EXECUTIVE SUMMARY My case study of the Small Business Enterprise focuses on an observation to EBI joint stock Company which

is short for NORTHERN ELECTRIC TRADE AND BUILD INVESTMENT JOINT STOCK COMPANY (EBI JSC). This particular company will be analyzed in terms of - Company profile - Performance review based on the analysis of marketing performance, managing performance, orientation performance, financial performance that includes the balance sheet, cash flow statement, and , as well as in comparative. - Company SWOT analysis in order to find out strategy to overcoming its weakness while the strengths are maintained - The new area for EBI to have expansion INTRODUCTION As the crowded planet population all over the place occurs, the lack of job as well as the need of human being is increasing dramatically. That led to the development of private companies as well as corporations not only in Vietnam but al so overseas with the purpose of satisfying those needs. Small and medium are the most popular size of enterprises. These papers focus on a case observation of NORTHERN ELECTRIC TRADE AND BUILD INVESTMENT JOINT STOCK COMPANY (EBI JSC) a small Vietnamese construction enterprise. EBI JSC was established in 2007 by Northern Electric Corporation. It is still a brand new company that has clearly strength and weaknesses and real estate field is becoming more and more significance in comparison with the others. Due to the reasons stated, the author decided to choose this company to do her case observation for the Small Business Enterprise subject refers to indications the most basically view about a small enterprise and the way leader of the company chooses to help the enterprise cope with problems and have expansion. Main Body 1a. Small Business Profile Northern Electric Trade and Build, Investment Joint Stock Company (EBI., JSC) 1a.1 Company brand

Company name Transaction name Abbreviation Address Tel Email Webside

EBI., JSC

1a.2 Country and year of establishment - Country : Vietnam - Year Established : 10/2007 - Business license No : 0103020286 - Trading capital : 850 billion VND (Eight hundred and fifty billion VND) 1a.3 The projects issued by the Company and the construction works After the establishment, Northern Electric Trade and Build Investment JSC was the client some large projects, getting contractor electrical and architectural constructions. - Tien Thang industrial park project in Me Linh - Hanoi, scale of 130 ha with the total investment of 2 200 billion dong. - Luxury Resort project power in Sa Pa - Lao Cai, scale of 27.35 ha with the total investment of 720 billion dong. - Advanced hotel project power in Coc Leu - Lao Cai, scale of 11 levels, total floor area of 6495 m2, the total investment of 56 billion dong. - The office Tower in Nhat Tan - Tay Ho, Hanoi, with a total floor area of over 3000 m2, the total investment of 60 billion dong. - Manganese mine project in Ngoc Minh commune, Vi Xuyen Dist, Ha Giang province, 16.7 ha scale mining, the total investment of 42 billion dong. - Quarry to build in Yen Lin, Yen Dinh Dist, Thanh Hoa, 2.97 ha scale mining, the total investment of 5 billion dong. - The work Office, N5 guest house - Ha Noi High Command, the total value of 23 billion dong. - Contribution capital to the investment for Suoi Sop - Son La hydraulic plant. - Winning the contract for the building some constructions overload prevent, abandon the semi-synthetic, upgraded potential under management of Vinh Phuc electricity, in the year 2008 - 2009 the value reached 5 billion dong. - Winning the contract for design consulting transformers 110 kV in Phu Tho, Thai Binh,

expanding and improving the grid with ADB funds, the German capital for Dien Bien, Lai Chau, Nghe An and 5 provinces in the North delta, 2009 - 2010 the value reached 4 billion dong. 1b. Performance Review and the comparison between EBIs performance and its competitor, FECO JSC 1b.1 MARKETING PERFOMANCE ANALYSIS 1b.1.1 Services EBI provides a huge amount of services for the consumers as following. - Real estate consulting services. - Real estate advertising services. - Real estate management services. - Construction of dwelling, offices, civil, industrial, transportation, irrigation, infrastructure, transmission lines and substations to 220 kV. - Project construction investment. - Management and exploitation of services for residential, urban, residential building, car parking, tourism hotel, trading centers, cultural centers. - Business materials and equipment for the projects investment, construction, furniture and exterior, water supply, environment and civil technical, infrastructure. - The general contractor for the building and installation, furnishing and providing, setting equipment technical systems for civil and industrial, industry area, urban, transportation, irrigation, hydropower, transmission lines and substations to 500 kV. - Business in hotels, restaurants and catering services, beverage, entertainment and business entertainment services; Inbound, outbound and the services for tourists (excluding the bar, karaoke and discotheque). - Manufacturing, dealing equipment machinery for construction, electrical industry, transportation, telecommunications, maritime and materials, materials of garment industry. - Manufacturing, dealing of structural steel for construction (bar, beam, backing, steel pole) and steel products. Manufacture of prefabricated concrete, pipe concrete pile and reinforced concrete.

- Manufacturing, dealing equipment observation, supervision system, computer and accessories instead. - Trading in real estate including: + Investment, build housing, construction works for sale or lease. + Purchase of houses, buildings for sale, lease, for rent purchase. + Rental houses, buildings for under lease. + Investment in land improvement and infrastructure on the rent area to for lease land had the infrastructure. + Get the land use right transfer, investment in infrastructure to transfer, for lease or lease land use rights have been leased infrastructure. + Dealing, rental housing, offices, stores and workshops. - Trading hotel services, restaurant, catering, beverage, entertainment, Inbound, outbound and other services for tourists (excluding the bar, karaoke and discotheque). - Designing the transmission lines and substations to 110 kV. - Designing the construction planning, architecture of the work. - Designing the civil electrical and industry. (EBI general profile, 2010) 1b.1.2 Pricing Strategy The cost of each service depends on its own particularly situation. EBI does not have specific price for them but the company makes evaluation respect several aspect, for instance, which part of the service customers want to focus, time to finish the service, effort need to spend, it will require machinery or not, scope of the project, alternative conditions of areas, and many others. Besides that, EBI also provides clients several addition benefits when they choosing the company services such as makes discount, supports some relevant fees, informs client to truthful companies responsible for the other service they need, and so on. Not to mention that EBI has similarity in evaluating the cost of particular service since the company estimates the price according to the project features as well as discounts for the customer.

