ASSIGNMENT 2 FRONTSHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 4: Management and Operations (488)

Submission date 09/05/2022 Date received (1st submission)

Re-submission date 14/05/2022 Date received (2nd submission)

Student name NGUYEN VAN VINH Student ID GBC200198

Class GBC0902 Assessor name NGO QUANG HUY

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: Date:

1
Grading grid

P4 P5 P6 M3 M4 D2

2
 Summative Feedbacks:  Resubmission Feedbacks:

Grade: Assessor Signature: Date:

Internal Verifier’s Comments:

Signature & Date:

* Please note that grade decisions are provisional. They are only confirmed once internal and external moderation
has taken place and grades decisions have been agreed at the assessment board.

3
Assignment Brief 2 (RQF)

Higher National Certificate/Diploma in Business

Student Name/ID Number: NGUYEN VAN VINH-GBC200198

Unit Number and Title: Unit 4: Management and Operations (488)

Academic Year: 2021-2022

Unit Assessor:

Assignment Title: ASSIGNMENT 2- Managing Business Operations

Issue Date:

Submission Date: 09/05/2022

Internal Verifier Name:

Date:

Submission Format:

Format:

 This assignment is an Individual report and specifically.

 You must use font Calibri size 12, set number of the pages and use multiple line spacing
at 1.5. Margins must be: left: 1.25 cm; right: 1 cm; top: 1 cm and bottom: 1 cm.
 You should use in text references and a list of all cited sources at the end of the essay
by applying Harvard referencing style.

4
  The recommended word limit is 2000-2500 words (+/-10%), excluding the tables,
graphs, diagrams, appendixes and references. You will not be penalized for exceeding
the total word limit.
 The cover page of the report has to be the Assignment front sheet 2 (to be attached
with this assignment brief).

Submission

 Students are compulsory to submit the assignment in due date (slot 38) and in a way
requested by the Tutor.
 The form of submission will be a soft copy posted on http://cms.greenwich.edu.vn/.
 Remember to convert the word file into PDF file before the submission on CMS.

Note:

 The individual assignment must be your own work, and not copied by or from another
student.
 If you use ideas, quotes or data (such as diagrams) from books, journals or other
sources, you must reference your sources, using the Harvard style.
 Make sure that you understand and follow the guidelines to avoid plagiarism. Failure to
comply this requirement will result in a failed assignment.

Unit Learning Outcomes:

LO3. Demonstrate an appreciation of the role of leaders and managers play in the operations
function of an organization.
LO4. Demonstrate an understanding of the relationship between leadership and management
in a contemporary business environment.

Assignment Brief and Guidance:

5
*This assignment guidance is for reference only and can be customized by the tutor to meet
specific needs

Assignment scenario.

The Covid-19 pandemic has caused the deepest global economic recession since WWII (World
Bank, 2020), which impacts on almost all businesses to a greater or lesser extent.

You are the head of Operations Management Department of a manufacturing company in a

particular industry (which will be specified by your course tutor). You have been assigned by
the managing director to carry out an evaluation on the current operational activities and the
role of management and leadership in various contexts. This report will enhance the decision
making of BOD in the Extraordinary General Meeting due to the occurrence of Covid 19 with
regards to adjusting the operations activities to meet the future objectives and expectations
of stakeholders.

N.B. The course tutor will choose different industries which manufacture different physical
commodities for different classes studying this module. For instance, car manufacturing, food
and beverage, pharmaceuticals, mobile phones, computers and laptops, etc.

You are free to choose the company operating in the specified industry.

Structure of the Report:

General introduction: main purposes and structure of the work.

Main contents of the report:

1. Explain the operations and operations management theories and approaches and the
role that leaders and managers play. In specific:

6
 Discuss the key theories of operations and operations management including six sigma,
lean production and queuing theory.

Explain different operations management approaches including MBO & SMART criteria,
TQM, Kaizen, JIT production. Find out whether your chosen company is currently
applying any TQM techniques and JIT production or not with evidences to justify your
answer. Besides, propose a SMART objective for your company to aim for in the future.

