UNDERSTANDING

&

Lecturer: David Scribner

Written by: Pham Huu Khai
ID number: B180032
2nd assignment of Understanding & Leading Change
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TABLE OF CONTENT

Contents
INTRODUCTION......................................................................................................................... 4

Learning outcome 3: Determine how barriers to change influence leadership decision

making............................................................................................................................................ 5

I. Overview ................................................................................................................................. 5

1. PNJ corporate..................................................................................................................... 5

2. Doji corporate..................................................................................................................... 5

II. Schein’s Cultural Fundamentals of PNJ.......................................................................... 6

III. Schein’s Cultural Fundamentals of Doji.......................................................................... 9

IV. Lewin’s force-field model ................................................................................................ 12

1. PNJ corporate................................................................................................................... 12

2. Doji corporate................................................................................................................... 13

Learning Outcome 4: Apply a range of leadership approaches to a change initiative......... 15

I. Kotter’s 8-step change model ............................................................................................. 15

1. Kotter’s 8-Step Change Model of PNJ ........................................................................... 15

2. Kotter’s 8-Step Change Model of Doji corporate ......................................................... 18

II. Lewin’s Three Step Model: ............................................................................................. 22

1. Lewin’s Three Step Model of PNJ corporate ................................................................ 22

2. Lewin’s Three Step Model of Doji corporate ................................................................ 24

References .................................................................................................................................... 27

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 INTRODUCTION

The main of this assignment is to identify how barriers to change affect leadership decision-making
and then apply a range of leadership approaches to a change initiative. In addition, it is going to
give the explanation of different barriers for change and use force field analysis to analyze the
driving and resisting forces and determine how they influence decision-making in a given
organizational context.

Moreover, this report also applies the different leadership approaches to dealing with change in a
range of organizational contexts. After that, I will give the evaluation of extent which methods that
can deliver organizational change effectively by applying appropriate models and frameworks.

The whole research of this assignment provides a background knowledge to support lots of
providing more ideas for change initiatives in front of barriers. This is will help students enrich
knowledge and get useful for completing the report and job in the future.

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Learning outcome 3: Determine how barriers to change influence leadership decision
making.

I. Overview
1. PNJ corporate

PNJ is the leading brand in Vietnam in the field of processing and retailing jewelry made
of gold, silver and gemstones. PNJ products are increasingly favored by countries in Asian and
European markets. In addition, PNJ was established in Vietnam in 1988, PNJ has become the
leading jewelry manufacturer and retailer in Asia, with nearly 6000 employees and more than 350
retail stores nationwide. The headquarter is 170E Phan Dang Luu - Ward 3 - Phu Nhuan District -
Ho Chi Minh City. Currently, PNJ Company has a production capacity of over 4 million products
/ year, is considered one of the largest jewelry manufacturing factories in Asia with a team of more
than 1,200 employees. Over the past 30 years of establishment and development, PNJ has achieved
many remarkable achievements: being among the Top 500 leading retailers in Asia Pacific, the
Asia Pacific Quality Award, National Brand, Top The 100 best working-environment in Vietnam,
the best working environment in Asia ... With the core values that PNJ has pursued, PNJ has owned
a human resource with professional working style and efficiency. The most important thing is the
employee's connection with the organization. State-of-the-art facilities ensure that employees can
work in the best conditions. In addition, the company also equipped with gyms GYM and Yoga to
help employees regenerate their labor after a working day. PNJ collective joined hands to build a
culture of sympathy, sharing through community support activities, establishing PNJ charity fund,
the program "PNJ home" bringing a good life for the people. poverty, talent incubation. To
continue affirming PNJ's position in Vietnam and the world, PNJ are expanding our business
development system and need to add talented candidates to our professional staff. (Pnj,2019)

2. Doji corporate

Golden metal Doji group, formerly known as TTD Trading and Technology
Development Company, was established on July 28, 1994. In 2009, in order to strengthen the entire
machine for the take-off phase, DOJI restructured and officially became DOJI Jewelry and
Gemstones Group, operating under the model of Parent-Child Company. DOJI Tower - The Head

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Office of the Group was officially opened, becoming the largest Jewelry Center in the country
with a classy and unique architecture, at 5 Le Duan, District Ba Dinh, Hanoi. DOJI Jewelry is
proud to be the National brand of Vietnam. Currently, DOJI Group consistently outperforms in the
hinged fields in jewelry and real estate investment. The Group pays attention to potential projects,
invests in the tourism sector, becomes a strategic shareholder of Artex Saigon, invades the finance-
banking sector and successfully restructures the Bank. Joint Stock Commercial Bank of TPBank.
On April 30, 2020, DOJI Jewelry and Gemstones Group officially took over Diamond World
Company - Top 3 largest jewelry retail enterprises in Vietnam. Up to now, DOJI consists of 12
member companies operating under the Mother-Con company model, 5 Capital Contribution
Companies and 50 Branches, nearly 200 Centers, stores nationwide with more than 400 Agents,
Point of Sale ..., creating a product distribution system covering most regions of Vietnam. DOJI
Group has created a strong mark in the Vietnamese business community in general and in the gold
and silver industry in particular with its impressive revenue growth and growing brand value.
Dominating the domestic market with the Gold Bar trading system, distributing Diamonds and
high-end jewelry throughout the North-Central-South, the DOJI brand is stepping steadily in the
journey of conquering customers with prestige and product quality. (doji, 2019)

