ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

Submission date 12/12/2021 Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student Name NGUYEN LE THIEN TAM Student ID GBS210127

Class GBS1001B Assessor name NGUYEN THI THANH NHAN

Student declaration
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.

Student’s signature TAM

Grading grid

P1 P2 P3 M1 M2 D1

1
❒ Summative Feedback: ❒
Resubmission Feedback:

Grade: Assessor Signature: Date:

Internal Verifier’s Comments:

2
Signature & Date:

TABLE OF CONTENT
LO1 Explain the different types, sizes and scope of organizations.......................................................... 4

1. Legal structures.........................................................................................................................................4

1.1 Public sector..................................................................................................................................... 4

1.2 Voluntary sector.............................................................................................................................. 5

1.3 Private sector....................................................................................................................................7

2. Size and scope of organizations............................................................................................................. 10

2.1 SIZE of company........................................................................................................................... 10

2.2 SCOPE of company....................................................................................................................... 11

LO2 Demonstrate the interrelationship of the various functions within an organization and how
they link to organizational structure.........................................................................................................13

3. Functions of some key departments relate to clear departments....................................................... 13

3.1 Provide an organizational structure chart of the selected company.........................................13

3.2 Explain key functions of some departments................................................................................14

3.3 How each function links to the objectives of the company........................................................ 14

Self-evaluation 1.......................................................................................................................................... 15

Self-evaluation 2.......................................................................................................................................... 15

References....................................................................................................................................................16

3
LO1 Explain the different types, sizes and scope of organizations

1. Legal structures

1.1 Public sector

The public sector is defined by the government's ownership or control of businesses and industries, as well
as everything connected to these businesses and industries. This sector, which encompasses public
enterprises and public services, plays an essential role in economic growth.

Public businesses are economic entities in which the government holds more than 50% of the stock. There
are two kinds of state-owned enterprises. The firms in which the state owns 100 percent of the charter
capital are wholly owned by the state. The other form is an enterprise with more than two members in
which the state controls more than 50% of the entire charter capital or voting shares. In Vietnam, one of
the largest state-owned enterprises is Petrolimex.
(http://cmsc.gov.vn/xem-chi-tiet/-/asset_publisher/WqvULR6gmpvh/Content/tap-oan-xang-dau-viet-nam-
petrolimex?41656)

Source: (public.petrolimex.com.vn)

A public service is something arranged by the government or an official organization for the benefit of all
people in a society or community, such as health care, transportation, or garbage management.
(collinsdictionary.com)

4
Public services can be easy to see in around our life, 115 People's Hospital is a non-business medical unit
under the Department of Health of the State.
(http://www.medinet.hochiminhcity.gov.vn/thong-tin-khen-thuong-bo-nhiem/danh-sach-xep-hang-cac-co-
so-y-te-cong-lap-tren-dia-ban-thanh-pho-ho-chi-minh-cmobile1298-1205.aspx)

Source: (benhvien115.com.vn)
The public sector aims to provide social and those who work for the government with public goods and
government services such as the army, police, public education, and health care.

1.2 Voluntary sector

The term "voluntary sector" refers to businesses whose primary goal is to have a positive social effect
rather than make a profit. It's also known as the not-for-profit sector, civil society, or the third sector. The
volunteer sector is different from the private sector and is independent of the local and national
government. Within the volunteer sector, charities constitute the largest single category.
(reachvolunteering.org.uk)

A non-governmental organization (NGO) is a charitable organization that operates independently of any

government. Non-governmental organizations (NGOs), often known as civil societies, are local, national,
and international groups that aim to achieve a social or political goal, such as humanitarian aid or
environmental preservation. For example, The Centre for Social Initiatives Promotion (CSIP) is a
non-governmental and non-profit organization dedicated to helping social enterprises (SEs) thrive in

5
Vietnam.
(https://pages.kiva.org/blog/7-questions-on-growing-social-enterprises-in-vietnam)

Mrs. Pham Kieu Oanh is the founder and CEO of CSIP Source: (pages.kiva.org)

