Global business environment

ACCESSOR: PHAM HOANG HIEN

WRITTEN BY: PHAM HUU KHAI
ID NUMBER: B180032
2nd ASSGINMENT OF GLOBAL
BUSINESS ENVIRONMENT
TITLE: A2: THE INFLUENCE OF
GLOBALISATION TO
INTERNATIONAL BUSINESS
EXPANSION GLOBALISATION
TO INTERNATIONAL BUSINESS
1 EXPANSION
Contents
Introduction ................................................................................................................ 3

Learning outcome 3: An assessment of how working in the global market affects

culture, structure, and functions of organization. ......................................................... 4

I. Organization utilize the advantages of globalization. ............................................. 4

II. Globalization has an effect on culture, strategy organizational chart,organizational

structure, and span of control (from domestic to global)............................................... 5

1. Strategy ............................................................................................................ 5

2. Culture ............................................................................................................. 7

3. Organizational culture ...................................................................................... 9

4. Span of control ................................................................................................ 15

III. Evaluate the influences of ethical and sustainable globalisation on organisational

functions. .................................................................................................................. 25

1. Ethical globalisation ........................................................................................ 25

2. Sustainable globalisation ................................................................................. 25

3. Sustainable and ethical globalization impact on the functions of an organization.

………………………………………………………………………………………..26

Learning outcome 4: Assess the effect of globalization on organizational strategy and

decision-making ........................................................................................................ 28

I. Evaluate the different ways decision making can work effectively in a global
context. ..................................................................................................................... 28

II. Determine and articulate the various routes to internationalisation an organisation

may adopt, including key barriers. ............................................................................ 30

Conclusion ................................................................................................................ 34

References ................................................................................................................ 35

Bibliography ............................................................................................................. 35

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 Introduction
This assginment will assist students in developing knowledge and understanding
of a broader micro-environment in order to reap more success in global business. The purpose
of this assginment is to make the evaluation of how operating in a global market affect the
structure, culture and functions of a business, and to assess the impact of globalization on
decision making and strategy of an organization. In addition, it is going to analyze and show
the influence of globalization on organisational governance and leadership, structure, culture
and functions, and show the impact of ethical and sustainable globalization on organisational
functions. Moreover, it also makes a critically evaluate influences of globalization in applying
appropriate theories and models related to organisational structure and culture.

Besides, in this report, students have to highlight the different pathways for
internationalization that an organization can adopt, including key barriers and provide the
evaluation of the different ways in which decision-making can work effectively in a global
context. Furthermore, it also give the critically evaluate the key barriers in doing business
internationally and make recommendations on how they can be overcome.

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Learning outcome 3: An assessment of how working in the global market affects culture,
structure, and functions of organization.
I. Organization utilize the advantages of globalization.
The benefits of globalization contribute to and developing economic as well as
socio-economic sectors of each country and the world through the process of expanding
markets, trading, and reducing pressure on tax. In addition, it is also creating opportunities for
developing countries to integrate into the world economy, accelerating economic growth and
technological innovation. Since the opening of Vietnam, integration and development of a
multi-sector commodity economy, there have been many foreign companies investing in and
developing cross-border trade,…. Especially in the trend of globalization, Vietnam joins the
world and regional economic organizations such as BTA, AFTA, WTO ... This is an
opportunity for Vietnam's economic sector, especially enterprises to have development
conditions and competitiveness in the international market. Specifically, the Vietnam Rubber
Company (VRG) expands the market. Currently, there are 14 VRG member companies
implementing 18 rubber projects in Cambodia with an area of 90,000 hectares on a total area
of about 130,000 hectares. Moreover, VRG exporter Vietnam as the 3rd largest natural rubber
exporter in the world. Each year, about 80% of natural rubber from Vietnam, including a large
amount of imports from Cambodia and Laos, exports with a turnover of 2.3 billion USD.
Besides, it is forecasted that the world's tire demand will continue to grow at an average rate
of about 3-4% / year in the current period, of which the growth rate in the value of the tire
market is. Vietnam will reach about 8% / year, twice as high as the world average. Besides,
VRG brings into play the advantages of the organization it has attracted to create more
investment sources to develop VRG. In addition, before the transformation of technology to
technology 4.0, the application of modern technology in all aspects of production and business
activities is of utmost importance to VRG in the era of technology 4.0. VNPT will coordinate
with VRG to develop a Digital Transformation project, towards the 4.0 enterprise model.
Accordingly, VNPT will immediately deploy 4.0 technology solutions to operate production
and business for VRG such as: Real-time business analysis and monitoring system; Application
of geospatial information system (GIS) in the management, exploitation and protection of
rubber forests in order to increase efficiency and productivity; Applying Chatbot artificial
intelligence in trend analysis and making agricultural forecasts; Applying blockchain in
transaction authentication, authenticating the origin of raw materials, products ... For many
years, VRG has always closely linked between cultivation, exploitation, production, and

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business with science and technology, training, from That makes VRG the core of the
development of Vietnam's rubber industry. (TTXVN, 2019)

II. Globalization has an effect on culture, strategy organizational

chart,organizational structure, and span of control (from domestic to global).
1. Strategy
❖ Pre
The accession to the World Trade Organization (WTO) has brought about positive
effects and created favorable conditions for the export of rubber products of Vietnam. Joining
the WTO, Vietnam will enjoy tax incentives when exporting to many countries and have many
good opportunities to attract investment and technology transfer from developed countries.
Rubber manufacturing enterprises of Vietnam will have the opportunity to cooperate with
foreign investors to build rubber processing factories to produce high value rubber, facilitating
market transformation. school. Therefore, the business strategy of Vietnam Rubber Industry
Group (VRG) is to maintain the development of the large-scale, diversified agricultural and
industrial economic group of agricultural and industrial products to improve efficiency.
comprehensive grouping; continue to promote and strengthen the application of science and
technology in production, increase the added value in the value chain of products; gradually
increase the value of industrial products and services out of the total product value of the
Group; continue to implement the policy of restructuring and diversifying ownership in the
Group through equitization to improve corporate governance capacity, business efficiency and
create capital to develop the Group. The Group proactively integrates into the world, actively
participates in industry organizations and associations to improve its brand name and expand
the market; well perform the role of enterprises in the process of agricultural, farmer and rural
development, including developing production in combination with technical infrastructure,
employing ethnic workers, and continuously increasing productivity. productivity and income
of employees; to harmoniously combine economic development with the task of ensuring
social security, political security and national security within the Group's production
organization. The building of this strategy will help businesses increase profits, improve
competitiveness and build brands. In addition, the leader of Vietnam Rubber Group (VRG) has
just implemented an M&A strategy of a number of tire companies under the Chemical Group
(Vinachem) to optimize the value chain of the industry. Due to the increasing demand for
imported tires from foreign markets, a series of large natural rubber consuming companies have
announced their sustainable development policies, including large tire manufacturers. such as