II. Schein’s Cultural Fundamentals of PNJ

• Artifacts: In the field of business and retail, beautiful uniforms play a very important role in
building the image of professional activities to customers. PNJ always has the best PNJ
uniform designs for employees to use, which is yellow with green trim on the collar. In
addition, the PNJ logo is a timeless and transparent symbol with the main colors of gold and
blue, it clearly shows that the company's fields of activity are unique but are all based on the
core values that have been built up and are constantly being strengthened. (Pnj, 2020) Besides,
modern well-equipped facilities ensure staff are in the best conditions. In addition, the
company also equipped with gyms GYM and Yoga to help employees regenerate their labor
after a working day. (mayaothundongphuc, 2020)

• Basic Assumptions: PNJ has a well-known brand name, specializing in producing and trading
jewelry made of gold, silver, gemstones, fashion accessories, and souvenirs. Trading in

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 watches and trading gold bars with core values, mission, vision, etc. has brought a lot of success
and development to the company. PNJ's mission is "PNJ brings customers pride with exquisite
jewelry products with outstanding quality". Moreover, PNJ's vision is "the leading jewelry
processing and retailer in Asia, holding the No. 1 position in the middle and high-end jewelry
market segments in Vietnam". In addition, Strategy statement of PNJ is sustainable
development, it also has two Objectives for this strategy that is to prepare resources, the
foundation to promote long-term growth and create breakthrough momentum in the future and
engage social goals. Moreover, PNJ's slogan is "Faith and Style". (pnj, 2020)

• Finally, PNJ's core value is Integrity - Responsibility - Quality Innovation - Engagement. (Pnj,
2019)

➔ PNJ's corporate culture includes building trust in colleagues, sharing difficulties in both
work and life; management and administration processes, to avoid personal emotions and
subjective views affecting work; attach importance to the human factor. Employees -
people in direct contact with customers - are interested in number 1. In addition, corporate
culture not only contributes to honoring the beauty in labor, connecting employees with
enterprises, social communities but also contributes to creating the brand PNJ. Besides, the
cultural beauty of PNJ is the projects towards the community, of which the typical program
is "The home of PNJ faith". Moreover, PNJ is like building "a family with culture" with its
own working conventions, vision and mission, and value systems are shaped, developed
and fostered through each development milestone. (Pnj, 2020)

❖ Change initiative:

Entering 2020, the Covid-19 pandemic has had a profound impact on and disrupted all
socio-economic activities. In order to overcome the Covid-19 storm, businesses could not use the
old songs, they had PNJ changed their mindset, changed the way of working, and changed the
strategy of "operation". So, PNJ has special employee care programs and policies that are
organizing a vacation trip with the aim that employees work together to fight, work day and night,
move forward together, against those influences. Along with that, PNJ deployed many items to

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promote online sales, ensuring to meet customer needs. Enterprises also promote restructuring
activities to optimize inventory, reduce production costs, management, increase profit margins,
and launch new product brands to meet market demand, contribute to maintaining growth. As a
result, employees are multi-functional and increase their income. Businesses also optimize
operating costs, redesign 6 sales processes and tools, increase customer service speed, reduce
internal workloads, and rearrange the timeframe process. help save working time. Moreover, the
leader of PNJ volunteered to receive only 50% of salary, but all employees' salary is kept
unchanged. With those efforts, upholstery in the first 9 months of 2020, net revenue of PNJ reached
11,668 billion VND, profit after tax reached 642 billion VND, respectively reached 80.6% and
77% of the plan for 2020. In the past 9 years, although the market has been narrowed, PNJ's retail
revenue still grows by 18.2%, so bringing the third quarter revenue to increase by 9.5% over the
same period. (Pnj, 2020)

In order to adapt, PNJ changed its old strategy and applied a new "sniper" tactic to target
people like customers who were not or less affected by the covid epidemic in Vietnam.
Therefore, this change clearly shows the relevance of PNJ's sustainable development
strategy. In addition, in order to achieve such success, there must be consensus among all
staff. Besides, in order for employees to fight together, work day and night, move forward
together, PNJ has special employee care programs and policies. For example, in July, in
the midst of difficult times, PNJ's leadership took 4,500 people to Phu Quoc and stayed at
a 5-star hotel. During the difficult period due to the Covid-19 translation, the volunteer PNJ
leader received only 50% of the salary, but all employees' salaries remained unchanged.
(Pnj, 2020)

