ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

Submission date 30/09/2020 Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student Name Dao Thu Tra Student ID GBH200188

Class GBHH0908 Assessor name Do Thu Trang

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I
understand that making a false declaration is a form of malpractice.

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Contents
I. INTRODUCTION ................................................................................................................................................ 4
II. BODY ................................................................................................................................................................... 5
1. TYPE AND PURPOSE: ................................................................................................................................ 5
1.1. Type: ........................................................................................................................................................ 5
1.2. Purpose: ................................................................................................................................................. 7
2. SIZE AND SCOPE: ..................................................................................................................................... 10
2.1 . Size: ..................................................................................................................................................... 10
2.2 . Scope: ................................................................................................................................................. 12
3. ORGANIZATIONAL STRUCTURE AND FUNCTIONS: ....................................................................... 14
3.1. Organizational structure: ................................................................................................................. 14
3.2. Functions: ............................................................................................................................................ 16
3.3. The suitability between organizational structure suitable and mentioned objectives: .. 20
III. CONCLUSION.............................................................................................................................................. 22
IV. REFERENCES ............................................................................................................................................. 22
I. INTRODUCTION

As a business analyst at Wells Fargo, a US multinational financial services company, I

have to find some models and company scope and sizes in Viet Nam for the research
to invest in 2020-2025. The company I choose is Mobile World Investment
Corporation, or MWI Corp in short.

Mobile World Investment Corporation was established in 2004. It is the No.1 Retailer
in Vietnam by revenue and net profit after tax with 3,400+ stores nationwide. MWI
Corp operates the following concepts: “thegioididong” mobile phone retail chain, “Dien
May Xanh” consumer electronics retail chains, “Bach Hoa Xanh” grocery retail chain.
In addition, MWI Corp has expanded to regional markets with the phones and
consumer electronics retail chain in Cambodia. The company has recently developed
a new high-tech agricultural project named “4KFarm” to offer consumers with safely-
grown fresh produce of “4 No” policies (zero pesticide, non-GMO seeds, zero
preservatives and zero growth substances).

MWI Corp was proudly named in TOP 50 best big public companies in Asia (voted by
Forbes) and the only Vietnamese representative in Top 100 Asia-Pacific Retailers
voted by Retail Asia Magazine and Euromonitor. MWI Corp has been the Champion in
TOP 50 best performing companies in Vietnam (The Business Review – Nhip Cau
Dau Tu). MWI Corp’s success story was considered as an interesting case study for
researches at Harvard University, UC Berkeley, Tuck Business School (US). Not only
be acknowledged as top performing company by investors and professional
organizations, MWI Corp also gains trust from employees given the fact that the
Company has been 4 times consecutively in the TOP 50 Best Places To Work in
Vietnam and won the “Best Winner” in HR Award for Effective HR Policies. (MWI
Corporation, 2019)

In this report, I will explain the different types, size and scope of MWI Corp and also
demonstrate the interrelationship of the various functions in this company.
 II. BODY
1. TYPE AND PURPOSE:
1.1. Type:
1.1.1. Profit or non-profit:

MWI Corp is a profit organization. According to the annual report 2019, the company had to pay
VND 665,093,453,185 for dividends to owners.

1.1.2. Public or unpublic:

MWI Corp is also a public company. On 14/07/2014, on the Ho Chi Minh City Stock Exchange
(HOSE), MWI Corp stock was listed the first time. MWI Corp’s stock code on the trading floor is
MWG.
 1.1.3. Private or state-owned enterprise:

As can see in the chart from annual report 2019, 100% shareholders are private so we can
affirm that MWI Corp is a private enterprise.
1.2. Purpose:
1.2.1. Vision:
MWI Corp aims to be the most powerful retail group of diversified categories,
the market leader in B2C e-commerce.
1.2.2. Mission:
MWI Corp continuously innovates to offer customers outstanding experiences,
based on our customer-centric culture and integrity.