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GoodYear, Hankook, Michelin, Pirelli, Sumitomo, Yokohama ... and large purchasing
companies such as Corrie Maccoll, Halcyon Agri, Itochu, Southland ... So, to promote the
development of the rubber and rubber processing industry in Vietnam. The South needs to
diversify products, reduce the export of raw materials, develop and process production, change
the structure of the product industry to meet the needs of markets such as the EU and North
America and reduce dependence on the market China. Moreover, in order to enhance the value
of Vietnam's rubber tree, market research, technology selection, human resource training,
investment in industrial rubber products, promote the development of tire and tube production.
to serve the auto industry is urgent. (TTXVN, 2017)

❖ Post
The rubber development strategy as well as the business development strategy that
VRG is still applying and developing effectively. This is VRG's strategy in the domestic market
before being used or deployed in foreign markets. However, the use of the strategy changes
and is tailored to suit the foreign market substantially. Through its influence on demand,
Vietnam Rubber Company (VRG) promotes the development of the rubber industry by
expanding its market to Cambodia. This will adjust and change defines the company's current
strategy and formulates a new more suitable and effective strategy for market penetration, long-
term development and market expansion for the rubber industry in Cambodia. So, VRG
develops a rubber development strategy in the Cambodian market with a sustainable
development program associated with 3 aspects: Economic development - Environmental
protection - Community and social responsibility. Implementing the rubber development
investment program in Cambodia, all VRG rubber areas are legally certified in accordance with
the host country's regulations; The Group commits not to illegal exploitation; not dealing in
forest products; attach importance to preserving and conservation values in the project areas;
do not violate national laws and international conventions in the areas of operation. In addition,
this strategy helps the company to develop economically, without harming the environment as
well as protecting the environment in the Cambodian market and helping communities and
society get a job. Content and implementation solutions, for each specific area, VRG leaders
have had plans, action programs and implemented specific steps. In terms of economic
development, up to now, the rubber area that VRG has planted is nearly 90,000 hectares, in 7
provinces, workers in Cambodia are over 11,000 people, exploiting area is nearly 50,000
hectares, investment projects at CPC step The top has very good results. In addition, not only
economic investment, through investment projects, friendly solidarity is strengthened. The

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Group not only invests in economic development, but also invests in infrastructure and
livelihoods for rubber people and workers. Rubber plantations that used to be a wilderness or
undeveloped area are now steadily developed, with electricity, water, schools, pagodas ... In
addition, the use of this strategy to promote the solidarity, friendship and effective cooperation
between Vietnam and Cambodia. Therefore, this strategy is being used in a proper, developed
and efficient manner for the rubber industry in the Cambodian market.

2. Culture
❖ Pre
Trade Union VRG Company always considers corporate culture to be the
invaluable spiritual energy of each union member, every employee and of the whole Company.
Corporate culture is a rich resource for the Company to aim for every success. Implementing
the Resolution of the Party Committee and the Trade Union of the Company, the Trade Union
executive committee has placed the task of building corporate culture as one of the key tasks
throughout the past years. To build corporate culture at VRG, company leaders are fully aware
of the importance of corporate culture and attach special importance to building corporate
culture. VRG's corporate culture is always people as the center of production and business
activities; the customer is the person who decides the existence; Corporate culture is an
important factor for sustainable development. The company's leaders and trade unions have
determined that the nature of corporate culture is internal, to strengthen potentials, gather the
mentality of employees, encourage them to work creatively, and keep. pride in the company's
reputation, with the brand that they have unanimously built and developed, both pride and self-
awareness. In terms of external relations, the Company's brand must be positioned in the
marketplace, expand the market, be accepted by the society and the community... (PV, 2014)

❖ Post
After the process of globalization, VRG expanded into the Cambodian market,
leading to a reform of corporate culture. The innovations of corporate culture are from the
management board to a team of employees who are always innovating to develop, continuously
creating to build a team full of enthusiasm, perseverance and desire to reach out. Besides,
VRG's culture is always open, know and wants to listen: Leadership is willing to listen to
individual contributions. Moreover, the company also attaches great importance to each
individual's behavior towards the good relationship and attitude among individuals, thereby
creating uniqueness and cohesion for the whole company. In addition, VRG is a corporation

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with a large scale and increasingly deeply integrated into the international economy, so the
corporate culture is associated with 3 aspects of Economic Development - Environmental
Protection - Responsibility with the community and society. Thanks to building and continuing
to innovate corporate culture, VRG has continuously achieved many successes in recent years.
That is the creation of motivation for employees and employees' attachment to the Company.
The company coordinates and controls behavioral medicine, making it easy to make decisions
thanks to high consensus and reduced conflicts. The VRG culture has helped the company
achieve labor efficiency and increase its competitiveness in the market. (PHONG, 2019)

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 3. Organizational culture

❖ Pre

GENERAL MEETING OF SHAREHOLDERS

ADMINISTRATIVE SUPERVISORY
COUNCIL BOARD

BOARD OF DIRECTOR

TECHNOLOGY AND SUBSIDIARIES

ENVIRONMENT DEPARTMENT

PLANNING AND INVESTMENT CAREER

DEPARTMENT ADMINISTRATIVE UNITS

LABOUR AND SALARY DEPARTMENT

TECHNICAL MANAGEMENT DEPARTMENT

FINANCIAL AND ACCOUNTING DEPARTMENT

INSPECTION AND ACCOUTING DEPARTMENT

PROPAGANDA AND EMULATION

DEPARTMENT

HUMAN RESOURCE DEPARTMENT

BASIC CONSTRUCTION DEPARTMENT

BUSINESS MARKET DEPARTMENT

9
 ADMINISTRATIVE DEPARTMENT

INFORMATION TECHNOLOGY DIVISION

ADMINISTRATION

RECORDS MANAGEMENT AND

ARCHIVES

FLEET TEAM

VRG’S REPRESENTATIVE
OFFICES

This is the organization chart of the domestic market before globalization, it

depicts activities and shows the layers of the company. It includes the board of directors,
shareholders, board of directors, control board, subsidiary and departmental departments. The
main operational tasks of the leaders, the board of directors and the supervisory board are to
develop strategies, make plans, set goals and monitor mutual activities to promote growth.
Vietnam rubber industry, increase revenue, compete with foreign markets, develop science and
technology and raise brands. For the organizing departments, they have the role of rubber
exploitation, cultivation, rubber preparation, providing strategic advice to the leaders,
performing the tasks proposed by the leaders and management. in order to develop rubber and
improve product quality. (VRG, 2021)