Currently, PNJ has "pressed the F5 button" also known as "Refresh" to recreate the
corporate culture with the purpose of changing problems related to people, habits,
operating mechanisms. They have changed PNJ's old corporate culture, which is “The
house of PNJ's belief”. While the new corporate culture "refreshes", there are many
changes and developments, PNJ is repositioning its business strategy, promoting the
business model from "Production and sales" model to model. "Professional retail and value
supply" is a growth model of PNJ in the long term, at the same time promoting business

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 ability. industry continued to develop, creating stable momentum. In addition, businesses
also reclassify customers according to a new vision of "psychology - psychology" based
on a "unstructured" information system instead of how to segment "demographics -
demographics"., from there, come up with separate designs for each group. of customers,
bringing new values that suit and meet the needs, personality and fashion style of each
group of customers that are increasingly different. This also emphasizes the human factor
is the most important factor, it is completely consistent with the strategy and culture of the
business. Moreover, PNJ has changed by deploying many items to boost online sales to
meet customer needs. The enterprise also promoted restructuring activities to optimize
inventory, reduce production costs, management, increase profit margins, and launch new
product brands to meet market demand. That change is completely consistent with the
corporate culture, PNJ's mission and vision. (Pnj, 2019)

III. Schein’s Cultural Fundamentals of Doji

• Artifacts: The DOJI logo is a six-pointed star, the Star Ruby stone, and is present on all DOJI
products. In addition, Doji had three different uniforms. The first model of uniform is a one-
piece skirt with a polite and dignified pencil-shaped skirt. The second model of the uniform is
the shirt. Doji uses a traditional collared shirt shape combined with a silk scarf tied at the collar.
Moreover, Doji also designs a dynamic T-shirt that is easy to wear, almost like a shirt. Besides,
Doji has more vest models in winter to ensure the health of the staff. Staff uniforms rarely have
extra accessories, but Doji has a canoe that is an accessory for female employees. In particular,
the DOJI building has its own imprint of the gold, silver and gemstone brand, simulating a
giant glowing diamond in the heart of the capital, shaped by thousands of special glass panels
for DOJI Tower the world's No. 1 glass maker Viracon, made by the US, will create "unique"
light effects both day and night. In the working environment, employees are equipped with all
facilities to work and rest, to study the models of big corporations in the world such as Google,
Facebook ... (Doji, 2020)

• Basic Assumptions: Doji's mission is "Towards people and for people with top quality
products and services in production, business and corporate governance, for social prosperity,

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 personal values and quintessence of life. ". Moreover, the vision of Doji is "Continuously
expanding production and business and developing sustainably to become a leading
corporation in Vietnam and the region in the fields of Jewelry, Gemstones, Jewelry as well as
other fields. Real Estate, Investment, Trade and Services ". In addition, one of the strategies
that helped Doji lead the market to date was a diversified business strategy for gold, silver and
jewelry. Besides, DOJI Group has created its own feature in Corporate Culture, considering
the human factor as the nucleus associated with the slogan "Towards people in the goal of
sustainable development". (Doji, 2019)

• Finally, Doji’s core value is “Integrity - Creativity - Synergies - Knowledge – Compassion”

(Doji, 2019)

➔ Business culture is considered by Doji Group as a contributing factor to the success of the
leading gold, silver and gemstone brand in Vietnam. In which, the group has built and
upgraded five core values: Integrity - Creativity - Synergies - Knowledge and Compassion.
"This is the secret for the business to retain talent and attract young workers", the
representative of the Group affirmed. In addition, DOJI focuses on building a cultural
environment rich in humanity and freshness - where colleagues stick together and share as
members of a family. As well as in this "second home", employees are imbued with
business ethics and professional ethics, commitment, trust and responsibility to the
community. Doji always emphasizes gender equality and especially respects women's
rights. (Minh Chi, 2020)

❖ Change initiative:

Entering 2020, the Covid-19 has caused very heavy and negative impacts on the gold
and silver jewelry market in particular and the Vietnamese economy in general. In order to
overcome the Covid-19 storm, Doji needs to develop strategies and plans to deal with this
epidemic. On April 30, 2020, DOJI Jewelry Group merged and acquired, officially took over
Diamond World Company - Top 3 largest jewelry retail enterprises in Vietnam. This proves that
DOJI always finds opportunities in crisis, finds opportunities in difficulties and challenges.