1b.1.3 Sales and Distribution EBI staff up to date activities in construction field everyday in order to catch up with the other companies business. The general as well as managers currently visit each local where the projects are running in order to ensure the quality of the services before they are provided to the clients. Client comment and requirement can be informed to the company office. Thus, the either individuals or organizations that use EBI services are satisfied. 1b.1.4 Advertising and Promotion EBI creates many types of advertising and promotion programs | | |EBI | |1 |Information packet to suppliers, partners, as | | | |well as clients |Video introduction, Documents | |2 |Website |X | | | |(Being advanced) | | |Advertisements, articles, interviews in big |Tap chi Dien Va Doi Song, | |3 |magazines in this real estate and construction |Thoi bao Kinh Te, | | |major |Tap chi Kien Truc | |4 |Appears on television |VTV news | | | |www.vnbh.com | | |Advertisements in websites for attract more |www.vinacorp.vn |5 |clients as well as investors |mail.vnsc.vn | | |www.thuvienphapluat.vn | | | |www.sonlapc.vn | | | | |www.weblink.vn

| |

| |6

| |Logo display

|[pic] |Printed on the |

stationeries |7 etc | etc |8 |Social activities | |suppliers, |

|Occasional gifts for company staff, customers, |Calendars, greeting cards, |

| |Charity donations for the floods in the middle of

Vietnam, Japanese people after | |

|destruction of earth | |occasional | |go on summer |

quake |9 |Activities for employees

celebrations, | |

holiday

1b.2 Management Performance Analysis 1b.2.1 Ownership structure The NORTHERN ELECTRIC TRADE AND BUILD INVESTMENT is a joint stock company. The people who have the most powerful in the company is Mr. Hoan, chair man of the board and Mr. An, general director of EBI JSC.

1b.2.2 Internal management In general, each position of EBI staff had been pointed out and chosen carefully by the company leaders. Thus, each member has his or her own characteristic to cope with

alternatively difficulties as the company work processing. The following figure illustrates the internal management structure of EBI JSC.

[pic]

1b.2.3 External management EBI is still a small enterprise, but it aims to become a big corporation that has ability to provide several services related to real estate field. In order to catch the goal, EBI has to revise some external managers, such as IT consultant, and enrich public relationship. To begin with, EBI need to hire IT specialist to create professional website for the company. Many relevant advertisements should be created as well. With respect to the public relationship, EBI currently organizes meeting with consumers to show the development of the company as well as motive them to buy the company shares. Furthermore, the Director has attended in several anniversaries, meeting of many firms and organization of investors in order to catch up with the growth of competitors as well as find more potential parties.

1b.2.4 Human Resources Needs |Specific analysis for EBI structure | qualification |Mr. An |Role description | |Control the company directly according to the |Graduated two |Job |

qualified University in Hanoi, has| | |chairman of the boards decisions. Makes | |two master

certificates, has many worthy

|orientation for the company and has | | |

discussion |experiences | |Mr. Quang |with VNS JSC

|Support General Director in managing the whole |Graduated Da

nang University of Vietnam, English| | certificate | time |Mr. Trung |company. Has ability to be representative of the |master | |company at the | | |Analyze construction, real estate contract, give |Graduated | |certificate of master in

construction University, has | architecting |Mr. Binh |

|advices for clients

|In charge of EBI financial performance, makes |

|Graduated

Banking Academy of Vietnam | long | | |Ms. Ngoc Ha |term

|financial report in short term as well as | | |Receive and provide money, checking the | |department |Visit each specific places that have run project,|Graduated | | |

companys|Graduated Electric University, accountant | |Mr. Khanh Construction University. | not. | |fun

|observes whether the projects are good or |

| ones. |Mr. Nam |

|Makes decision to deal with each | |In charge of the company promotion, public | |administration |Graduated

National University, business | department. |Ms. Thanh Ha

|relation, as well as human resources |

|Receive specific missions from General Director, |Graduated |

Electric University, Accounting | care|department | EBI. |Mr. Dung |

|responsible for human resources and customer | |service. Deliver announcements of | |Transfer Director and the staff on their business|Graduated | |architecting |

Electric College University, | department |

For each position, there is specific salary for the employees. In addition, it is possible for the staff to gain the income as they have more customers using service or have extra working time in some busy period of the company. The salary of the company is from 5.5 million VND up to 12 million VND. It is not a high income in comparison with the other company, but the employee still accept this situation since they know the company is too young to have strong position and great image in the market.

There are also some free training course for EBI staff, for instance, revise speaking

strategy, basic IT course, as well as improve soft skills course.

1b.3 Operations Performance Analysis 1b.3.1 General The EBI staffs work time is from 7:30 am to 5:00 pm of weekdays, they are also provided resting time at noon for 90 minutes. There are two main holidays every year, specifically, Tet Holiday and May Day.

1b.3.2 Physical location EBI JSC is located on 20 Tran Nguyen Han Street, Hoan Kiem District. This is the location of Northern Electric Corporation for 40 years. The mother company provides EBI a comfortable working place with good light condition and nice view to Hoan Kiem Lake. [pic] EBI physical position (map.google.com)

1b.3.3 Assets EBI JSC has a great advantage as it has great supports from both Northern Electric Corporation and VNS Securities JSC. The company leaders had set the company office at Northern Electric Corporation land , so it saves a huge amount of location renting cost while the location is very nice. In fact, the amount of money which is needed to employ a location is not reasonable and many small enterprises had gone bankrupt as they do not have ability to use profit to compensate renting cost. Moreover, EBI was transferred several profitable project from Northern Electric Corporation without paying back. Thus, EBI is required to invest and get profit right after the projects out of construction and started their business

processes as soon as possible

1b.3.4 Special Arrangement Every customer who comes to EBI office currently express that they were really like the way EBI staff decorate the office that makes them have the feeling that they are using an international service in the foreign office. The head company office is separated in three spaces for General Director, Vice General Director, and the staff. However, these three spaces are not totally isolated, that so convenience to concentrate on each peoples work while it is still suitable for the whole company of company classes to have discussions when necessary.

