Task 1 Identify the purposes of different types of organization in relation to REE Corporation (1.

1) Along with changes in the social history has also created changes in the economy. After the war ended, the economy of our country is divided into two main stages: Before 1986 This is considered a difficult period for the economy because of exhaustion after the war, the country is in the subsidized period, people's lives more difficult as food shortages, the necessities were met by state... that influence on the economy at that time did not have motivation. After 1986: After changing from the subsidized economy by the market economy, the economic situation in Vietnam more prospered greatly. The other types of enterprises are also formed, breaking the monopoly of state - own companies. Promoting competition and that is the driving force economic development. In preparation for the renewal of the country, besides agricultural development, industry has been invested. Since then, REE was a state company specializing in heavy industry formed in 1977 and to develop more powerful today. Nowadays when addressing REE, everyone knows that type of company shares, but back into their history of the early years was established in a state-owned companies. Thus we can see there are two types of companies REE have been applied: Firstly: The state owned company In the period before the reform, the subsidized economy was still exists so all the management and administration were held by the state. Besides the state-owned companies, another type of enterprises had no choice to be existed At the same time, the state-owned companies were supported by the State. Maximum as the capital, facilities, and staff remuneration policies ... This is the biggest advantage of state-owned companies to encourage enterprise development. And while the context at that time the nation is backward and the main tasks of the state set for REE at the time was helping the country reform guideline industrialization modernization. Therefore, the choice of type of company the state is perfectly suited not only with social circumstances but also consistent with the economic situation.

Secondly: Joint Stock Company: In 1993, REE became a privatise corporation. The transfer of the ownership to corporation according to the business licence registered (No. 1506/GP-UB) by the Peoples Committee of Ho Chi Minh City issued on December 25, 1993 No.01/GPPH issued by the State Securities Commission on 2 June 2000. REE's shares are listed in Ho chi Minh City Securities Market Chartered Capital: VND 810,431,310,000; Issued shares: 81,043,131 shares. http://www.reecorp.com Although there are many advantages to a state company, but transformed into a shareholding company for the following reasons Firstly: REE is leading business in the industry (mechanical - Electronics). Due to the investment in material foundations (buildings, machinery and equipment...), products requiring high technology, human resources more (There are around 1000 employees). Therefore need abundant capital and flexibility to invest in production REE has five subsidiaries, eleven associates and a joint venture. Secondly: REE continues to state the tasks set out from inception until now is industrialization - modernization the country. State is eligible legal persons acting as a shareholder of the company by taking the stocks. Therefore, there can continue to create conditions for REE Next: They can be easily managed by each department to specialize REEs core business activities include:  Leadership in M&E contracting services for industrial, commercial, and civil projects;  Manufacturing and distributing of air-conditioning units, home appliances, electrical panels, and industrial mechanical products;  Development and operating real estate projects;  Investments in energy, water utilities and financial services. Finally, easy to extend a special branch and able to participate in many different business sectors (Commercial business, Agency consignment of goods, Activities of financial investment in banks...) bringing benefits for the company maintained, developed to perform the tasks of REE http://www.cophieu68.com/profilesymbol.php?id=ree REE has five subsidiaries, eleven associates and a joint venture. The Group, through the parent Company and its subsidiaries and associates, is primarily engaged in the design, manufacturing and installation of air conditioning systems, informatics and telecommunication equipment and home appliances; ownership and leasing of office buildings, water supply and financial investments...

From that showed, changing to suit the kind of economic situations was really effective for REE, in attracting domestic and foreign capital. y Describe the extent to which REE Corporation meets the objectives of different stakeholders (1.2)