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Therefore, it requires efforts from the Board of Directors of DOJI Jewelry Group and the
Departments of the Group to make Diamond World quickly stabilize and keep pace with the
overall operations of the Group. In addition, leaders must hire professional staff to manage and
monitor this change. According to baodautu.vn, it shows DOJI's profit after tax for the first 6
months of 2020 at 45.5 billion dong, down by 5.3% over the same period last year. This level of
profit is very modest compared to the equity of VND 3,392 billion at the end of June 2020.
Calculated, the rate of return after tax / equity (ROE) of DOJI is only 1.3%. However, in the first
9 months of 2020, DOJI's revenue is still 68,000 billion dong. (Doji, 2019)

Through the change initiative mentioned above, it is consistent with the corporate culture.
Moreover, this change is also consistent with the missions, vision and strategic goals
mentioned from the beginning. Therefore, with strategic vision, sustainable development
perspective, strong potentials, DOJI Group affirms the national brand level of Vietnam, is
ready to integrate and reach out in the region as well as well as international in the future.
(Doji, 2019)

Corporate culture is not a big, big concept but permeates every breath of the business. At
DOJI, the leadership generation is not only focused on building a vibrant corporate culture
through the transmission of business ethics, professional ethics, but also pay special
attention to the practical and closely with daily staff life. A special feature at the DOJI
headquarters - DOJI Tower building is invested in a restaurant, supermarket, relaxation
corner, tea area, gym, creative room ... to help employees relax and stimulate the spirit,
inspiration at work. In addition, DOJI always emphasizes a professional working
environment and high cohesion. The first is to connect at work, then through corporate
cultural activities to promote corporate culture. Therefore, for many years, each staff
member had a free buffet lunch with an average menu of 10 dishes / day. According to
many DOJI staff members, lunch is a unique culture of DOJI. "Sometimes, the leaders of
the Group have dinner, talk closely with staff or ask us if we have any suggestions, making
us believe that we really have a meal with a close family." - Mr. Dinh Cong Hoang Linh,
an expert in Marketing Division shared. (trangsuc.doji, 2019)

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IV. Lewin’s force-field model
1. PNJ corporate.

Forces to change Change initiative Forces Against Change

The impact of the covid 19 Change to new strategy to PNJ lack of consensus
epidemic affects corporate adapt to the change.
operations Switching old strategy from
Desire to retain staff during B52 to "sniper" strategy
Need for consensus COVID

Forces to change: When the Covid-19 translation hits, industries that do not have to provide
essential products of life face many difficulties, including the jewelry industry. Evidence, a series
of jewelry shops closed, returned business licenses. The market no longer has the golden waves
going up and down as before, a series of businesses have difficulty, leaving employees waiting for
work, delaying up to 80% of production lines…. Besides, PNJ also fell into a rather tense situation.
When Vietnam has a social gap, the whole industry goes down. PNJ has 365 stores, forced to close
320 points of sale. PNJ recorded a loss for the first time after many years. According to the recently
announced consolidated financial report for the second quarter of 2020, PNJ recorded net revenue
of VND 2,745 billion, a decrease of 7% compared to the second quarter of 2019. However, after-
tax profit dropped by 81%, reaching only 31.7 billion dong. Moreover, in the first 6 months of
2020, PNJ's after-tax profit was only 440 billion dong, down 25% over the same period in 2019.
(Pnj, 2020)

Change initiative: Enterprises cannot use the old "articles" that have helped PNJ be successful
during the past 7 or 8 years. PNJ must change his mindset, change the way of working, change the
"operation" strategy. Besides, according to PNJ's senior representative, to get that achievement,
there must be the consensus of all employees. And for employees to unanimously fight, work day
and night, move forward together, PNJ has special employee care programs and policies. (Pnj,
2020)

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Forces Against Change: Previously, PNJ used the strategy of fighting with B52, opening 40 stores
a year, when Covid-19 arrived, the use of B52 would be very expensive, costly gas and bomb. In
order to adapt, PNJ chose to "sniper". Accordingly, from the information channels, PNJ looks for
customers with little or no influence from Covid-19 translation. Due to COVID PNJ realized that
staff retainage was important. However, to achieve that result, there must be the consensus of all
staff members, the leaders sent all staff, including more than 6,000 employees, to Phu Quoc to
develop consensus and confirmation. solution. Moreover, during the difficult period due to the
Covid-19 translation, the volunteer PNJ leader received only 50% of the salary, but all of the
employees' wages were kept unchanged. With those efforts, upholstery in the first 9 months of
2020, net revenue of PNJ reached 11,668 billion VND, profit after tax reached 642 billion VND,
respectively reached 80.6% and 77% of the plan for 2020. In the past 9 years, although the market
has been narrowed, PNJ's retail revenue still grows by 18.2%, so bringing the third quarter revenue
to increase by 9.5% over the same period. (Pnj, 2020)

2. Doji corporate.

Forces to change Change initiative Forces Against Change

Expand market share during M&A Diamond World Lack of key employees to
COVID 19. manage the initiative

Forces to change: During the 19 covid epidemic season, the DOJI Group has constantly developed
outstandingly in the fields of hinges on Gemstone Gold (stretching from activities of Mining,
Cutting and Grinding of Gemstones, Jewelry Production; Trading in Gold bars; Importing,
exporting and trading in gold jewelry and fine arts; Expanding the chain of Gold, Silver and
Jewelry Centers across the country and expanding investment in Real Estate, potential projects,
investing in the tourism sector, penetrating into the banking and finance sector and successfully
restructuring the Joint Stock Commercial Bank of TPBank.

