Sie sind auf Seite 1von 17

Table of Contents I. Introduction..2 II. Body....

2
1. REEs mission, values and objectives and the influence of stakeholders ..2 2. Achievement of stakeholders objectives.......5 3. REE Corporations responsibility and strategies employed to meet objectives of

stakeholders.....8
4. Explanation of how economic systems in your country (Viet Nam) attempt to allocate

and make effective use of resources available within the country11


5. The impact of social welfare and industrial policy initiatives on the organization and

the wider community.13


5.1 Social welfare..13 5.2 Inductrial policy33 6 The impact of macro economic policy measures and the influence of the global

economy on the company and its stakeholders.............14


6.1 The influence of the macro economic policy14 6.2 The influence of the global economy16

III. Conclusion..16 IV. References......17

I. INTRODUCTION: Established since1977, REE (RefrigerationElectrical Engineering Corporation)today is a diversified business group operatingin the fields of mechanical and electrical engineering services (M&E),manufacturing,assembling and sales of air-conditioner systems, real estate development andmanagement,andfinancialinvestments. The Group businesses include REE M&E, aleadingmechanical and electrical engineeringcontractor inVietnam,REEElectricApplianceswhichmanufactures, assembles,andmarkets airconditionersunderthe Reetech brand,REE Real Estate, a management services company for lease office propertiesof REE, and REE Land, a real estatedeveloper. REEis also a strategic infrastructureinvestor inthepowerandwater sectorswithownershipstakesinseveralpowerandwaterutilities. REE is one of the first companies to listits shares on the Ho ChiMinhCitys Stock Exchangewithamarket capitalization ofUS$170million asof31/12/2010andawide investorbase. (http://www.reecorp.com/upload/files/REE%20Annual%20Report%202010%20-%20Final_0.pdf ) II. BODY: 1. REEs mission, values and objectives and the influence of stakeholders: Mission statements Committed to Values Professional qualified and in local and overseas. Creative performance ways make Objectives Increasing capital and continuing investments in the fiels of M & E Capital areas of M & E, real estate, finance banking. (http://stocknews.vn/default.aspx? tabid=300&ID=18523&CateID=209 ) In2011, the Group will achieve strong

quality. Nurturing our

upgrade training increase and continued investments in the

business relationship Creating values for

our shareholders Recognizing the

contribution of our

customer saving revenue and profit growth in the


2

employees Maintaining our

money. (http://www.ree corp.com/? q=en/node/197 )

mechanical and electricalengineering business and the businessof Reetech products, maintain the office lease businessat ahigh occupancy level, and optimize theallocationofcapitalraised of810billion dong from a convertible bondissuancein2010ininfrastructure investmentsin electricity,water,and real estateprojects. (REE annual report 2010, page 69)

integrity (http://www.reecorp.co m/?q=en/node/189)

Stakeholders: While vision, mission, values and objectives set the direction for a company, stakeholders are the one that shapes and directly influences these features. According to Johnson, Scholes and Whittington (2006) define stakeholders as individuals or groups who depend on the organization to fulfill their own goals and on whom, in turn, the organization depends. Consequently, REE Corporation impacts and are affected by different stakeholders. Influence of the stake holder Internal stakeholders This include managers and employees and are those that are situated within the company and affect the day-today' running of the organization. Furthermore, they are interested in the companys continuation and growth, can influence the company from the inside and will directly influence the quality of jobs done in the company.

Connected stakeholders

cover groups such as shareholders, suppliers and


3

customers, and are parties which invest or have dealings with the firm. Moreover, they are usually connected to the company on a contractual basis. They mostly influence the company through the distribution of company resources such as capital, raw materials etc and profit and production cost the company will generate.

External stakeholders

The third groups, , are those not directly linked to the organization but who can be influenced or influence activities of the firm through various means. External stakeholders include the Government, neighbours, pressure groups, local councils and the surrounding community. (http://www.articlesbase.com/managementarticles/stakeholders-and-how-they-affect-yourbusiness-760088.html )

A helpful method used to evaluate and analyze how influential stakeholders is stakeholder mapping. In the Power/Interest matrix below, stakeholders are categorized on a graph rating their level of interest against the power they possess to exercise those interests. The stakeholders in this way are broadly divided into four groups; low interest-low power (A), high interest-low power (B), low interest-high power (C) and high interest- high power (D).