1b.3.5 Production and service process Customers who come to EBI JSC can be divided in to two types, customers who want to contract, and customers who want to compare services.

To begin with the customers who want to be served, EBI staff will quickly analyze an appropriate service that they want and create contract then wait for permission of the General Director before starting serving the customers. With the customers who want to know more about the company services in comparison with the other firms in order to make the last decision to which company they will choose, EBI staff will have to serve them in different ways.

1b.3.6 Inventory EBI JSC has several modern machineries

|Name of machinery year |Capacity |

|Quatity

|Manufactured

|Concrete mixing stations |1 |1999 |1 |30m3/h |2000 |60|

|ASPHANT Concrete mixing stations 80Tons/h |

|Tires Roller UMECT-LL20 (Japan) Tons |D150b Macadam spreader (Japan) |1 |2001 |

|1

|2001

|20

|150Tons/h

|VOLGHEL Asphalt spreader 1800 (Germany) |1 |1999 |2 | |200Tons/h |1988 |130 |

|T130 bulldozer (Russia) CV

|HITACHI Excavator Model EX2000 LCH-3; SN 82518 (Japan)|1 |excavator (Russia) Bucket |excavator (Russia) Bucket |excavator (Japan) Bucket | |1 |1996 |230CV| |2 |1996 |0,65m3 | |1 |1993 |0,65m3 |2000 |17m bar 0,8m3 Bucket |1 |1992 | |0,5m3

|KATO NK crane 200EV (Japan) 20T |

|WOLFFKRAN WK tower crane 135

EC

|1

|2000 |1 | |2 | |1 | |1 | |1 |

|H60m, L 50m; Q = 2,2-8T |2000 |K100m,

|KROLL 180 tower crane L50m; Q = 15-25T |KC 3577 tire crane H=14m |KC 4561 tire crane H=19,5m |KB 160-2 tower crane H=45m, L25 |KB 100 tower crane L=20m |NIKON surveyor (Japan) |Concrete mixers litres |Mortar mixers Litres/tank | | |8 |4

|1988

|Q=12T,

|1989

|Q=16T,

|1995

|Q=8T,

|1990

|Q=5T,

|2002 |20

| |96-2001 |80-350

|1998

|80

1b.3.7 Product and service estimate

There is not specific price for EBI service. The reason is the cost of each one will be evaluated based on each requirement given in the project. Mr. Khanh, the project inspector will make specific analysis of the project and then propose the cost when serving customers and then Mr. An will decide what will the cost for this service. EBI normally receive 5% value of the project and then using it to pay many fees and the rest will become the company

benefit.

1b.4 Financial Performance Analysis The Balance Sheet, Income Statement, as well as Cash Flow Statement of EBI for the fiscal year 2010 show that EBI had only 112.299.222 VND in profit. According to Mr. Binh, accountant of EBI, 2010 is the first year that EBI has profit. The reason of this low develop is that EBI has to stretch it investment for too many projects. Almost all these project are long-term projects, so it takes EBI a long time to have profit. The huge capital of the company has to spend for several investments. Hence, the cash flow speed is low and the company can hardly receive capital quickly. |CASH FLOW STATEMENT | |For the fiscal year ended 2010 | VND | year |I. |ITEMS |Previous year |Cash flows from operating | | | | | | | |Code |Note |Current |Unit: |

activities |1.

|Cash received from sales, service and other |01 | |5.046.018.941 |184.384.263 |

revenue |2.

|Payment for suppliers of goods and services

|02 |03.

|(7.842.080.144)

|(4.070.361.560)

|Payments for |03 | |(2.028.373.899) |(1.004.414.863)

employees | |04. |Loan interest already paid | |05.

|04

|-

|-

|Corporate income tax already paid ||

|05

|-

|06. gains

|Other |06 | | |5.162.535.759 |1.051.619.441

|07.

|Other |07 | | |(4.308.817.371) |(6.791.55

disbursements 1.681)

|Net cash flows from operating activities | |II. |Cash flows from investing | | | | |21 | | ||20 | |(3.970.716.714) |(10.630.324.400)

activities |1.

|Purchases and construction of fixed assets and other |(1.575.662.192) |

|long-term | | | | | ||

assets |2.

|Gains from disposals and liquidation of fixed assets and |22 ||

|other long-term | | | | |

assets |3. other | | |4. |24 |

|Loan given and purchases of debt instruments of |23 | |(8.500.000.000) | || | | |

|entities

|Recovery of loans givens and disposals of debt instruments | |of other | | | | | |13.600.000.000 |12.000.000.000 |

entities |5. |Investments into other |25

entities | |6.

|(18.500.000.000)

|(6.500.000.000)

|Withdrawals of investments in other |26 | |8.505.800.000 |2.000.000.000 |

entities |7.

|Receipts of loan interests, dividends and profits | |327.233.119 |1.224.042.073 |

shared |27

|Net cash flows from investing activities | |III. |Cash flows from financing activities |1. from | | | | | | |30 | |(4.566.966.881) |7.148.379.881

|Gain from stock issuance and capital contributions |31 | |26.782.800.000 || | | | |

|shareholders

| |2. of | |Repayment for capital contributions and re-purchases |32 | |(18.554.767.000) ||

|stocks already | | | | |

issued |3.

|Short-term and long-term loans |33 | |3.000.000.000 |6.000.000.000 |

received |4. |Repayment

of loan | |5.