Change initiative: On April 30, 2020, DOJI Jewelry Group officially took over the merger and
acquisition of Diamond World Company - Top 3 largest jewelry retail enterprises in Vietnam. The

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deal took place right in the period of economic crisis when the Covid 19 pandemic had caused
very heavy and negative impacts on the gold and silver jewelry market in particular and the
Vietnamese economy in general. This proves that DOJI always finds opportunities in crisis, finds
opportunities in difficulties and challenges.

Forces Against Change: There is a current problem that the Doji group has had to leave half of
its employees due to the Covid 19 disease. the minimum area is 4.8 million dong. It shows the
shortage of key staff to manage before the company's changes as well as the disease change
affecting the making-decision of the business. So, the doji leaders have to hire key staff to manage
this change initiative. (baodautu, 2020).

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Learning Outcome 4: Apply a range of leadership approaches to a change initiative.
I. Kotter’s 8-step change model
1. Kotter’s 8-Step Change Model of PNJ
Stage Action needed Pitfalls
1 Establish a sense of PNJ identifies a potential threat: PNJ is subjective or does not
urgency. The fashion retail segment has capture the focus and identifies
many competitors, along with the potential weaknesses,
informal market (online). opportunities and risks.
2 Form a powerful Create and bring together a team Lack of trust among members
guiding coalition of managers and employees Often there is a contradiction
working together to combat the
changing Covid epidemic 19.
3 Create a vision PNJ has appropriate strategies at Present a vision that is quite far
the era of 4.0 technology to move from the capabilities of the
towards a new vision that is "To business and difficult to explain
become the world's leading clearly when communicating in a
jewelry retailer and maker". short time.
4 Communicating the Tie vision to everything within Communicate the vision is
vision PNJ's company, from operations unclear and confusing
to company morale, and tie
everything back to vision.
5 Empowering others Considerate and define PNJ are not eliminating people
to act on the vision organizational structure, job who are resisting change and
description, work system and helping them realize what is
compensation, make sure they are needed.
consistent with the vision.
6 Plan for and creating Recognize and reward team Other groups of employees lost
short-term wins. members for achieving goals and their mood and motivation when
good performance in the face of they failed to fulfill their targets.
change.

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7 Consolidate Applying kaizen method to Some employees are not aware of
improvements and employees, ideas of continuous and apply the method to avoid
produce more improvement. being deceived on the victory.
change.
8 institutionalizing Continue to recognize key Forget their appearance and
new approaches. coalition and change members, record their contributions, efforts
creating opportunities to honor and achievements.
their contribution and their
legacy to the change.

❖ Discuss
₋ Step 1 - Establish a sense of urgency: Currently, PNJ has identified potential threats that are
the fashion retail segment has many competitors, along with the informal market (online). PNJ
considers this an urgent situation and will provide goals and plans to improve and develop in
that area. Because of the era of technology 4.0, most of society use social networks to access
them. Besides, currently on the market, consumers have new demands for jewelry in the low
to medium segment. Thereby, PNJ quickly responded to that change and changed its upcoming
business activities to suit the current market. In addition, one of the risks that make PNJ feel
urgent and fearful because PNJ is subjective or does not capture the focus and identifies
potential weaknesses, opportunities and risks. (tinhtrangchungkhoan, 2019)

₋ Step 2 - Form a powerful guiding coalition: Create and bring together a team of managers
and employees working together to combat the changing Covid epidemic 19. This action has
created the connection between internal members in the company including managers.
Moreover, It creates commitment among members, builds spirit and trust among members
when working in groups. A coalition leading group united and toward the same vision can
drive change and create support across the organization. Besides, it also has some risks in the
process of making changes that is lack of trust among members and conflicts and conflicts.
Therefore, leaders must supervise and manage closely to promote and create opportunities for
employees to work effectively. (Pnj, 2019)

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₋ Step 3 - Create a vision: Currently, PNJ has reached the milestone with the vision "To become
the leading jewelry retailer and maker in Asia". So, with their passion and desire for
Vietnamese brands and jewelry products to bring to the world, they have turned to a new vision
that is "To become the world's leading jewelry retailer and maker" at the era of 4.0 technology.
PNJ's leaders with a clear and foresight, they also plan a clear strategy to implement the
established vision. Moreover, leadership of PNJ clearly defines vision and clearly visualizes
the end result, which will keep the organization focused and effective. In order to achieve the
vision, strategic goals, the employees understand and work effectively, PNJ also needs to avoid
the pitfalls that is communicate the vision is unclear and confusing because it will detrimental
and negative to their business. (phamthongnhat, 2020)

