Giải pháp triển khai chiến lược kinh doanh tại các doanh nghiệp phát điện thuộc tập đoàn điện lực (TT)

INTRODUCTION
1. The reasons for choosing the research topic
In Vietnam, the strategies of electricity industry in general and power
generation sector have been formulated through 2 documents: (1) The
development strategy of EVN period of 2012-2015, towards 2020 by EVN; và
(2) The master plan for national electricity development period 2011 – 2020
and 2030 (Master Plan VII). However, the operations of a competitive power
market from July 1st 2012 as instructed by the Prime Minister have made the
power sector no longer a monopoly in the economy. VCGM is introduced and
developed through 3 levels: (1) Competive generation market until 2014; (2)
towards competitive electricity wholesale market from 2015 to 2021; and (3)
develop to competitive electricity retail market after 2021 and after 2023 will
be perfect competitive electricity retail market. Business strategy has been
implemented by EVN to its generation companies for 4 years to adapt to
VCGM level 1. However, most of EVN’s generation companies even don’t
have an implementing plan that can achive to high business performance for
recent strategy and for the appear of competitive electricity wholesale market
in 2021, only 06 years from now. There is a number of projects, papers related
to implementing business strategy in general and in electricity sector in
particular. However none of them directly researches on how to perfect
business strategy implementing of EVN’s generation companies. From this
situation and the objective demands of practice, the author has chosen the
topic "Solutions for Implementing Business Strategy (IBS) at EVN’s
generation companies" as the topic for PhD dissertation.
2. Overview of the research situation
2.1. Overview of the research situation oversea
Oversea reseaches have just limited to functional areas of power generation. The
implementing BS at corporation’s subsidiaries in general and at electricity
corporation’s subsidiaries is the direction that has not been researched much and
has much space for researching.
2.2. Overview of the research situation in Vietnam

Strategy implementing in general and BS implementing have not been
researched much even though all of strategy textbooks have chapters about
strategic implantation theory. Researches concern to electricity industry, power
generation sector and EVN from 2000 until now mainly focus on perfecting
produce organization model, perfecting salary management, developing the
humance resource, restructuring… There is the only strategy of EVN where
highlight some solutions for implementing strategy but they are too general and
are not in details for generation companies.
2.3. Conclusion: So far there is no comprehensive study on theoretical and
application of IBS for EVN’s generation companies both in Vietnam and
oversea. Therefore “Solutions for Implementing the business strategy of
EVN’s generation companies” is a new study and needed to research.
3. Objectives and tasks of the research
3.1. Research Objectives: Research the space in theory and practice about
the relationship of strategies from corporation to electricity generation
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companies and the ways to implement strategies from top organization
(EVN) to subordinate organizations (electricity generation companies). Base
on that a set of scientific and practical will be highlighted to promote and
perfect for implementing busisness strategy at EVN’s electricity generation
companies period until 2021, vision to 2030 .
3.2. Research Tasks
- Establishing a basic theoretical and practical framework for IBS from EVN
to electricity generation companies suited for competitive oriented market.
- Analyzing and sssessing the recent situation of IBS at EVN's generation
companies.
- Identifying the orientations, points of view and solutions for IBS at EVN’s
generation companies, period to 2021, vision to 2030.

4. Objects and scope of the research
4.1. Research Objects: The objects of the dissertation are theoretical and
practical factors in IBS at EVN's generation companies in the context of
developing VCGM from commercial business point of view.
4.2. Research scope
- Content: focusing on implementing EVN’s business strategy at generation
companies that start from formulating and implementing BS at generation
companies. In details, the dissertation studies on impact factors to business
strategy performance (BSP) that presented in research model.
- Space: limiting the choice of study in SBUs of EVN’s Genco1, Genco 2
and Genco 3, that are EVN’s generation companies.
- Time: generating data from 2011 until now to research the situation of
implementing business strategy at EVN’s generation companies; proposing
solutions to 2021, vision to 2030.
5. Research Methodology
The methodology of this dissertation is to approach the system dialectical
logic and history to consider the study of the relationship between the
general (EVN), and the individual (generation companies); research RBS of
generation companies in the overall strategy of companies across the supply
chain (Generation - Transmission - Power Purchase) and the relationship
between three strategy levels (corporate - business and functional level).
General research methodology for IBS is the research method from abstract to
concrete, generalized method to describe the state of the IBS at EVN’s generation
companies because most of generation companies haven’t had an official strategy
plan yet. Based on that, the research procedure is described in Figure 1.

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Figure 1. Research procedure

6. New contributions of the dissertation
- Theoretical contributions: Codifying some basic theory about BS,
implementing and managing BS from corporate level to SBUs level;
building hypothesis, research model scale factors in research model and test
them in the power generation business conditions in Vietnam to build
realistic model for implementing BSs at EVN’s generation companies.
- Practical contributions: through the application of suitable research methods and
models, the dissertation identified and clarified the practical arguments for IBS at
EVN’s generation companies: systematically analyzed and objectively evaluated
the status of elements and content of IBS at EVN’s generation companies. Since
then the dissertation derives the overall assessment of recent situation and the
causes of restrictions exist in IBS at EVN’s generation companies.
- Regarding research objectives: The dissertation reached to research
objectives through applying above scientific argument, proposed orientations,
opinions, goals, general IBS solutions for EVN’s generation companies to
achieve high BS performance in period to 2021, vision to 2030.
7. Structure of the dissertation
The dissertation was structured in 03 chapters
CHAPTER 1: SOME THEORETICAL AND PRACTICAL BASICS OF
IMPLEMENTING BUSINESS STRATEGY IN GENERATION COMPANIES

In the first chapter, the author has hoghlighted basic related concepts as: product,
market and electricity market; Electricity supply chain; BS and its position, the
contents of BS that is deployed at corporation’s subsidiary. According to that,
when implementing BS at corporation’s subsidiaries, it means that the
corporation has formulated its BS already and actualizing its objectives and
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choices into actions at subsidiaries. It also means that subsidiaries haven’t had

detailed BSs and therefore implementing BS at subsidiaries start from
formulating BSs for them and then formulating BS implementing plan.
Implementing BSs. Implementing BSs at corporation’s subsidiaries therefore
includes 02 main tasks: (1) formulating BSs for corporation’s subsidiaries, and
(2) formulating the above BS implementing plans.
Implementing BSs at corporation’s subsidiaries is a phase of BS
management. Regarding position, it mainly belongs to implementation
phase in strategic management of entire the corporation, but for at
corporation’s subsidiaries, it includes all formulation, implementation and
control phase. Therefore, implementing BSs at corporation’s subsidiaries is
known as procedure of development and implementation the contents of BS
that is formulated and maintaining their compatibility with regular changes
and uncertainty from competitive electricity market to ensure achieving
objectives that has been established by the corporation. After reviewing
theory of the basic content of implementing BSs at power generation
enterprises as in Table 1, 07 hypotheses have been created as basis for
establishing research model and scale factors as follows (Figure 1).
Table 1. Synthesis of theoretical studies about implementing BS at generation companies