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 ❖ Post

GENERAL MEETING OF
SHAREHOLDERS

ADMINISTRATIVE COUNCIL SUPERVISORY

BOARD

GENERAL DIRECTOR

DEPUTY GENERAL SPECIALIZED

DIRECTOR DEPARTMENTS

ASSOCIATED SUBSIDIARIES
CAREER UNIT
COMPANY

Direct

Indirect

After the globalization process, VRG's organizational structure remains unchanged and
continues to work to develop the domestic rubber industry. However, due to the influence of
globalization, VRG expanding to foreign markets has changed and adjusted in the
organizational structure. The changes in the organizational structure when expanding to the
Cambodian market are that there are no activities of departments, but instead of departments,
affiliates, and non-business units, but the same leadership. However, compared to the pre-
globalization organization chart, the general director and deputy director are shown in this
chart. Besides, in this organizational chart, it clearly shows the control and direction between

11
departments and upper managers. In addition, Particularly, VRG will undertake the operations
and implementation of plans and targets in the Cambodian market to develop the rubber
industry effectively. (VRG, 2019)

The main business activities of the subsidiaries and associated company in the
Cambodian market are planting; exploit; processing and trading natural rubber latex; latex
trading and services for rubber development; trading, importing and exporting: Rubber,
materials and equipment for the rubber industry; construction of civil works, construction of
tires and tubes factories, construction of infrastructure in rural and mountainous areas;
exporting finished rubber products; In addition, they also invest in the construction,
management, operation and trading of commercial electricity for hydroelectric plants; Invest
in planting, tending, exploiting and processing rubber, other industrial trees and afforestation.
Moreover, its subsidiaries and associated company also process products from rubber trees,
process, manufacture, sell sports shoes for export, and buy and sell rubber and rubber products.
Besides, they produce and trade, import and export MDF, Okal artificial wood planks; planting,
trading and exploiting raw materials to produce MDF, paper and other industrial trees. These
are the main business activities of subsidiaries and associated company in the Cambodian
market for the rubber industry in order to promote and grow the rubber industry in foreign
markets, and expand the market; brand enhancement; improve science and technology;
increase competition with foreign competitors; increase sales and revenue. (VRG, 2019)

❖ Duties and responsibilities of the General Director (VRG, 2019)

1. Organizing the development of the Group's development strategy; development planning of
projects in the industries and trades of the Group; long-term plans, annual plans, business
coordination plans in the Group; preparation of investment projects, organizational and
management projects; draft of the Charter, amendment of the Group's Charter; draft of the
Group's Financial Management Regulations, the Group's regulations and regulations; building
human resource development plans; building a system of technological indicators, product
standards, economic and technical norms, wage unit prices; preparation of economic contracts,
civil contracts, plans to prevent risks, plans to mobilize and use capital; Prepare periodic
reports, statistical reports, financial statements of the Group, consolidated financial statements
of the Group and other projects and projects.
2. Draft internal regulations on governance of the Group for the Board of Directors to submit
to the General Meeting of Shareholders for approval.

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3. To submit to the Board of Directors for consideration and decision the contents falling within
the competence of the Managing Board or for the Managing Board to submit to competent
authorities for decision.
4. To make decisions on the Group's investment projects, loan, loan, asset purchase and sale
contracts as decentralized or authorized by the Board of Directors of the Group. Signing
contracts on behalf of the Group.
5. Deciding on assigning tasks to Deputy General Directors of the Group.
6. Decision on planning, appointment, re-appointment, resignation, dismissal, transfer,
rotation, commendation, discipline, resignation, retirement for heads of departments, chief of
staff and heads dependent units after obtaining written approval from the Board of Directors.
7. Decide on planning, appointment, re-appointment, resignation, dismissal, transfer, rotation,
reward, discipline, resignation, retirement for Deputy Heads of Departments, Deputy Chief of
the Office, Deputy Heads of dependent units at the request of Heads of Departments, Chief of
Offices, Heads of dependent units.
8. To decide on matters assigned or authorized by the Board of Directors in accordance with
this Charter and the Group's internal management regulations and relevant legal documents.
9. Decide on the plan to use the Group's capital and assets to contribute capital and purchase
shares of domestic companies with the value under the decentralization or authorization of the
Board of Directors and other French regulations. the law.
10. Make decisions on recruiting, signing contracts, terminating labor contracts or deciding to
appoint, dismiss, reward, discipline, salary and allowances for titles as prescribed in Clause 8
of this Article and management positions as decentralized by the Board of Directors.
11.To request the Board of Directors of the Group to decide on the planning, appointment,
reappointment, resignation, dismissal, transfer, rotation, reward, discipline, resignation, and
retirement for the officers. Name: Deputy General Director and Chief Accountant of the Group;
member of the Members 'Council, chairman of the Members' Council or chairman of the
company and the controller of the subsidiary is a one-member limited liability company with
100% charter capital held by the Group.
12. To propose to the Board of Directors to decide to appoint the representative of the Group's
contributed capital in another enterprise, to introduce participants to the Board of Directors,
Board of Members, and Supervisory Board in another enterprise.
13. Organizing and operating daily business plans, investment plans and activities; business
coordination plan within the Group; auditing, inspecting, protecting, deciding on market
development, marketing and technology solutions and other activities aimed at effectively

13
implementing the resolutions and decisions of the Board of Directors and shareholders; manage
the Group's activities to implement the resolutions and decisions of the Board of Directors.
14. Carry out the monitoring, inspection and supervision of the operations of the member
enterprises.
15. Report to the Board of Directors on the Group's business performance; to disclose
information and publicize financial statements in accordance with the provisions of law.
16. To be subject to the inspection and supervision of the Board of Directors, Supervisory
Board for the implementation of the functions and duties in accordance with this Charter and
other provisions of Laws.
17. To apply necessary measures in emergency cases and must immediately report to the Board
of Directors.
18. Submit to the Board of Directors for approval the plan to pay dividends or deal with
business losses.
19.The General Director is responsible to the Board of Directors and the General Meeting of
Shareholders for the performance of assigned duties and powers and must report to these
agencies when required; Other rights and duties in accordance with provisions of Laws, of this
Charter and decisions of the Board of Directors.

❖ Duties and responsibilities of Deputy general director (VRG, 2019)

1. The Group has Deputy General Directors who are appointed, re-appointed, dismissed,
replaced, dismissed, rewarded, or disciplined by the Board of Directors at the proposal of the
General Director.
The number of Deputy General Directors is decided by the Board of Directors, in accordance
with the Group's management needs.
2. Deputy General Director assists the General Director in operating the Group; perform duties
and powers assigned by the General Director in accordance with this Charter; is responsible to
the General Director and the law for the duties and powers assigned. Authorization in
connection with signing contracts or related to the use of the Group's seal must be in writing.

