ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

Submission date 27/9/2020 DateReceived1stsubmission

Re-submissionDate DateReceived2ndsubmission

Student Name Ngo Thi Hang Student ID GBH190131

Class GBH0906 Assessor name Doan Trang

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 Table of Contents
1. Annual Report.............................................................................................................................................................5

2.Company Profile.......................................................................................................................................................... 5

3.Introduction.................................................................................................................................................................6

4.Purpose........................................................................................................................................................................7

4.1.Vision................................................................................................................................................................ 7

4.1. Mission............................................................................................................................................................ 8

4.1. Core Values......................................................................................................................................................8

4.1. Objectives........................................................................................................................................................ 8

4.2. Economic Objectives....................................................................................................................................... 8

4.3. Social Objectives..............................................................................................................................................9

5.Type........................................................................................................................................................................... 10

5.1.Profitable company........................................................................................................................................ 10

5.2.Private company.............................................................................................................................................11

5 .3. Listed on the stock exchange market...........................................................................................................12

6.Scope......................................................................................................................................................................... 12

6.1.Geographic market.........................................................................................................................................12

6.2.Main market................................................................................................................................................... 14

6.3.Target customers............................................................................................................................................15

7.Size.............................................................................................................................................................................16

7.1.Total assets.....................................................................................................................................................16

7.1.Total Liabilities................................................................................................................................................17

7.1.Owner equity..................................................................................................................................................18

7.2. Employee structure....................................................................................................................................... 19

8.Function.....................................................................................................................................................................20

8.1.Structure organizational.................................................................................................................................20
 8.2.Department marketing...................................................................................................................................21

8.3.Functional structure achieve goals................................................................................................................ 22

9.Social enterprise........................................................................................................................................................ 22

10. For Merit.................................................................................................................................................................23

M1.1. Analyze that the size to achieve the objective.......................................................................................... 23

M1.2.Analyze that the scope to achieve the objectives...................................................................................... 24

M1.3. Advantages and Disadvantages of structure............................................................................................. 26

11. For Dicstinction.......................................................................................................................................................27

12.Conclusion.............................................................................................................................................................28

13.References...............................................................................................................................................................29
1. Annual Report

2.Company Profile

Company Name: Phu Nhuan Jewelry Joint Stock Company.

Abbreviated Name: PNJ

Address: 107E Phan Dang Luu Street, Ward 3, Phu Nhuan District, Ho Chi
Minh City, VIETNAM .
Contact Person: Mr. Le Tri Thong - General Director.

Tel No: 08. 39951703 – 08. 39951706

Fax No: 08. 39951702

E-mail address: pnj@pnj.com.vn

Website https://www.pnj.com.vn

Type of ownership: Joint Stock Company

State full legal Name of Phu Nhuan Jewelry Joint Stock Company
Company:

Business registration 0300521758 date 02/01/2004

No:

Product products: Jewelry, Gold, Silver, Gemstones, Business Gifts, Fashion

Accessories, Souvenirs, Watches, Gold Bullion, …
Contact person Position

Mr. Le Tri Thong Vice-Chair cum CEO

Mrs. Pham Vu Thanh Giang Member of the Board of Directors

Mrs. Pham Thi My Hanh Member of the Board of Directors;

Chairwoman/Director of CAF Co.,ltd

Mr. Le Huu Hanh Member of the Board of Directors

3.Introduction

Nowadays, it is not easy to choose a worthy company or corporation for us to invest in. It
will take us quite a long time to analyze all the data of that company such as financial statements,
core values, goals, ... at this time, Wells Fargo bank is looking for a company about gold, silver
and gemstones for investment. Through investment analysts of Wells Fargo, they have chosen
Phu Nhuan Jewelry Joint Stock Company (PNJ) - one of the leading jewelry fashion brand
companies in Vietnam and the company that meets the conditions for investment banking. PNJ
was established in 1998 in Phu Nhuan district, Ho Chi Minh City, VIETNAM. PNJ is a famous
jewelry company with a wide range of products such as gold, silver, gems, real estate, diamond
and gem testing. Below is a company situation analysis report. In the following evaluation
report , the bank will have an overview of all aspects of PNJ and make a decision on whether to
invest.
Contact person Position

