ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

Submission date 03/06/2019 DateReceived1stsubmission

Re-submissionDate DateReceived2ndsubmission

Student Name Ngo Hai Trang Student ID GCS18446

Class GBS0707 Assessor name Nguyen Ngoc Danh

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 COMPANY PROFILE
Company Name Vietjet Aviation Join Stock Company

Abbrveviated Name Vietjet, JSC

Address 302/3 Kim Ma Street – Ngoc Khanh Ward – Ba Dinh District – Ha

Noi – Viet Nam

Establish day July 23rd, 2017

Contact Person Mrs Nguyen Thi Phuong Thao – President & CEO

Mrs Nguyen Thanh Ha – Chairwoman

Tel no (84-24) 7108 6668

Fax no (84-24) 3728 1838

Website https://www.vietjetair.com

Email ir@vietjetair.com

Company Type Join Stock Company

Representative Office 8th Floor - CT Plaza - 60A Truong Son - Ward 2 - Tan Binh District,
Ho Chi Minh City – Viet Nam

Charter Capital VND 4,513,432,840,000

Main Industry Air & Tourism

 Mrs. Nguyen Thanh Ha

Vietjet Chairwoman

Mrs Nguyen Thi Phuong Thao

The President & CEO of Vietjet

 1. TYPE AND PURPOSE

- Vietjet Corporation is a profit organization. According to the annual report 2018, the company had to pay
VND 2,832,636,0000 for dividends and profits to owners. This figure was recorded at 3,068,690,000 in
2017.

- Vietjet, on the other hand, is also a public company. The listing date of Vietjet is 28/02/2017 on HOSE
stock exchange market with the code of the company’s stock is VJC.
 - According to company share statistics, we can affirm that Vietjet is a private company. In a
state-owned company, the state accounted for more than 51% of the shares. As of 31 December 2018, the state
did not occupy any shares of the company, the majority of the shares are domestic shareholders with 43.51
percent. Ms. Nguyen Thi Phuong Thao – CEO of Vietjet - currently holds 8.76 percent.
 During over 10 years of operation, Vietjet always pays much attention to customer satisfaction.
Therefore, it is important for them to set goals, visions, and strategies. Here are their updated vision, mission,
and core value.

Vision:

- Vietjet develops based on advanced e-commerce platform. This airline provides air transport services,
freight service and services according to consumer consumption. Vietjet's main purpose is to expand the
region and become a multinational airline with a global flight network.

Core value : SAFE – FUN – AFFORDABLE – PUNCTUAL

Mission :

- Success in the development and operation of an in-depth network - The desire to achieve a major
breakthrough in the industry.

- Air travel plays an increasingly important role and becomes the most popular form of transportation for
Vietnamese people in particular and all people around the world in general.

- Customers always receive friendly smiles and special services with the aim of bringing satisfaction,
comfort, and happiness to consumers.

- Vietjet shareholders, customers, and employees are maximized benefits.

Objectives :

- Economically:

+ In 2019, Vietjet proposed a plan to continue expanding its transportation network with more than 20
international shipping routes and nearly 28 million passengers. At the same time, Vietjet's goal is to increase the
profit from air transport to VND3,800 billion by increasing air transport revenue to VND 42,250 billion. The
strategy of this plan is to increase foreign currency revenue, Vietjet needs to focus on expanding international
shipping routes from ticket sales; choose imported fuel sources to get cheaper prices; increase the proportion of
supporting goods for revenue - the kind with high-profit margin from the customer segment with high-income.

+ Economically in the next three years: The first plan is to hold the first position in the domestic transport
sector. International routes are effectively expanded. For infrastructure and chicken houses, Vietjet needs to
 consider investing more carefully. The department continues to monitor and improve technical
and training services, ground and air routes. Vietjet needs to exchange more skills to promote all advantages and
efficiency, make full use of the existing experience to serve customers.

- Environmental aspects in 2019: Environmental impact management is one of the important tasks to
minimize adverse impacts on the environment. Vietjet also sets the goal of optimal material management, fuel
economy, efficient use of resources, and adaptation to climate change. The strategy is to use different methods
to optimize costs but still ensure the ability to supply materials and spare parts. This not only helps to reduce
environmental pollution but also leaves significant economic benefits. This goal is built in a comprehensive, long-
term and effective way.

- Socially in 2019: Investing in human development and corporate culture. At the same time, Vietjet aspires
to contribute value to the community.

Activities

- For the goals set out, Vietjet is determined to implement by constantly innovating, focusing on the main
plans and tasks, ensuring the efficient utilization of resources and management according to international
standards.