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 4. Span of control
❖ Definition
The larger the organization, the more levels of management there are. As a result,
a hierarchy was born. Many people in a department have to work with a single boss. Some
departments may have only ten employees, while others may have hundreds of employees. In
both cases, the Span of control exists to separately manage all levels of the organization. (Saga,
2017)

Span of control is the maximum of workers that a manager can supervise

effectively as possible. Adding new ranks will make the organizational structure steeper. Large
span of control will make the organization's structure flatter, resulting in lower costs. A small
Span of control will make the organization structure steep, require more management, and will
be costly. So the manager in the organization should have a large Span of control. (Saga, 2017)

Span of control always includes the following two dimensions:

• Horizontal
This is the number of subordinate employees that directly oversees management.
It is also known as the Span of control.

• Vertical
This is the number of levels administered (direct or non-direct). It refers to the
degree to which the manager wishes to drop to the lowest level of the organization. It is also
known as Depth of Control. It is primarily aimed at the level of communication between the
manager and the subordinates for which he is responsible. Without a good leader,
communicating down to subordinates will be difficult.

❖ Factors affecting
Good leadership is also related to the manager's innate talent. In addition, there are
a number of other factors that also play an important role. There is an example of the size of
the Span of control and the number of subordinates. (Saga, 2017)
It is also related to:
₋ Manager's experience and expertise.
₋ Understanding of the character and people of the manager.

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 ₋ Employee experience, expertise and behavior towards each other.
₋ The nature of the work and the complexity of the assigned tasks.
₋ The nature of the organization and the degree of communication, decentralization, and
quality of interaction in the work environment.

Span of control in VRG’s company

Up to now, Vietnam's rubber industry, in which VRG plays a leading role, has
affirmed its role and strong position. Not only contribution to economic value, rubber
businesses also make an important contribution to social security, promote new rural
development, contribute to consolidating and maintaining national defense and security and
increase strengthening international cooperation relationship. During construction and
development, the leadership and management boards worked and together led subordinate
numbers to success, the project's goals and the plan was effectively developed. fruit. In the
company's structure VRG includes 17 people with the role of managers and leaders; on the
board of directors there is 1 chairman and 6 members of the executive council; The Board of
Directors includes 1 director and 6 deputy directors; The comparison committee consists of 1
chief controller and 2 controllers. Leadership boards have several functions and duties that
oversee activities or manage each other. Besides, they also have to manage other departments
and subordinate staff.

o Administrative Council (VRG, 2019)

❖ The Administrative Council has the following rights and duties:
a) Decide the strategy, medium-term development plan and annual business plan of the Group;
b) To recommend types of shares and total number of shares to be offered for each class;
c) Decide to sell new shares within the number of authorized shares of each class; decide to
raise more capital in other forms;
d) Deciding selling prices of shares and bonds of the Group;
e) Decide repurchase of shares in accordance with Clause 1 Article 19 of this Charter;
f) To decide on investment plans and investment projects within the competence and limits
according to the provisions of law;
g) Determine business growth, marketing, and technology solutions;
h) To approve purchase, sale, loan, loan and other contracts with a value equal to or greater
than 10% (ten percent) of the total value of assets recorded in the most recent financial

16
statements of the Group. This provision does not apply to contracts and transactions specified
at Point f, Clause 2, Article 22, Clause 1 and Clause 3, Article 49 of this Charter;
i) Election, dismissal or removal from office of the Chairman of the Board of Directors;
appoint, dismiss, sign contract, terminate contract with respect to the General Director; appoint,
dismiss, sign contract, terminate the contract with the Deputy General Director, the Chief
Accountant of the Group on the basis of the proposal of the General Director;
j) To approve for the General Director to decide on the planning, appointment, reappointment,
resignation, dismissal, transfer, rotation, reward, discipline, resignation or retirement for the
Head of the Boards, Chief of Office, Head of affiliates of the Group;
k) Report to the General Meeting of Shareholders on the appointment of the General Director
of the Group;
l) Appoint a Representative of the Group's contributed capital and appoint an Authorized
Representative to participate in the Board of Directors / Board of Members, the Supervisory
Board in another enterprise, decide the level of remuneration, rights and obligations the cases
of those people;
m) Supervise and direct the General Director and other managers to run the daily business of
the Group;
n) Decide the organizational structure; Develop and submit to the General Meeting of
Shareholders for approval the Internal Regulation on corporate governance of the Group;
Develop and promulgate economic - technical processes and norms suitable to the Group's
economic - technical characteristics, industries, business lines, organizational management
model, and equipment level;
o) Organized internal audit activities and decided to establish an internal audit unit of the Group
(if any).
p) Decide the establishment of subsidiaries, branches and representative offices of the Group
and the capital contribution and share purchase of other enterprises;
q) Approve the agenda, contents of documents serving the General Meeting of Shareholders,
convene the General Meeting of Shareholders or collect opinions for the General Meeting of
Shareholders to approve;
r) Submit annual financial statements, plans for distribution of profits, set up annual funds to
the General Meeting of Shareholders;
s) To propose to the General Meeting of Shareholders the amount of dividends to be paid;
decide the deadline and procedures for paying dividends or dealing with losses incurred in the
business process;

17
t) To propose to the General Meeting of Shareholders the reorganization, dissolution, or request
for bankruptcy of the Group;
u) Approve business or transaction issues that the Board of Directors decides to require
approval within its powers and responsibilities.
The Board of Directors approves the decision by voting at the meeting or collecting opinions
in writing on the principle of majority selling. Each member of the Board of Directors has one
vote.
When performing its functions, duties and powers, the Board of Directors complies with the
provisions of the Law, the Charter and resolutions of the General Meeting of Shareholders. In
case the resolution passed by the Board of Directors is contrary to the provisions of law or this
Charter causes damage to the Group, the members agree to approve.
that resolution must be jointly jointly responsible for such resolution and must compensate the
Group for any damage; Members who oppose through the above resolution are exempt from
liability;
Other rights and duties in accordance with this Charter.

o Board of manager (VRG, 2019)

❖ Functions, powers and duties of the General Director:
1. Organizing the development of the Group's development strategy; development planning of
projects in the industries and trades of the Group; long-term plans, annual plans, business
coordination plans in the Group; prepare investment projects, organizational projects,
manage; draft of the Charter, amendment of the Group's Charter; draft of the Group's Financial
Management Regulations, the Group's regulations and regulations; building human resource
development plans; building a system of technological indicators, product standards, economic
and technical norms, wage unit prices; preparation of economic contracts, civil contracts, plans
to prevent risks, plans to mobilize and use capital; Prepare periodic reports, statistical reports,
financial statements of the Group, consolidated financial statements of the Group and other
projects and projects.
2. Draft internal regulations on corporate governance of the Group for the Board of Directors
to submit to the General Meeting of Shareholders for approval.
3. To submit to the Board of Directors for consideration and decision the contents falling within
the competence of the Managing Board or for the Managing Board to submit to competent
authorities for decision.