A corporate stakeholder is a party that can affect or be affected by the actions of the business as a whole. The stakeholders concept was first used in a 1963 internal memorandum at the Stanford Research Institute. It defined stakeholders as "those groups without whose support the organization would cease to exist. The theory was later developed and championed by R. Edward Freeman in the 1980s. Since then it has gained wide acceptance in business practice and in theorizing relating to strategic management, corporate governance, business purpose and corporate social responsibility (CSR). So the extent to which REE Corporation meets the objectives of different stakeholders is: For shareholders and investors: Before 1993: The investor of REE Cooperation is State, so at that time its Focus to meet the requirements of the government, generate revenue for the government, and national development After 1993: the company, the company's investors are shareholders, which include both public and investors, investment by buying shares. So REE focused and meet the needs of shareholders, corporate development and profitability of their capital REE always keeping the guideline increase transparency and information disclosure in the Company's activities to shareholders and investors through a variety of different media and also actively create opportunities for dialogue with investors. For Customers: To provide our customers with products of high quality, reliability, and durability. REE will indiscriminately service the demands of our customers in the best possible way. For business partners: Maintain, nurture and develop long-term relationship on the principle of respect for the interests of the parties to create the best quality products to society. For Employees: Creating workplace equality, regardless of age, gender.

Explain the responsibilities of REE Corporation and strategies employed to meet them (1.3)

In fact, the business the firm not only making money and develop but also to contribute to society by the responsibilities of the business. Understand the importance REE, which have done well to be responsible through such aspects as: First of all: Social responsibility REE is always considered the heart to share with the community in both material and spiritual is the social responsibility of business. During its development path, REE has continuously contributed to society with very real action and meaning as REE is especially interested in children's future owners of the country. Thus more than 50% of the total fund social activities of the REE were intended to contribute to the development of education by funding the construction of schools, scholarships for poor children. In addition, REE also create conditions for children with environmental conditions play in the annual Mid-Autumn festival. REE has been for years actively persuaded and support fund for the poor. REE has been funded program of traditional dance music monthly work together with the desire to promote and preserve the fine tradition of our nation expressed through the songs of patriotism of the people through periods of resistance, liberation and nation building. http://reecorp.com/?q=node/190 Environmentally responsible Protect the environment is top priorities of the society. And for each company, to implement its responsibilities - environmental protection will help companies improve competitiveness and ensure sustainable development. Ree is one of the businesses considered to be aware of for environmental protection; construction of factory technology in Europe is located in Tan Binh Industrial Zone with an area of 12,000 m2, assembly and production products from household refrigeration to air conditioning industry with a capacity of up to 320,000 BTU / h. http://www.reetech.com.vn/index.php?cid=1&l=2&f=2&pc=gioithieu Management responsibilities Successful businesses will manage their business in the long-term goals. There are four main responsibilities under the common sense to lead and manage business

Responsibility for your customers Provide high-quality products provide long-term stability. Clients demand has been in the best way, regardless of customer. Be honest and ensuring after-sales services, able to guarantee a product or service and ensure your long-term relationships with customers. Responsibility for your employees People work well that can be the best asset in your business. You can enhance the contribution of employees by taking care of them better and ensure sustainability for their families. Motivation of employees is guaranteed a job, training in job skills, and be paid full wages they deserve. Finally ethic and business Ethics in business is important issues and always concerned because it offers the company's image to consumers, the place of business in the market. Always understand and implement these requirements need to be performed and a large business, REE has launched the slogan to reflect the spirit of ethics in their business for stakeholders. With respect to shareholders and investors: REE always keeping the guideline increase transparency and public information activities of the Company to the shareholders and investors through a variety of different media and always actively create opportunities for dialogue with investors. For business partners: Maintain, nurture and develop long-term relationship on the principle of respect for the interests of the parties to create the best quality products to society http://reecorp.com/?q=node/190 Thanks to good policies about the responsibilities by REE, has brought about direct benefits to reputation - the company's image and are also indirect benefits financially because the company has only social responsibility of higher prices of their stocks decline because fewer reputation for social responsibility can be a type of insurance and in fact a business with social responsibility is always inclined to long-term success. y Explain how economic systems in your country (Viet Nam) attempt to allocate resources effectively (2.1)

An economic system is the combination of agencies and organizations providing economic structure for society. These agencies are the participation of the trade and exchange goods and money

