
strength
Main internal factors
Importance level
Classification
Importance level

Total:
1.0


Table 1.2 General table of internal factors
Regardless of factors of IFE matrix, total importance point can be classified
as the lowest as 1.0 and the highest as 4.0. Total importance point is lower than 2.5
which shows that enterprise is internally weak and higher than 2.5 which shows that
enterprise is internally strong.
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1.4.4. General matrix of internal and external factors I.E
Figure 1.4 Internal and external factors of enterprise
IFE – Internal factors evaluation
Assessment point of enterprise
4 4 3 2 1
EFE
External 3
factors
2 enterprise’s position

1
From table of internal and external factors of enterprise, we can define current
position of enterprise to choose suitable strategic method.

1.4.5. SWOT matrix
Matrix for strengths – weaknesses, opportunities – threatens is the important
tool to help administrators develop 4 kinds of strategies: strategies of strengths -
opportunities (SO), strategies of strengths – weakness (SW), strategies of strengths
– threatens (ST), and strategies of weaknesses – threatens (WT). Combination
of internal and external important factors is the most difficult task
for development of SWOT matrix, which predicts to have a good prediction
and there will not be the best combination.
* SO strategies have used internal strengths of company to make use of
external opportunities; all of administrators expect their organizations to be in
the position that internal strengths can be used to make use of external trend and
events. As usual, organizations will follow strategies of WO, ST and WT to make










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organization be in the position that they can apply SO strategies. When a
company has a bigger weakness then it will try to overcome to make it
become strength. When an organization must cope with important threatens then
it will try to avoid it to focus on opportunities.

* WO strategies are to improve internal weakness by making use
of external opportunities; sometimes, external big opportunities are
existing but company has internal weakness that can hinder it from
exploiting such opportunities.
* ST strategies can use company’s strengths to avoid or reduce influence
of external threatens; this does not mean that a strong organization always
cope with external threatens.
* WT strategies are defense strategies to reduce internal
weaknesses and avoid external threaten.
To make SWOT matrix we must follow 8 steps:
1- List strengths and weaknesses of company
2- List internal factor of company
3- List big opportunities outside company
4- List important threatens outside company
5- Combine internal strengths with external opportunities and write
down results of SO strategies in suitable square
6- Combine internal weaknesses with external opportunities and down
results of WO strategies
7- Combine internal strengths with external threatens and write down
results of ST strategies
8- Combine internal weaknesses with external threatens and write
down results of WT strategies.
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Figure
1.5 SWOT matrix

O: Opportunities
1.
2.
3. Liệt kê những cơ hội
4.
T: threatens
1.
2.
3. Liệt kê những nguy cơ
4.
S: strengths
1.
2.
3. List strengths
4.
SO strategies
1.
2.
3. use strengths to make
use of opportunities
4.
ST strategies
1.
2.
3. overcome barriers by
making use of strengths

W: weaknesses
1.
2.

3. List weaknesses
4.
WO strategies
1.
2.
3. Limit weaknesses to
make use of opportunities
4.
WT strategies
1.
2.
3. Minimize weaknesses
to avoid threatens.
4.
CONCLUSION OF CHAPTER I
Administration of business strategies has significance and importance for the
existence and development of enterprise; then good implementation and effective
using of tools to analyze, build, select and implement strategies are important
steps for enterprise to have a right business strategy; it can express logical,
systematic and objective method in defining future orientation of an enterprise
which can lead enterprise to success.
Therefore, this is an important and leading task of all organizations.