Mr. Le Tri Thong Vice-Chair cum CEO

Mrs. Pham Vu Thanh Giang Member of the Board of Directors

Mrs. Pham Thi My Hanh Member of the Board of Directors;

Chairwoman/Director of CAF Co.,ltd

Mr. Le Huu Hanh Member of the Board of Directors

4.Purpose

In 2020, the Board of Directors has introduced the slogan "Hit Refresh, break out and
reach beyond" in the spirit of pioneering the way of thinking, how-to-do innovation, andmindset
innovation. (Mrs.Cao Thi Ngoc Dung, 2019). With the goal of activating the synergy of the
business, PNJ has built a human development strategy on the basis of increasing human
resources, attracting talents, and supporting and creating a suitable environment for each
individual. people promote their forte and potential. (PNJ, 2019)

4.1.Vision

Each company or corporation has a different vision. PNJ too, PNJ's vision is "To become a
leading jewelry manufacturer andretailer in Asia, sustaining its No. 1 position in the middle and
high-end jewelry market share in Vietnam." (PNJ, 2019).
4.1. Mission

PNJ's mission is "PNJ brings pride to customers by its exquisite and transcending jewelry

products. " (PNJ, 2019)

4.1. Core Values

In 1992, PNJ was officially named Phu Nhuan Jewelry Company and started to open a
new stage. According to General Director Cao Ngoc Dung, developing on the core values of
“INTEGRITY,RESPONSIBILITY, QUALITY, INNOVATION, COHESION ”. (PNJ, 2019)

4.1. Objectives

PNJ company has 2 types of goals: Economic Objectives and Social Objectives.

4.2. Economic Objectives

In terms of Economic Objectives, the Board of Directors and all employees of PNJ are
constantly innovating, rapidly changing the economy and the social - technology trend for
sustainable rapid growth. About the brand name, the goal by 2020 is to maintain its position as
the No. 1 jewelry retailer in Asia, as well as to penetrate international markets and the 500-store
chain, which continues to be an important growth engine of PNJ in the coming years. PNJ's
Board of Directors has seriously prepared carefully, invested with focus, ensuring PNJ always
have the best readines solid growth with focus on maintaining digital positions for the future with
4 battle centers strategy for the period of 2019-2022: The first, solid growth with focus on
maintaining digital position in tier 1 markets and speeding up development in tier 2 and tier 3
markets. Next, constantly developing synchronous production capacity, supply chain
management, strategic management, marketing, ..to create the overall power of the business.
The third, continuing the work of enriching human resources, brand resources, customer
resources, ... to cost drastically increase resources. Finally, Prepare human resources with
enough knowledge and experience in analyzing, and using data in business activities to
accelerate and advance strongly in the era of retail 4.0. About the profit maximization, in 2019,
gross profit for sales is 3,460,713 million VND, the company has performed well the target of
2019 and has a plan for 2020 for gross profit of 3,991,288 million VND with the aim of growing
15% compared to 2019. (Annual Report, 2019).

Profit maximization of PNJ

( PNJ, 2019)

4.3. Social Objectives

For Social Objectives, In 2019 and the following years, PNJ company has practical goals
to help society. Environmental protection, community development, children developmentare
the important activities for change the context in a positive direction, creating a development
environment favorable for businesses, both in terms of growth motivation market space and
competitiveness. Therefor, creating prices value to contribute to building a sustainable society.
PNJ has a long-term strategic plan, integrated in and advanced process to conquer economic
goals. Not only stopping at actions and projects to complete the system security, improvement
of living environment, economic conditions, thing in medical care and education, but PNJ also
actively proposed, linking organizations and associations to create collaborative resources
create an ideal living environment for each individual is best developed in all aspects of life. At
the same time, PNJ has constantly associated elements, social organizations, professional
organizations to create resonance, create a favorable environment for startups development.
(Annual Report, 2019)