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4. To make decisions on the Group's investment projects, loan, loan, asset purchase and sale
contracts as decentralized or authorized by the Board of Directors of the Group. Signing
contracts on behalf of the Group.
5. Deciding on assigning tasks to Deputy General Directors of the Group.
6. Decision on planning, appointment, re-appointment, resignation, dismissal, transfer,
rotation, commendation, discipline, resignation, retirement for heads of departments, chief of
staff and heads dependent units after obtaining written approval from the Board of Directors.
7. Decide on planning, appointment, re-appointment, resignation, dismissal, transfer, rotation,
reward, discipline, resignation, retirement for Deputy Heads of Departments, Deputy Chief of
the Office, Deputy Heads of dependent units at the request of Heads of Departments, Chief of
Offices, Heads of dependent units.
8. To decide on matters assigned or authorized by the Board of Directors in accordance with
this Charter and the Group's internal management regulations and relevant legal documents.
9. Decide on the plan to use the Group's capital and assets to contribute capital and purchase
shares of domestic companies with the value under the decentralization or authorization of the
Board of Directors and other French regulations. the law.
10. Make decisions on recruiting, signing contracts, terminating labor contracts or deciding to
appoint, dismiss, reward, discipline, salary and allowances for positions specified in Clause 8
of this Article and management positions as decentralized by the Board of Directors.
11.To request the Board of Directors of the Group to decide on the planning, appointment,
reappointment, resignation, dismissal, transfer, rotation, reward, discipline, resignation, and
retirement for the officers. Name: Deputy General Director and Chief Accountant of the Group;
member of the Members 'Council, chairman of the Members' Council or chairman of the
company and the controller of the subsidiary is a one-member limited liability company with
100% charter capital held by the Group.
12. To propose to the Board of Directors to decide to appoint the representative of the Group's
contributed capital in another enterprise, to introduce participants to the Board of Directors,
Board of Members, and Supervisory Board in another enterprise.
13. Organizing and operating daily business plans, investment plans and activities; business
coordination plan within the Group; auditing, inspecting, protecting, deciding on market
development, marketing and technology solutions and other activities aimed at effectively
implementing the resolutions and decisions of the Board of Directors and shareholders; manage
the Group's activities to implement the resolutions and decisions of the Board of Directors.

19
14. Carry out the monitoring, inspection and supervision of the operations of the member
enterprises.
15. Report to the Board of Directors on the Group's business performance; to disclose
information and publicize financial statements in accordance with the provisions of law.
16. To be subject to the inspection and supervision of the Board of Directors, Supervisory
Board for the implementation of the functions and duties in accordance with this Charter and
other provisions of Laws.
17. To apply necessary measures in emergency cases and must immediately report to the Board
of Directors.
18. Submit to the Board of Directors for approval the plan to pay dividends or deal with
business losses.
19.The General Director is responsible to the Board of Directors and the General Meeting of
Shareholders for the performance of assigned duties and powers and must report to these
agencies when required; other rights and duties according to provisions of the Law, this Charter
and decisions of the Board of Directors.

o Supervisory Board (VRG, 2019)

❖ Rights and obligations of the Supervisory Board
1. The Supervisory Board supervises the Board of Directors, General Director in the
management and administration of the Group; to be responsible to the General Meeting of
Shareholders for the performance of assigned tasks.
2. Check the reasonableness, legality, honesty and prudence in the management and
administration of business activities; systematic, consistent and appropriate accounting,
statistics and financial reporting.
3. Verifying the completeness, legality and truthfulness of the Group's annual and 6-month
business reports, financial statements, management evaluation reports of the Board of Directors
and submission of reports. Appraisal report at the Annual General Meeting of Shareholders.
4. Review, inspect and evaluate the effectiveness and efficiency of the Group's internal control
system, internal audit, risk management and early warning.
5. To examine the accounting books, accounting records and other documents of the Group,
the management and operation activities of the Group when deeming it necessary or according
to resolutions of the General Meeting of Shareholders or at the request of a shareholder or a
group of shareholders as provided for in Clause 3, Article 8 of this Charter.

20
6. At the request of a shareholder or a group of shareholders as provided for in Clause 3, Article
8 of this Charter, the Supervisory Board should implement an inspection within 07 working
days. Within 15 days from the end of the inspection, the Supervisory Board must report to the
explanation of the issues required to be inspected to the Board of Directors and the shareholder
or group of shareholders who request it. The inspection by the Supervisory Board as stipulated
in this Clause must not interfere with the normal operation of the Board of Directors, nor disrupt
the management of the Group's business operations.
7. To propose the Board of Directors or the General Meeting of Shareholders measures to
amend, supplement and improve the organizational structure, management, supervision and
operation of the Group's business operations.
8. When detecting that a member of the Board of Directors or the General Director violates the
provisions of Article 160 of the Law on Enterprises, he / she must notify the Board of Directors
in writing within 48 hours and request the executive. violations stop the violation and take
remedial measures
recover the consequences.
9. Have the right to attend and participate in discussions at the General Meeting of
Shareholders, the Board of Directors and other meetings of the Group.
10. Have the right to use the Group's independent consultant and internal audit department to
perform assigned tasks.
11. The Supervisory Board can consult with the Board of Directors before submitting reports,
conclusions and recommendations to the General Meeting of Shareholders.
12. To propose and propose to the General Meeting of Shareholders to approve an independent
auditing organization to audit the Group's financial statements;
13. Exercise other rights and obligations in accordance with the Law on Enterprises, this
Charter and resolutions of the General Meeting of Shareholders.

₋ Monitoring activities of the Board of Directors for the Board of Directors (VRG,
2021)
Vietnam Rubber Industry Group operates under the model of a 7 month round joint
stock company. The Board of Directors focuses on improving the organizational structure and
personnel from the Parent Company - the Group to its member units and on building internal
regulations, regulations, and assigning tasks. The Board of Directors participates in all
briefings of the Board of Directors of the Group, grasping the situation, and at the same time
directing the executive board of some key activities of the Group in production and business.

21
 ₋ Supervisory activities of the Supervisory Board of the Board of Directors (VRG,
2021)
The Supervisory Board supervises activities of the Board of Directors From the
date of the establishment of the General Meeting of Shareholders, the Board of Directors of
the Group has held a meeting of 05 sessions. The main content of the resolutions of the Board
of Directors is to solve the tasks in production and business while solving the work of
organization and management personnel at all levels, from the Group to member units. The
Board of Directors has built up the priorities; orientation of building sustainable development
enterprises; assigning duties to the members of the Board of Directors; direct the formulation
and issuance of internal management regulations; and give directions and resolve a number of
tasks in production and business activities under the authority of the Board of Directors of the
Group.