A social enterprise, often known as a social business, is a company with specified social aims that fulfill
its core purpose. Profits are maximized while societal and environmental advantages are maximized in
social enterprises. The majority of their revenues are utilized to sponsor social activities. However, some
social enterprises is not run for profit, they just care about social. KOTO is a not-for-profit social
enterprise whose mission is to alleviate poverty by offering a secure future to some of Vietnam's most
disadvantaged young people.
(https://www.koto.com.au/)

6
 KOTO logo Source: (linkedin.com)

1.3 Private sector

The private sector is that the portion of the economy that is not governed by the government. Any
for-profit business, whether conducted by individuals or corporations, is included. Basically, the private
sector is an essential component of a free economy, because it drives development by providing
opportunities for employment and business. Some common features of this sector are profit, independence,
private finance, private ownership and therefore the most special characteristic is the private sector has a
competitive work culture. Employees and company owners alike are motivated by a desire for career
advancement and profit. Businesses compete for top personnel by offering a competitive remuneration
package (gocardless.com). Private sector conclude 4 different types: Limited liability company, Joint
Stock Company, Partnership, Sole trader.
Limited liability company divide into 2 forms Single-member limited liability company and
Multi-members limited liability company. For Single-member, the company is owned by an individual or
an organization and only one owner. The owners of the company bear all liability for debts and other

7
property obligations within the capital limit. For example: VIETNAM BANKING FINANCE
COMPANY LIMITED PROSPERITY

(https://www.vnr500.com.vn/Thong-tin-doanh-nghiep/CONG-TY-TAI-CHINH-TNHH-MTV-NGAN-HA
NG-VIET-NAM-THINH-VUONG-Chart--1724-2020.html).

Source: (vpf.vn)
On the other hand, Multi-members company can be owned from 2 to 50 members - can be individual or
organization. Members take the responsibility for debts and other property obligations within the capital
limit. Kuwaraha Viet Nam company limited is a example for this type
(https://masocongty.vn/company/1303179/cong-ty-tnhh-hai-thanh-vien-kuwahara-viet-nam-hcmc.html)

8
Second, Joint Stock Company has a unique way to find the owner. Company’s charter capital is divided
into many equal-value units called shares. The individual or organizations who own shares are
shareholders and it must be at least 3 shareholders. Shareholders are only responsible for the debts and
other liabilities of the company up to the amount of capital they contributed. Doji joint stock company is
one of many joint stock companies in Vietnam
(https://www.vnr500.com.vn/Thong-tin-doanh-nghiep/CONG-TY-CP-TAP-DOAN-VANG-BAC-DA-QU
Y-DOJI-Chart--1468-2020.html).

9
Third type is Partnership. These companies has at least 2 partners - individual- are co-owners of the
enterprises. Individuals that are accountable for the company's commitments with all of their property are
known as general partners. Contributing partners are only responsible for the debts of the company up to
the amount of money they provided. Example for this type is Van An Partnership Law Firm.
(https://infodoanhnghiep.com/thong-tin/Cong-Ty-Luat-Hop-Danh-Van-An-90653.html)

Last, Sole trader is a business controlled by a single person who is personally responsible for its operation
and owns all of the firm's assets. Typically, private pharmacies are scattered everywhere and you can
easily find them on the road.

In conclusion, the private sector plays a critical role in urban and economic development, contributing
considerably to national GDP and functioning as the principal employer and job creator. Anyway, all
types in Private sector have a same purpose is making money or in the other way is profit for the owners.
(gsdrc.org, 2021)

2. Size and scope of organizations

2.1 SIZE of company

Source: (vn.wikipedia.org)

Vinamilk company's full name is Vietnam Dairy Products Joint Stock Company. This is an enterprise
specializing in manufacturing and trading milk and dairy products in Vietnam. According to statistics of