(http://www.lmcuk.com/management-tool/stakeholder-mapping) According to Fig, for a customer orientated company such as REE Corporation, the customer is a strong force that the companys management has to take into consideration. Customers are likely to put into group B since they share a strong interest in the quality of the companys products and services. The power of the customers is emphasized by the obvious fact that without customers, REE will lose its market and then will be no longer exist after a period of continuing losses. Therefore, whatever REEs management is planning to do, they have to take into consideration the influence of stakeholders. They may regard one group of stakeholders higher than another, but after all, they cant ignore any group.

2. Achievement of stakeholders objectives: Different stakeholder groups have different objectives in a organization. Stakeholders Shareholders Objectives -High profits -High dividend - Long term growth -Prospect of capital gain
5

-A say in the business Employees -Preferential treatment as customers -High salary -Job security -Good working conditions -Fair treatment -Fringe benefits -Health and safety -Promotion prospects Customers -Training opportunities -Low prices -Value for money -High quality products - Good service -Innovation - Certain and regular supply - Choice of goods i.e. variety Suppliers -Clear and accurate information -A long term relationship with the firm - Large size and high value of contracts - Frequent and regular orders - Prompt payment Creditors -Fair prices -Prompt payment -Payment of interest on outstanding debt -Repayment at agreed date - Credit worthiness of the organization -Sufficient positive cash flow to meet The community obligations -Employment prospects - Safeguarding the environment - Acceptance of social responsibility - Ethical behavior
6

Government

- Compliance with laws and regulations - Efficient use of resources -Employment - Contribution to the national economy - Payment of taxes

As seen from the table, The community is a highly concern for the corporation, that is the company needs to bring a good image to it. To be able to that, the enterprise will consider Employment prospects, Safeguarding the environment, Acceptance of social responsibility, and Ethical behavior as the vital objectives to follow. Customers always concern about the price, the quality and the value of goods that they purchase as well as service after sale. In order to satisfy this, REE had develop a modern management system and customers service system. The company should often opens several special events for clients such as Gratitude Conference to customers, Customer Day, etc. and special occasions, customers always receive gifts or discounted products for using REEs products. Furthermore, REE had launch variety product lines to fit its customers interest. Last but not least, the manufacturer information is clearly printed in the product packets. Employees: to maximize salaries and job security, the objective of REE is promote creative thinking, bring equal opportunities and promotion for everyone, income stability, conditions and friendly working environment for employees. Make sure the employee is regularly improving care professional. Moreover, REE needs to improve organizational system, human resource development by offering a good training course and improve their skill. 3. REE Corporations responsibility and strategies employed to meet objectives of stakeholders. Organization is part of human society, therefore it has many obligations towards the people or group of people and the environment in the society. responsibilities Strategies:

The social

The social responsibilities


7

The corporation make social

of an organization may be defined as the obligations that the organization has towards the people and the environment in which the company operate. When doing business, organization has to take notice of social responsibility as well as making profit to return its stakeholders.

commitment, for example, REE must ensure that their business do not harm to ecological environment. For example, the refrigerator does not have CFC. In addition, REE provides good quality product to meet customers need. That is an effective using strategy as well as providing work opportunity for the locals and people from the rural areas. REE also obey the law and policy given by government to avoid damaging the society.

The environmental

While producing the products, the production process needs to be friendly with the environment.

The manufacture must follow environment policies. There are a lot of environment elements that the company must consider, such as land, water, air, etc that is limited. In its business development process, REE is committed to the implementation of pro-active sustainable activities such as the environmental preservation with full consciousness of the importance of its corporate. REE to minimize the resources are used as much as possible.

The business ethic

An enterprise has responsible for making the code of ethics;


8

Obey the law

these will lead the company to make the right decision for the society.

Be fair Avoid harming others Prevent harm to others Respect the right of others Should not take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of facts or any other unfair-dealing practice. Must not give or accept bribes, kickbacks, promises or preferential extensions of credit. Must approve or award orders, contracts and commitments based on objective business standards to avoid favoritism or perceived favoritism. Must not conspire or collude in any way with competitors.