|34

|(3.000.000.000)

|(6.000.000.000)

|Payment for financial leasing |

|35

|-

|-

|6.

|Dividends and profits already paid to owner ||

|36

|-

|Net cash flows from financial activities |Net cash flows in the period | |(50 = 20 + 30 + 40) | | | | | |50 | |(309.650.595) |(3.481.944.519) |40 | |8.228.033.000 ||

|Cash and cash equivalents at beginning of the period |60 | |885.516.101 |4.368.460.620 |61 | ||

|Effects of changes in exchange rates and foreign ||

|exchange regulations |

|Cash and cash equivalents at the end of the period (70 = 50 + 60 + |70 |61) | | |576.865.506 |886.516.101 | | | | |

|BALANCE SHEET |As of 31 December 2010 |ASSETS |Note |A |Ending balance |CURRENT ASSETS |100 | |24.889.406.465 |29.168. |Code |Beginning balance | | |

(100=110+120+130+140+150) 130.404 |I. |

|Cash and cash |110 | V.1 |576.865.506 |886.516.101

equivalents | |II. |Short-term

investments 0 |1. | |Short-term

|120

V.2

|4.000.000.000

|9.100.000.00

investments |

|121

|4.000.000.000

|9.100.000.000

|2.

|Provision for devaluation of short-term |129 | | | -|| | | |

investments | | |(*)(2)

|III. |Short-term accounts receivable | |1. |Receivable from |131 | V.3 |709.716.838 |1.567.731.755 |130 | |2.456.301.792 |4.600.933.957

customers | |2. |Prepayments to

suppliers | |3. | |4.

|132

V.3

|1.715.274.362

|2.671.033.012

|Short-term inter-company receivable -| |Receivable from progress plan of construction | | -|

|133

contract |134 |5. |Other

-|

receivables | |6. | |IV. |Provisions for bad debts (*) -| |Inventories |

|135

|V3

|31.310.592

|362.169.190

|139

|140

|11.697.632.115

|5.

141.417.090 |1. |Inventories

|141

V.4

|11.697.632.115

|5.

141.417.090 |2.

| |149 | | -

|Provisions for devaluation of inventories | |

|V.

|Other current |150 | |6.158.607.052 |9.439.263.256

assets | |1.

|Short-term prepaid expenses | |

|151

| -

|2.

|VAT to be |152 | |363.828.393 |74.038.907

deducted | |3.

|Taxes and other accounts receivable from the State | |

|154

| -

|4. |Other current assets | |B - |LONG-TERM ASSETS (200=210+220+240+250+260) 84.216 |I. | |210 | | | |200 | |23.179.327.186 |11.565.7 |158 | V.5 |5.794.778.659 |9.365.224.349

|Long-term accounts receivable |

|1.

|Receivable from customers | |

|211

| -

|2.

|Business capital from subsidiaries

|212

| -

| |3.

| |213 |V.6 | -

|Long-term inter-company receivable | | |218

|4.

|Other long-term receivable | |

|V.7

| -

|5.

|Provisions for bad debts (*) |

|219

| -

| -

|II.

|Fixed |220 | | |679.327.186 |2.259.984.216

assets

|1.

|Tangible fixed |221 |V.8 |679.327.186 |944.952.418

assets | | |Historical

costs | | (*) |2.

|222

|1.470.414.530

|1.470.414.530

|Accumulated depreciation |223 |Financial leasing | | |(791.087.344) |224 |V.9 |(525.462.112) | | | -

|Historical costs |

|225

| -

| -

|Accumulated depreciation (*) | |

|226

| -

|3.

|Intangible fixed assets

|227

|V.10

| -

| -

| | |Historical costs | | |Accumulated depreciation (*) | |4. |Construction-in|230 | V.11 | |240 | |1.315.031.798 | | | |229 | | |228 | | | -

progress |III. |Real estate investment | | | | |

|Historical costs -| |Accumulated depreciation (*) |

|241

|V.12

|242

|-

|-

|IV.

|Long-term |250 | |22.500.000.000 |9.305.800.000

investments | |1. |Subsidiary investment | |2. |Venture link

|251

|-

|-

investment |3. |Other Long-term

|252

|18.500.000.000

|-

investments | |4.

|258

| V.13

|4.000.000.000

|9.305.800.000

|Provisions for devaluation of long-term investments (*) |259 ||

|-

|V.

|Other long-term assets |

|260

|-

|-

|1.

|Receivable from long-term assets || |262

|261

| V.14

|-

|2.

|Deferred income tax |

| V.21

|-

|-

|3.

|Other long-term assets |

|268

|-

|-

|TOTAL ASSETS |270 | |48.068.733.651 |40.733.914.62

(270=100+200) 0 |

|LIABILITIES AND OWNERS EQUITY balance |A|Beginning balance |

|Code

|Note

|Ending

|LIABILITIES |300 | |9.084.503.179 |10.161.941.56

(300=310+330) 4 |I. | |Current

liabilities | |1. |Short-term debts | |2. |Payable to

|310

|9.084.503.179

|10.161.941.564

|311

|-

|-

suppliers |

|312

|V.15

|1.048.721.376

|1.721.856.307

|3. V.15 |4. V.16 |5.

|Advances from customers |6.771.777.902 |6.771.777.902

|313 |

|Taxes and other obligations to the State Budget |28.736.372 |Payable to employees | |5.457.317 | |315

|314

|-

|-

|6. V.17 |7.

|Accrued expenses |753.015.327 |1.081.552.424

|316 |

|Inter-company accrued expenses ||

|317

|-

|8.

|Payable for progress of construction contract plan || |319 |503.497.614 |320 | | |

|318

|-

|9. V.18

|Other payable |504.452.202

|10. |Provisions for liabilities | |11. |Reward and welfare fund |II. |Long-term liabilities | |1. |Long-term payable for suppliers | |2. |Inter-company long-term payable ||3. |Other long-term payable | |323 |

|-

|-

|(22.200.000) |330 | |-

|(22.200.000) |-

|331

|-

|-

|332

|-

|333

| V.19

|-

| |4. |Long-term debts and loans | |5.