MWI Corp brings prosperity to employees, provides high return-on-investment

for long-term investors, and contributes charitable funds to the society.
1.2.3. Core Value:
In the near future, MWI Corp will continue to increase monthly sales/store and
improving the gross margin. Mobiles phone and consumer electronics will
remain as the main pillar for the company.
1.2.4. Objectives:
1.2.4.1. Economic Objectives:

Profit objectives of MWI Corp are improving profit margin to consolidate the
Company’s No 1 position, complete with a 55% mobile phone market share and
50% consumer electronics market share by the end of 2022. Regarding the brand
name, MWI Corp is targeting that thegioididong.com and dienmayxanh.com to be
the no.1 phone and consumer electronics shopping website in Viet Nam. Besides,
for product development, MWI Corp aims to expand more brands and SKUs for
current product groups. For diversification, the company decides to add new
product categories- watch retail, and open 17 “Super Cheap Phones” to focus on
serving price-sensitive customers. MWI Corp not only focuses on the current
situation but also pays attention to the growth and development of the company.
Understanding that online shopping will become a future consumption trend, MWI
Corp plans to apply online shopping to ensure the best operation of the MWI Corp
omnichannel.
To accomplish these goals, MWI Corp has made some qualitative changes,
representing significant efforts to exceed expectations. In 2019, MWI Corp decided
to upgrade 500 mini DMX stores, change the layout format of TGDD stores in
order to increase the display area for electric appliances and household
appliances. In 2020, MWI Corp plans to apply the same sales pricing policy for
both the online channel and the offline stores to ensure the best operation of the
MWI Corp omnichannel, leveraging the convenience and distinctiveness of MWI
Corp’s superior customer service quality.
1.2.4.2. Social Objectives:

About the social objectives, MWI Corp has many activities towards the community
and society such as launching 3 blood donation campaigns, giving away 10,000
rice cookers to disadvantaged families nationwide and establishing a charity fund
called “Mai Am The Gioi Di Dong”. “Mai Am The Gioi Di Dong” is a non-profit
organization and a 100% financially transparent fund aiming to support living
expense for students in the form of non-refundable scholarships or non-interest
loans which allowed to repay after graduation and working; build and operate
charity houses to unlucky children.
2. SIZE AND SCOPE:
2.1 . Size:

MWI Corp is one of the largest companies in Viet Nam. According to the Balance Sheet
2019 of MWI Corp, the total assets of MWI Corp were VND 41,708,095,544,883. The
total liabilities were VND 29,564,503,350,530 and the owner equity were
12,143,592,194,353.
As can be seen from the balance sheet, the company has expanded because equity
increased significantly from VND 8,983 trillion to VND 12,144 trillion. The total liabilities
also increased, at nearly VND 10,426 trillion. Although the proportion of the total
liabilities is bigger than the owners’ equity, the total assets still rised approximately VND
13,585 trillion.

MWI Corp is the leading retail group in Vietnam with more than 58,000 employees,
spanning over 63 provinces. Most of MWI Corp employees are at the age of 20-35, a
young labor source. This is a friendly, professional and dynamic working
environment that gains trust from employees because the company has been 4 times
consecutively in the TOP 50 Best Places to Work in Vietnam and won the “Best Winner”
in HR Award for Effective HR Policies.

As can be seen, most of the employees working in offline stores, occupied 77% of the
total employees. Meanwhile, Administration- Human resources division has the
smallest number of employees, only 151 people, at nearly 0,3%.
The size of MWI Corp is currently in line with the objectives of the company. With total
assets of up to VND 41,708,095,544,883, MWI Corp is ready to invest in establishing
new product categories- watch retail and open more “Super Cheap Phones”. Thanks to
such strong total assets, MWI Corp can easily achieve the goal of making
thegioididong.com and dienmayxanh.com be the no.1 phone and consumer electronics
shopping website in Viet Nam by hiring more quality staffs, spending more money on
new technology and making more attractive marketing campaigns, …The number of
employees also contributed significantly to the opening of more subsidiaries and the
operation of the MWI Corp omnichannel. The more employees the company has, the
more tasks it will be completed. Moreover, due to the large of MWI Corp’s size, more and
more social objectives can be accomplished. They can create new campaigns with
greater scale and higher quality, thus helping more unlucky people. Because of the
abundant human resources spanning all over the country, MWI Corp is able to make
voluntary activities in hard-to-approach areas such as Thanh Hoa, Gia Lai, Cao Bang,
etc.

2.2 . Scope:

MWI Corp’s scope is very large. The main market of MWI Corp is in the domestic
market. In 2019, MWI Corp had 3039 stores and their products available in all provinces
and cities nationwide. It is the Southern region, in which Ho Chi Minh City plays a
leading role. There are 498 stores BHX, 264 stores TGDD and 121 stores DMX in Ho
Chi Minh City, accounted for 30% of the total stores all over the country. MWI Corp is
one of the No.1 Retailer in Vietnam by revenue and net profit after tax and has a very
familiar brand name to consumers. MWI Corp is the main supplier for many technology
gadgets trusted by users: laptop, smartphone, etc.
The main business sectors of MWI Corp are in mobile and electronics retails and in
groceries and FMCGs retails: (1) Mobile phones, tablets and laptops with
thegioididong.com (TGDD); (2) Electronics, air conditioners, and household appliances
(Consumer electronics) with Dien May Xanh (DMX) (including Tran Anh store chain); (3)
Groceries and FMCGs with Bach Hoa Xanh (BHX). In addition, MWG owns
BigPhone.com, a store chain retailing mobile devices on international markets with 10
stores concentrated in Phnom Penh, Cambodia. However, this report will focus on
thegioididong.com (TGDD), the sector that occupied 32,5% of the total revenue.