The management

This has responsibilities to employees, customers, suppliers, the local community and the general pubpic

To employees: building recruitment policy and redundancy and retirement policies. To customers: providing a product of a quality that customers expect, and of dealing honestly and fairly with customers To suppliers: the organization

should not delay payments to suppliers beyond the agreed credit period. One more thing, all suppliers should be treated fairly. To the community: upholding the social and ethical values of the community and contributing towards the well-being of the community, eg sponsoring local events and charities, or providing facilities for the community to use. Furthermore, responding constructively to complaints from local residents or politicians ( eg abou problems for local traffic caused by the organizations delivery vehicles)

Public relation and corporate image

Bring the good image to customers mind

Open the events that help poor people in the whole country, especially the place always get flooded like Hue. Support the financial sources for some charity center, for instance, S.O.S.

(BUSINESS ESSENTIAL, Business Environment, pg 60, 65-68) 4. Explanation of how economic systems in your country (Viet Nam) attempt to allocate and make effective use of resources available within the country.

10

Vietnam is the mixed economy system, which is: A "mixed" economy is a mix between socialism and capitalism. It is a hodgepodge of freedoms and regulations, constantly changing because of the lack of principles involved. A mixed-economy is a sign of intellectual chaos. It is the attempt to gain the advantages of freedom without government having to give up its power. In fact, the company can control their production to make suitable to the change of the market. Besides, the government can control the company in some ways to protect the enterprise or to make more benefits for all of the members of society. Now, we will classify how mixed economy effective use of resources available within Vietnam. Vietnam is now in transition from a centrally -run to market economy. The country's constitution recognizes a socialist oriented multi sector economy operating under booth the market mechanism management by the state. Foreign and domestic private sectors are among the economic sectors constitutionally recognized in Vietnam. There are currently state-owned enterprise, state-private joint-stock companies, foreign invested enterprise, domestic private firm, cooperatives and household business operating in the country. A level playing field is being created to encourage all economic sectors to expand and develop. Therefore, there are few good sources which are cited as the good conditions for the organization such as: natural resources, human resources, financial resources and technology resources. (http://www.vietnamustrade.org/index.php?f=news&do=detail&id=29&lang=english )

Natural resources: Vietnam has natural material plentiful and rich minerals,

agriculture, forestry and fishery such as Coal, crude oil, zinc, copper, silver, gold, manganese, iron. Agriculture, forestry, and fisheries (20.58% of GDP, 2010): Principal products--rice, coffee, cashews, maize, pepper (spice), sweet potato, pork, peanut, cotton, plus extensive aquaculture of both fish and shellfish species. Cultivated land-12.2 million hectares. Land use--21% arable; 28% forest and woodland; 51% other. It is advantage for economy of Vietnam. Vietnam has used this advantage as well as attracts foreign organization to invest in the country. The government has been doing many things to protect natural material while using it to improve economic.

Human resources: human resources are always the most important factor to

decide the strength of the whole country. As of 1/4/2009, Vietnam's population: 85,789,573 people, second most populous country 13 in the world and 3rd in the region. The young

11

generation accounted 55% national population so that Vietnam has a major advantage of labor resources.

Financial resources: Vietnam is developing country, so most of capital is from

investments foreign organization and loan from the World Bank. After Vietnam joined in WTO, many foreign companies invested their money in Viet Nam. On the other hand, Vietnam is invested from Official Development Assistance (ODA capital), Foreign Direct Investment (FDI). Project no 1 has US$130 million in total capital , of which $120million comes from ordinary capital resources (ORRC) and $10 million is from the Asian Development Fund(ADF). The loan airs to assist Vietnam as the country reform a number of state-owned enterprises and their affiliated companies to improve their efficient and governance. http://www.state.gov/r/pa/ei/bgn/4130.htm

Technology resources: Vietnam has good resources but skill and experience of

them still below the standards. Vietnam is in a trouble of labor surplus in quantity and quality essential. Therefore, the country has to improve machines system, services, numbers and quality. The government has to utilize technology form other developed countries.