| |334 | V.20 ||-

|Payable for deferred income tax ||

|335

| V.21

|-

|B-

|OWNERS EQUITY |400 | |38.984.230.473 |30.671.973.056

(400=410+430) | |I. |Owners

equity | |1. V.22 |2. |Capital |41.892.882.000 |Share capital surplus | |3. |Other sources of capital | |4. |Treasury stocks (*) | |5.

|410

|38.984.230.473

|30.671.973.056

|411 |33.664.849.000

| | |412 | ||-

|413

|-

|-

|414

|-

|-

|Asset revaluation differences |

|415

|-

|-

|6.

|Foreign exchange differences |

|416

|-

|-

|7.

|Invest and develop fund

|417

|-

|-

| |8. fund |9. |Financial reserve |418 |Other funds under the equity | |10. |Profit after-tax undistributed | |11. |Construction investment capital | |12. |Rearrange enterprise fund | |II. |Funds and other funds | |1. |Fund | |2. |Fund that formed fixed assets | | |TOTAL LIABILITIES AND OWNERS EQUITY (440 = 300 + | |48.068.733.651 |40.733.914.620 | |433 | |||432 |V.23 |||430 | |||422 | |||421 | |||420 | |(2.908.651.528) |(2.992.875.944) | ||419 || || |-

400) |440

|INCOME STATEMENT | |For the fiscal year ended

2010 |ITEMS year |1. |Sales | |02 |VI.26 ||Previous year | |01 |VI.25 |Code |Note |Current

|3.802.659.294

|1.3

52.483.414 |2. |Deductions | |3. sales 14 |4. sold | |5. profit | |6. |Financial |Gross | |Net

|-

|10

|VI.27

|3.802.659.294

|1.352.483.4

|Costs of goods |11 |VI.28 |2.405.952.794 |1.363.052.748

|20

|1.396.706.500

|(10.569.334)

income | |7. |Financial expenses | |

|21

|VI.29

|327.233.119

|1.224.042.073

|22

|VI.30

|-

|In which: Loan interest expenses |

|23

|-

|-

|8.

|Selling expenses

|24

||9. |Administrative

|-

overheads | |10. profit | 25)} |11. |Other |Net operating

|25

|VI.31

|1.620.949.607

|2.194.484.485

|30

|102.990.012

|(981.011.746)

|{30 = 20 + (21 22) (24 + | | | | |

income | |12. |Other expenses |176.624 |13. 32) |14. 40) |15. VI.33 |16. |Other profits (40 = 31 |40 |

|31

|VI.32

|9.309.210

|35.323.704

|32 |

|-

|9.309.210

|35.323.704

|Total profit before tax (50 = 30 + |50 | |112.299.222 |(945.864.666) |51 | |52 | ||| |

|Expense current income tax |28.074.806 |-

|Expense deferred income tax |

|17. tax | 52)

|Profit after corporate income |60 |(60 = 50 51 | | | | | | |84.224.417 |(945.864.666) |

|18.

|Basic interest per share (*) |

|70

|-

|-

1b.5 Comparative Analysis - Foundation Engineering Joint Stock Company (FECO. JSC)

1b.5.1 General information |Name of the company JSC) |Address Xuan, Ha Noi |Phone number 0983180363 |Business area planning |Type of business Company |Charter capital billion |Contact feco@fpt.vn | |and | |Website | |VND 9 | |Foundation Engineering Joint Stock Company (FECO | |Room 501B, LICOGI 13 building, Khuat Duy Tien Street, Thanh | |(04)3576384; | |Consultancy of architectural design and construction | |Joint Stock |

e-mail feco.jsc@gmail.com

FECO is a professional company for consultancy of architectural design and construction planning. With the chartered capital of 9 billion VND and a staff of 50 employees, FECO

was officially established in 2009. Originally known as an architectural designing workshop in 1993, up to now, FECO has been active and successful in many areas, for instance, consultancy on urban planning, architectural design, and construction structure and infrastructure system. FECO projects and works are implemented with unconventional solutions for urban quarters, industrial zones, architecture works.

The highlight of FECO is the quality of services it provides. It has cooperated with more than 40 companies, six of which are permanent joint partners from the USA, Australia, Singapore and Japan. The company has been providing domestic and international customers with a wide range of consultancy services for construction design, setup investment project, infrastructure technical, construction survey, supervision and construction audit, interior and outdoor design.

FECO's key staffs are specialized experts on every field of construction design. Many of them are post-graduate degree holders, experienced architects and engineers who work on projects and constructions which have been applied in practical life from rural to urban areas. Working with the slogan Trust is a top quality - Reasonable price, FECO has had big achievements which materialize documents for applying in practical life such as resorts, shopping centers, private residences, particular architecture, deluxe hotels, hospitals, highrise building offices, multi - functional shopping centers and modern residential areas.

1b.5.2 Market Performance Analysis SERVICES

- Designing ideas: Architectural engineering designing of civil and industrial construction

work.

- Structural Designing for the civil Construction works

- General planning Design and detail planning for urban construction: urban plane view designing and scenery design.

- Designing Interior and exterior decorations for construction works.

- Investigation of Geological Engineering and Hydrogeology.

- Road Designing.

- Designing water supply structures: levelling over surface for drainage.

- Impact assessment of biological environmental pollution and designing the relevant treatment works.

- Designing the electrical system for construction structures.

- Consultant in project management and construction supervision.

- Investment consultant in Architecture and Construction field

- General estimation for civil construction works

- Construction project proposal for investment

- Building and technology transfer for civil and industrial projects which have special technique requirements.

- Experimental science research on Architecture, planning and construction. - Business and investment on real estate, industrial zone infrastructure, urban zone, factory and residential areas.