₋ Supervisory activities of the Supervisory Board for the Board of Directors (VRG,
2021)
Supervisory Board supervises activities of the Board of Directors The Board of
Directors has regularly held briefings to direct production and business activities, investment
and post-equitization work. All meetings of the General Director have invited the Board of
Directors and Head of Supervisory Board to attend. The General Director has strictly
implemented the instructions of the Board of Directors and complied with the provisions of
law.

₋ Supervision for shareholders (VRG, 2021)

Since its operation as a joint stock company, the Group has performed well in
disclosing information in accordance with current regulations.

₋ The coordination of activities between the Supervisory Board for the activities of
the Board of Directors, the Executive Board and other managers (VRG, 2021)
The operation process, the Board of Directors and the Board of Management have
created favorable conditions for the Supervisory Board. to control the performance of duties in
accordance with the Group's Charter and Internal Corporate Governance Regulations.

₋ Other activities of the Supervisory Board (if any): (VRG, 2021)

22
 The Supervisory Board has developed and issued an operation regulation and
assigned tasks to members of the Supervisory Board to ensure a legal corridor for the Board's
activities.

❖ Post
After globalization, the functions, powers and duties of leaders have not changed
and remain the same. However, its globalization affects the growth of the business, the
expansion, entry and even entry of foreign markets leads to some changes and adjustments in
the company. Those changes related to the governance situation are the supervision of the
Board of Directors to the Board of Directors; Supervisory Board's supervision for the Board of
Directors, Executive Board and shareholders.

₋ Supervisory activities of the Board of Directors for the Board of Directors

Pursuant to the Group's Charter and Corporate Governance Regulation, the Board
of Directors has supervised the activities of the General Director and the Board of Management
in the organization, operation of production and business and implementation of resolutions of
the Group. General Assembly of Shareholders and Board of Directors. According to the
evaluation of the Board of Directors, the activities of the General Director and the Board of
Management in the process of implementing the business and production plan were consistent
with the resolutions of the General Meeting of Shareholders, resolutions of the Board of
Directors, the situation. market reality and compliance with legal regulations; ensure jobs and
stable incomes for employees even during the period affected by the Covid epidemic - 19.
(VRG, 2021)

- Supervisory activities of the Supervisory Board to the Board of Directors, the

Executive Board and shareholders:
In the process of supervising the activities of the Board of Directors of the Group
in 2020, the Supervisory Board did not see anything unusual. The Board of Directors has held
and maintained regular meetings according to regulations. In the meetings of the Board of
Directors in particular and the activities of the Board of Directors in general, the members of
the Board of Directors, fully participating, have worked with a high sense of responsibility to
make resolutions and resolutions. to determine timely investment and business direction and
direction in accordance with the Resolution of the General Meeting of Shareholders and the
provisions of law. (VRG, 2021)

23
 The Board of Directors successfully organized the 2020 Annual General Meeting
of Shareholders on June 12, 2020 in accordance with the Group's Charter on organization and
operation and the provisions of law. After that, the dividend payment was carried out in
accordance with the resolution of the General Meeting of Shareholders. The Board of Directors
has conducted all meetings according to regulations to direct production and business activities,
investment and post-equitization activities, drastically and promptly; The Board of Directors
has strictly implemented the resolutions of the Board of Directors and complied with the
provisions of law. The Group has performed well in the timely and accurate disclosure of
information in accordance with current regulations. (VRG, 2021)

₋ The coordination of activities between the Supervisory Board for the activities of
the Board of Directors, the Executive Board and other managers:
In 2020, the Board of Directors and the Board of General Directors have created
favorable conditions for the Supervisory Board to carry out activities of the Board of Directors.
The Board of Supervisors attended all meetings of the Board of Directors and the Board of
Directors, gave opinions in exchange for the policies and decisions of the Board of Directors,
the Board of Management to ensure the decision guidelines are issued by the Board of
Directors. comply with legal regulations and ensure the interests of the Group. The Board of
Supervisors also received most of the documents in the direction and administration of the
Board of Directors and the Board of Directors, and provided feedback and discussions to ensure
that the management process was properly implemented. following the resolution of the
General Meeting of Shareholders. (VRG, 2021)

24
III. Evaluate the influences of ethical and sustainable globalisation on organisational
functions.
1. Ethical globalisation
The ethics of globalization can also be understood that business ethics is complex
concepts of ethical-ethical imperatives, values and goals set on the basis of human activities
for integrating human rights principles and standards into an ethical globalization process and
support national and local human rights capacity building efforts using new partnerships for
the sake of humanity's own development. This may include a number of different situations
such as how to manage a business, how to trade stocks, the role of a business in social issues
... On the other hand, business ethics is standard of the level of global ethics needs to be
legalized so that businesses see that performing their social responsibilities is not only a one-
way desire, a privacy preference, but also a legal issue that cannot be ignored. Once global
ethics becomes the norm for doing business, then there will be businesses, a business
community that thrives in a sustainable society. (luanvan2s, 2020)

2. Sustainable globalisation
Sustainable globalization is also known as sustainable business or sustainable
development. For businesses, sustainable globalization means adopting strategies and business
practices that meet the needs of businesses and current stakeholders while protecting,
maintaining, and enhancing resources. Human and natural resources will be needed in the
future. In addition, sustainable business is an aspect of sustainability that is understood as
development that responds to current needs, without compromising the ability of future
generations to respond to their needs, it is on the basis of ensuring stable economic growth,
good implementation of social progress and equity; rational exploitation, economical use of
natural resources, minimizing negative impacts of economic activities on the environment,
protecting and improving the quality of living environment, placing people at the center of the
process. development, as the main subject, resource and goal of sustainable development ... To
better understand, a practical "six-lens" framework for thinking about sustainable
globalization: (PRNEWS, 2008)