5.Type

5.1.Profitable company

PNJ corporation is a profitable company. According to the annual report of 2019, PNJ has to
pay 343,875,424,770 VND of dividends. In which, at the end of 2018, the company has recorded
268,371,812,300 VND of dividends. (Annual Report, 2020)

Divedend-paid

( PNJ, 2020)
5.2.Private company

PNJ company is a private company. According to BeTA Securities Joint Stock Company, as of
November 11, 2019, Ms. Cao Thi Ngoc Dung and her family members accounted for 15.46%;
other shareholders account for 67.21%; LGM investment Ltd has 4%; Route One investment
holds 3.94%; Dragon capital holds 3.53% and Deutsche Bank AG holds 1.88%. Besides,
Vietnam interprise investment limited accounted for 3.55%. (BSI, 2019)

Private owned of PNJ

(BSI, 2019)
 5 .3. Listed on the stock exchange market

On March 23, 2009, PNJ official listed on the stock exchange market on HOSE, the first and
only jeweler business so far. PNJ's stock code on the stock exchange was PNJ.

Listed on the stock exchange market

(SSI IBOARD, 2020)

Each company has a different size and scope of activities. First, researching about the scope of
the PNJ company.

6.Scope

6.1.Geographic market

 The JNA Awards ceremony honoring the best businesses and individuals in the Asian
jewelry industry taking place in Hong Kong in the past year has become a milestone marking the
beginning of a new phase of development of the Vietnamese jewelry industry.When PNJ was
appreciated with the Best Jewelry Retailer in Asia. With this event, the Vietnamese jewelry
industry has officially stepped to the top of the continent. This is an international appreciation of
PNJ's contribution to the regional jewelry retail market and asserts its brand name in the Asian
market. For exporting to the world, PNJ is present in 13 countries such as: Nga, My, Nhat Ban,
Han Quoc, Dai Loan,.. on 4 continents. (PNJ, 2019)

Geographic market of PNJ

(PNJ, 2019)

Besides, PNJ's retail network covers the whole country such as : Ha Noi, Ho Chi Minh, Can Tho,
Da Nang,… . As of September 30, 2019, PNJ has opened 25 new stores and closed 4 stores,
bringing the total number of stores to 345 stores 53/63 provinces and cities nationwide. (PNJ,
2019)
 Geographic market of PNJ

(BSI, 2019)

6.2.Main market

Although the company has exported to many different countries and continents, its main market
is Ho Chi Minh city. The company's main activity is to trade gold, silver, jewelry and gemstones,
import and export jewelry made of gold, silver and gemstones. The normal production and
business cycle of the Company and its subsidiaries (“the Group”) is 12 months. Net revenue in
the first quarter of 2019 reached VND 4783 billion, an increase of 16% compared to the first
quarter of 2018.The biggest contributor to revenue growth was the gold jewelry retail segment
with a 23% growth. Gold shop's revenue growth rate reached 11% in the first quarter of 2019.
Gold jewelry has the largest proportion, contributing 74.3% to revenue and 90.6% in PNJ's gross
profit. ( PNJ, 2019)
6.3.Target customers

Currently, PNJ has the main business segments of gold bar jewelry business, accessories,
watches and gemstone testing services. Jewelry business is the main business which
contributes nearly 80% on revenue and more than 90% of annual profit of PNJ, with 2 mode is
jewelry retail and wholesale jewelry.

For Jewelry Retail includes 3 brands targeting 3 different customers, including:

• PNJ Gold: Target female customers from the age group 25 - 45, with average income
above (> 58.5 million / year)

• PNJ Silver: Target a group of young customers, aged 15-25, love fashion.

• CAO Fine Jewelery: Aiming at high-end customers and foreign tourists.