₋ Step 4 - Communicating the vision: In order to convey the information of the new vision
before the change, the leader has tie vision to everything within PNJ's company, from
operations to company morale, and tie everything back to vision. It is crucial in engaging and
helping people embrace and commit to the pursuit of change. In addition, Communicate the
vision is unclear and confusing was a pitfall that prevented successful change. (mindtools,
2007)

₋ Step 5 - Empowering others to act on the vision: In the face of change, deterrence that leads
to business success has been thrashing like PNJ are not eliminating people who are resisting
change and helping them realize what is needed. Therefore, to avoid those pitfalls, PNJ needs
to considerate and define organizational structure, job description, work system and
compensation, make sure they are consistent with the vision. (phamthongnhat, 2020)

₋ Step 6 - Plan for and creating short-term wins: Change can take considerable time and
effort. So, members who can achieve the set goals will be recognized and rewarded team
members for goals and good performance in the face of change. These victories need to be

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 clear, well-known and closely related to efforts for change. In addition, Other groups of
employees lost their mood and motivation when they failed to fulfill their targets is a rather
complicated pitfall that PNJ leaders should avoid. (mindtools, 2007)

₋ Step 7 - Consolidate improvements and produce more change: To consolidate success and
make more changes, PNJ has applied kaizen method to employees, ideas of continuous
improvement. Especially the leading coalition group creates a constant momentum for the
organization. That method has established goals to help PNJ continue building on the winning
momentum. However, to achieve that goal, the leaders who are aware of that pitfall are some
employees are not aware of and apply the method to avoid being deceived on the victory.
(phamthongnhat, 2020)

₋ Step 8 - institutionalizing new approaches: PNJ continue to recognize key coalition and
change members, creating opportunities to honor their contribution and their legacy to the
change. This action leads to changes that are ingrained in the organization and change needs
to become a core part of the organization. In addition, forget their appearance and record their
contributions, efforts and achievements are traits that reduce the construction of these changes
into organizational culture. (mindtools, 2007)

2. Kotter’s 8-Step Change Model of Doji corporate

Stage Action needed Pitfalls

1 Establish a sense of The potential threat to Doji is the It has not yet determined and
urgency. impact of the 19 Covid pandemic resolved the immediate problems
which has caused many problems that could adversely affect the
for the market and business future of the business.
operations.
There are no response plans to
improve business operations.

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2 Form a powerful Creating a coalition group that Lack of consensus and
guiding coalition works together includes members motivation
from different departments and
company levels to manage those An internal conflict occurred
risks and implement goals, which between team members and
is to expand the market to managers.
develop the company's
performance.
3 Create a vision "Leading and expanding market The leader does not see foresight,
for jewelry industry in Asia" defines the focus to move
towards a comprehensive
operational goal.
4 Communicating the Solve member's concerns and Leaders and managers are not yet
vision concerns with the change openly clear and fully convinced of their
and honestly. vision.
5 Empowering others Identify people who are not yet The barriers are not removed.
to act on the vision aware and are resisting change
and help them realize what is
needed.
6 Plan for and creating Carefully select and create the The new targets set to have not
short-term wins. right project or short-term goal. completed on time
7 Consolidate Set goals sustainable Internal members in the company
improvements and development so that employees are subjective on victory.
produce more and managers can continue to
change. build on the victory of change.
8 institutionalizing Motivating employees, Do not go public and
new approaches. continuing to propagate, acknowledge key coalition and
evaluating and regularly change members to honor their
discussing progress reinforces contribution and legacy to the
change and offers ideas and value Doji company change.

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 of change when hiring and
training new employees.

❖ Discuss
₋ Step 1 - Establish a sense of urgency: Doji identifies potential threat is the impact of the 19
Covid pandemic which has caused many problems for the market and business operations.
This action frightened the Doji organization and created the urgency of change. So, they need
to come up with appropriate strategies and honestly share, persuade employees against urgent,
sudden changes. It has not yet determined and resolved the immediate problems that could
adversely affect the future of the business and no response plans to improve business
operations are two pitfalls that bring a lot of disadvantages to businesses if they are not early
aware and determined. (phamthongnhat, 2020)

₋ Step 2 - Form a powerful guiding coalition: Doji create a coalition group that works together
includes members from different departments and company levels to manage those risks and
implement goals, which is to expand the market to develop the company's performance. Doji
forming a coalition leading the way for change is an important key for connectivity and
consensus among members and managers in the company. This action will lead the company
to reap much success if they avoid potential pitfalls such as lack of consensus and motivation
and an internal conflict occurred between team members and managers. (phamthongnhat,
2020)