Let’s concentrate on the target customers of TGDD. As a mobile phone retailer so

TGDD attracted both genders without religion distinguish or racialist. The age of target
customers is from 15 to 45 who follow the latest technology trends. Their lifestyles are
driven by heavy consumption of TV and digital media, they are all about
technology. They prefer online channels for connecting with friends and to fulfill their
daily tasks. They usually are officers, pupils, students, …Target customer’s location
can be in cities, towns where they can access the internet easily. TGDD had total 996
stores nationwide.

The scope helps MWI Corp to accomplish its goals successfully. By having 3039 stores
in all provinces and cities nationwide, the company can reach out more customers and
sell more products, therefore consolidate the Company’s No 1 position in Viet Nam
Retail Market. It also contributes significantly to the goal of diversification that MWI Corp
can depend on the special demand and requirement of each province to create exclusive
product then diversify their goods. By having stores and products available in 63
provinces, the brand name of MWI Corp is become famous too. Customers give positive
feedback about customer services of TGDD, make TGDD is a must-visited place when
thinking about buying electrical devices. About social objectives, the presence in all cities
will help MWI Corp create voluntary campaigns towards the community and society, for
example giving more scholarship for children in remote areas, building more houses for
 unlucky families, ... With foreign markets, revenue and profit of 2019 are showing a
bright future of brand development goals in Cambodia. Not only stopping in 63 cities in
Vietnam, MWI Corp will continue to expand and diversify.

3. ORGANIZATIONAL STRUCTURE AND FUNCTIONS:

3.1. Organizational structure:
3.1.1. Organizational chart:

3.1.2. Type:

According to the Organization chart of MWI Corp, it’s obviously a functional

structure. In this type of structure, activities are clustered together by common
purpose or function for example sales department, purchasing department,
back-office department, etc. Each department is led by a functional manager. A
group of functional managers called the Board of Management, have
experience in the roles they direct. Have more power than the Board of
Management is the Board of Directors, manages the daily production and
business activities of the Company. To appraise the annual financial
statements, examine each specific issue associated with financial activities
when deeming it necessary or at the choice of the overall meeting of
shareholders or at the request of major shareholders, MWI Corp also set up a
Board of Supervisors. The Board of Supervisors reports to the General
Meeting of Shareholders on the accuracy, truthfulness and legality of
documents, accounting books, financial statements and also the operation of
the inner system. The General Meeting of Shareholders is the Company’s
highest decision-making body where shareholders exercise their voting rights
under the duties and powers prescribed by the Law and the Charter of the
Company.

About the advantages, functional structure allows individuals to be grouped

based on their specialisms and technical expertise, and this can facilitate the
development of the function they offer. For example, when employees are
allowed to pay attention to only one specific functional area, they can save time
and effort, thus achieving remarkable efficiencies in terms of process flow and
management methods. As a principal advantage, it seems logical to have a
department that consists of experts in a particular field such as accounting or
marketing or personnel. This type of organizational structure also provides a
recognized path for promotion and career improvement. The reason is that
by dividing staff based on their specialisms and technical expertise, the leader
can monitor their staff’s progress toward the goals outlined for their functional
areas. Moreover, the chief executive can be in touch with all operations
without difficulty. A marketer is generally more efficient when working with other
marketers and other individuals who share the same backgrounds and
interests. This also led to a clear definition of responsibilities. By being in
touch with the leader, all of the staff understand what decisions they are
allowed to make and who to report to and the chief in return can keep track of
the number of employees reporting to them. (Worthington and Britton, 2006)