Implementing
Strategic
information and
startegic analysis

Authors
Henderson, B. (1984), Andrews, K (1987), Ravanavar G.M., Charantimath
P.M., (2012), Esteban R. Brenes el al (2008), Flood, P.C., Dromgoole, T., Carrol,
S.J. & Gorman, L (2000), Hitt, M.A., Ireland, R.D. & Hoskisson, R.E (2007),
Hobbs, B. F., Metzler, C. and J. S. Pang (2000), Holman, P. (1999),
M.Prabavathi và R.Gananadass (2014), Qin Li, Xin Li & Ping Zhou (2010)…

Implementing
strategic
positioning
in
competitive market
Implementing
functional
strategy

Holman, P. (1999), D.Aaker (2001), Esteban R. Brenes el al (2008), Ralf Muller
el al (2008), Gary L. Neilson, Karla L. Martin và Elizabeth Powers (2008), Verlyn
Klass (2010), M.Prabavathi và R.Gananadass (2014), Kepha Otieno Omuoso
(2013)…
Henderson, B. (1984), Rowe el al (1998), Hobbs, B. F., Metzler, C. and J. S.
Pang (2000), Pearce & Robinson (2003), Hrebiniak, L.G (2005), Yang
Xiaozhou. (2005), Charles W.L. Hill & Gareth R.Jones (2008), Karani Teresa
(2009), Qin Li, Xin Li & Ping Zhou (2010), Verlyn Klass (2010), M.Prabavathi
và R.Gananadass (2014)…

Implementing
alliances
and
partnership

Jack Casazza và Frank Delea (2003), Jia Shuzhi. (2003), Nagurney. A, Dmytro
Matsypura (2005), Ralf Muller el al (2008), Qin Li, Xin Li & Ping Zhou (2010),
Kepha Otieno Omuoso (2013), Anna Nagurney, Dong, J. and D. Zhang
(2002)…

Implementing
strategies that create
sources of sustainable
competitive advantadge

Flood, P.C., Dromgoole, T., Carrol, S.J. & Gorman, L (2000), Gary L. Neilson,
Karla L. Martin và Elizabeth Powers (2008), Hobbs, B. F., Metzler, C. and J. S.
Pang (2000), Esteban R. Brenes el al (2008), Firdaus Alamsjah (2011), Astif
Osmani el al (2013), Giorgos el al (2014)…

4


Upgrading resources,
capabilities
and
business competences

Prahalad, C.K. and Hamel, G. (1990), Casazza and Delea (2005), Yang
Xiaozhou. (2005), Richard Lynch (2006), Verlyn Klass (2010), Firdaus
Alamsjah (2011), Giorgos el al (2014), Hrebiniak, L.G. (2005), Karani Teresa
(2009)…

Business strategy
performance

Henderson, B. (1984), Pearce, J.A. & Robinson, R.B, (2007), Esteban R. Brenes
el al (2008), Gary L. Neilson, Karla L. Martin và Elizabeth Powers (2008), Qin Li,
Xin Li & Ping Zhou (2010), Verlyn Klass (2010)

Figure 1. Research Model
Source: Author
Qualitative method is used through expert workshops and interviews with
16 CEOs of generation companies, tranmission companies, power tradding
company, EVN; Government officers from the over power sector under
MOIT; strategy management researchers to develope officials the scale of
the research model. At the workshop the scales and the theoretical
background were infroduced and discussed. The results of the scale research
are summarized in Table 1.
Table 1. The items and meanings in implementing BS at power generation companies

Items
(1) Quality of
implementation of
strategic information
and strategic
analysis (SA)
(2) Quality of
implementation
strategic positioning
in competitive
market (PS)

(3) Quality of
implementation

Meanings
SA1. Applying SPACE for environmental analysis according to the level of
competitive market.
SA2. Applying BCG, GE/McKinsey for analysing SBUs.

SA3. Applying TOWS for identifying the BS implementing orientation.
SA4. Building Business information Management based on electronic database.
PS1. Implementing strategic position as cost leadership
PS2. Implementing strategic position as more added value to customers
PS3. Implementing strategic position as higher quality/higher price in the market.
PS4. Implementing strategic position as safer and more friendly in CSR
FS1. R&D more often new product, new technology and new procedure
FS2. Suitable and effective development orientation, generation technology
managmeent
FS3. Oriented organization and management of production and streamlined

5


Items
functional
strategies (FS)

(4) Quality of
implementation of
strategic alliances
and partner
relationaship (PR)

(5) Quality of
implementation
strategies that create
sources of
sustainable
competitive

advantage (CA)

(6) Quality of
implementation
and upgrade of
resources,
capabilities and
business
competences (BC)
(7) Business
Strategy
Implementing
Performance
(BSP)

Meanings
operational efficiency.
FS4. Implementing market oriented and value based marketing.
FS5. Corporate finance development and effective development portfolio
management.
FS6. Oriented organization and development of quality, professional and high
efficiency human resources.
PR1. Sharing information and knowledge about the market and business timel,
comprehensively and reliable.
PR2. Sharing and collaborating in operational and sales planning timely and
efficiently
PR3. Reasonable sharing and harmonizing of EVN about benefits /costs in
accordance with the level of contribution of power generation enterprises
throughout the power chain.
PR4. Practicing internal strategic alliance in EVN to better promote

independence, autonomy and accountability of chain members.
CA1. Ensure suitable, safe, modern, and efficient inputs and infrastructure for
electricity production
CA2. Better practicing streamlined technology system for generation production
CA3. Faster practicing roaming power supply system
CA4. Effectively activate the value chain
CA5. Skilled and effective exploiting of the experience curve .
BC1. Capacity of implementing suitable and dynamic BSs
BC2. Capacity of financing for implementing BSs.
BC3. Capacity of risk management and ensure security for generator
BC4. Building core compentence towards customer value and
generators’dynamic compentence in market.
BC5. Leadership capacity in BS implementing based on knowledge
management.
BSP1. Quality of technology system for production, power generators and
corporate social responsibility are appreciated
BSP2. Quality of roaming services and meet orders is trusted.
BSP3. The benefits and services that the customer obtained is much higher than
the cost spent to buy electricity.
BSP4. Imlementing current BS will ensure that the company obtains
competitiveness, brand value and high business efficiency .