- Investment for business and manufacture the construction, decoration materials, equipment of construction field

- International cooperation in activities as mentioned above

(FECO Website, 2011)

PRICING STRATEGY As a consultancy provider, FECO does not have a fixed price for each kind of services. Its income comes from different projects, and the prices vary depend on each particular work. The price is set based on many criteria, such as the size and scope of the project, the difficulty level, the local conditions as well as the requirements of the clients. Besides, FECO has applied a set of discount policies for its clients, ranging from 1% to 2%

SALES AND DISTRIBUTION

FECO also business and export materials, equipment, construction materials. Distribution method is used that products get to the customer through Web, sales representatives and through retail. Distribution channel goes from manufacturer to retailer to consumer. Distribution cost is built into the price of item. A distribution cost is the cost of employing a truck driver to drive items to the end user. The cost also refers to the cost of shipping the item via the Web.

ADVERTISING AND PROMOTION

| | |1

|FECO

|Information packet to suppliers,

|Brochures, portfolio and video |

introduction | |partners, as well as |

clients |2

| |feco@fpt.vn

|Website |

|3 field: |

|Advertisements, articles, interviews in|Famous magazines in the relating |

|big magazines in this real estate and |Kien truc Viet Nam, Tap chi Kien | |Tap chi Quy |

truc, | |construction major

hoach |4 |Appears on |X

television

|5 | |

|Advertisements in websites for attract | |more clients as well as investors |www.pdiworldgroup.com, www.ddg-usa.com,

www.nikken.co.jp, www.rdca.com.sg, www.cpgcorp.com.sg,| | | |www.aacorp.vn, www.vivablast.com, | |Vehicles, |

www.binhminh.com.vn |6 |Logo display

T-shirts, caps, badges, key chains, stationery, etc |7 etc | etc |8 |customers, suppliers, | |Sponsorship |Occasional gifts for company staff,

|Calendars, greeting cards, |

| |Graduation ceremonies and activities of Hanoi

Architectural University, University of Civil | | etc |9 |Social activities | |Engineering, | |Charity donations for the floods in the middle of |

Vietnam, the poor and the disabled, etc |10 |Activities for employees and entertainment |

|Football team, occasional celebrations, competitions

1b.5 Management Performance Analysis 1b.5.1 Ownership Structure The ownership structure of FECO is partnership. But the company itself does not issue shares and sell shares to people, it has six founding shareholders are the legal owners. It

can be said that, a partnership of six partners FECO include shares of their capital contribution in the form of shares and has agreed to a method of sharing profits, wages and benefits (such as dividends).

1b.5.2 Internal Management team |No. |1 Board |2 |Name |Pham Van Loc | |Nguyen Ngoc Linh |CEO |Geological | |Construction Engineer |Vice |Training Levels |Geological Engineer |Position |Chairman of the |

Engineer |3 CEO |4

|Nguyen Quang Tu | |Nguyen Minh Tuan |

|MA

|Founding

shareholder |5

|Nguyen Van Vien |

|Geological Engineer

|Founding

shareholder |6

|Nguyen Van Van |

|University Degree

|Founding

shareholder

Internal Management team of FECO

1b.5.3 External Management Resources FECO was lack human resources, thus the company had to hire labor resources from the technical training center to help construction projects. So far, for large projects, what require more complex operations, the company also hires workers external sources for support.

1b.5.4 Human Resources Needs FECO is split into various functions such as Administration, Accounting, Planning and Technology, in addition to the Human Resources department, Marketing department, etc, and each individual within the function is assigned a particular role. All departments are connected through a system of rewards, rules and procedures.

1b.6 Operation performance 1b.6.1 Physical Location The company is not on the centre of the city but still near some main street. The company has to pay money for rent but it cheaper than others what are in the centre.

1b.6.2 Materials and Equipment Equipment has for trading and for employees. It includes table, chair, fans, computers, calculator and vehicles for delivering.

1b.6.3 Assets Assets include stores, equipment, cash, short-term investments, short-term accounts receivable, and vehicles for delivererwhich shows on the balance sheet of the business.

1b.7 Operations Performance Analysis 1b.7.1 General The hours of business operation is from 8:00am to 5:00pm in summer and from 8:30am to 5:00pm in winter. The company also has one and half hour for employees lunch.

Performance is judged by the results or problems solved.

1b.7.2 Inventory As a construction service company, FECO works are based on individual projects. Its inventory therefore does not include any tangible items or products. The table below shows the inventory of FECO at the end of 2011. Besides, suppliers are an important role in business, so establishing strong relationships with main suppliers is need. From that, the business has advantages to be paid lower prices than other wholesales or have priority when ordering products. Besides, to ensure quality control in selling equipments, products must be checked carefully before selling to customers with suitable standards. In operation, the business faces with some risks. For example, loss of key suppliers would result in paying higher rates for products or shipping problems would cause delays in fulfilling orders.

1b.8 Financial performance |BALANCE SHEET |As of 31 December 2010 |ASSETS balance |A |CURRENT 076,583 | | |ASSETS | | | |100 | |11,050, |Ending balance | |Code |Note |Beginning | |

| | | | | | | |A|LIABILITIES |300 | | | 6,544,271,762 | |50) | | | |0+130+140+1| | | |(100=110+12| | |

(300=310+320) 14,212,246,781 |I. |Current

liabilities | |1. V.32 |2. |Short-term debts |

|310

|5,215,107,762

|12,534,479,661

|311 |-

| |

999,938,400

|Revenue in | | | |312 | | | | | | | | | |

advance |3. V.33 |4. V.34 |5. V.35 |6. V.36

|Payable to suppliers | 1,798,260,811 |Advances from customers | 1,915,865,307

| 9,527,785,556 |313 | 1,521,083,120

|Taxes and other obligations to the State Budget|314 | 64,776,624 | 55,552,485 |315 | 1,430,058,500

|Payable to employees | 436,266,620

|7.