₋ Step 3 - Create a vision: Leader Doji clearly identifies the focus of the change and devises a
clear strategy to execute with his newly built vision of "Leading and expanding market for
jewelry industry in Asia". PNJ and Doji are always rivals of each other in the Vietnamese
market, so, under the influence of the 19 covid epidemic, doji has given itself a way to break
through their opponents. Doji's building a clear, well-defined vision will help your employees
adapt faster and work more efficiently. Besides, if the leader does not see foresight, defining

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 the focus to move towards a comprehensive operational goal, it will be risks and levers that
can bring unpredictable consequences to doji businesses. (phamthongnhat, 2020)

₋ Step 4 - Communicating the vision: Managers and leaders will solve member's concerns and
concerns with the change openly and honestly. This action will be performed by
communicating clearly, expressing the strategic vision to the employees to achieve success in
the change. Leaders and managers are not yet clear and fully convinced of their vision are two
main pitfalls that prevent change from being successful. (mindtools, 2007)

₋ Step 5 - Empowering others to act on the vision: To encourage employee vision acceptance,
Doji identify people who are not yet aware and are resisting change and help them realize what
is needed. Moreover, also removes all barriers and this allows everyone to participate in the
effort of change. However, the barriers are not removed is a quite complex pit affecting the
changing vision of the business. (mindtools, 2007)

₋ Step 6 - Plan for and creating short-term wins: To motivate employees, Doji carefully select
and create the right project or short-term goal along with the accompanying rewards for the
employees who deserve it. This action helps them to participate more closely in organizational
change. In addition, the new targets set to have not completed on time was a pitfall leading to
employees feeling depressed, depressed and negative in the process of change.
(phamthongnhat, 2020)

₋ Step 7 - Consolidate improvements and produce more change: Doji set goals sustainable
development so that employees and managers can continue to build on the victory of change.
This action leads to continual improvement of the organization to create opportunities for
employees to be ready for new changes. However, internal members in the company are
subjective on victory will be a serious pitfall if a doji business gets caught up. (mindtools,
2007)

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₋ Step 8 - institutionalizing new approaches: Doji keep on motivating employees, continuing
to propagate, evaluating and regularly discussing progress reinforces change and offers ideas
and value of change when hiring and training new employees. This action ensures to see
internal members see change in every aspect of the organization and becomes a core part of
the organization. So, company leaders continue to advocate for change as crucial, including
existing employees and newly recruited leaders or employees. In addition, Doji should avoid
the pitfalls of being caught, such as not go public and acknowledge key coalition and change
members to honor their contribution and legacy to the Doji company change. (phamthongnhat,
2020)

II. Lewin’s Three Step Model:

1. Lewin’s Three Step Model of PNJ corporate

Unfreeze Change Refreeze

PNJ's revenue declined due to PNJ's strategy is to change "To become the world's leading
the impact of the covid epidemic from blockbuster B52 to jewelry retailer and maker".
19. "sniper" strategy with high
speed
Many competitors with PNJ.
Shifting from traditional
channels to online sales
channels.

Schein 3-stage model:

✓ Stage 1 – unfreeze: PNJ's business results for the first 6 months of 2020, profit margin at
19%, decreased compared to the same period last year but compared to the industry is
relatively high. The reason is that the epidemic has narrowed the consumption of luxury
products with high profit margins. According to Q2 finance report, PNJ's gross profit
margin decreased to 17.3% from 21.5% in Q2 / 2019. Enterprise net revenue reached 2,745

22
 billion in the second quarter, down 7.3%; after-tax profit was 32 billion dong, down by
81%, recording the lowest level in 5 years. In April, the closing of 85% of stores in the first
half of the month according to the requirements of social distance has made the retail sales
of the business significantly affected, resulting in a huge loss of 89 billion VND. Through
May and June, PNJ's wholesale sales in the quarter decreased by 24% and retail sales by
9%. Besides, the jewelry market has many equivalent design alternatives with lower cost
due to the use of cheaper materials or lower content of gold, creating a great
competitiveness with PNJ. (pnj, 2020)

✓ Stage 2 - change: We used to fight with B52. When we opened 40 stores a year, when
Covid-19 arrived, using the B52 would be very expensive, costly gas and bomb. In order
to adapt, PNJ chooses to "sniper" with high speed, aiming more clearly. Accordingly, from
the information channels, PNJ looks for customers with little or no influence from Covid-
19 translation. Along with changing marketing tactics, PNJ has also gradually moved from
traditional channels to online sales channels. PNJ has implemented 15 programs, the
quantity and volume of work that the sales, marketing and production systems have to run
at a much higher intensity. Moreover, the characteristic of jewelry industry always needs
practical customer experience, so traditional channel always played the leading role of PNJ.
But due to the Covid-19 epidemic, the company began promoting the online channel
compared to the online channel of PNJ which has grown rapidly due to the limited number
of customers going to direct shops. (pnj, 2020)