- For economic goals: For non-domestic airlines, 2018 is a special year with a double-digit growth rate - this
development is in line with the boom in passenger demand. Vietjet holds 46% market share and holds the top
position in the domestic market. The total number of routes Vietjet opened in 2018 is 105 routes, including 39
local routes and 66 international routes - at famous locations and new markets. Revenue from aviation activities
on international shipping routes is estimated to grow very fast and account for more than 60% of total revenue in
Vietjet's next years. For the overseas market, Vietjet maintains its form with a large number of passengers and
flights - to and from locations with high consumption levels, key markets in Asia such as Japan and South Korea,
China. On the entire transport network, Vietjet has more than 23.1 million customers - this figure accounts for
46% of the total number of air passengers in Vietnam. The number of flights is nearly 118,923 flights and 261
thousand hours safe and used. The number of seats used is 88.06%, technical reliability is 99.64%, time ratio
(OTP) reaches 84.2% - this number is higher than the average number of airlines globally in 2018. Furthermore, in
September 2018, Vietjet was awarded the IOSA Safety Certificate for the third time. The website AirlineRatings
rated 7 stars for Vietjet's safety index - the highest in the rankings of airlines worldwide.
 - For social goals: Vietjet implements its international mission to target victims of natural
disasters. In October 2018, the 7.5-magnitude earthquake devastated the coastal area of Palu and the town of
Donggala, and Vietjet devoted himself to disaster relief. The flight with the "Connect with Love" symbol brought 7
tons of relief goods to the capital

2. SIZE AND SCOPE

- As of December 31, 2018, the total assets of Vietjet were VND 39,086,179,100,669. The total liabilities
were VND 25,047,675,864,087 and the owner’s equity was VND 14,038,503,236,582.
-
- According to the 2018 annual report, the right column must describe the beginning of the year and the
left column describes the year-end parameter. Easy to see that Vietjet has been expanded. The equity
increased amazingly from over VND 10 trillion to VND 14 trillion.Besides, total assets also increase from 31
trillion to 39 trillion. Surely, 2018 is the year of Vietjet. However this lead to an increase in liabilities from
VND 21 trillion at the beginning of the year up to VND 25 trillion on December 31,2018.

- The total number of Vietjet's personnel by December 31, 2018 was 3,850 employees from more than 30
countries to serve the international development strategy, up 24.3% from the previous year. The staff are
carefully selected, fully capable of undertaking work in the professional field. Highly specialized positions
such as pilot, technical staff ... are selected strictly through many rounds and the best one will be chosen.
All the staff have a high level of education with 8.1% graduated from high school and the rest graduated
from university or higher. Besides, in 2016, Vietjet and Airbus made an agreement to provide flight and
maintenance training services in Ho Chi Minh City. With this agreement, VTC will conduct training for
pilots, engineers, dispatchers and instructors complying with Airbus and EASA’s standards from the first
quarter of 2018. With a creative, dynamic and stable environment, Vietjet also attracts many other
applicants. With its globaliztion policies, Vietjet also welcomes nearly 800 foreign employees.
- Vietjet Airlines operates at most important international airports in the country, such as Da Nang
International Airport, Tan Son Nhat International Airport, Noi Bai International Airport, ... Now, Vietjet has
been present in 14 different countries such as Hong Kong, Taiwan, Thailand, Japan, ... In which, many
countries have developed economies, advanced technology, and consumption of people high,…
- In Vietnam, Vietjet holds 46% market share and is present in all important cities and provinces, especially
key economic zones and locations with international airports. Vietjet is one of the most trusted airlines
today, they have good flight quality, high safety, reasonable prices, many good services suitable for each
customer. In addition, education at Vietjet is also much interested in focusing on training pilots, engineers,
guides, ... with the aim of providing high-quality labor resources for businesses. Moreover, Vietjet's real
estate activities also have market share in Vietnam.

- For foreign markets, Vietjet is still investing and developing. In 2019, the proportion of international
revenue surpassed domestic revenue and reached above the growth rate of the same period last year.
There are 66 international routes to Japan, Hong Kong (China), Singapore, South Korea, Taiwan (China),
Thailand, Myanmar, Malaysia, Cambodia, China ... Vietjet aircraft also operate in the region. New airports
like Dubai, Doha. Vietjet's overseas market is aimed at countries with advanced science and technology
levels, high education levels and increasing consumer demand for technology.

- At the same time. Vietjet has expanded the ticketing system with ticket offices and ticketing agents in
other countries such as Thailand, Korea, Japan, ...