For wholesale of gold jewelry: : PNJ's customers are businesses that trade in gold, silver and
gemstones across the country that do not have the conditions and facilities to produce jewelry in
large quantities. In addition, PNJ also aims at corporate customers wishing to use corporate
branded jewelry as partner gifts. (PNJ, 2019)
7.Size

7.1.Total assets

According to PNJ's 2019 annual report, PNJ's total assets as of December 31, 2019 are VND
8,602,964,421,816. Compared to 2018, which is 6,437,895,556,604 VND, the total assets of
2019 has increased to 2,165,068,865,212 VND. (Annual Report, 2019)

Total assets of PNJ

(PNJ, 2019)
7.1.Total Liabilities

Also in this consolidated balance sheet, total liabilities of PNJ is 4,025,698,610,469, an

increase of nearly 1.5 times compared to 2018 of 2,692,822,128,700. (Annual Report, 2019)

Total liabilities of PNJ

(PNJ, 2019)
7.1.Owner equity

Besides, according to the consolidated balance sheet, the equity for 2019 is
4,577,265,811,347 VND, which is an increase compared to 2018 of 3,745,073,427,904 VND.
From the data shows, in 2019, it increased by 832,192,383,443 VND compared to 2018. (Annual
Report, 2019)

Owner’s Equity of PNJ

(PNJ, 2019)

Based on the consolidated balance sheet of the 2019 annual report, these figures are
already given. We can see that PNJ is a large company.
7.2. Employee structure

At PNJ company, the total number of employees by the end of 2019 is 6101 people. In which
the number of female workers accounts for 62.69% and the number of male workers
accounts for 37.08%. The company especially emphasizes the spirit of gender equality for the
workers who are women.All PNJ employees have equal opportunity to demonstrate their values
and contribute to the overall success of the organization.With the number of recruitment in 2019
more than 1,800 employees, PNJ's recruiting staff has strived to meet the business development
needs of the company in the context of increasingly fierce competition in the market. Beside,
with the advantage of being a large and well-established company, the management team has a
vision;a modern management system, the competitive remuneration policies based on the
market survey so far have been composed and completed. PNJ has certain advantages in
talents. The majority of employees are Southerners with 3336 people, the Central is 1977, the
rest are Northerners with at least 774 people. PNJ has policies to facilitate the recruitment of
local laborers to promote the advantages of understanding local culture, customs and practices.
The company especially emphasizes the spirit of gender equality for the workers who are
women. PNJ always places top priority on raising awareness about the role of women, both in
the family and in society. All PNJ employees have equal opportunities to express their values
and contribute to the common success of the organization. In order to ensure that PNJ always
maintains its leading position and meets the sustainable development strategy, PNJ always sets
criteria with rigorous screening to ensure building and maintenance of a highly competent,
sharp, elite staff. In addition, in order to manage the staff with an ever-expanding scale, PNJ has
set up a system and regulations that are strict enough to ensure the compliance of employees,
proving that it is the reviewing and updating the Labor Regulation & disciplinary process law -
this is enforced twice in 2019. (PNJ, 2019)
8.Function

8.1.Structure organizational

Structure organizational

(PNJ, 2019)

PNJ is a company with a functional structure. The company is organizated, managed and
operated according to the model including: General Assembly of Shareholders, Board of
Directors, Supervisory Board and General Director. The General Meeting of Shareholders is the
highest decision-making body of the company. Next, the Board of Directors is the governing
body of the company. Besides, the Supervisory Board will check and submit financial reports
and business reports. Finally, the General Director is the person who directly works, operates
and understands the operation of the business (PNJ, 2019).
PNJ is also a multinational structure company. The company's head office is located at 107E
Phan Dang Luu Street, Ward 3, Phu Nhuan District, Ho Chi Minh City, VIETNAM. PNJ
company's products are exported to countries such as Russia, America, Germany, UK, Thailand,
Japan, Korea .... Based on different countries that PNJ has exported products that suit their
aesthetic. In 2012, PNJ hired foreign consultants to standardize the management system
according to international standards. Before inviting consultants in, PNJ organized seminars for
everyone to see the need for change. PNJ has realized that bad things are hindering
development and concludes that it must be changed in order not to fall behind. PNJ Jewelry is
considered one of the largest jewelry factories in Asia. (PNJ, 2019)