Source: The author
Quantitative research method through survey with the structure of sample as Table 3.
Table 3: The structure of sample
Structure of respondents/Experts
1
2
3
4

5
6

CEOs of generation companies
CEOs of companies in EVN’s supply chain
CEOs of Gencos and EVN
Goverment from power sector under MOIT
Officiah from provinces that has generation companies
Researchers on Strategy Management and Power sector
Total

Số lượng
mẫu
47
32
28
15
21
19

Tỉ lệ
(%)
29,01%
19,75%
17,28%
9,27%
12,96%
11,73%

162

100%

Source: author
Results tested by Cronbach Alpha scales are summarized in Table 4.
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Table 4: Reliability Analysis through Cronbach Alpha
Items

Scale Mean if
items deleted

Scale Variance if
items deleted

Corrected item –
Total correlation

Cronbach Alpha if
item deleted

Quality of implementation strategic information and strategic analysis (SA), Cronbach Alpha =
0.724
SA1
13.08
2.101
.607
.603

SA2
12.87
2.939
.465
.694
SA3
12.94
2.837
.501
.676
SA4
13.21
2.243
.524
.663
Quality of implementation strategic positioning in competitive market (PS), Cronbach Alpha
=0.756
PS1
11.81
2.091
.546
.708
PS2
11.85
1.705
.630
.655
PS3
11.92
1.898

.514
.722
PS4
11.83
1.913
.537
.708
Quality of implementation functional strategies (FS), Cronbach Alpha =0.773
FS1
20.13
7.390
.293
.827
FS2
20.09
7.584
.615
.719
FS3
19.76
7.279
.573
.725
FS4
20.04
7.693
.623
.720
FS5
19.97

7.419
.595
.721
FS6
19.95
7.692
.585
.726
Quality of implementation strategic alliances and partner relationaship (PR), Cronbach Alpha
=0.818
PR1
12.31
3.744
.594
.792
PR2
12.23
3.238
.641
.774
PR3
12.16
3.425
.664
.760
PR4
12.18
3.501
.668
.759

Quality of implementation strategies that create sources of sustainable competitive advantage
(CA), Cronbach Alpha =0.718
CA1
15.50
6.073
.733
.564
CA2
15.47
6.110
.729
.567
CA3
15.91
8.489
.108
.818
CA4
15.75
8.021
.247
.757
CA5
15.47
6.200
.738
.567
Quality of implementation and upgrade resources, capabilities and business competences (BC),
Cronbach Alpha =0.748
BC1

16.10
4.627
.647
.654
BC2
16.12
4.399
.704
.629
BC3
16.05
4.673
.688
.643
BC4
16.23
6.079
.079
.871
BC5
16.20
4.774
.620
.665
Business Strategic Performance (BSP), Cronbach Alpha = 0.802
BSP1
13.69
3.239
.675
.785

BSP2
13.56
3.891
.708
.752
BSP3
14.13
3.675
.694
.767
BSP4
14.21
4.038
.716
.773

Source: Results from analyzing data
Table 3 shows that: Cronbach Alpha of 6 components are all above 0.7, therefore
all 6 items are accpeted and are used for further analyze. However, 4 items (FS1,
CA3, CA4 and BC5) are elimilated out of resecrh model because its total
correlation <0.3 or Cronbach Alpha if item deleted is increase. After conducting
multiple draft of EFA, final outcome of EFA after deleting 4 observed variables
(FS1 , CA3 , CA4 and BC4) with Alpha < 0.3 for the results of KMO = 0.712
with sig < 0.000 and 6 factors in eigenvalues = 1.791 (> 1). Therefore it meets the
7


requirements for total variance extracted = 66.938%. To enhance the ability to
explain the factors, the authors selected Varimax rotation method - this procedure
will swivel the factors to minimize the number of variables that have large

coefficients at the same factor. Thus, the scale after assessing has 6 components
and consists of 24 items. Moreover, factor loadings are all > 0:55 so the observed
variables are important factors and have practical significance. Each variable has
difference in loading factor were ≥ 0:30 ensure the distinction between factors.
KMO = 0.712 so EFA is matching data. Chi-square statistics of Bartlett's
significance is 0.000. Thus the variables are correlated overall.
The concept of "Business Strategic Performance - BSP" is assumed to be a
unidirectional concept. EFA factor analysis for this concept study showed that
Cronbach alpha = 0.802; Eigen value is 2.249; variance extracted = 74.968; all
factor loadings are greater than 0.80, therefore conclusions are: after
elimilating 4 items, all existing items can present the value of business
strategic performance and they reach convergence. In other words, the
observed variables are representative for the concept that need to be measured.
The paper using Pearson's coefficient to analyze the relationship between
the independent variables with business strategy performance of EVN’s
generation companies. Results showed business strategy performance has
correlation to most of other variables and tthe correlations reached statistical
significance (p <0.01). Putting 6 such components named above to run a
regression to assess the suitability of a multiple regression model using the
Enter method, final results show that: Adjusted
= 0.937 demonstrates all
factors can explain 93.7 % of business strategy performance of EVN’s
generation companies. The value of adjusted has reliability and consistent
with business conditions in current Vietnam power context.
In conclusions, by combining both qualitative and quantitavive method,
practical research model with practical scale factors of implementing BSs at
EVN’s generation companies have been built.
Moreover, some typical cases study that have similar context to recent
Vietnam electricity generation industry are also studied to
to draw lessons for implementing BSs at EVN's generation companies.

Those cases study are: Implementing BS at Komipo – Korea in 1999, at
Kansai Jsc – Japan in 2001, at Genesis Energy – New Zealand in 2002.
CHAPTER 2. RECENT STATUS OF IMPLEMENTING BUSISNESS
STRATEGIES AR EVN’S GENERATION COMPANIES
After generalizing the process of business and market development of EVN
in general and EVN’s power generation enterprises in particular at Section
2.1, Section 2.2 showed that the process of implementing BSs at EVN's
electricity generation companies included 02 steps: (1) formulating BSs for
8


EVN's electricity generation companies, and (2) formulating the above BS
implementing plans (Figure 2).