Overall resources is geographic location, natural resources, national systems of property, human resources, the policy and capital market ... both at domestic and foreign can be exploited to serve the economic development by a certain territory. It changes across space and time. People can change the direction of resources to benefit there. Classification of resources: Firstly: Labor Even at that time, human resources is always the most important factors to decide the strength because we know that all material possessions are made up of hand and mind of man. Before 1986, the economic situation in country was in the subsidy period, the state is only guaranteed jobs for people but not really focus on training for employment (lack of skills, teamwork not good ...) that's what causes the human resources of our country during this period but excess quantity but lacks quality. After 1986, the economic situation at this time has made advances, with economic motivation should begin with the selection and elimination. There by leading to the unemployment happens to those who lack capacity. The demand for the resources was also a lot of changes, not just recruiters but also the degree of skills, foreign languages, and information technology to integrate with your country and also attract foreign investors in Vietnam. For example: Improving the quality of labor is constantly improving, the government interest in special education in the curriculum is appropriate reforms, opening the professional training center, language center information technology. Secondly: Land and natural before the period of renovation, condition natural resources abundant country but due to planning has led to irrational use of indiscriminate exploitation, causing waste of national resources. After that the exploitation and use of Land and natural still not resolved and is becoming more serious. The planning policy - mining is still inadequate, but has gradually shown to be aware of exploitation - to use - to protect natural resources. According to Decision No. 1934/QD-BTNMT November 30, 2007 of the Minister of Natural Resources and Environment, Institute for Strategy and Policy Natural Resources and Environment was assigned the project "Investigation, survey the current state exploitation of mineral resources and water resources and propose mechanisms to integrate environmental protection requirements in licensing the exploitation of mineral resources and water resources.

Next: capital Regardless of the type of organization if you want sustainable development, they must know how to use that capital efficiency. As we know, during the integration of our country did not have innovation, the economy is largely self-sufficient - order for granting under the cover of the state. The only income of government at this time was tax from the business. After renovation, and especially in recent years after joining WTO, the government revenue besides taxes of the business also has the support of foreign capital as ODA, FDI, for Vietnam to compete, pursue up with a number of countries in the region, so investors should pay attention on many aspects. Including the construction of systems and technical infrastructure, particularly transport infrastructure to attract foreign the investment. The government is using the funds (eg from Japanese ODA) to developing effective infrastructure to facilitate economic boost After Doi Moi, and especially in recent years after joining WTO, the government revenue besides taxes of the business also has the support of foreign capital as ODA, FDI, for Vietnam to compete, pursue up with a number of countries in the region, so investors should pay attention on many aspects. Including the construction of systems and technical infrastructure, particularly transport infrastructure to attract foreign the investment. And now, the government is using the funds (eg from Japanese ODA) to developing effective infrastructure to facilitate economic incentives In conclusion: the resources are limited, but human demand is infinite, therefore the policy of using the government resources must be reasonable. y Assess the impact of fiscal and monetary policy on REE Corporation and their business activities (2.2) Definition Fiscal: In economics and political science, fiscal policy is the use of government expenditure and revenue collection (taxes) to influence the economy. Fiscal policy refers to the use of the government budget to influence the first of these: economic activity. http://en.wikipedia.org/wiki/Fiscal_policy Definition Monetary policy: That is one of the tools that a national Government uses to influence its economy. Using its monetary authority to control the supply and availability 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

balance of external payments. Monetary policy is usually administered by a Government appointed http://www.finpipe.com/monpol.htm Due to the global economic crisis, the economic Vietnam is suffering the effects regret not very small as inflation, budget deficit situation occurs. Therefore, forcing the government to implement the appropriate policies to reduce inflation, maintain the level of economic growing. Thus, they affect on REE Corporation Fiscal Currently the economy overspending, forcing the government to increase revenues by increasing taxes. By this measure has a great influence to the capital of REE, because it taking higher taxes. Therefore, lead to difficulties when REE need capital for production Next: The State forced to reduce spending, which also affect the capital of REE when the state is no longer supported Monterey policy Besides, main majority of businesses are considered measures for bank loans as a financial leverage, when the state forced banks to increase lending rates also affect the finance of REE because of cost expenses for higher interest In addition, the REE exports goods will lose value because of be unfavorable exchange rates. And last, inflation is detriment when the costs required to increase (staff salaries, cost of materials) but decreased profits.