5. The impact of social welfare and industrial policy initiatives on the organization and the wider community 5.1 Social welfare Social welfare policies set out by the Vietnamese government are to protect and directly improve citizens living standard. As a socialist orientation country, the Vietnamese government made the minimum standard of living for all of its citizens a primary task. From 2011 to 2020, the government will try to address the issues in three main areas: labour markets, social insurance and poverty reduction. According to Decree No. 70/2011/N-CP and Decree No. 98/2009/NDCP the government increased the minimum wage to 1,400,000 VND to 2,000,000 VND will push up the labour cost for the company. Also, Vietnamese Labour Law 1994, last edited in 2007 stated that employees must have the right to be provided health insurance in the company. REE will have to increase its labour costs in providing its employees with protection from not
12

only diseases and accidents but also other things such as get pregnant etc. On the other hand, according to the Vice Minister for Labour, War Invalids and Social Affairs (MOLISA) Nguyen Thanh Hoa, the government will try to put into practice the policies including providing of unemployment benefits to the unemployed. This is good sign for REE as it will not have to worry about straining its budget to buy insurance which also covers the risk of losing jobs for their employees. Therefore, the employees and the trade union of REE will be able to feel more secured about the workers source of income if they are to be unemployed. 5.2 Inductrial policy A country wish growth and economic development will require the appropriate economic policies in each stage of development. Among those policies, industrial policy is the most important policy for large industrial contribution to GDP and is the driving force for agricultural development as well as services. Because Viet Nam is developing country, industrial policy is the most important policy is the core of the industrialization strategy. http://thuvientructuyen.vn/chi-tiet-tai-lieu/chinh-sach-cong-nghiep-cua-viet-nam-trong-chienluoc-phat-trien-kinh-te-hien-nay/7114.ebook%E2%80%9D). Industrial Policy (IP) is a plan of a nation, denotes a nation's declared official, total strategic effort to influence sectorial development and, thus, national industry portfolio." These interventionist measures comprise "policies that stimulate specific activities and promote structural change". In Vietnam, a lot of electronics corporations have sought investment opportunities and are willing to cooperate with Vietnamese enterprises. Recently, Intel Corp, the worlds largest computer chip manufacturer, has invested in a chip assembling and testing plant in Vietnam with a total capital of over US$1 billion. Many big companies also did the same way as Intel. After a year joining the WTO, Vietnam had been a worlds largest manufacturer of printers and electronic chips. The remaining issue is to capture opportunities. To avoid the failure path, the Vietnamese electronics industry needs a clear development strategy from the improvement of human resources to R&D activities to enhance the competitiveness of electronics products. Besides, companies in Vietnam in general and REE Corp in particular should be encouraged to shift from
13

manufacturing civil electronics products to producing specialised items, from assembling products to manufacturing parts and software products. Local firms need to have more conditions to turn out products of higher high-tech content. The final work is planning. To avoid ineffectively unfocused investment, Vietnam needs to work out electronics development zones where electronics companies will locate their factories. (http://vietnambusiness.asia/vietnam-electronics-industry-stuck-with-assembly/ ) 6. The impact of macro economic policy measures and the influence of the global economy on the company and its stakeholders 6.1 The influence of the macro economic policy There are two main sets of macro-economic policy that the Vietnamese government enforces in order to influence level of economic activities within a country: fiscal and monetary policy. And it is obvious that these two types of policy will definitely have an impact on the electronics manufacture industry in general and REE Corporation in particular. The government used Fiscal policy to directly influence the level of economic activities in a country with two main tools: Taxation (T) and Government spending/expenditure (G). Due to the recent global economic crisis, in 2009, Vietnamese government is still trying to recover its economy by increasing State budget and reducing tax at the same time as part of the stimulus package. However, on October 2009, the government has decided to end this stimulus package tax cuts and exemption programs except for the interest rate subsidy of 2% for medium and long term loads which will end at the end of 2010. They plan to increase their spending on social welfare programs and other socioeconomic issues. This growing budget deficit potentially can cause inflation in the country, leading to higher prices for REE products and services . Furthermore, In order to benefit from the tax payment deferral, labor-intensive enterprises are required to employ at least 300 workers, not counting workers with contracts of three months or less. The right to delay payment for 2011 corporate income taxes for one year takes effect from the due date this year. Accordingly, corporate income tax in the first quarter of 2011 shall be settled before April 30, 2012; tax in the second quarter of 2011 shall be cleared before July 30, 2012; tax in the third
14