Figure 2. the process
of implementing BSs
at EVN's electricity
generation
companies

Source: Interview
EVN’s CEOs
Section 2.3 of the dissertation studied the recent status of implementing BS
at 4 typical generation companies, those are: Hoa Binh hydropower, Central
hydropower Jsc, Thac Ba hydropower Jsc and Baria thermal power Jsc, and
06 conclusions are drawn:
- The chosen generation companies are aware of strategic in implmenting
phase therefore they have strategic orientation and clear focus on
implementing BS. However, they have just used SWOT analysis and have
not applied BCG, SPACE or TOWS.

- The generation companies often implement strategic position as cost
leadership and optimize power generation capacity. Morever, due to the
characteristics of Vietnam's power sector, some companies implement
strategic position as businesses providing ancillary services, to be
multipurpose hydropower.
- The EVN’s power generation enterprises often focus on technological
strategy, marketing startegy, productional and operational strategy when
orient functional strategies compatible with the competitive market:
 Regarding technological strategy: plants built after 2000 have the new
technology, are in a suitable condition; the plant was built during 1980-1995
as the Hoa Binh hydropower, Thac Ba hydropower Jsc mainly consists of
equipments from the former Soviet Union, so they have a lower efficiency
than new plants. Among power generation technologies, hydropower has the
lowest production costs and then to coal thermal power and gas; thermal oil
power currently has the highest production costs.
 Regarding productional and operational strategy: taking advantage of
existing infrastructure to optimize performance and meeting international
9


standards on indicators such as net operating margin, current ratio, operating
time, OPEX / MW is always on top priority.
 Regarding marketing strategy: the independent companies focus more
on marketing strategy to attract investment, but the power generation
companies who are dependent to EVN are less focus on marketing strategy.
- Most of EVN’s generation companies implement well strategic alliances and
partner relationship with sppliers and with transmission company,
distribution companies because they are all EVN’s companies and are in
power supply chain of EVN. However this strategic alliances and partner
relationship does not reflect the "competitive level" required under the

recent roadmap of competitive electricity market when EVN is still an
organization that held coordinating all activities and all entities in the supply
chain are not really independence, they depent much on the decision of
EVN. This makes the implementation BSs at EVN's power generation
enterprises faces to many difficulties because the companies don’t have
necessary independence in their management decisions.
- To create a source of sustainable competitive advantage in implementing
BSs, generation companies often choose to focus on best practice of lean
production; fast roaming power supply system; suitable, safe, modern and
efficient infrastructure for electricity, better expoilting the experience curve.
- The selected generation companies often concentrate on upgrading BS
implementing capacity, leadership and BS execution capability, however risk
management in BS implementation at those companies deployment is currently
poor, particularly hydrological risk management and financial risk management.
2.4. Current situation of implementing the contents of business
strategies at EVN's electricity generation companies through multiple
choice survey
From sample of quantitative research in Chapter 1, the author filtered 47
questionaires for the CEOs of 16 companies, including hydro power
companies, thermal power companies; generation companies from Genco1,
Genco2, Genco3 and who directly managed by EVN as the sample for
researching the current situation of implementing the contents of business
strategies at EVN's electricity generation companies following results :
2.4.1. The current quality of implementing strategic information and
strategic analysis
First, the application of SPACE model to assess environmental situation has
not been properly respected by EVN’s generation companies when it is
below average (Mean = 2.05).
Second, when diagnosing and analyzing the situation of SBUs, EVN's
generation companies are all identifying different situations of their SBUs.

However, only 31.25 % of them pay attention to analysis and timely update,
10


50% of them just use general information, lack of identification in
identifying situations of SBUs, particularly 18.75% of companies barely
undertand their SBUs situation.
Third, companies those understand and timely update the situation of SBUs
usually apply TOWS model well and identify the orientions for
implementing BSs and companies those don’t understand and timely update
the situation of SBUs usually poorly apply TOWS model and poorly
identify the orientions for implementing BSs.
Fourth, quality of building business management information system based on
electronic database is evaluated at fair level (Mean =3.2).
2.4.2. The current quality of implementing strategic positioning in
competive market
First, most generation companies are not properly aware of the importance
of implementing strategic positioning in competitive electricity market when
all items in this groups achieve below average (Mean <3).
Second, most of companies position towards cost leadership through exploiting
operation and inbound logistics in value chain.
Third, implementing strategic position as more added value to customers is
position trends of generation companies in the world. However, it has just
been interested in EVN’s power generation companies.
Fourth, relatively few EVN’s generation companies implement strategic
position as friendly and safety to environment in CSR the evaluation for as
friendly and safety to environment rather low (Mean = 2,327).
Fifth, relatively few EVN’s generation companies care about implementing strategic
position as higher quality/higher price in the market when Mean is lowest 2.27.
2.4.3. The current quality of implementing functional strategies

compatible with competitive market changes
2.4.3.1. The current status of development orientation and generation
technology innovation management
- The selection of electricity production technology associated with the
position of primary energy sources. EVN's power generation enterprises
including hydro, gas thermal power, thermal power... stretching from North
to South. In particular, coal-fired power plants are mainly concentrated in
the north, oil and gas thermal power in the south, hydropower allocations
are from North to South.
- The technology of thermal power plants are using pure condensing
technology, using natural circulation boiler with many old plants,
technology and equipment for environmental treatment has not been
sufficient attention .
- The main equipments in hydropower plants built after 2000 are new
technology, suitable for their age; Equipments of the plants built during
11


1980-1995 as the Hoa Binh hydropower, Thac Ba hydropower are old
technology, from former Soviet Union and therefore, they have lower
efficiency than new plants .
- The orientation of development, innovation technology development of EVN’s
generation companies achieves above average (Mean = 3.25).
2.4.3.2. The current status of orientation of organization and operational
management
- Operational strategy is one of functional strategies that is most focused by
generation companies when they inplement their BS (Mean = 3.70).
- Implementing operational strategy, levels of non-scheduled outages which
are by far above best international standards.
- Most of EVN’s generation companies perform capacity factor according to

international benchmarks. However, capacity of gas thermal power has just
achieved above 50%.
- Most of generation companies present operating costs well below international
benchmarks. However it’s because the cheaper labour costs in Vietnam.
2.4.3.3. The current status of market oriented and value based marketing.
- The practice of market oriented and value based marketing has not been
widely appreciated in implementing BS at EVN’s generation companies
(Mean = 3.05)
- The wholesale price of electricity to EVN enterprises depends on the size and
type of generation company: In the plants that have installed capacity greater
than 30 MW (except multi-target-strategy-hydropower plants, BOT plants, and
renewable energy plants), the price is stipulated under EVN’s power purchase
agreement (PPA) with each plant; In the plants that have a capacity of less than
30 MW (small hydropower plants), electricity price based on costs avoided are
issued annually by the Ministry of Industry and Trade.
- EVN's generation companies have no right to decide on the retail pricing
of electricity; the current retail electricity price is decided by the Ministry of
Industry and Trade. When wanting to change the price, the Ministry must
submit plans and sent to the Prime Minister to get through. In addition,
although the retail price of electricity increased steadily in recent years (5-10
%/year), but it is still below the long-term marginal costs, and the State must
compensate the current price.
- For power generation enterprises, good business communication one hand
help those businesses attract the attention and investment of strategic
investors; on the other hand it helps to build good image of the company
thereby facilitating retail prices for consumers in a convenient way.
However, both above purposes of business communication are not fully
understood by EVN's generation companies.