|Accrued expenses |

|316

| V.37

|-

|-

|8.

|Other payable |

|318

| V.40

|-

|9.

|Provisions for liabilities |

|319

| V.41

|-

|-

|II.

|Long-term |320 | | | 1,329,164,000 | 1,677,767,120

liabilities

|1. V.42 |2.

|Long-term debts and loans | 1,329,164,000

|321 | 1,677,767,120 |322

| | | V.43 |-

|Provisions for unemployment allowances || |328 |

|3.

|Other long-term payable |

| V.44

|-

|4.

|Provision for long-term accounts payable ||

|329

| V.48

|-

|B-

|OWNERS EQUITY (400=410+430) |10,448,512,073 |410 |10,448,512,073 |411 | |412 |

|400 | | | | V.49

10,400,446,081 |1. |Owners equity

10,400,446,081 |1. |Capital

| 9,750,000,000

| 9,750,000,000 |2. |Share premiums |

| V.49

|-

|-

|3.

|Other sources of capital |

|413

| V.49

|-

|-

|4.

|Treasury stocks |

|414

| V.49

|-

|-

|5.

|Foreign exchange differences ||

|415

| V.49

|-

|6.

|Other funds under the equity ||

|416

| V.49

|-

|7. V.49 |II.

|Profit after-tax undistributed | 650,446,081 |

|417

| | | ||-

698,512,073 |430

|Bonus and welfare funds |

|TOTAL LIABILITIES AND OWNERS EQUITY | 24,660,758,854 |

|440

16,944,717,841

|COMBINED INCOME STATEMENT |For the fiscal year ended 2010 |ITEMS year |1. |Sales |Current year | |01 |29,264,836,664 |02 | | |VI.1 ||VI.1 | |Code |Note |Previous | |

19,249,372,368 |2. |Deductions |

|3.

|Net sales |29,264,836,664

|10 | |11 |

|VI.1

19,249,372,368 |4.

|Costs of goods sold |28,153,547,710

|VI.2

18,146,621,392 |5. profit | |6. |Financial |Gross

|20

| 1,102,750,976

| 1,111,288,954

income | |7. |Financial

|21

|VI.3

11,280,170

13,896,763

expenses | |

|22

|VI.4

135,235,200

383,460,448

|In which: Loan interest |23 | | |24 | |383,460,448 |VI.6 |

expenses |8. | |9. profit |10. |Other

|Administrative overheads 608,821,858 |Net operating |30 | | | 677,122,998

369,974,088

64,602,271

income | |11. |Other

|31

|VI.7

495,000

40,883

expenses |

|32

|VI.8

555,165

|12. profits |13. 32) |14. VI.35 |15. tax

|Other |40 |Total profit before tax (40=31|50 | | 370,469,088 |51 16,021,997 | | | 64,602,271 | | | 495,000 | (514,282) |

|Expense current income tax | 92,617,272 |

|Profit after corporate income |60 | | 277,851,816 | 48,065,992 |

|RATIO | |Name of ratio |Short term liquidity ratios |Quick ratio Liability |Long-term ratios |Debt ratio asset |Return on asset 2+1)/2 |Profitability ratios | |0.0031% |0.58% |Total debt/Total | |(Net income/ Asset year | | |1.34% |Current assets/ Current | | |Formula |Result |

|Gross profit rate Sales |0.04%

|Gross profit/ |

1c. SWOT Analysis for EBI

|STRENGTHS |

|WEAKNESSES

|Has the great support from Northern Electric Corporation company |

|Still a young

|Available in a great major of investment project |

|Has not got finished big

|Has a great deal of profitable real estate project in the North of the|Being controlled and depends too much on the mother company | |country from the cash flow | |Low salaries for |Has difficulties in gaining capital quickly

|Can easily get preferences as electricity is monopoly employees |

|Simple company structure helps make up decision immediately | | |THREATS

|OPPORTUNITIES |

|There are a huge amount of project that need electric building foreign contractors than the Vietnamese ones | |consultancy

|People currently prefer

|The cost of material changes day by day

can affect the construction | |Investing in real estate is getting hotter and hotter and particularly|progress |at the fluctuation of stock and gold market. estate plan last for a long time that| | income | |may provoke the company | |Normally, a construction or real

Effect Toward EBI Through Its SWOT Almost for sure that the company has so many good supports from NPC, the fact is it does not have independence decision. To begin with, the lack of advertising activities as well as promotions makes EBI rarely has brand new clients. Furthermore, there are too many troubles that only EBI, the company which directly facing, knows better than the indirectly controller, NPC. That would lead to the low income of EBI. For example, when the office building project was at the beginning of progress, NPC forced EBI to stop it and transfer it for the other firm. Consequently, EBI had to pay for the fee of investment allowance provided by Construction Ministry, the compensation for ground clearance. Last but not least, EBI is still a young company but it is given a hard mission with too many big projects. That is also the reason why it has not finished any big projects. 2a. Overcoming Weaknesses Naturally, whenever the business processing, there are difficulties and challenges facing the company. By using Problem-Solving Strategies, EBI can cope with challenges easily as the following parts.

2a.1 The weaknesses of the young company

As EBI is still as small company that has been controlled, its weakness normally is lacking of experience, cannot work independently, the amount of target market is small, and the staff have not corporate well with together. That led to poor profit at the beginning. The solution for the company is that the companys leaders need to decide marketing programs to make EBI image becomes more and more popular as well as close to the people and particularly investors. Additionally, it is necessary for the company to design logo and stationeries that have been printed the logo of EBI in front. Not to mention that attending in some charity activities is crucial as well. Hence, there will be a need of money to run the marketing programs. However, that can be considered as the reasonable opportunities for the company to get close to the market.