quarter of 2011 shall be paid before October 30, 2012; and tax in the fourth quarter of 2011 shall be settled before March 31, 2013. This decision takes effect on November 30, 2011 (http://www.vietnam-briefing.com/news/corporate-income-tax-delayed-year-laborintensiveenterprises.html/ ).This tax rate helps REE to increase profits, higher dividends to satisfy shareholders and staffs can also receive high salary.. This support from government will helped REE to be able to invest more in its manufacturing activities . Monetary policy is one of the tools that a national Government uses to influence its economy. Using its monetary authority to control the supply and availablity of money, a government attempts to influence the overall level of economic activity in line with its political objectives. Usually this goal is "macroeconomic stability" - low unemployment, low inflation, economic growth, and a balance of external payments (http://www.finpipe.com/monpol.htm ). Loans come from banks is very important for finance issues of almost every companies including REE Corporation. The high interest rate will decrease in GDP. Vietnamese government adjusts interest rate at 8% which will help our economy to prevent inflation (http://mediaviet.vn/en/ServiceDetail.aspx?Category=4&SubCategory=40&Id=142 ). In addition, exchange rate is an advantage for REE. Moreover, according to economics status, the banks will decide whether they increase or decrease the supply of money to the enterprise. 6.2 The influence of the global economy Vietnam has joined to ASEAN (28/7/1995), ASEM (2/3/1996), APEC (14/11/1998), United Nation (20/9/1977), ACCT (1979), and WTO (11/1/2007). 2011 is the first year implementing the country's 5 -year plan from 2011-2015 (http://www.iso.org/iso/iso_action_plan_developingcountries-2011-2015.pdf ) and implementing the resolution annual party congress. with the recovery of the global and Vietnam economy, sound policies of the government, the state bank of Vietnam, relevant ministries, the trust support of customers, partners and shareholders, with the dynamism, creativity and determination of REE's employees, we strongly believe those objective set for 2011 will be realized, shareholder's benefits will be ensured. Right after Vietnam speed up the global economic integration, especially when Vietnam participated into AFTA and Vietnamese government negotiated to joint to WTO, enterprises
15

leaders and other stakeholders were aware deeply that they would not only have more opportunities but would also face with many challenges. Those companies recognized that international integration results in more opportunities and advantages in penetrating into global market. And REE is one of those companies. Nevertheless, it also increases the competition in domestic market. This competition results from import goods and foreign investors. III. Conclusion All in all, this report shows basic information about REE Corporation, which is mission, values, and key objectives of the company. Besides, the influence, objectives of three stakeholders and the responsibilities of this company are also evaluated clearly as well as figures out the economic, social and global environment in which REE Corp. operates.

REFERENCES: REE Annual Report 2010, page 67, 69 Abitily, http://www.reecorp.com/?q=en/node/197 accessed on 22th, November Stakeholders and How They Affect Your Business, http://www.articlesbase.com/managementarticles/stakeholders-and-how-they-affect-your-business-760088.html , accessed on 21th, November Stakeholder Mapping, http://www.lmcuk.com/management-tool/stakeholder-mapping, accessed on 15th, November International relations and basic economic system, http://www.vietnam-ustrade.org/index.php? f=news&do=detail&id=29&lang=english, accessed on 21th, November Background Note: Vietnam, http://www.state.gov/r/pa/ei/bgn/4130.htm, accessed on 21th, November

16

Chnh sch cng nghip ca Vit Nam trong chin lc pht trin kinh t hin nay, http://thuvientructuyen.vn/chi-tiet-tai-lieu/chinh-sach-cong-nghiep-cua-viet-nam-trong-chienluoc-phat-trien-kinh-te-hien-nay/7114.ebook%E2%80%9D, accessed on 21th, November Vietnam electronics industry: stuck with assembly, http://vietnambusiness.asia/vietnamelectronics-industry-stuck-with-assembly/, accessed on 21th, November Corporate Income Tax Delayed One Year For Labor-Intensive Enterprises, http://www.vietnambriefing.com/news/corporate-income-tax-delayed-year-laborintensive-enterprises.html/ , accessed on 23th, November Monetary policy, http://www.finpipe.com/monpol.htm, accessed on 15th, November Vietnam central bank to keep benchmark rate at 8 pct next month, http://mediaviet.vn/en/ServiceDetail.aspx?Category=4&SubCategory=40&Id=142, accessed on 22th, November ISO Action Plan for developing countrieshttp://www.iso.org/iso/iso_action_plan_developingcountries-2011-2015.pdf

17