12

- The electricity industry in general and EVN’s generation companies are
one of the few groups interested in developing the brand both in awareness
and implementing BSs.
- Social responsibility and public relations to affected power generation
areas are also at average.
2.4.3.4. The current status of corporate finance development and effective
development portfolio management.
- Electricity production costs of EVN’s generation companies sometimes
higher the price that they sell to EVN and thus make it difficult for them in
implementing BSs and make it hard to attract private and foreign investors
into the field of power generation.
- Even though return ratios have been improved recently, they are still well
below the threshold which may trigger private investors’ appetite in most of
the plants. Few plants seem to be really profitable. Acceptable threshold in
DSCR (around 1.25) is not reached in many power plants
- In most cases, current ratios are not enough to ensure liquidity in day to
day operations.
- EVN’s generation companies currently unable to meet the investment
needs for resources and power projects.
Although corporate finance development and effective development
portfolio management are considered very important for generation
companies, however the quality of implementing those items are just below
average (Mean = 2.92).
2.4.3.5. The current status of organization and development orientation of
professional and high efficient human resources.
-Human resources is one of functional strategies that EVN’s generation
companies are paying attention to in implementing their BSs, but the quality
has just reached a little above average (Mean = 3.17).

- The management of human resources development is under generation
companies’s interests through long-term and short-term training programs. However
there are some aspects of selection and recruitment process that do not allow
companies EVN's generation companies operate as independent companies.
2.4.4. The current quality of implementation strategic alliances and
partner relationaship
Firstly, the level of information and knowledge sharing about the market
and business in generation companies is average (Mean=3.25).
Secondly, the level of sharing and collaborating in operational and sales
planning timely and efficiently is also average.
Thirdly, the level of reasonable sharing and harmonizing of EVN about benefits
/costs in accordance with the level of contribution of power generation
enterprises throughout the power chain is quite well (Mean=3.92).
13


Fourthly, the level of practicing internal strategic alliance in EVN to better
promote independence, autonomy and accountability of chain members is
quite poor (Mean=2.25).
2.4.5. The current quality of implementing strategies that create sources
of sustainable competitive advantage
Firstly, the level of ensuring suitable, safe, modern, and efficient inputs and
infrastructure for electricity production is quite fair (Mean=3.26).
Secondly, the level of practicing streamlined technology system for
generation production is under average (Mean =2.89).
Thirdly, the skills of exploiting of the experience curve is at average (Mean = 3.05).
2.4.6. The current quality of implementing upgrading of resources,
capabilities and business competences
Firstly, the capacity level of implementing suitable and dynamic BSs at
generation companies is average (Mean = 3.06).

Secondly, the capacity level of financing for implementing BSs at generation
companies is under average (Mean = 2.93).
Thirdly, the capacity of risk management and ensure security for generator
at generation companies is average (Mean = 3.00).
Fourthly, leadership capacity level in BS implementing based on knowledge
management at generation companies is fair (Mean=3.08).
2.4.7. Evaluating Business Strategy Implementing Performance
First, the general evaluation of Business Strategy Implementing
Performance (BSP) is nearly average (Mean = 2.92), in which 04 items
achieve above average and 02 items below average.
Table 4. Component evaluation arcording to organizational management

Items

Genco 1

Genco 2

Genco 3

Thuộc EVN

Mean

Std.

Mean

Std.

Mean

Std.

Mean

Std.

Quality of implementation of strategic
information and strategic analysis
(SA)
Quality of implementation strategic
positioning in competitive market
(PS)
Quality of implementation functional
strategies (FS)
Quality of implementation of strategic
alliances and partner relationaship
(PR)
Quality of implementation strategies
that create sources of sustainable
competitive advantage (CA)
Quality of implementation and
upgrade of resources, capabilities and
business competences (BC)

2,66

0,584

2,58

0,615

2,55

0,591

2,18

0,590

2,72

0,593

2,67

0,622

2,45

0,545

3,02

0,575

3,29

0,578

3,05

0,591

3,22

0,613

3,33

0,582

3,18

0,590

3,05

0,587

3,03

0,578

3,15

0,587

3,08

0,600

3,02

0,592

2,89

0,583

3,30

0,590

3,18

0,525

2,91

0,589

3,13

0,582

2,87

0,582

Tổng

3,02

2,88

2,88

2,98

Source: Analysing data
Second, component evaluation arcording to organizational management
shows that: BSP of Genco 1’s companies is highest (Mean = 3.02), and then
14


is BSP of EVN’s companies, Genco 2 and Genco 3’s companies.
Third, component evaluation arcording to electricity product category shows
that: BSP of hydropower companies is average (Mean = 3.00), that is better
than thermal power companies (Mean = 2.84).
Fourth, general evaluation of BSP at EVN’s generation companies shows
that Quality of technology system for production, power generators and
corporate social responsibility are appreciated; and Quality of roaming
services and meet orders are average (Mean = 3.03 and 3.01), while level of
benefits and services that the customer obtained and the level of
imlementing current BS will ensure that the company obtains
competitiveness, brand value and high business efficiency are under average
(Mean = 2.87 and 2.78).

2.4.8. Evaluate affect factors to BSP at EVN’s generation companies.
Continue to test the suitability of the research models through Anova and
testing results show that: the assumption of linear association, the normal
distribution of residuals, variance assumption of constant uncertainty, the
assumption of independence of errors are not violated. VIF index is less than
2, the conclusion does not violate multicollinearity. Multiple regression
equation is shown as follows:
BSP = 0,212 SA + 0,274 PS + 0,432 FS + 0,362 CA + 0,366 PR + 0,331 BC.