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CHAPTER 2
ANALYSIS OF BUSINESS ENVIRONMENT
OF CON RIVER SUGARCANE JOINT STOCK COMPANY

2.1. General view of Con River Sugarcane Joint Stock Company (SJC)
Transaction name: SONG CON SUGAR JOINT STOCK COMPANY
Abbreviated name: SJC
Main office: Block 5, Tan Ky town, Tan Ky district, Nghe An province
Tel: 0383.882.214
Fax: 0383.882.200
Email:
2.1.1. History of formation and development
Con River Sugarcane Joint Stock Company whose forerunner is a sugar
production enterprise of Lam river sugar factory (Hung Nguyen district, Nghe An
province) was established in 1970. Then due to war, it came to Tan Ky district,
merged with Tan Ky wine enterprise then established Tan Ky Con River Sugar and
Wine Enterprise.
Until 2001 its name has been changed into Con River Sugarcane Joint Stock
Company which operated according to Decision No. 2466/QĐ-UB on 28/12/1992
of Nghe an Provincial people’s committee; business registration certificate No.
106713 on 26/12/1993 issued by Nghe an province economic arbitration.
On 18/10/2006, Nghe An Provincial people’s committee has made decision
No. 3724/QĐ.UBND-ĐMDN on approving privatization to transfer Con River
Sugarcane Company into Con River Sugarcane Joint Stock Company.
Con River Sugarcane Joint stock Company is located in mountainous area of
the West of Nghe An province, with material area spreading three districts of Tan
Ky, Do Luong and Yen Thanh; Land area is large; Bazan soil can be suitable to
develop short term industrial trees such as sugarcane. Such advantage has created

good condition for company to develop sugarcane material area for producing
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sugar; to implement of non-stop renovation in production, in recent years, Company
has expanded material area, invested capital for farmers of 3 districts to develop
area of growing sugarcane and provide new trees with high productivity and good
quality for farmers.
Together with development of material area, company has gradually invested
in raising capacity of sugar production line: firstly, capacity was just 15 tons
sugarcane/day (mainly sugar-candy) then it reached 30 tons sugarcane/day in 1980.
Until 1990 it had built factory with capacity of 100 tons sugarcane/day, in 1995
company continues raising capacity to 2,000 tons sugarcane/day.
In 1999 company implemented project to build up production line according
to modern technology with capacity of 1,250 tons sugarcane/day, and
comprehensive equipments provided by Spain according to production technology
of Cuba with total invested capital of 230 billion dong. This is the provincial main
program within program of 1 million ton sugar/year of Government using mixed
ODA capital of Spain. In 3/2001, the line was assembled which then went on stable
production and brought good effect in term of economy and society. In 2006,
Company had raised capacity of factory to 1650 TMN; in 2009 implementing
decision of shareholders’ meeting, company has invested to expand equipment
capacity to 2500 TMN. With such capacity, annually company has produced 32,000
to 35,000 tons sugar and from 5,000 to 7,000 tons fertilizer.
2.1.2. Function and duty
The task of business management of company
Being an enterprise of production and trading, main targets of company are
profit and income for labors and then submit to budget fully. But to reach such
targets then first of all, company must care for social common profits.

+ Company has the duty for business registration and trading registered
sectors.
+ Bear responsibility in front of shareholders and the State on trading results,
customers and law on company’s products.
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+ Implement report on accounting, periodic trading and unexpected activities
according to State’s requirements, Shareholders’ meeting and bear responsibility for
the accuracy of this report.
+ Company will bear monitoring of State’s agencies ad defined by Law.
+ Implement duty with labors as defined by Labor Ministry.
Task of financial management:
+ Well implement regulation and principles of capital, assets, auditing and
other regulations as defined by the State.
+ Ensure and develop capital
+ Implement receivables and payables in balance sheet of company at the
time of establishment.
+ Publicize and declare annual financial report; rightly assess on company’s
activities.
+ Pay tax and State’s budget items.
+ Company will bear responsibility on materials for customers in the scope
of charter capital.
2.1.3. Organizational and management structure
Organizational structure:
+ To meet the demand of management, company will arrange organizational
structure based on principle between qualification and capacity of each member to
fulfill tasks; organizational machine of company follows online functional
management model, consultant divisions of director board according to function and

duty.
+ Organize management machine of Con river Sugarcane Joint stock
company: