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Table of Contents

LO1 Explain the different types, size and scope of organizations....................................1

P1 Explain different types and purposes of organizations; public, private and voluntary
sectors and legal structures...........................................................................................1

Type and.....................................................................................................................1

P2 Explain the size and scope of a range of different types of organisations...............4

Size.............................................................................................................................4

Scope..........................................................................................................................8

Objective...................................................................................................................10

LO2 Demonstrate the interrelationship of the various functions within an organisation


and how they link to organisational structure..................................................................12

Explain the relationship between different organizational functions and how they link
to organizational objectives and structure....................................................................12
LO1 Explain the different types, size and scope of organizations

P1 Explain different types and purposes of organization : public, private and voluntary
sectors and legal structures.

1. Type of firm

Mr. Trinh Van Quyet and investors who established FLC Group in 2008.
2008: The company's first name was Fortune Fortune. The company was established with an
initial capital of 18 billion VND
2009: Truong Phu Fortune Company was converted into a joint stock company called General
Investment Joint Stock Company CRV
2010: Renamed as FLC Joint Stock Company and then real estate trading floor was born
2011: Shares of FLC officially listed on the Hanoi Stock Exchange
2011 to 2012: FLC started to expand other business such as travel, airline ticket agents,
technology, media, golf services ... and lay out a series of companies. At the same time, the
restructured group companies like FLC Global (formerly FLC Travel) and FLC Tech & Media.
2013: Shares of FLC officially listed on the Ho Chi Minh Stock Exchange (HOSE) with the
code: FLC
2014: Shares of FLC were listed on the floor of VN30 with the transaction code of FLC and FLC
increased chartered capital to 3,150 billion dong and after that FLC implemented a series of large
scale projects such as Tam Duong II Industrial Park, Hon Industrial Zone La II, FLC Complex
Thanh Hoa, Chan Hung Industrial Park, Khanh Hoa New City Center, FLC Star Tower Ha
Dong.
2015: Inauguration of ecotourism resort of Sam Son FLC. Raising chartered capital to
VND8,400 billion and profit before tax of over VND1,000 billion [source citation needed], kick
off the project of Quynhon Golf, Resort, Resort and Resort Complex. FLC Twin Tower at 265
Cau Giay, Hanoi.
Challenge: FLC is a private company, so as with other companies, FLC also faces the following
difficulties:
The rule of making the business is to suffer disadvantages in different ways.
Complex administrative procedures, difficulties in accessing finance, especially small and
medium enterprises and credit guarantees. Limitations on capital size are also one of the major
obstacles for private firms not taking advantage of the opportunities provided by economies of
scale.
Overlapping, unclear and inefficient regulations make private firms more expensive, less time
consuming and less competitive. Due to the lack of linkage in the handling of procedures, many
regulatory agencies jointly manage a problem that causes difficulties for the business.
In addition, because FLC is a real estate company, the difficulty in this area is that most of the
land for residential projects, land clearance and compensation is a huge problem. And it will be
even harder if the compensation rate is unstable.

2. Objectives of firm

Objective: the objective strategy 2017-2020

Overcome the period of formation and maturity of 15 years, In the next stage of development,
the 05-year plan, together with the adjustment of macro-economic structure of the State, the
company identified the restructuring of the field Business, focus on the core business areas and
rebuild the company management system with the specific objectives as follows:

- Establish the standardization of corporate management and financial management


systems. Issuing international bonds and may soon be listed on the Singapore Stock
Exchange
- Restructuring business areas focusing on core businesses including: residential and resort
real estate, resort services, golf course business.
- Goals:
+ No. 1 in Vietnam and top 3 in golf management in Asia;
+ Top 3 on the ownership and management of hotel rooms in Vietnam;
+ Ranked among the top 3 real estate developers in Vietnam.
- Focus on value chain development, expand the business lines in the chain such as logistic
transport services, casino business and rewards…
+ The Group also has ambitions: casino business, the company intends to open casinos in
Quang Ninh.

In addition, the FLC's ambition is to be able to expand more golf courses as well as more
resorts throughout the country.
The FLC Group Joint Stock Company (FLC Group) has been in business for 16 years and is
currently a major real estate developer, particularly of resorts. Expanding from its original
business of investment and corporate finance consultancy, the group has successfully engaged in
the real estate sector since 2009. Its savvy investment strategy has enabled outstanding
accomplishments.

The FLC Group also prioritises its social responsibilities. The group has frequently participated
in and organised activities to aid flood victims, offered scholarships to impoverished students,
built schools in remote villages and helped preserve the environment with beach clean-up
campaigns.