Finally, the author has launched an assessment of the successes, constraints
and raised the issues, and also pointed out the cause of the limitations in
implementing BSs at EVN’s generation companies.
2.5. Discussions and Conclusions
2.5.1. Successes and advantages in implementing BSs at EVN’s
generation companies
First, by implementing BSs timely along with the development of
competitive electricity market, the quality of implementing BS’s
components at generation companies is nearly average, some contents are
even at fair level in the context of uncertainty market environment.
Second, in implementing the overall BS, generation companies has paid
most attention to functional strategies compatible with competitive market
changes - just as the results of testing research model.
Third, the quality of implementation of strategic alliances and partner
relationaship in power supply chain reaches the second highest in
implementing BS expressed the great interest of EVN, creating
opportunities for these companies in implementing their own BSs.
Fourth, the implementation strategies that create sources of sustainable
competitive advantage is also paid attention by generation companies.
Fifth, EVN’s companies and Genco 1’s companies have higher BSP than
Genco 2 and Genco 3’s companies. This reflects the leading role in the

management and implementation BS of the office of EVN and the human
15


resource quality at Genco 1 and EVN is better than others.
Sixth, hydropower enterprises with advantages in production costs, high
productivity investment therefore have higher BSP than thermal power.
2.5.2. The limitations and some issues raised in implementing BSs at
generation companies.
First, BSP of generation companies has just reached nearly average (Mean =
2.92). Among 6 components of BS’s contents, only 04 components have
Mean above average and 02 components have Mean under average.
Second, quality of implementation of strategic information and strategic
analysis and quality of implementation strategic positioning in competitive
market are evaluated lowest. That refects EVN’s generation companies not
really concerned about the practical and analytical skills in implementing
BSs. Moreover, these companies are not really interested in competitive
factors, while competitive factors are the center in the context of a
competitive electricity market today.
Third, in implementation of strategic information and strategic analysis
EVN’s generation companies has just limited in using PEST for marco
analysis and using Porter’s five forces model. Other models like IFAS,
EFAS, SPACE, McKinsey have not been applied. Generation companies has
applied SWOT for identifying SBU’s situation, but they just stopped at
general analysis. In addition, although these companies have paid attention
to the application of information systems, IT and BMIS infrastructure in
those companies have been uneven; security and availability are the issues
need to be considered.
Fourth, most of asking companies are not clear about competitive thinking.
Among 62.5% companies who aware of competitiveness, all compete by

cost leadership. It means that they try their best to offer lowest price to EVN
for roaming due to un-storage characteristic of electricity, they are not focus
on position as more added value to customers, higher quality/higher price in
the market or position as safer and more friendly in CSR. Moreover, value
added to customers has just based on one or two single- link of the value
chain through inbound logistics and/or operation.
Fifth, the orientation of implementing functional strategies has many limits:
- The selection and allocation manufacturing technology for power
generation businesses are not good, especially at Genco 1 and 2. Genco 1
with the structure of more than 64% hydropower one side has the advantage
of production costs, but on the other side is too risky, depends on the
weather. Genco 2 is adverse. Its hydropower structure is fair but thermal oil
accounts for 68.5% make electricity production costs are too high, thus
electricity prices could not offset the costs.

16


- Capacity factors of many generation companies are quite low, loading
factors increase quickly and difficult to predict. Many generation
companies, especially thermal power plants with elderly system have very
high level of outages, causing great influence on the redundancy of the
entire electrical system.
- The implementation of comprehensive marketing, market oriented and based
on value has some problems: Electricity wholesale price offering is faced to
many difficulties because it depends much on EVN’s decision; Electricity
retail prices do not reflect supply and demand rules of competitive market; the
margin of generation companies is very thin, does not meet the investment
requirements for new power sources and repay for existing loans; Brand
development of generation companies is still on form and has no long-term

plan; Both purposes of business communication - attracting investors and
keeping good image of the company thereby facilitating retail prices to
consumers are not implemented; The implementation of social responsibility
and public relations is at average level.
- Corporate finance development and portfolio management at EVN’s
generation companies are under average because few plants seem to be
really profitable and acceptable threshold in DSCR (around 1.25) is not
reached in many power plants.
- Organization and development orientations need to be upgraded to make
EVN’s Gencos and generation companies opperate as independent companies.
Sixth, the deep intervention of EVN into implementing BSs at its generation
companies makes those businesses lose autonomy, quite passive, loss of
sensitivity in implementing BSs.
Seventh, the quality of creating sources of sustainable competitive advantage
has some problems:
- The generation companies are relatively inactive in implementing safety
inputs for electricity generation.
- Not really invest in production and operations under the lean production system
to make lean production became a source of sustainable competitive advantage.
- Skills of exploiting experience curve is not high.
Eight, most of generation companies have just developed their policies,
procedures and relationships in the format, not the main tasks of strategic
management, strategic implementation. The organizational structures of
Gencos are not suitable when Gencos are now directly manage the
production divisions of power plants to disperse resources in carrying out
the tasks of the parent company and the loss of autonomy of enterprises
directly under the power generations.
2.5.3. Causes of the restrictions
2.5.3.1. Causes from EVN
17

First, the process of implementation BS at EVN’s generation companies
troubled by the "monopoly" management of EVN.
Second, from the view of electricity value chain, power generation sector
requires the largest investment and capital recovery rate is much slower than
power transmission and power purchase sector but power generation’s
margins are very thin. This raises questions for EVN should enable and
enhance the performance of the power sector in value chain to make up a
higher rate of return, and therfore can solve the problem of the cost value.
2.5.3.2. Causes from generation companies.
First, most of generation companies haven’t innovated themshelves to more
suitable and more effective corporate governance; the organizational and
leadership capacity to implement BSs is not really good.
Second, the implementation of BSs is not related to restructuring company’s
core procedure and improving company’s BSP.
Third, the transformation arcording to the roadmap of competitive electricity
market in the context of long time privileged "don’t worried about the
competition" makes generation companies not adapt to the demands of
implementing BSs.
Fourth, retail electricity price has not reflected the cost yet. Recent mark-up
price method in generation companies has many problems, and therefore
requires to change to other price methods.
Fifth, EVN's generation companies can cut, save their costs and thereby improve
their financial capability by focusing more on strengthen customer relationships,
internal partners relationships and partners in electricity supply chain.
Sixth, the development of new energy products, new generation enterprises
that are environment friendly to enhance BSP in EVN's generation
companies is a matter for concern.
CHAPTER 3. PERSPECTIVES AND SOLUTIONS TO PERFECT

THE IMPLEMENTATION OF EVN’S GENERATION COMPNIES
IN THE FUTURE
3.1. Some main arguments in order to establish the orientations,
perspectives, objectives of perfect the implementation of EVN’s
generation companies.
In this section, after giving the orientations, the roadmap of developing and
upgrading Vietnam competitive electricity market; orientations and
development strategy of electricity industry to 2025, vision to 2030 ; based
on dynamic TOWS analysis and orientations for perfecting IBS at EVN’s
generation companies as well as the current situation of implementing BSs
as analyzed in Chapter 2, the author has generalized 06 perspectives to

18


perfect the implementation of BSs at EVN’s generation companies in view
of business trading as follows:
Perspective 1: Implementing BSs based on market oriented business
strategy model, based on capabilities and supplied value.
Perspective 2: Implementing BSs has to match to BS that have formulated
and updated to ensure achieving the vision and strategic objectives that has
been established for long term.
Perspective 3: Must be compatible and contribute to promoting the rule and
roadmap of competitive electricity markets.
Perspective 4: To ensure improving compentence of generation companies,
contributing to restructrure process, raising competitiveness both in scope
and quality of EVN, and ensuring non-traditional security of energy nation.
Perspective 5: To take focus on enabling each generation company’s value
chain and the value chain of entire EVN as a key role in the national
electricity supply chain.

Perspective 6: Must prevent hasty thinking, illness and disease achievement
in temporary movement, ensure reasonable combination, and flexible
synchronization between immediate solutions that innovative and radical,
long-term and systematic solutions.
Based on those perspectives, the author establishs general objective and detailed
objectives in implementing BSs at EVN’s generation companies as follows:
General Objective: Focusing on restructuring EVN towards developing both
scope and quality (period to 2021), quality and supplied value (period to 2030)
based on re-organizing and innovating the electricity operation and sale follows
SCOR.1 (period to 2021), và SCOR.2 (period to 2030) to improve generation
companies’ BSP to nearly fair – fair ( period to 2021) and good – fair (period to
2030) to develop generation brand that has high value and trust in Vietnam
electricity market and in ASEAN.
Detailed Objectives (Table 5):
Table 5. Detailed Objectives for implementing BSs
at EVN’s generation companies
Unit: %/year
Index a
Generation Capacity Growth
Generarion Performance Growth
Growth in electricity sales
The growth rate of labor productivity

Unit
MWh
KW/Unit costs of business
Billion VND
Million VND/ the average sales person

Growth of labor efficiency

ROS Growth
ROI Growth
BSP Growth

To 2021
11-13
8-10
11-13
12-14

To 2030
8-10
12-14
16-18
18-20

Profit/labor’s income

11-13

15-17

Profits/Total Sales

12-14

15-16

Profits/Investment

8-10

12-14

5 points of Likert

10-12

13-15

19


a. The

growth target is an average annual increase in stages
Source: [94] In dept Interview

3.2. The group of immediate and breakthrough solutions
The group of immediate and breakthrough solutions are very important
solutions in order to solve limitations and restrictions of EVM’s generation
companies in implementing BSs as analyzed in chaper 2.
3.2.1. Transiting generation business model from product - oriented to
value - oriented; from the plan - administration method to strategic
management based on business strategy.
- Firmly impelenting the contents of BSs towards providing value to
customers in each stage and the entire of BSs implementation.
- According to I.Nonaka (2008), strategic management in general and
strategic implementation in particular is the process of creating new
knowledge not only in acquiring new knowledge from, but the more

important thing is the leader of BSs implementation has to mobilize a set of
busniess talents and skills involve in implementation process,
acumen in identifying opportunities and threats, flexibility in behavior,
promote innovation and transform “tacit knowledge” of each staff in
company into “displayed knowledge”.
3.2.2. Perfecting the organization and promoting leader capacity of
generation company’s CEOs in implementing BSs.
- EVN’s generation companies needs new notions about how to organize
the implementation of their BSs to adapt to tremendous environment
changes in the next years.
- Establishing the Council members - the leaders representing the power
generation enterprises in coordination implementing BSs of those
companies with other businesses of EVN, and as the direct leaders in
generation companies.
- Developing human resources structure in generation companies include 04
groups and 01 multifunctional task strategic division.
3.2.3. Activating and enhancing performance of generation company’s
value chain, solving cost management
- Controling costs through efforts to take advantage of economies of scale,
learning and experience curve effects, input-costs of core resources,
connecting with other activities of company or industry’s value chain,
sharing opportunities to other units inside the company; to take advantage
of integrating with outsourcing, improving capacity.
- Improving and activating the value chain of power generation companies.
- Identifying and developing key success factors for implementing BSs at
EVN’s generation companies.
3.2.4. Building and developing core capabilities to create sustainable
competitive advantage
- Strengthening hydrological risk management: There are many ways for
hydrological risk management such as increasing electricity prices in dry

years; establishing stabilization funds; or ensuring good operation in dry
years by gradually reducing hydro rates.
20


- Strengthening demand forcasting risk management through updating
Power Master Plan more often.
- Strenthening ofreign exchange risk management by hedging mechanisms
or allowing pass-through mechanisms and linking this risk to tariff
fluctuations is considered the most reasonable approach.
- Assigning clear objectives of raising the level of financial resources and
financing as increased net operating profit up to 7%, the acceptable
threshold for power generation enterprises DSCR up to 1.0 and to 1.25 in
2021 towards.
- Consolidating capital structure by increasing equity capital by making
regular profits are retained in production and business activities.
- Restructuring the debts of EVN's power generation enterprises.
3.2.5. Changing pricing method, from markup cost based pricing to
marginal cost base pricing.
- Minimize the limitations of electricity pricing by changing pricing method,
from markup cost based pricing to marginal cost base pricing, whereby
power generation enterprises should price between the market prices and
achieve short-term margin is π1 = q* x (MCP1 – SRMC) or π2 = q* x (MCP1
– SRMC), in which q* is total produced electricity.
- In the near future, when the power generation companies still do not have
the right to decide the retail price of electricity, the State should adjust
electricity retail prices reflect the market mechanism.
3.2.6. Improving quality and value of roaming service based on lean production.
- At the present, the power generation enterprises are in the first level should
apply 5S, MUDA (removing un-added value elements), systems of error