10
the United Nations Development Program, this is the 15th largest company in Vietnam in 2007. With the
rapidly developing economy, the benefits of milk make the demand for milk increase in Vietnam. So the
milk market in Vietnam is one of the markets with very fast growth. Facing that fact, the Vinamilk brand
appears which created a bright spot for Vietnam’s dairy industry with a large processing process’s fresh
milk of international standard. Vietnam Dairy Products (Vinamilk) is the country's largest food processor,
specializing in dairy products such as milk and yogurt. Facing many competitors in the same industry,
Vinamilk has invested and developed its primary, secondary and tertiary sectors. Starting with pastures
and cows - the source of milk - the company has found locations and built the most modern farms. After
that, the production stage, the enterprise used advanced methods and machines imported from the leading
countries in terms of machinery. Finally, the products with the best quality have been delivered to
customers through distribution channels such as shops, supermarkets, convenience stores, etc. It is
estimated that it controls nearly half of Vietnam's dairy market. In 2006, the firm became public on the Ho
Chi Minh Stock Exchange, after being created in 1976. The government owns 45 percent of the company.
Its enormous potential is also recognized outside of the nation, with foreign investors owning 49% of the
firm. According to Vietnamese regulations, Vinamilk is a large with a number of employees is 9,361 and
total capital is 48,432 billion VND (database on The Vinamilk’s 2020 annual report).

2.2 SCOPE of company

With the vision "to become a world-class brand in the food and beverage industry with nutritional and
health products that are trusted by everyone" and the mission "to deliver valuable nutrition to the
community with our respect, love, and responsibility," Vinamilk is dedicated to providing communities
with the highest-quality nutrition source that reflects our respectability, love, and responsibilities for
people, life, and society, and aspires to become the leading Vietnamese trusted brand. By 2025, 15
production plants will be built in China and India, Indonesian, Thailand. In 2030, occupy about 30% of the
Asian market for nutrition and health products and 500,000 distribution points will be built in Asia.
Vinamilk’s internal stakeholders include: managers and employees, the most interest of them is the
company is run in the best way for profit, that can provide them with high payment and good work
environment. Besides, Vinamilk's connected stakeholders including suppliers, customers, shareholders
and the government want businesses to bring quality products, high profits, and finally, the government
hopes businesses will bring many benefits to society.

11
Vinamilk's visions and goals have met almost all the aspirations of stakeholders. During the period
2015-2021, Vinamilk's products have been greatly improved in terms of quality and variety, so that the
company's profits have increased, besides, the company has also accompanied the government. and helped
a lot of young people all over Vietnam with their own products.

12
LO2 Demonstrate the interrelationship of the various functions within an organization and how
they link to organizational structure

3. Functions of some key departments relate to clear departments

3.1 Provide an organizational structure chart of the selected company

Source: (Vinamilk.com.vn)

With more than 9,300 employees in offices and factories, Vinamilk needs a reasonable organizational
chart. In order for all stages to run smoothly and always be reported accurately to the CEO, there will be

13
an executive manager in each department. Under the CEO, there are 2 directors, the Director of Internal
Control and Risk Management and the Director of Internal Audit. On the CEO, there is a board of
directors consisting of 4 subcommittees: strategy, human resources, compensation and audit. And above
the board of directors, the general meeting of shareholders is the most powerful person in the company.

3.2 Explain key functions of some departments

Any business that wants to develop sustainably needs the presence and coordination of many departments
and Vinamilk is no exception. Vinamilk is a large corporation, with all 11 departments under the General
director, including: Strategic Planning Department, IT Department, Production Department, Material Area
Development Department, Logistics Department, Finance Department, HR - Administration & External
Relations Department, International Sales Department, Domestic Sales Department, Marketing
Department and R&D Department.

Each department has its own function. The first is the finance department, which will be responsible for
managing and reporting on total long-term assets, total short-term assets, revenue, profit, investments and
liabilities. Next is Marketing department will will approach and research the needs of customers, search
the market as well as find information about competitors in the same industry. After getting the customer's
information from the marketing department, the sales department's personnel will bring the product,
convince and negotiate with that customer. For domestic customers, the domestic sales department will
receive and directly sell. For export products, the international sales department will take on the
responsibility of directly negotiating as well as resolving export issues. In order for the process of bringing
products to customers to be smooth, it is necessary to have an HR department - external administration.
HR Department will be responsible for: Recruiting, implementing labor policies, planning and
implementing strategies to maintain and develop resources. The personnel of the external administration
department will conduct transactions with partners, as well as maintain relationships with customers.

3.3 How each function links to the objectives of the company

Vinamilk sets a revenue target of more than 62,000 billion VND by 2021. To achieve this goal, Vinamilk
has developed strategies to diversify products, multi-brand, research and develop multiple product
categories with more than 250 different types of products. The departments in the company need to
coordinate smoothly in the stages to be able to bring new products to customers. The finance department
needs to balance the capital to develop new products and report to the marketing department so that they

14
can plan a promotion strategy and bring the product to customer needs in the best way. In addition, the
foreign affairs department provides information about new products to partners, and the sales department
negotiates and convinces customers to buy the company's products. With such clear goals and strategies,
the figure of 62,000 billion VND will not be too difficult for Vinamilk to achieve.

Self-evaluation 1

As mentioned in previous sections, Vinamilk's goal is "To become a world-class brand in the food and
beverage industry with nutritional and health products that are trusted by everyone". With today's diverse
market, not only in the country but also in foreign countries, Vinamlik has met the phrase "world-class
brand" in its goal. Besides, by calling for investment from foreign investors, Vinamilk has a reliable and
high quality raw material supply source from abroad as well as a distributor to bring products to more
customers and have won the trust of customers for many years. The trust of customers is right because
from the very beginning, Vinamilk has invested a lot in the primary sector, Vinamilk has built many
high-quality farms with international standard beef farming techniques. Vinamilk also did not forget to
invest in the secondary sector with modern machinery imported from advanced countries and Swedish
milk formula. And finally, in the tertiary sector, Vinamilk strongly focuses on customer experience and
from that creates a strong resonance in the dairy industry.

Self-evaluation 2

The two biggest achievements that Vinamilk has recently achieved are that in 2020, Vinamilk entered the
top 50 most valuable brands in Vietnam according to Forbes magazine and in 2021, Vinamilk is valued at
nearly $2.4 billion and is the sole representative. Southeast Asia's top 10 most valuable dairy brands in the
world in 2021, according to Brand Finance (vnexpress.net, 2021). To achieve such achievements, all
departments in Vinamilk must have a close connection with each other. The finance department has to
make detailed and careful financial reports to help the marketing department get accurate information
about the funding source to be able to come up with such good marketing strategies. Besides, the R&D
department has also done a great job in diversifying the company's products, increasing the number to 250
products, not only that, the HR department has recruited and trained new employees. Talented and
enthusiastic staff.

15
REFERENCES
vnexpress.net, 2021. Vinamilk lọt 'Top 10 thương hiệu sữa giá trị nhất thế giới năm 2021'. [online]
vnexpress.net. Available at:
<https://vnexpress.net/vinamilk-lot-top-10-thuong-hieu-sua-gia-tri-nhat-the-gioi-nam-2021-4353043.html
> [Accessed 6 December 2021].

Vinamilk.com.vn. 2021. Annual Report 2020. [online] Available at:

<https://www.vinamilk.com.vn/static/uploads/bc_thuong_nien/1617354921-f48f48ff7baf40d9af270083a7
36eaaf0f52a6c5873367d134b4c83f193b0677.pdf> [Accessed 6 December 2021].

investopedia.com, 2021. Private Sector Definition. [online] Investopedia. Available at:

<https://www.investopedia.com/terms/p/private-sector.asp> [Accessed 6 December 2021].

britannica.com, 2021. free trade | Definition & Facts. [online] Encyclopedia Britannica. Available at:
<https://www.britannica.com/topic/free-trade> [Accessed 6 December 2021].

reachvolunteering.org.uk, 2021. What is the voluntary sector?. [online] Reach Volunteering. Available at:
<https://reachvolunteering.org.uk/guide/what-voluntary-sector> [Accessed 6 December 2021].

BURNS, J. and NEEDLE, D. (2019) Business in Context: An Introduction to Business and its
Environment. 7th Ed. Cengage Learning.

MORRISON, J. (2020) The Global Business Environment: Towards Sustainability? 5th Ed. Red Globe
Press.

16