In addition to that, critically evaluate the importance of different operations

management approaches in contemporary business environment to help obtain and
maintain business competitive advantages.

2. Explain the importance and value of operations management in achieving business

objectives. In specific:

Discuss the key operational functions of a business (e.g. product and process design,
scheduling, transformation process, control and distribution systems, logistics and
inventory management, capacity management). Find out how your company is
currently operating these functions in practice (at least 3 applications must be
provided).

Explain how managing these operational functions would help your company to
achieve the targeted SMART objective (which has been proposed by you previously).
Which operational function(s) is the most important one to obtain that objective?

To enhance your discussion, evaluate in general whether management or leadership

role is more appreciated in the work of managing a business’ operations once the
objective is already specified.

3. Assess the factors within the business environment that impact upon operational
management and decision-making by leaders and managers. In specific:

7
 Carry out a brief study on the impacts of Covid-19 and some contemporary
management issues (such as CSR, culture, value, ethics and sustainability) that the
chosen company/industry is facing. The relevant stakeholder pressures should also be
taken into considerations.

Discuss on how leaders and managers should respond to the external impacts while
meeting the key stakeholders ‘expectations and reducing the stakeholders’ pressure by
becoming a corporate entrepreneur and encouraging intrapreneurship.

Evaluate whether management or leadership role is more appreciated in the work of

managing operations to fulfil organizational stakeholders’ expectations and pressures.

To further enhance the work, critically explain how the pressures and expectations of
different stakeholder groups can impact significantly and shape a company’s strategy
and operations in general.

A conclusion to summarize all the key findings and analysis must be presented. Plus, you can
carry out a self-criticism on your own work (in terms of strengths and weaknesses).

8
Unit assessment criteria

Pass Merit Distinction

LO3. Demonstrate an appreciation of the role leaders and managers
play in the operations function of an organization.
P4. Explain the key
approaches to operations
management and the role M.3 Evaluate how leaders and
that leaders and managers managers can improve efficiencies of
play. operational management to
P5. Explain the importance successfully meet business
LO3 & 4
and value of operations objectives.
D.2. Critically evaluate
management in achieving
application of operations
business objectives.
management and factors
LO4. Demonstrate an understanding of the relationship between
that impact on the wider
leadership and management in a contemporary business
business environment.
environment.
P.6. Assess the factors
within the business
environment that impact M.4 Analyze how these different
upon operational factors affect the business
management and decision- environment and wider community.
making by leaders and
managers.

9
I.INTRODUCTION

Vinamilk desires to become one of the most favourite brands in every region and territory. Therefore, we keep
in our mind and our heart that the quality and innovation are always our most important companions. We act with
customer-centered approach and commit to respond to all their needs. The main purpose of this article is that I will
provide some operational management processes and useful methods that can help Vinamilk's operating results
achieve great success during its operation and operation. business practice(Vinamilk,2021).

This report consists of 5 parts: the first part gives a general introduction about Vinamilk and the purpose of the
report. In the second part, we will present the theory of operations, operational management, and define some
approaches and outline the roles of leaders and managers. The next part we present the role of Operational
management includes key functions and Vinamilk has applied these functions to its operations. In the fourth part, we
mention the business environment and how the covid pandemic affects management and processes. decision making.
The final section will generally evaluate the information presented.

II. Explain the operations and operations management theories and approaches and the role that leaders and
managers play

2.1 Theories in operational management

Hayes (2021) States that operational management is a process of managing business activities and optimizing
the performance of an organization. It involves changing and adjusting, balancing raw materials and labor resources
with each other to meet the production of goods and products that can be profitable for a business. Operations
management teams strive to balance costs with revenues to achieve the highest possible net operating profit
(Hayes, 2021).
A. Six sigma Theory
Six sigma is a system by applies advanced methods based on technology to be able to apply to the production
process and check product quality based on collected data so that it can be detected defective products to provide
solutions quickly and effectively. When a process operates at six sigma the variation is so small that services or
products are provided 99.9996 % defect-free or 3.4 defects per million (Bamford & Forrester, 2010).
We looked at Six Sigma during the discussions on quality as a methodology for reducing variability through the
use of the Define-Measure-Analyze-Improve-Control methodology developed by Motorola.
10
 Figure 1: Sigma's process consists of 5 steps
(Source: ecci.com.vn)