prevention, value chain analysis, or using tools to identify wastes in the
production and roaming in the national power network.
- At higher levels, the power generation enterprises can apply to build a future
value chain diagram, model of standardized work, model of continuous
production flow, and applying Kaizen in conjunction with pull system.
3.2.7. Improving customer relationship management, internal partners
relationship management
- Upgrading recent BMIS to higher level to achieve higher effiency.
- Strengthening relationship management with fuel suppliers.
- Strengthening relationship management with the parent company of EVN.
3.2.8. Improving R&D new electricity products, new generation
companies that are friendly to evironment.
- Proposed research to reduce costs and improve the performance of high
temperature resistant materials used in clean coal technology.
- Focus on developing wind power.
- Promote more to development of solar power.
- Research and development of biomass power.
- Research to develop electricity from renewable energy sources.
3.2.9. Conditions for implementing immediate and breakthrough solutions
- Government, Ministry of Industry and Trade and relevant Departments should
enact the legal framework for clear, fair and transparent electricity markets. This
21


includes opening the power plant scheduled moderation, avoiding many factories
less moderation revenue losses caused beyond the control of the company.
- Legal framework for the electricity market has to be effective and stable
with a reasonable track record of effective implementation.
- Restructuring electricity industry: The EVN power generation companies
should be equitized in general to restore fiscal discipline. Offering financial

incentives (eg through tariff mode) for cost efficiency.
- Price regime should bring reasonable profits for investors of generation
companies that are operating effectively. Ideally should have automatic
price adjustment when there are changes to the important cost factors (fuel,
exchange rates) without any intervention government. Split to separate the
retail price for retail provision.
3.3. Group of radical solutions, in order to improve long-term quality and
sustainability for implementing BSs at EVN’s generation companies.
Group of radical solutions are solutions that can not be implemented
immediately but they are foundational, a solid base of theoretical and
practical solutions. These solutions are fundamentals, sustainable effective
implementing BSs at EVN’s generation companies in the long term.
3.3.1. On the part of EVN’s generation companies.

3.3.1.1. Improving the quality of applying scientific methods in analyzing
the situation and establishing orientations and pillars of implementing BSs

- Establish continuous monitoring through research and market surveys and
updated information on changes, dynamics, trends in the macro
environment forces (economic, population, political, legal,..) and electricity
industry environment factors.
- Assess the opportunities and threats according to 2D.
3.3.1.2. Improving the efficiency of implementing the strategic
orientations for functional strategies at generation companies.
- Enhancing ability to deploy power generation technology selected strategy
through focusing on new power generation technologies in parallel to
maintaining old technology; considering reasonable structural rate of
hydropower, thermal power, nuclear power…; avoiding heavy dependence
on hydrological conditions and ensuring production at a reasonable cost.
- Strengthening the level of implementing operational strategies through

enhanced operational performance in EVN’s generation companies.
- Strengthening the comprehensive, market-oriented and based on the value of
marketing practice in generation companies that improve wholesale offering
efficiency on VCGM, and improve integrated business comunication performance.
- Developing corporate finance and efficient investment portfolio at
generation enterprises.
- Seting Orientations for organize and develop quality, professional and
high efficient human resources in power generation enterprises.
- Using EFAS, IFAS, SPACE, BCG, McKinsey models to improve the
analysis of environmental situation before using TOWS model.
3.3.1.3. Good practicing core business procedure restructure at EVM’s
generation companies.
22


- Restructuring technological management process by using some of the old
coal-fired power plants with low utilization rates as reserve power plants
for dry years during these plants can be improved by investment programs
for recovery; Financial plans of EVN's generation companies should focus
on investing in renovate and upgrade power plants in addition to the
current upgrade program.
- Restrure the process and procedures for signing contract with fuel
suppliers ensuring long-term supply (over 5 years) and the currency using
in the contract is VND to avoid foreign exchange risk.
- Restrure the process for signing power purchase agreement from the
power generation enterprises with target customers - EVN according to
PPA form with appropriate agreements to demonstrate the independence of
the management companies of transport and uniformly and transparently.
3.3.2. On the part of EVN
3.3.2.1. Diversifying products and improving overall power generation

capacity; supporting capacity governance of power generation companies.
- Diversifying energy products, especially focusing on energy products from
renewable and environmental friendly.
- Improving overall generating capacity through enhancing operational
efficiency and supporting capacity governance of generation companies.
3.3.2.2. Perfecting power supply chain management of EVN
Suggesting to add energy storage in electricity value chain as shown in
Figure 3. In the proposed value chain, the privatization of services in each
link is a top priority in order to attract investment and improve high
competitiveness for each company in electricity chain.

Figure 3. Suggested lecectricity value chain
3.3.2.3. Improving the quality of coordinated leadership and supporting
resources for implementing BSs
-EVN should establish strategy division with planning and implementing BS
functions, and that division plays a coordinated leadership and supporting
resources for implementing BSs at EVN’s generation companies.
- EVN should conduct an internal communication plan between the EVN
and all businesses belonging to EVN. That plan updates the changes in the
23


operating environment and regulations, new policies, especially the
regulations/policies relating to implementing BSs.
- Upgrading ERP with modules of human resource, finance, accounting,
material resource management… in EVN.
- Regularly organizing short courses enhancing the leadership capacity of
board members from the strategic international consulting organizations.
3.2.2.4. Improving internal organization and decentralized governance in
EVN and promoting electricity competitive market.

- Clearly defined functions and decision-making structure of EVN , between
EVN and Gencos, between EVN and the enterprises in electricity supply chain,
and between GENCO and power plants for EVN’s decentralized governance.
- EVN’s enterprises should be assigned and have greater rights to perform
necessary administrative tasks and more autonomy in planning and
implementing their BSs.
- EVN’s enterprises need to integrate/remove too narrow and outdated
functions, rename and add some original functions to undertake the task of
strategic management.
- EVN should renew the position of Strategic Director and build modern
marketing division along with other key functions in EVN’s enteprises to 2020.
- EVN should upgrade the electricity competitive market, ensuring
generation sector develops towards a developed electricity market based on
fairly treated power plants.
- It is necessary to separate the producing or consumption stages that the
power sector is not necessary to hold off the EVN.
3.2.2.5. Improving management quality of safe production and nontraditional security in generation sector.
- EVN should improve managenet quality of safe production.
- Ensuring non-traditional security in generation sector.
3.2.2.6. Developing the application of information technology, integrated
business communications and building market database
- EVN upgrading recent CMIS to fully meet the requirements of business
processes in generation sector.
- EVN should develop integrated business communications system to
integrating and improving business communication performance.
- EVN need to standardize database system at generation companies, particularly
standardizeaccounting system compliant with international accounting (IFRS).
In addition 02 groups of immediate and long-term solutions, Chapter 3 also
provides recommendations to create macro environment and conditions for
implementing efficient BSs at EVN’s generation companies.

24