- We can see that the domestic market continues to grow but Vietjet's goal is to target the international
market. Because Vietjet has set the task of increasing foreign currency revenue by expanding international
routes. On the other hand, Vietjet has its head office in Vietnam and prioritizes the demand for air
transport of Vietnamese people, so Vietjet's domestic aviation activities always grow. At the same time,
 businesses are always equipped with the most modern equipment, creating an optimized
environment to facilitate development.

- Vietjet's scale is in line with long-term economic goals (2019-2022). On 10 April 2019, Vietjet's total
revenue was VND 53,577 billion - a large number is enough to pay for the essential needs of businesses,
invest in international development and participate in activities non-profit. The expansion of international
network helps Vietjet quickly achieve more economic goals, combined with the number of employees
who have facilitated the opening of more subsidiaries to create a strong ecosystem for the brand of their.

- Vietjet's scope of activities creates many favorable conditions for social activities and environmental
activities of enterprises. The presence in many different cities and countries helps Vietjet observe the life
and environment of each locality, support the business strategy and organize volunteer activities.

3. FUNTIONS OF COMPANY

- According to Vietjet's structural chart, it is definitely a business with a functional structure. The
management structure is divided into many blocks according to their own functions: the largest is the
General Meeting of Shareholders, the second largest is the Board of Directors - managed by the
Supervisory Board; then, the Board of Directors and other departments are divided according to its
responsibilities. The main function of the divisions is very different but they all play an important role in
creating a powerful Vietjet enterprise, the names of the departments that represent their own functions,
such as auditing, training, technical testing, and customer service provision, ... Example of the Board of
 Directors - which is the decisive part of the success of the business, has the role of integrating
employees to bring economic efficiency. They have a high responsibility and give actions that directly
affect the corporate governance apparatus, responsible for the material and spiritual life, and
professional qualifications of employees.

- The relationship between the Annual General Meeting and the Board of Management is closely linked.
The progress of a business will take place when these two parts coexist in a friendly way. On the other
hand, the relationship between the Annual General Meeting and the Board of Management reflects the
ability of the company to achieve its goals and status. The Board of Directors wants to take a good role
and needs a deeper understanding of the association and government.

- Good customer relationship is built when the company works effectively with Marketing Department. The
company often relies on analysis from research to determine market demand, purchase trends, quality
levels, desired products to meet customer needs. After that, they find ways to take advantage of the
competitive advantage by setting reasonable prices, professional sales and giving value to customers.
Although marketing plays an important role in business, it must collaborate effectively and closely with
other departments to create a value chain to serve customers. Example of the relationship between
marketing and R&D to develop products - When there is more creativity, this process is called the
marketing innovation process - This brings a product's competitive advantage for Business.

- Vietjet establishes this organizational structure to support the achievement of goals. Vietjet's
development requires a developmental structure. Each management level performs different
management functions with good professional knowledge to make the right decision. Functional structure
is a kind of traditional structure, it has disadvantages and advantages. Its advantages are specialization in
many areas that create great benefits and clarity in the organization to a division of tasks, avoid wasting
human effort. The main drawback of this organizational structure is the lack of coordination among
departments

- Vietjet establishes this organizational structure to support the achievement of goals. Vietjet's
development requires a developmental structure. Each management level performs different
management functions with good professional knowledge to make the right decision. Functional structure
is a kind of traditional structure, it has disadvantages and advantages. Its advantages are specialization in
many areas that create great benefits and clarity in the organization to a division of tasks, avoid wasting
human effort. The main drawback of this organizational structure is the lack of coordination among
 departments because different blocks focus only on different tasks, the time problem is very large
when the organization needs supporting from other departments; the second disadvantage is that this
structure has a lot of commands from many commanders, making it difficult to establish discipline and
implement responsibility properly.

4. CONCLUSION

- Vietjet is an airline with great development potential in the domestic market and overseas market. They
have remarkable achievements, smart decisions, outstanding personal brand names spread, long-term
goals and foresight - this is the advantage of the business. Moreover, Vietjet increasingly captures the love
of the people of Vietnam in particular and the world in general from economic, social and environmental
activities. This business is like a fertile land for us to invest.
 REFERENCE

- Vietjet’s annual report 2018 https://ir.vietjetair.com/Home/Menu/bao-cao-thuong-nien

- Vietjet’s financial report 2018 https://ir.vietjetair.com/Home/Menu/bao-cao-kiem-toan
- https://ir.vietjetair.com/Home/Post/chao-mung-nha-dau-tu