✓ Stage 3 – refreeze: PNJ set up the new vision of "To become the world's leading jewelry
retailer and maker" at the era of 4.0 technology. Currently, with the vision that PNJ has
built and pursued for many years, "Becoming the leading Asian jewelry retailer and
producer", PNJ seems to have reached this milestone. So, PNJ shows its ambition to
dominate the change and builds a new vision with the hope of being the world's leading
jewelry brand. This process is done in parallel with the work of enriching human resources,
brand resources, customer resources, ... as well as preparing sufficient resources of
knowledge, experience to analyze and use data in business activities, strongly advancing

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 into retail era 4.0. Therefore, this change of vision is also a testament to the permanent
change and sustainable development of PNJ. (pnj, 2020)

2. Lewin’s Three Step Model of Doji corporate

Unfreeze Change Refreeze

Covid-19 had a heavy impact on M&A Diamond world “Leading and expanding
Doji's business, leading to a market for jewelry industry in
decline in revenue. Asia”

Schein 3-stage model:

✓ Stage 1 – unfreeze: Because of the Covid-19 epidemic had a heavy impact on the gold
jewelry market, and many jewelry retailers went bankrupt. Besides, it led to a decline in
Doji's revenue during the unregulated covid 19 Epidemic in Vietnam. According to
baodautu.vn, it shows DOJI's profit after tax for the first 6 months of 2020 at 45.5 billion
dong, down by 5.3% over the same period last year. This level of profit is very modest
compared to the equity of VND 3,392 billion at the end of June 2020. Calculated, the rate
of return after tax / equity (ROE) of DOJI is only 1.3%. However, in the first 9 months of
2020, DOJI's revenue is still 68,000 billion dong. In addition, other large firms have caught
up with the focus of the market situation and have appropriate strategies to deal with the
epidemic, so Doji has quickly turned around in the face of that change. (anhvu, 2020)

✓ Stage 2 - change: On April 30, 2020, DOJI Jewelry and Gemstones Group officially took
over Diamond World Company - Top 3 largest jewelry retail enterprises in Vietnam. The
deal took place right in the period of economic crisis when the Covid 19 pandemic had
caused very heavy and negative impacts on the gold and silver jewelry market in particular
and the Vietnamese economy in general. This proves that DOJI always finds opportunities
in crisis, finds opportunities in difficulties and challenges. Moreover, DOJI completed the
jewelry business picture, improving the appearance as well as competitiveness, leading the
market. Especially when Diamond World merged with DOJI Group, the event marked a

24
 transformation on the journey of conquering a large number of customers before the lines
of diamond jewelry, loaf jewelry, 24K Gold jewelry to other watch line brand ... (doji,
2019)

✓ Stage 3 – refreeze: Doji with a new vision "Leading and expanding market for jewelry
industry in Asia". Especially, Doji has developed steps in order to enhance its brand name
with modern product lines, many unique designs. However, Doji and PNJ are still two
major rivalries in the jewelry industry in Vietnam. Therefore, with the desire to surpass its
competitors and become a leader in the Vietnamese market, Doji has set up strategic plans
and goals in line with his vision. That has proven to be a permanent change and for the
sustainable development of the business. (doji, 2019)

❖ Comparison

Unfreeze: Both were affected by the 19 covid pandemic that resulted in both revenue declines
during the last outbreak. Moreover, both of them also made moves, change in the face of changes,
particularly to transform strategies for sustainable development, enhance brand name and improve
the performance of businesses before the Covid pandemic 19.

Change: PNJ does not have much change compared to Doji is PNJ change from blockbuster B52
to high-speed sniper strategy and shift from traditional channels to online sales channels.
Meanwhile, Doji is still based on the mission, vision and strategic goals that have been built to
develop and expand the market in Vietnam.

Refreeze: the vision of both companies towards is leading the market but only differs from the
area the organization wants to target. Looking closely, it can be seen that PNJ focuses more on and
cares more about its brand and products being spread to the whole world. Meanwhile, Doji is more
concerned with human needs and customer-centric. That is also the core of long-term support for
the development of businesses.

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 CONCLUSION
Through the report, I used Schein's approach on PNJ and Doji companies to identify, describe,
compare and contrast the organizational culture of changing. In addition, I also used force field
analysis to analyze the driving and barriers and those influence decision-making for businesses.
Moreover, I review the evidence and give a critically evaluate about it then i make the conclusion.
Next, I apply a range of leadership approach to two retailers, namely Kotter's 8-Step Change Model
and Lewin's Three Step Model (Schein 3-stage model use to support Lewin's model). Furthermore,
I have made a careful and explicit report on the methods applicable to the two organizations in a
report. Not only that, i also discuss, describe specifically and compare the differences between the
two organizations that were affected by the covid pandemic 19. Finally, this report provides the
background knowledge to helps us gain a lot of useful knowledge aims to develop and equip
personal knowledge to develop career for job in the future.

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