Expanding capital and gaining profit:

In 2018, FLC Group has basically fulfilled the objectives and tasks set by the 2012 Annual
General Meeting of Shareholders, developing a series of large-scale real estate projects, and
maintaining the orientation for collective development. a multi-sectoral business delegation to
take full advantage of the potential and existing opportunities of the domestic market as well as
welcome the new trends of the economy. With the goal of restructure the business sector and
boosting business activities in all major and auxiliary areas, FLC Group aims to achieve total
revenue of 12.5 trillion dong, profit before tax of 700 billion dong, up 27% compared to the
results achieved in 2017, profit after tax will strive to reach 560 billion, up 45.5%.

FLC Board of Directors submits shareholders to approve the plan to issue shares to pay dividend
in 2017 at the rate of 4% / charter capital. The issued capital is derived from the undistributed
profit in the consolidated financial statement for the year 2017. The implementation period is
expected in the third quarter of this year, after receiving the approval of the State Securities
Commission. In addition, the Board of Directors of FLC also proposes shareholders to issue
additional shares to existing shareholders to increase charter capital. Specifically, the company
plans to issue a total of 300 million shares at a price of VND10,000 per share for existing
shareholders. All proceeds from the issuance (VND3,000 billion) are expected to be used to
finance the implementation of the FLC Quang Binh Resort and Ecotourism Project.

Substantial development:
The development strategy of FLC is to become real estate corporation in Vietnam, step by step
reach the region and the world. The company currently owns some large potential real estate
development and located in the prime location in Hanoi and some localities, in addition FLC is
still looking for promising projects to invest.

In order to accomplish its goals in 2018 and remain in the future, FLC will focus all resources to
accelerate the implementation of resort real estate projects, early put into operation and supply
products to the market such as Project Pants resort, luxury resort and entertainment FLC Quang
Binh; Project Complex Conference center, service area, resort and resort resort FLC Ha Long;
Eo Gio eco-tourism resort project. In addition, continue construction and completion of real
estate projects such as FLC Twins Tower, FLC Garden City, FLC Complex Complex (FLC
Complex Thanh Hoa)... At the same time, to continue searching for and negotiating the transfer
of a number of housing projects from other investors to invest in exploiting.

The company will also continue to develop potential businesses such as agriculture, industry,
aviation, etc. Bamboo airways has been developed and operated in early 2018 and predicted to
be on the market in late 2018. In terms of development strategy, Bamboo Airways does not
locate cheap airline but traditional airlines like Vietnam Airlines and will also offer more
advanced services than traditional and also very cheap service like free flights to FLC resorts.

Resort potential

Simultaneously, besides commercial real estate, the FLC Group foresaw the long-term potential
of the resort property sector; and has been exploring and investing in pristine tourism spots along
amazing beaches since 2014. All FLC’s resorts are large-scale developments that resemble
modern urban complexes with state-of-the-art facilities, professional services and comprehensive
amenities.

As of October 2017, the FLC Group’s value was estimated at US$9 billion by UniCap Fund,
including the already operational five-star FLC Luxury Resort Vinh Phuc in Vinh Phuc (250ha),
FLC Samson Beach & Golf Resort in Thanh Hoa (200ha) and FLC Quy Nhon Beach & Golf
Resort in Binh Dinh (1300ha).
In 2017, the group plans to launch the FLC Ha Long Golf Club & Luxury Resort (159ha) and
reveal plans for integrated resorts in some of the largest coastal localities in Vietnam, such as Hai
Phong, Quang Ninh, Quang Binh and Nghe An. In particular, in Quang Ninh, the super-project
FLC Van Don has a total investment of US$2 billion, including an 18-hole golf course, five-star
hotels, high-end villas and a large-scale casino, which is expected to be the first one in Vietnam
for both domestic and international players.

In total, the group is operating and investing in eight out of 28 coastal provinces in Vietnam,
covering 7.300ha along 40km of coastline.

FLC Group always offers its clients a truly resort-oriented lifestyle, whether in an extravagant
beach villa or on top of a luxurious high-rise hotel. Each FLC project has a distinct character
inspired by that region’s culture – a spa service providing ancient Cham treatments, a restaurant
using local ingredients or tourist activities to explore beautiful Vietnamese destinations. All these
contribute to a truly high-class living environment, turning stunning coastal towns into new
travel destinations.

Planning to strike the market with 10 golf courses and resorts, 5,500 condotels, 3,500 villas and
6,000 hotel rooms in 2020, FLC Group aims to confirm its position as the leading resort
developer in Vietnam. The group’s accurate investment decisions and vigorous implementation
have helped make its stock one of the market’s most liquid, and its chairman among the richest
US dollar billionaires on Vietnam’s stock market.

Social responsibilities:

Being one of the few real estate companies in the Top 100 Gold Star of Vietnam in 2015, FLC is
considered to have outstanding achievements in production and business activities, contributing
positively to the recovery. recovery and international integration of the economy; To be a typical
enterprise in community activities, to fulfill the Party's and State's undertakings, to ensure social
security and to protect the legitimate rights and interests of laborers. Every year, FLC actively
participates in practical community activities such as flood relief, poor hands for the poor,
marine police support, sponsorship of golf tournament "For Vietnamese children". Through the
organization of the annual FLC Golf Challenge, FLC has had many years of donations to support
the shelters of love, helping to mobilize situations in the difficult life. Moreover, FLC’s projects
has solved the unemployment status of all over Vietnam, namely 400 positions/province
whenever FLC opens a new project about resorts, organizations. Some popular projects are FLC
Grand Hotel Samson, FLC Quy Nhon…

Protect environment:

Going green

The group prioritises sustainable social development alongside its economic objectives. It
frequently participates in and organises activities to aid flood victims, offers scholarships to
impoverished students, builds schools in remote villages and helps preserve the environment
with beach clean-up campaigns.

“A resort project’s lifespan is very long. If surrounding landscapes are destroyed because the
developer does not pay attention to environmental protection, the fate of the project itself is in
tatters,” said FLC Group General Director Le Thanh Vinh.

Vinh reiterated that the fate of the natural landscape also determines the course of a resort real
estate project. Therefore, heritage conservation and environmental protection are always goals
set by FLC right at the planning phase.

Externally, the architectural design is carefully planned, making utmost efforts to avoid
disturbing the natural landscape. And in interior design, every piece of equipment is selected
taking into consideration its environmentally friendly standard. Resort employees pay attention
to saving energy and other resources everyday as they serve customers.

Workshops abroad

From its position as a leading corporation in the country, the FLC Group is expanding operations
to potential markets in the region. Road shows and workshops to promote FLC’s hospitality
products held this year in Singapore and Japan attracted a large number of individual and
institutional investors, investment funds and real estate companies from Asia and the world.
South Korea, Hong Kong and the United States are seen as the next markets to further promote
the group.
On the sidelines of the Singapore road show, Quyet revealed plans to launch a new airline that
could take to the skies early next year. He said FLC Group was working with Airbus to lease
some seven aircraft by 2018.

Previously, FLC’s board had decided in May to set up a new airline called Bamboo Airways.
Bamboo Airways will take a different path from its domestic counterparts, focusing on direct
services connecting international markets with emerging tourist destinations in Vietnam, instead
of major urban areas where the aviation infrastructure is already overloaded.

Priority will be given to localities where FLC has built major tourist complexes, including Quang
Ninh, Hai Phong in the north, Thanh Hoa and Quy Nhon (Binh Dinh Province) in the central
region, and Nha Trang (Khanh Hoa Province) and Phu Quoc (Kien Giang Province) in the south.

The operation orientation of Bamboo Airways is expected to help the group better exploit
existing aviation infrastructure while avoiding overloaded airports.

“Overall, our projects are well received and highly rated among potential partners from
overseas. We are finalizing the signing process to strategically cooperate in the field of
financial investment, resort real estate, construction, technology, agriculture and healthcare,”
Vinh said.

P2. Explain the size and scope of a range of different types of organizations

1. Size: A large company includes the criteria: the company must have more than 250 employees
or revenue must be greater than or equal to $ 22.8 million. From here it can be said that the FLC
is a large corporation with turnover in 2017 is approximately $ 500 million, equivalent to 11.6
trillion, twice as much as in 2016.

Labor:
In 2012, the number of employees of the FLC is quite small but by 2018 the number has risen to
7,000 people.
Capital: Chartered capital: the company's chartered capital from June 2012 reached 771.8
billion. And as of August 19, 2016 reached 6,380.3 billion.

The market capitalization of the FLC reached VND480 billion on 4 April 2018.

At the same time, the company's assets as of September 2012 reached 2413.3 billion and by
April 5, 2018 reached 41902 billion.
FLC Group has 9 subsidiaries, associates. The company is implementing 10 real estate projects
such as housing, commercial services, hotels, resorts and industrial parks in the north and has a
major shareholder is Ninh Bac Finance Investment Joint Stock Company.

Assets: According to the statistics of total assets of the company in 2016 reached VND 17909
billion increase to 82.48% compared with 2015. However, in fact, according to experts, the total
assets of the corporation flc must be up to $2 billion with brand value As well as many of the
major projects of the company, such as FLC resort, Sam Son resort, golf course, 5 star hotel,
professional staff ... FLC has many other projects, from real estate projects to industrial parks
and farms, with a total investment of over 15,000 billion. These projects have the common
characteristics of large scale investment, beautiful location, convenient in exploiting business
from the first day.

2. Scope: Although FLC is a large corporation, however, the company operates mainly
domestically so it can be seen that FLC is NOT a multinational company. The main activities of
FLC Group are investment and real estate business, tourism, securities, financial investment,
construction material supply, event communication,...
Investment projects on real estate:
- Residential real estate
In 2016, the organization has completed and started to use the division, which is part of the FLC
+ Residential, office and commercial center FLC Twin Towers at 265 Cau Giay, Cau Giay,
Hanoi is under construction.
 + The housing project for cadres and civil servants of the Ministry of Justice at 10 Phan Van
Truong street, Dich Vong Hau ward, Cau Giay district, Hanoi city.
 + FLC Ecohouse Building at 24, Lane 64, Sai Dong, Sai Dong Ward, Long Bien District, Hanoi.
 + City Garden FLC Project in Dai Mo Commune, Tu Liem District, Hanoi.
 + FLC Star Tower Project at 418 Quang Trung Street, La Khe Ward, Ha Dong District.
 + FLC Complex project in Thanh Hoa city.

- Resort real estate


FLC Group with 3 successive projects launched in January 2018, including FLC Quang Binh
Resort project, FLC Eco Charm Da Nang urban area and FLC Asia Park Ha Cabinet.
After successful 5-star resorts in Vinh Phuc, Thanh Hoa, Binh Dinh, Quang Binh FLC project is
the next resort in exploring the potential land of the FLC. With an area of nearly 2,000 hectares,
this is a complex of hotels, resorts, golf courses, villas and commercial high-class houses, not
only contributing to the upgrading and expansion of accommodation facilities, meeting the
demand for rest. Increasingly, but also promises to be an attractive destination, helping to raise
the position of Quang Binh on the map of tourism in the country and internationally.

- Industrial real estate


The company continues to implement Hoang Long Industrial Park project in Hoang Hoa district,
Thanh Hoa province. Tam Duong II Industrial Park in Tam Duong, Tam Dao, Vinh Phuc; project
of Chan Hung industrial zone, Vinh Tuong district, Vinh Phuc province; Project on Hon La II
Industrial Zone, Quang Phu Commune, Quang Trach District, Quang Binh Province.
+ In addition, in 2016, the company will continue to carry out M & A activities to accumulate
land funds in the prime locations of the capital and neighboring provinces to develop real estate
projects in next year.
Real estate business activities: 2016 is a successful year with FLC, total revenue from real
estate sales (under contract) reached more than 5871 billion.
About the business of resort services: The business of resort services is still a source of stable
revenue for the Company. The total revenue from the business of exploiting and providing
services in 2016 reached VND326 billion.
The other business activities: In 2016 will continue to bring stable revenue of the company as:
Trading business (sales goods): VND 2079 billion. Construction activity: VND53 billion

Concerning the capital mobilization of the Company and FLC shares on the stock market:
The chartered capital of the company has increased to VND6,380.3 billion since August 19, In
2016, the Company has issued additional shares to existing shareholders and successfully
mobilized VND1,081,672,040,000

Aviation: FLC is a big company with a lot of future goals typical of an ambitious company with
aviation. Recognizing the potential of the airline industry, the need to travel and travel needs of
people are growing, FLC established Bamboo Airline. Bamboo Airline will meet these needs,
moreover, it will help not only domestic and international visitors to access the resort of FLC. It
is expected that Bamboo Airline will be operational by the year 2022. Currently, FLC has signed
a contract to purchase 24 aircraft of Airbus and Bamboo Airline is recruiting 600 positions.

Competitors: There are many companies investing in the field of real estate investing and
trading. Competitors are large companies such as Vinaconex, HUD, and typically Vingroup.
Trading real estate with big projects such as VinHome, Vinpearl resort, Roal City and Time City.