8.2.Department marketing

For every company, the marketing department is one of the most important. PNJ's marketing
department has the following basic tasks: market forecast research, set up relationships with
customers, and creating marketing strategies for the company's products. After a period of
market research, the marketing department noticed that gold bar trading had reduced its network,
so PNJ immediately changed the business group to other products. For example, PNJ's
diversified product models also come from customers' needs. Jewelry lines are constantly
renewed, and the customer base is also expanded: The age of female customers expands from
18-25 to 18-35 years old, adding a collection for children. and preparing to launch men's designs.
Following that, PNJ always knows how to research deeply into customers' psychology.
Specifically, the campaign "Golden Happiness" or "Priceless Gift" .... These campaigns have
brought positive results for the number one jewelry company in Vietnam, helping the company
increase its market share and a huge “reach” rate. PNJ has succeeded in conveying the view
that women are priceless and deserve the best. Finally, PNJ expands its distribution channels in
big cities, PNJ has heavily invested in distribution channels to increase the influence of this
jewelry brand in the market. Thanks to the advantage of “the more you do it, the more you know”,
PNJ can expand in all markets and it is difficult for other gold jewelry businesses to jump into
retail competition with PNJ. That is the difference when compared to Bao Tin Minh Chau, a
strong brand in Hanoi, but it is difficult to expand its scope of activities further.
The marketing department has always had important and necessary connections with the
finance and human resources departments. The marketing department has an excellent
strategy that can construct a series of activities that perform well against brand targets, but if the
finance department doesn't approve the budget, the strategy falls into the past and falls apart.
So when there is an important strategy, the commercial marketer is the one who will go to work
directly with the finance department, exchange the budget for it to put into action. Then, from the
directions given by the marketing department, the HR department will have a plan to recruit and
train personnel suitable for each position of the company, helping the company to achieve the
plan.

8.3.Functional structure achieve goals

Regarding the functional structure of PNJ, the company can achieve its target until 2020. In
2019, Vietnam's economy will be affected. Due to unfavorable geopolitical events around the
world, the retail industry has begun to slow down. PNJ had to overcome a number of problems
when it came to live the ERP system. In that situation, with the wise direction of the Board of
Directors and the Executive Board, along with the solidarity and determination of the employees,
the company has helped the company to fulfill the 2019 profit target set. out from the beginning
of the year. Due to the complicated situation of the 19th country and the trade war between
major powers in the world, the company has had new strategic directions such as: stable growth,
capacity building, resource enrichment, preparation for the future to bring long-term benefits to
shareholders. The functional structure of the Company has had thoughtful preparation and a
long-term vision to achieve the target set for 2020.

9.Social enterprise

The more modern society develops, the more social problems we will encounter such as:
environmental pollution, apparel, recycling, alternative energy ... So, more and more social
enterprises was born to solve the burning problems of society. In Vietnam, there are many
different social enterprises. including the social enterprise KOTO (Know One Teach One) was
the first social enterprise in Vietnam established in 1999 by Mr. Jimmy Pham. KOTO is a social
enterprise and restaurant located in Hanoi, Vietnam. KOTO is a humanitarian vocational training
center and owns a chain of restaurants in Hanoi and Ho Chi Minh City, Vietnam. On the
occasion of the 20th anniversary of KOTO, according to Mr. Jimmy Pham, the founder, when he
was a tour guide he often brought Australian tourists to visit his homeland of Vietnam, Mr. Jimmy
had the opportunity to interact with children opportunities in Hanoi. "The children looked at me
and said: We want to have a job in hand so that we can find a stable job," Mr. Jimmy Pham
recalls. "I did not know what I would do at that time, but I knew I definitely needed action”.
(Vneconomy, 2019)

KOTO has a number of advantages and disadvantages as follows. In terms of advantages:

KOTO actively looks for children in difficult circumstances, wandering about, carefully reviews
their conditions, identities and abilities to ensure they can study. Not only vocational training
including: cooking, service skills, restaurant and hotel management, KOTO also helps students
have life skills, communication skills, and foreign language learning. KOTO has helped and
changed the lives of more than 1,000 difficult children in Vietnam. Besides advantages, KOTO
also has disadvantages like: the ability to access and mobilize commercial investment capital is
limited because KOTO is established individually and has a mission to serve the society.
Simultaneously KOTO is not for profit purposes, so it cannot attract commercial investors. (CSIP,
2016)

10. For Merit

M1.1. Analyze that the size to achieve the objective

As for the size of PNJ (presented in the size section) we can see that PNJ company is suitable
for achieving social and economic objectives.