On the other hand, functional specialization, particularly through departments,

is probably to create sectional interests which may operate to the
disadvantage of the organization as a whole, particularly where injustice in
resource allocation between departments become a cause for inter function
rivalry. There is often a perception that a department is competing with other
departments for resources and a lack of understanding what other departments
 do for the organization, so the IT department, for instance, maybe upset that its
request for hiring more member was disapproved, but the company financial
results point to a need for additional marketers instead of IT hands. This form of
structure also made senior managers overburdened with routine matters.
Usually, before decisions are reached, even for unimportant and routine
matters, files must pass through certain officers in the chain, even when little or
no value would be added. This forward and back process will inadvertently
delay jobs, placed a heavy burden on the shoulders of senior managers. The
biggest disadvantage of functional structure is that it is most suitable for
single-product firms and that it becomes less appropriate as organizations
diversify their products and/or markets. In some big and complex corporation
such as Nestle, Starbucks, Global Cyber Soft or General Motors, they do not
use functional structure but matrix organizational structure in order to control
the company in the most suitable and effective way, not only develop their core
product in the main market but also diversify their goods. (Worthington and
Britton, 2006)

3.2. Functions:
3.2.1. Function of marketing department:

Marketing department is significant for the company. It carries out many functions at
once, and without it, the company could not achieve their goals and objectives. First,
marketing department in a company is primarily concerned with market research.
This division studies the market trends, preferences, competitors and also the
products they provide. With this, a company can understand whether there is a need
for their products, then consider the way to improve its proposed product. Secondly,
marketing department directly analyses the product that the company wants to
provide to the customers. With this analysis, the manufacturer is ready understand the
strengths and weaknesses of the product. They will definitely figure out whether they
need to change their products or not, or when their product is ready to take a
competitive position. In addition, Marketing department also provides market
information. This division informs the company about the market and helps them to
better oriented in it. Last but not least, marketing department can work on the
development of distribution channels. This suggests that they find points where
they can sell their products, as well as the suppliers who will transfer their products,
and lots of other employees who are going to be involved in the whole process.

3.2.2. Duty and Responsibility of Marketing department:

Marketing department features a huge responsibility of constructing a business

viable and profitable. It has to create awareness, engage customers,
research competitors and their product, prepare promotional activities
and materials and other responsibilities. Anything that other departments
cannot manage is given to the marketing department to handle. That explains
the reasons why marketing department is the key department of any
organization, without which it might be very difficult for the business to exist
profitably.

In MWI Corp, the specific duties of marketing department are planning

marketing strategy of the year, deploying marketing strategies for each
specific stage, planning and managing marketing budgets, managing media
events such as: sponsorship, opening,…, designing, developing and
managing customer research strategies, completing and generating
creative designing ideas related to the design of store items, advertisements,
events, …

3.2.3. Function of Finance & Accounting department:

Finance & Accounting department is the part of an organization that ensures

efficient financial management and financial control necessary to support all
business activities. First, Finance & Accounting department have the function of
producing invoices, checking payments are received and chasing up
overdue payments. Second, this department is responsible for recording
 money received and checking and paying invoices received. It is the duty
of the finance department to manage all cash flows into and out of a company
and ensure that there are enough funds available to meet the day-to-day
running of the company. Finance & Accounting department also prepares the
payroll and pays salaries for the employees. Finally, the Finance &
Accounting department should be concerned with producing cash flow
forecasts and regular financial reports for senior managers, advising
senior managers on sources of finance for capital expenditure. This
information can be used to fulfil the cash needs of each department, plan
company staffing levels, plan asset purchase and expansions at minimum cost
before they become necessary. (Carysforth and Neild, 2006).

3.2.4. Function of Human Resources department:

Human Resources department is accountable for recruiting new employees

and ensuring that every departments are filled by the most suitable people for
the tasks. This is vital because the recruitment process is pricey and time-
consuming. Hiring the unsuitable person can be costly and cause problems for
the individual in particular and the company in general. This department also
needs to arrange the staff training and encourage continuous professional
development. Another function of HR department is monitoring the working
conditions of staff, including checking health and safety, keeping accident
records, recording sick leave and reasons for absence, etc. It is also the duty of
the finance department to advise managers on the legal rights and
responsibilities of the company and its employees. They have to monitor the
terms and conditions of employment. (Carysforth and Neild, 2006).

3.2.5. Function of Sales department:

Sales is a crucial function for all businesses. It is pointless having superb

 products or services if no one buys them. The job of the sales staff is
organizing sales promotions, negotiating discounts or financial terms for
business customers. They also need to respond to customer enquiries, for
example inform about new changes of the products or explain more about the
details of the goods. Finally, Sales department should be concerned with
providing technical advices for not only customers but also the board of
management about future plans: what should be altered to satisfy customers’
needs and wants, what changes should be applied to enhance the profit of the
company, etc.