2a.2 The weakness of the company that has many unfinished big projects EBI should skip big project and run small ones. By doing that, the company can gain experience for bigger and better project at the time that the cost for material is sustainable. EBI big project is finishing construction of the deluxe resort in Sapa. This project should be done in few years later. The reason is that even though Sapa attracts much tourism each year, the road for traveller is being built. Therefore, it is better for the company to open resort when the road to Sapa done.

2a.3 Being controlled and depends too much on the mother company The solution for EBI to get over the control of Northern Power Corporation (NPC) is transfer the chairman position for the other one who has the same vision toward the working process of EBI general director. The company has given many real estate property separated in several province in the North by the mother company as NPC bought plan

many years ago. Thus, there are a huge amount of investors at the moment who have ability to invest but do not have the place as great as EBIs can easily by share of it. What EBI need to focus is the creative marketing for new shareholders, the wise choice to find adaptable chairman of the board, and the enthusiasm corporate of the whole members in the company to overcome challenges.

2a.4 Has difficulties in gaining capital quickly from the cash flow As long as the cash flow speedily, the company can easily deal with any financial difficulties occurred. The key solution for this situation is the responsibility of the company with each project. Almost for sure that EBI is a small enterprise, so it cannot finish a construction project by its sole effort. As the company corporate with the second party, they will also share profit. In some situation, the receivable returns so late. However, even though the second party ask for benefit when EBI have not received, the company must not give the second party prior receivable. Last but not least, it is crucial for the company to receive benefit quickly from small projects.

2a.5 Low salaries for employees The fact is that all EBI staff are enthusiasm employee. They know the challenges that the company has to deal and still work hard with their slightly low income. However, this situation cannot be continuously as that will make the employee feel bored with the job. Hence, the solution here is that the company has to take care about the private life of the employee to their birthdays, their family member when they were sick. These activities do not cost too much but it make the employee believe the company as well as gain their faith for their work.

2b. Maintaining Business Strengths 2b.1 Maintaining appropriate performance records Overcoming weaknesses is the significant part in each firms working process. However, keep its own achievements is significant as well. Due to the sustained strengthens, the company will become more and more powerful in comparison with the other market. By using the Market Penetration and Market Development Strategy covered by Ansoffs Growth Matrix, EBI can easily remains its strengthens as the way it develops in the future.

2b.2 Building on Business Strengths With a qualified staff, it is possible for EBI to create well structured consultancy program. This kind of service takes no great capital, the company just need to contribute time and effort to build up its sharply quality service. Besides that, EBI can also have the strength as it run successfully the first big construction project, deluxe urban in Sapa, Lao Cai. This project requires more than consulting service but surely it will bring huger profit for the company.

2b.3 Maintaining Market Share/Position As the quickly developing of Vietnam, there are several industry areas appear and urbanization occurs. Hence, the market of EBI is very huge because there will be more and more construction projects as well. To begin with, EBI needs to put those projects in order and do them follow the order stated. At the moment, basic income of the company bases on the receivable from consultancy of construction and transmission lines and substations to 220 kV. Thus, EBI should keep this target market as well in order to maintaining market share. Last but not least, the more relationship the company has, the more powerful it becomes. EBI relationship is built not only follow relationship with government of its mother

company but it also gains partners, relations with several suppliers, investors, and principles of many provinces to have the sustain position in this competitively market.

2b.4 Importance of Good Customer/Supplier/Advisor Relationships Although there are so many competitors of EBI in this field, this company has particular strengths, such as support in worker effort and machinery of the mother company, several profitable projects, the wide relationship, as well as the flexibility in business.

2c. New Areas for Expansion

EBI has allowance in running many types of business where as it has not used yet. At the moment, the company is going to open real estate exchange office. There are a huge amount of construction projects which have not been finished in the North of Vietnam. The reason is those company do not have enough money.

The main purpose of the EBI real estate exchange office is find out clients as well as potential investor who will use the constructions or will have business with them for the construction owners. EBIs long-term development plan is to finish its unfinished civil constructions and support them to get in the fluently operation. Thus, the target market that EBI needs to focus now is constructions that are mobilizing capital as well as people who want to buy real estate project and the future customer is the local population.

Additionally, EBI should put-up more branches in the north to empower for the expansion. The branches need to close to the company constructions of Northern provinces to have the

control immediately and directly, and some of them need to be located near competitors office to keep loyalty customers and gain more clients.

CONCLUSION

In conclusion, after being observed in several aspects, EBI can be considered as a young company that has a promising great development in the future. What it needs at the meantime is improving its weakness, such as increasing marketing and promotions, getting out of the control of NPC, and particularly gaining experiences to build the perfect staff. There are several big competitions as EBI running its business and serving its services like the case competitor, FECO. These papers can be used by not only students study this major but also useful for people who want to have the most basically view about small enterprise through a specific case study. There is still a limitation of information in this report as EBI brand is just building up its sustainable brand.

REFERENCES

EBI General Profile, new edition in 2010

EBI Annual Report in 2010

APEC Audit report for the annual report of EBI in 2010

www.vnbh.com

www.vinacorp.vn

mail.vnsc.vn

www.thuvienphapluat.vn

www.sonlapc.vn

www.weblink.vn

Formal letter

April 4th, 2011

Do Duy An

NORTHERN ELECTRIC TRADE AND BUILD,

INVESTMENT JOINT STOCK COMPANY

20 Tran Nguyen Han,

Dear Sir,

My name is Do Thuy Linh, student of International Training Program in Banking Academy.

As the requirement of Small Business Enterprise subject, I have to provide consultancy services on how to operate better, and going forward, how to capture competitive advantage and increase profitability of Sole Proprietorship or Partnership businesses operating in Vietnam.

After that, I decided to choose your shop because I am very interested in your business and company is appropriate with my subject. So I would like to ask you for a permission to have a direct interviewing day with you. You can chose day or time that you few convenient. I hope you can help me to do my assignment.

Thank you for your consideration.

Sincerely yours,

Do Thuy Linh

101c/65 VanBao - Hanoi

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