LO2 Demonstrate the interrelationship of the various functions within an organisation and
how they link to organisational structure

P3. Explain the relationship between different organizational functions and how they link
to organizational objectives and structure
FLC Group Joint Stock Company has the organizational structure of divisional

General Assembly of Shareholders: is the company's highest authority. Having an important


role in deciding the direction of the company's development, the General Meeting of
Shareholders may appoint or exempt members of the Board of Directors and members of the
Supervisory Board. The General Meeting of Shareholders may decide to organize or dissolve the
company.

Board of Management: The Board of Management is the highest governing body of the
Company, with full powers to act on behalf of the General Meeting of Shareholders on issues
related to the Company's objectives and interests, except for matters falling under the powers of
the General Assembly of Shareholders. Board of Directors elected by the General Assembly of
Shareholders.

Supervisory Board: The Board of Supervisors is elected by the General Meeting of


Shareholders, which is the organization on behalf of shareholders to control all business,
management and operation of the Company, including monitor the Board of Directors.

Board of Directors: Board of Directors consists of General Director and Deputy General
Directors, appointed and dismissed by the Board of management. General Director is the legal
representative of the Company and is the highest manager of all business activities of the
Company.

Business Department: Having the function of advising the Board of Directors on the plan of
production and business, direct market research, source of goods, customers at home and abroad
to promote activities trade.

Strategic Business Division: Seeking partners to contribute capital to invest or transfer projects,
develop annual investment plans and investment quality standards to ensure the business
operation of the company. Strategic direction set out, preserve capital, assets and efficiency of
capital investment of the company.

Investment Department: Researching the market, looking for investment opportunities, making
investment plans to submit to the leaders of the company for projects on building technical
infrastructure of urban areas; Home development project; Industrial production projects; Project
of capital construction, intensive investment, expansion of production capacity of the Company;
Joint venture projects, domestic and foreign joint venture; Investment projects in industrial parks,
export processing zones, hi-tech parks ...

Materials and Bidding: Organizing and managing the bidding for the Company's projects. To
advise the Board of Directors on appraisal of input prices of construction materials, supplies and
equipment for the implementation of the Company's projects; Planning and implementing the
purchase / sale of materials and equipment according to the orders of the projects / companies in
the company. Receive, manage and distribute the right supplies, equipment, specifications,
salary, types. To inspect and supervise the use of supplies at the member units of the Company.

Construction Volume Management: Volume control, billing / settlement for construction


packages at the Company's projects. Controlling to minimize losses in bar activities and
settlements related to construction investment projects of the Company.

Group Office: Research and firmly understand the legal regulations related to the Company's
operations, ensuring that the Company's operations are always in line with laws. Administrative
service, logistics service for production and business. Receipt of incoming and outgoing
documents, classification and distribution of documents for the department, look up and provide
documents as required. Transfer documents, newspapers, reports to the relevant departments and
then arrange records, documents to keep records, track record rotation.

Human Resources: Recruiting and training human resources. Ensure the implementation of
human resource management in the organization. Proposal for reward, discipline, transfer ... for
employees in the company.

The Finance-Accounting Department: To make annual financial plans, assign financial targets
to the attached units and directly inspect and urge the implementation thereof. To preserve,
develop and exploit effectively the capital and assets of the Company, arrange finance for
business development projects of the Company. To formulate plans on borrowing credit,
business cooperation, joint venture capital, implementing loan commitments and organizing
financial management of investment projects of the Company, including projects Business
cooperation, joint venture.
The Internal Control Board: To supervise, inspect and evaluate the observance of law
provisions, policies, rules, regulations, professional processes and rules of professional ethics at
divisions and committees. , Unit in the Company. To examine and evaluate the completeness,
timeliness, truthfulness and accuracy of the accounting system and financial reports. To timely
inform the Board about the nature and effect of these issues on the Company's operations and to
make practical recommendations for prevention and remedy.

Communication Department: Advise the Board of Directors on communication. Researching,


planning, organizing and implementing communication activities of the Company. Advising on
subsidiaries, associated companies on media related activities to ensure compliance with the
company's strategic direction and development.

Marketing: Market research and customer demand for products and services of the Company.
Market segmentation, target identification, brand positioning of the Company. Development and
management of products and services to ensure the suitability of the needs of the market and
customers. Develop and implement marketing plans and strategies for the company. Advising on
marketing plans and strategies for subsidiaries and associates.

Inspection Board: Inspecting and supervising the operation of sections, divisions, divisions and
member units of the Company. To consult the Board of Directors in managing and administering
the Company's activities. Propose measures to ensure discipline in the operation of the Company.
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