For social goals, because PNJ is a jewelry retail and processing company, PNJ knows that its
business activities can affect the environment when most of PNJ's inputmaterials are not
regenerative material. Therefore, PNJ's Board of Directors always focuses on the efficient use of
input materials, thereby contributing to minimizing negative impacts on the environment.
According to the strategic direction of 2020, one of the key tasks that PNJ sets out is to continue
to invest in facilities, machinery and equipment for PNJ Jewelry Processing and Trading
Company Limited (PNJP). - Factory number 2) to raise jewelry product standards, improve the
production process to use the amount of raw material input effectively, reduce loss and average
30% increase compared to 2018. ( PNJ, 2019)

For economic goals, by 2020, PNJ sets the target of net revenue growth of about 12%, with
absolute value of more than 19,000 billion VND; gross profit increased 15%, reaching 3,991
billion VND; Profit after tax increased 13%, reaching 1,349 billion VND. Besides, the company
also balances short-term growth with pressing restructuring button to prepare new foundations
for sustainable development. But after the first 4 months of the year, revenue and profit did not
reach the set target. Specifically, net revenue decreased by 4% over the same period in 2019,
reaching VND 5,502 billion; Profit after tax decreased 34% over the same period, reaching 320
billion VND. The failure of PNJ's business goals to be achieved is due to the fact that in April
2020, our country is in the period of Covid-19 prevention and control. In this month, PNJ's
business targets fell the most, net revenue was only 501 billion dong, down 47% year-on-year
and negative after-tax profit was 89 billion dong, down by 268% compared with the same period
last year. ( Chi Tin, 2020)

M1.2.Analyze that the scope to achieve the objectives

About the scope of PNJ's activities, they set 3 goals: geographic market, main market, target
customers. in which, customer target is one of the most important targets to evaluate the
consumption of PNJ's products.
 Vietnam population pyramid 2020

(PopulationPyramid, 2020)

Looking at the population pyramid chart of Vietnam, it is not difficult to see that Vietnam has a
young population structure, aged 20-45, accounting for 20.1% of the population. For the fashion
field today, consumers avoid cumbersome and want the most sophisticated and neat products
possible. Catching customers' fashion trends, PNJ is one of the jewelry enterprises that
pioneered in positioning its products properly towards young customers aged 25-45 with simple
designs but still keeping the elegance and elegance, very eye-catching and using new materials
has met the expectation of a modern jewelry trend, PNJ's products are fast in being welcomed
by the market. In PNJ's philosophy of sustainable development, one of the main factors is to put
customers' interests first. Therefore, PNJ has created quality products that customers receive
from the business. Because of this, by the end of 2019, jewelry products crafted by PNJ were
distributed directly to millions of customers through 346 retail stores, e-commerce channels.

and indirectly through more than 3,000 wholesale customers nationwide, as well as being
exported to 13 countries and regions, up 58% compared to 2016. (PNJ, 2019)

M1.3. Advantages and Disadvantages of structure

For the functional structure of PNJ , it will help the company achieve the set goals. Besides,
this structure also has the following pros and cons . About the pros: the structure is very
simple to understand and operate; communication is quick and easy, feedback can be done
faster; responsibilities are fixed and agreed at each level, and mandates and responsibilities are
clear; ecisions are made quickly and coordinated as effectively as possible, so, this structure is
economical and efficient; people in linear organizations know each other better and tend to
become close, the system is able to adapt itself to changing conditions for the simple reason that
each operator has unique responsibility in his or her field. Besides these pros, it has the
following cons: It is a rigid and inflexible form of organization; the apparatus of power tends to
turn into dictator; different departments may be more concerned with their interests than the
interests and well-being of the organization; creates abuse of authority to help family members;
no reward or punishment is given to workers. For example, when someone is in a high position
in the business such as: general manager, supervisory board ..., their family members are
looking for a job and want to enter the business they are working for. somehow, when their
family members come for the interview, they will receive it right away without having the same
difficulties as the others. This is one of the examples of abuse of one's authority to help family
members.
11. For Dicstinction