• Economic / financial
• Technology
• Poverty and inequity

25
 • Limits to growth
• Movement of talent
• Geopolitical

3. Sustainable and ethical globalization impact on the functions of an organization.

Ethics and sustainable globalization both play a very important and indispensable
role for the long-term maintenance and development of a company in the global process. These
two factors interact and complement each other to determine the success, profitability and
growth of the business. In order for businesses to have long-term development or sustainable
business, it is indispensable for business ethics because it is the foundation for a sustainable
business business. In particular, businesses are facing great opportunities as well as challenges,
requiring enhancing competitiveness not only with capital, business strategy, technology,
productivity, quality, and efficiency, product design but also reputation, business ethics and
brand. Therefore, ethics and sustainable globalization are two factors related to the
development of Vietnam Rubber Company (VRG), both playing an important role and
affecting some functions of the organization such as quality assurance, production process,
laboring, business ethics, environmental protection, etc . VRG's principles are always to respect
people, human resources with dignity, legitimate interests (salary, insurance, retirement, policy
regimes); ensuring labor safety; create conditions for the physical and intellectual development
of the staff of the enterprise; expanding democracy and promoting innovation and technology
improvement; respect the needs, preferences and psychology of customers; compete in a
healthy and fair manner with competitors, promoting an atmosphere of both cooperation and
healthy competition; associating the benefits of VRG with the interests of customers and
society, attaching importance to business efficiency associated with social responsibility.
Moreover, in response to VRG's rubber development demand towards sustainable
development, VRG is responsible for the society and enhances social security. In addition,
VRG enhances forest cover, protects water resources against erosion, protects the ecological
environment, contributes to climate change prevention and socio-economic development in the
region. Besides, at the same time, building a legal rubber wood explanation system to improve
economic efficiency and ensure the harmonization of interests between stakeholders.
Moreover, in order to have a sustainable source of wood, wood products and rubber products;
encouraging and supporting members to apply clean production solutions, sustainable
management, and achieving sustainable certification to build and strengthen the brand VRG ...

26
In addition, VRG also made major changes in seedling production, rubber seedlings, planting
and care, management of rubber gardens, intercropping, latex harvesting and plant protection
work. That shows that VRG always ensures business ethics is No. 1 to aim for sustainable and
long-term development, improve production and business efficiency. VRG's production
process will be based on technical and scientific bases to ensure improved quality and
efficiency. In addition, VRG has cooperated with the Vietnam Rubber Association to organize
many seminars and seminars on the topic of sustainable development; Discussing with
domestic and international agencies and organizations to support Vietnam's rubber industry to
develop sustainably, aiming to be certified for rubber materials and products according to
international standards. Therefore, in the face of the influence of ethical globalization and
sustainability, VRG is aware that the role and responsibility of a sustainable business is
associated with 3 aspects: Economic development - Environmental protection. Responsibility
to the community and society. (Cường, 2019)

27
Learning outcome 4: Assess the effect of globalization on organizational strategy and
decision-making
I. Evaluate the different ways decision making can work effectively in a global
context.
In recent years, the demand for importing sustainable natural rubber products of
the Vietnamese rubber industry has been increasing in many countries. Currently, natural
rubber is very popular in the deep processing of products from tires, auto components, shoe
soles, sports products, and medical equipment. The demand for imported rubber for tire
processing of foreign markets is increasing. In particular, China is the largest import market of
Vietnam's rubber industry and it is on an upward trend from the need for rubber. Moreover,
Cambodia is encouraging and calling from foreign investors and the demand for tires is
growing. Therefore, in order to export and provide more rubber to customers, Cambodia is the
place for Vietnam to invest and needs to expand the rubber area to exploit and expand the
market. In the domestic market, VRG has made smart decisions leading to the implementation
of appropriate plans and strategies to exploit rubber, produce products and export to foreign
markets to increase profit and brand name. However, to invest and exploit rubber in the
Cambodian market, Vietnam Rubber Company (VRG) needs to comply with their own land
and legal regulations in order to set out plans, goals and strategies that suit the requirements
and conditions of the Cambodian market. Especially VRG needs to understand concessions in
the Cambodian market in order to come up with suitable policies to operate rubber there. VRG
also needs to study the mechanisms and policies of the host country in the Cambodian market
and update new policy adjustments to make timely adjustments to investment strategies.
Moreover, VRG needs to prepare documents or procedures for the legal system in Cambodia
on tax, investment, protection of foreign investment, and policies related to land allocation ...
have not been completed and changed much. There is overlap between the central and local
levels, inconsistency, the administrative management system is not standardized, the lack of
highly qualified human resources ... Because the policies, regulations on land and the law cause
obstacles for VRG's investment. In addition, VRG also has to learn about the socio-cultural of
the Cambodian market in order to develop a better strategy and plan before entering and
investing in that market. However, at present, the opportunities for VRG are that the
Cambodian government is actively making efforts to improve the investment and business
environment by focusing on improving the effectiveness of the business dialogue mechanism
and the Government. government, simplify, reduce procedures and adopt preferential
investment policies and complete the formulation of the Law on Investment, Law on Special

28
Economic Zones to create peace of mind for investors and business in Cambodia. Moreover,
Cambodia has too few rubber processing factories and the government wants to build more
factories to stabilize the price of this commodity. The Government of Cambodia will give
businesses investing in the rubber plantation sector a special incentive mechanism to support
them to stay stable, overcome the most difficult current period, and achieve economic
efficiency. practice. In addition, hiring labor in Cambodia is cheaper than in Vietnam, helping
VRG save its budget and motivate VRG to take those costs into other jobs. Moreover, VRG
will ensure the systematic and planned exploitation of rubber in Cambodia market to maintain
and protect the ecological environment, helping it to be always stable. These are opportunities
for VRG to expand investment cooperation in rubber production and processing in the
Cambodian market. In the domestic market, VRG is easily exposed to the laws, laws,
regulations on land ownership and VRG also enjoys preferential treatment from the
government such as taxes, support for rubber development, etc. Therefore, VRG decided to use
the M&A strategy and maintain the development of rubber. However, in order to invest and
operate rubber in the Cambodian market, VRG must adjust its strategy and cleanliness before
deciding on the most suitable strategic investment for that market. So, VRG has decided to use
the strategy of global development and expansion for the rubber industry in the Cambodian
market. Particullarly, VRG will implement rubber exploitation and expansion plans; building
more tire factories to supply to foreign markets and Cambodia to expand the market, the
exploitation area is expanded, productivity and output are significantly improved, branding,
increasing sales and sales, improving the friendly relationship between the two countries,
maintaining and developing products and technology but VRG still complies with requirements
including land regulations, laws, legislation, taxes and procedures, etc. According to statistics,
VRG's affiliates have planted nearly 88,000 hectares of rubber in Cambodia and have exploited
more than half of the crop area. Effective decision-making and the right strategies have created
the working conditions for thousands of workers, guaranteed suitable salaries, accommodation
and many other sponsorship services. Thereby, it shows that the smart and wise decisions of
VRG leading to appropriate plans and strategies have been applied and operated effectively in
the Cambodian market. Therefore, the decision to adopt these strategies is highly valued and
effective. (XINH, 2019)

29
II. Determine and articulate the various routes to internationalisation an
organisation may adopt, including key barriers.
Global strategy is a competitive strategy to increase profits on a cost-cutting basis
on a global scale. It can also be understood that this strategy helps businesses want to expand
their products or services to foreign markets. Moreover, the plans or strategies that a company
has developed to target growth beyond its borders are referred to as a global strategy. The aim
is to expand the market, produce more goods, have more customers, and earn higher profits
from overseas markets. Besides, the implementation of a global strategy helps the company to
exploit and develop its competitive advantage. (Nhi, 2019)

In reality, the term "Global strategy" is a simple version or in other words a

shortened one, it includes four strategies: Transnational, global, international and
multinational. Companies that want to expand into international markets must comply with one
of the four areas.