Evaluate the impact of competition policy and other regulatory mechanisms on the activities of REE Corporation (2.3) Competition is a driving force in business. Generally, every business faces many competing methods. Therefore, to prevent other forms of unfair competition, the government has taken the policy to ensure fair competition in business. Vietnam joined the WTO for several years that has an excellent opportunity for trade with the world, but on the other hand is also a barrier to the development of domestic enterprises to compete with businesses foreign countries. Policies - taxation - law.

Compared with foreign rivals such as Carrier, Sanyo, Toshiba, National, Panasonic, Hitachi, LG, ... a high-end market segment, the air conditioning products, refrigerators, washing machines, ... Reetech brands usually in mid-market segment with good quality, moderate price ... and thanks to the support policies from the government to create favorable conditions for REE than the foreign companies Thanks to the support of local organizations that REE won a contract ( March, 2010) to supply and install air conditioning systems and ventilation $ 1.7 million for building projects "Centre for Trade in Services Office for rent "in Hanoi. http://tim.vietbao.vn/C%C3%B4ng_ty_C%E1%BB%95_ph%E1%BA%A7n_C%C6%A1_ %C4%90i%E1%BB%87n_L%E1%BA%A1nh/ However the states policy has created adverse for corporations the size as REE. Because now, the government is attaching importance to investment priorities for the medium - because we are a small developing countries, small and medium size companies in Vietnam take large proportion of the total number of enterprises and particularly important role in the economic growth, to create jobs, attract capital, making the economy power most effectively contribute to economic restructuring, promote the industrialization and modernization - the modernize the country in the current period. But of the small and medium size enterprises are facing difficulties such as business management capacity less, limited capital, backward technology, passive in relation to market ... Therefore, the Party and State as well as society are concerned about the development assistance activities, in particular is creating a legal framework, innovation policy system, building management bodies of state organizations, community support ... for small and medium size companies Since then, the REE Corporation must make their own strategies for developing Human resources: Using the Arts is the key to success (Nguyen Thi Mai Thanh, general director of Refrigeration Electrical Engineering Corporation - REE Corporation) said that One of the most important thing for a leader is using the personnel. Because the employees will carry out the mission that builds up a business, so they are the property of the company At the present, there are around 1000 employees those who are trained either local or overseas Capital: In addition to get government's support, REE Corporation also creates their own strong financial resources for themselves by selling shares. News from the Refrigeration Electrical Engineering Corporation (REE Corporation), Ho Chi Minh pm 12/10, for all 5 million shares of additional issue of REE Corporation has

been distributed. After sell five million shares, the REE Corporation had 27.5 million shares of, increasing its charter capital to 275 billion. REE Corporation share price on the market continued steady growth. With this success, the money raised from the sale of shares through the stock market highest since the market has been in operation - and became the first case of issuance of shares at market prices in an organized guarantee in the form of firm commitment http://vietbao.vn/Kinh-te/REE-ban-het-5-trieu-co-phieu-phat-hanh-them/55085594/91/ Location and distribution: The advantages of REE are more so a subsidiary network of REE distribution throughout the districts in the city and nearby provinces, especially with two representative offices in Hanoi and Da Nang (two cities of the country). http://www.reetech.com.vn/index.php?cid=1&l=2&f=6 Competitors Compared with foreign rivals such as Carrier, Sanyo, Toshiba, National, Panasonic, Hitachi, LG, ... were in luxury market segment, about the air conditioning products, refrigerators, washing machines, ... not only thanks to the support of state policies, marks Reetech also wise choices in the mid-market segment with good quality and moderate prices. Besides that, Reetech promotes the strength about air conditioning capacity from 36,000 to 60,000 BTU (approximately 40% market share). The remaining products reach the market share of around 10%. http://www.cophieu68.com/profilesymbol.php?id=ree Unemployment: Trying to make more condition for employees, REE want to reduce the jobless because this reason why lead to inflation. If they rise too high, the inflation will happen, effect on the economic Environment The Government has promulgated numerous policies to force the enterprises must focus on within problems of waste treatment; limit the use of toxic substances in manufacturing. Protecting the environment is not only compliance but also the responsibility of the company. Therefore, REE required complying with and ensuring credibility of the company In conclusion: the reputation achievement and achieved during the long time helping REE created in the market position within government advocate or create adverse conditions to businesses