For the current majority of companies, the internal control department (the supervisory board)
is the worst performer. Poor performance has many causes. The first thing to mention is the
control environment. The integrity and ethics of the leadership of internal control is an extremely
important thing, but if in the supervisory board, some leaders do not set an example for
subordinates in daily work conduct. and do not praise employees who comply well with ethical
standards, strict discipline towards cheats, and dishonesty will directly affect the interests of the
business. For example, in the management of a control someone embezzling the property of a
business as private property, the firm is likely to collapse rapidly if the general meeting of
shareholders and other departments do not. discovered. Next, if in the supervisory board
department, the employee does not commit to his or her capacity as in the recruitment time, it
will affect work efficiency. Finally, in terms of control activities, it is necessary to maintain and
perfect well the general control, control of the focus activities, which are performed regularly or
periodically by competent and competent staff. permission. If the employee does not control a
part or stage, it is very likely to lose assets quickly.

Besides, the company also has the most effective department which is the research and
development department (R&D). without an R&D department, a company may not be able to
survive on its own and must rely on other ways to innovate, such as entering mergers and
acquisitions or partnerships. Through R&D, companies can design new products and improve
existing services. This division plays an important role in timely detection and application of new
technologies to create a competitive advantage in the market such as developing new products
against competitors, improving product quality, improve production processes to reduce costs.
For example, the company offers 6 billion VND so that this department can develop a product
that meets the customer's wishes, has a reasonable price, and comes up with a development
strategy then the research department and Developers must collect and fully analyze information
about competitors, production processes. A lot of companies have spent billions of dollars on
R&D to produce the latest products: Amazon: $ 22.6 billion, Alphabet: $ 16.2 billion, Volkswagen:
$ 15.8 billion, Samsung: 15.3 billion USD, Intel: 13.1 billion USD, Microsoft: 12.3 billion USD,
Apple: 11.6 billion USD ... through the above analysis, it can be seen that this is the core and
most effective part of company.

12.Conclusion

In conclusion, now PNJ is considered as one of the largest jewelry companies in Vietnam, and
recognized as PNJ brand as jewelry featuring the charm, sophistication and elegance of
Vietnamese people. With the long-term development of the jewelry industry, PNJ has had many
great achievements in the world market for the company in particular and for the jewelry industry
in Vietnam in general.
13.References

PNJ, 2019. Annual Report. [Online]

Available at:
http://images1.cafef.vn/Images/Uploaded/DuLieuDownload/2019/PNJ_19CN_BCTN.pdf
[Accessed 22 9 2020].

PNJ, 2019. Ban tin IR. [Online]

Available at: https://www.pnj.com.vn/images/quan-he-co-dong/ban-tin/PNJ-Ban_tin_IR-Q1-
2019.pdf
[Accessed 22 September 2020].

PNJ, 2020. Finacial Report. [Online]

Available at:
http://images1.cafef.vn/Images/Uploaded/DuLieuDownload/2020/PNJ_20Q2_BCTC_HNSX.pdf
[Accessed 22 September 2020].

SSI IBOARD, n.d. Listed on the stock exchange market. [Online]

Available at: https://iboard.ssi.com.vn/bang-gia/vn30
[Accessed 22 September 2020].
CSIP, 2016. KOTO was officially recognized as the first social enterprise in Vietnam. [Online]
Available at: https://csip.vn/chi-tiet/koto-chinh-thuc-duoc-cong-nhan-la-doanh-nghiep-xa-hoi-dau-
tien-tai-viet-nam-150.html
[Accessed 23 September 2020].

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