1) Transnational
Transnational Companies are Companies that are incorporated under the laws of
one country, but have representative branches operating in other countries. The institution of
the transnational branch of a company is determined on the basis of the laws of the country
where it is registered. Since each local division has its own decision-making authority, markets,
and product range, transnational companies become highly complex. This type of global
operation provides the most flexibility and versatility, but it also includes cost of a streamlined
management and product catalog. (Berman, 2019)

2) Global
A global company is any company that operates in at least one country other than
the country in which it originated. A global company is like a multinational that invests and
does business in the countries in which it chooses to operate. Global companies often have
subsidiaries in many countries, literally dozens of locations around the world. However, the
global company is where the central corporate headquarters make the decisions to promote the
business, and the same product is offered in every country, regardless of local culture and
tastes. (Lan, 2020)

30
 Moreover, the branches may personalize their product ads to help boost sales in
this situation, but the product catalog stays the same. This helps the company to handle its
international sales while maintaining a single company culture and collection of products for
quality, but it eliminates the ability to customize offerings to these local markets. (Lan, 2020)

3) International
International companies are companies involved in the export or sale of their goods
or services to other countries, or the import and export of raw materials but have no other
investment in other countries. In other words, it sells to overseas customers and has overseas
suppliers. There are no foreign branches of the organization in any of the countries where it
does business, and all business operations and headquarters remain in the country of origin.
This helps an organization to streamline its decision-making process and save money and time
by not having to open offices all over the world, but it can also cause the company have to
struggle with a lack of understanding of these specific global markets. (Lan, 2020)

4) Multinational
Multinational Company is a type of business that produces or provides services in
at least 2 countries other than their own country. In other words, a multinational is a company
operating in the host country as well as in other countries around the world. Such companies
often have offices or factories in different countries and have a centralized headquarters where
they coordinate global management. This headquarters is usually located in their country of
origin. The large multinationals have budgets that exceed the budgets of many countries. With
their importance, multinationals can influence international relations and economies of nations.
(timviec365, 2020)

❖ About VRG
Vietnam Rubber Group (VRG) is a global business strategy, is a company
operating, investing and trading in other countries such as Laos and Cambodia, etc. Due to the
influence of globalization by the Covid 19 pandemic and the US-China trade war, VRG has to
adjust and formulate plans and policies to maintain and develop sustainably for the rubber
industry. So, VRG must recognize and re-evaluate its own operating capacity as well as
development potential for the rubber industry. Besides, VRG must develop a clear strategy or
direction to maintain and develop in the process and after the globalization process. Therefore,
VRG has adopted and implemented a global strategy to expand the market, maintain, improve,

31
and develop production and products, increase rubber tapping area and increase revenue. The
goals to implement VRG's global strategy in the face of globalization are maintaining and
developing the rubber industry; strong technology application; improve technology -
technology; improve production efficiency and product quality; continue to promote
investment and expand markets; to build tire and tube factories in the Cambodian market to
effectively participate in the global value chain. The plans and goals of this global strategy aim
to develop the economy for businesses as well as the nation, and increase the friendship and
cooperation between the two countries that are increasingly sustainable. In addition, in addition
to VRG's global strategy there is a maintenance of covid 19 prevention for workers in the
Cambodian market. The signing and decision of VRG to implement this global strategy
because it brings efficiency in developing and expanding markets, increasing competitiveness
with competitors, has many potentials and opportunities, and High brand name, have new
sources of income, especially it is suitable for increasing the cooperative relationship between
the two countries. Currently, VRG's opportunities for overseas markets are huge because the
demand for rubber is increasing and the demand for tires in the world is continuing to grow.
According to the report, VRG has exploited about 90,000 hectares of rubber in the Cambodian
market and is still developing. China accounts for 70%, is the largest source of rubber imports
of VRG. Besides, the export turnover of tire products of Vietnam has continuously increased
over the past 5 years, reaching an average growth rate of 17.8% per year. In 2019, Vietnam's
tire export turnover reached $ 1.2 billion. Thereby, it shows that VRG has made a smart and
wise decision to choose a global strategy to develop and overcome difficulties in the face of
globalization. (Hiếu, 2020)

• Key Barriers
However, in the process of implementing the goals of the global strategy, it has
barriers that hinder the VRG's plan, creating many challenges and risks that the company is
exposed to. Therefore, it has a key barriers affecting the global strategy of the Vietnamese
rubber industry in the Cambodian market that is the covid 19 epidemic that makes VRG lack
of labor, many workers quit; affected by climate, weather, hindering the exploitation and
cultivation of rubber; meet many competitors in the market; meet difficulties in legal
regulations, procedures, legal, land lease, tax ...; In addition, the local language, culture and
society is also one of the barriers and challenges for VRG. Besides, technology and techniques
have not been advanced and developed is also one of the barriers preventing VRG from

32
growing strongly and developing its products in the market. These key barriers impact progress,
development, revenue and profit create many challenges for VRG. (Anderson, 2019)

➔ Thereby, it shows that the impact of the key barriers is assessed in severity because it will
cause delays in the progress of the project, prolonged time, development delay for the
rubber industry, costly. fees and sales decreased. So, VRG needs recommendations to help
them have solutions to deal with those barriers to avoid barriers, minimize risks, ensure the
project on schedule, maintain and develop the rubber industry effectively. and increase
sales.

33
 Conclusion
Through this report, I have presented very clearly and in detail the factors affecting
the business that they use it as an advantage and the effects of globalization that lead to the
change of the business from domestic. and global. It includes the culture, organizational chart,
strategy and span of control that I have described in detail in this lesson. Besides, I have
presented the theory and practical application on how business ethics and sustainable business
impact on organizational functions. In addition, i have mentioned, provided an analyzes and
seriously assesses the impact of globalization on effective strategies in overseas markets.
Moreover, it also provides the theory of global strategy which is includes four aspects and
defines an organization's strategy of that type. Besides, in this report, it described and critically
evaluate about the key barriers impact on organizational strategy. This background knowledge
about globalization has supported a lot of useful knowledge in practice and assisted me in
completing the assignment. Besides, it also enhances person's professional career for job in the
future.

34
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