3.2.6. The relationship between Marketing department and Finance &

Accounting, Human Resources and Sales departments:
3.2.6.1. Marketing department and Finance & Accounting department:

The relationship between marketing and finance & accounting department is not
limited to the use of financial input when planning marketing strategies. The
formulation of any financial plan involves capital requirements, cash flow analysis,
credit and other financial policies that needs marketing inputs. Such inputs,
especially those related to sales and revenues forecasts that are listed in
numerous marketing plans are important to any financial planning.

Moreover, a marketing approach to financial decisions offers a new point of view

usually lacking within the specialized financial literature. Consider, for example:
The use of the annual financial reports and other reporting documents as elements
in a communication campaign addressed to the financial community; The
evaluation of responses related to changes in price, payment methods, discounts
and credit; The impact of different marketing activities on investors’ expectations
and, consequently, on the market price of the shares. (Micu, Ifrim, Daraban &
Purdescu 2012, p. 245)

3.2.6.2. Marketing department and Human Resources department:

 The human resources department of the organization is responsible for hiring,
training and management of the appropriate marketing personnel. Marketing
should work together with the human resources department in creating job
descriptions, screening candidates and designing training programs and incentive
systems.

Furthermore, marketing research, as a specialized marketing activity, could

provide valuable help in the design and implementation of a variety of HR research
projects. (Micu, Ifrim, Daraban & Purdescu 2012, p. 248-249)

3.2.6.3. Marketing department and Sales department:

The major link between sales and marketing department revolves around the sales
promotions and adverts. Sales can pass on important customer feedback to help
marketing colleagues creating effective marketing plans. By identifying the needs
and wants of consumers through marketing research, Marketing department can
provide necessary information for sales department in order to satisfy consumers’
requirements and handle all the inquiries. Also, having a good Sales team which
may close the deals effectively generates revenue and ensures that the Marketing
team’s efforts don't seem to be wasted. (Carysforth and Neild, 2006).

3.3. The suitability between organizational structure suitable and mentioned

objectives:

Organizational structure of MWI Corp is suitable for this company to achieve their
objectives at the present. For example, the first objective of MWI Corp is consolidate the
Company’s No 1 position, complete with a 55% mobile phone market share and 50%
consumer electronics market share by the end of 2022. To achieve this objective, every
departments of the company have to fulfill their own tasks efficiently and collaborate with
other departments well. This led to the demand of using functional structure with
specialists at senior and middle management levels. Besides, when using functional
structure, the company helps to simplify control mechanisms, thus facilitate the
development of the function they offer as well as providing a recognized path for
promotion and career development. To be concluded, a joint stock company with many
branches and distributors like MWI Corp, functional structure is suitable for MWI Corp to
reach their goals.

However, in the future, if MWI Corp wants to expand their influences and being the most
powerful retail group across diversified categories, they have to use more complex
organizational structure like matrix structure. A matrix structure combines different
structural dimensions at the same time, for instance product divisions and geographical
territories or product divisions and functional specialisms. Matrix structures provide
various benefits, most notably flexibility, opportunities for the development of
employee, an enhanced sense of ownership of a project or program, customer
orientation and also the co-ordination of data and expertise. (Worthington and Britton,
2006)
 III. CONCLUSION

From the above report conclusion can be drawn that MWI Corp is a private profit
company. It’s a public enterprise. Its size and scope are also large. It’s one of the
No.1 Retailer in Vietnam by revenue and net profit after tax and has a very familiar
brand name to consumers. Therefore, MWI Corp is a suitable investment choice for
Wells Fargo in 2020-2025.

IV. REFERENCES

Carysforth, C. and Neild, M., 2006. BTEC First Business. 2nd ed. Oxford: Heinemann, pp. 34,
35, 38, 43.

Micu D. & Ifrim L. & Daraban C. & Purdescu C. 2012, ‘Cross Functional Linkages Between
Marketing And The Other Business functions in an industrial organization’, Scientific Bulletin,
Vol. 74, Iss. 3, pp. 244-245, 248-249

MWI Corporation, 2019. MWG. [online]

Available at: https://mwg.vn/wp-content/uploads/2020/04/Baocaothuongnien2019.pdf
[Accessed 26 September 2020].

Vietstock Finance. 2020. MWG: CTCP Đầu Tư Thế Giới Di Động - MWI CORP.
Vietstockfinance. [online]
Available at: <https://finance.vietstock.vn/MWG-ctcp-dau-tu-the-gioi-di-dong.htm>
[Accessed 26 September 2020].

Worthington, I. and Britton, C., 2006. The Business Environment. 5th ed. Harlow: Financial
Times Prentice Hall, pp.25, 27.