Define is a crucial step and is invested a lot of time to be able to clearly define who the customer is, how the
customer wants and needs the product to help them recognize the product knowing customers well to be able to
produce breakthrough products that meet customer needs can help businesses get more opportunities and
competitive advantages. To be able to do them in the best way we must define and plan specifically and in detail
how to do this and what resources are needed (Bamford & Forrester, 2010).

The measure is essential for when the process is done we must record and record what took place in a process
map including the appropriate division of time or not, and the time allocation for each activity must be appropriate
and precise (Bamford & Forrester, 2010).

Analyze is a decisive factor for the success of an organization is to be based on the measurement activities
that took place in step 2 to be able to review and evaluate the process is working well or not and changes are
needed, to help departments make decisions that are aligned with the organization's strategies (Bamford &
Forrester, 2010).

Improve is the continued application of new methods and processes to support and ensure continued
operations and a very high level of success (Bamford & Forrester, 2010).

11
 Control is the final step of the process, we have to determine and check that the standard is set in the pre-
implementation phase and to come up with an improvement approach designed to be a solid company (Bamford &
Forrester, 2010).

B. Lean Production Theory

Lean production is a process of monitoring and applying different approaches to help managers focus and
discover to reduce waste and waste while ensuring quality products. This approach can be applied to all businesses
of all sizes and is suitable for all manufacturing businesses from design through production and building product
distribution systems (Bamford & Forrester, 2010).
Businesses that apply lean manufacturing to production operations are demonstrated by main goals such as
continuous improvement, maximum cost savings, production agility, and elimination and waste removal.

 Continuous improvement
Continuous improvement is one of the biggest goals of lean manufacturing. This concept can be understood
as the process of product production and public and employee work still happening daily and continuously. It aims
to achieve better and better results continuously. Then, after a process has been improved, this new process is
reassessed again after some time in search of new improvements. This cycle is endless ( Hoffman, 2022).
 Cost Reduction
We want to get more profits, cutting production costs is an indispensable factor to be able to create profit
goals for the organization and make a difference. Lean manufacturing helps The organization produces many
products but does not need too many resources but still ensures and is suitable for production and business activities
( Hoffman, 2022).
 Production Agility
Agility in production is considered a competitive advantage of enterprises, we can produce products that
meet the needs of the market as soon as possible and help customers quickly know. Therefore, companies must
operate and work continuously, with smooth coordination between synchronous stages to be able to produce on
time according to the needs of customers ( Hoffman, 2022).
 Improvements in the Work Environment

12
 The quality of life of employees is fully met, and the activities and working attitudes will be increased, which
will promote the performance and productivity of employees, they are willing to contribute and participate in the
process. In addition to the obvious ethical and human issues, ensuring a good working environment will combat
waste, reduce revenue, and eliminate workers due to illness and accidents ( Hoffman, 2022).

C. Queuing Theory
The queuing model is developed and mathematically proven for building queuing systems which helps to make
some assumptions about the probabilistic properties of a process and customer service. This model is more widely
used and is being used by organizations that focus on this model for buying and selling products to customers. This
model is related to system analysis, there are always available formulas that allow quick calculation of the effects of
different capacity measures that can be used to help design a new service system or to improve an existing system (
Green, 1904).
2.2 Operation management approaches

Management by objectives was developed and designed by Peter F. Drucker as a method based on the
arrangement and mutual agreement and communication between goals and the successful evaluation of their
achievements. Those who directly perform the task are allowed to decide and choose the appropriate methods to
achieve the set goals (Pawliczek, et al., 2022).
Smart is a technical analysis tool used to design and build goals in the management and planning of the
organization. Setting these goals helps businesses prepare for resource readiness time to meet and accomplish goals
quickly. Organizations must develop roadmaps and goals clearly and in detail so that each employee in the company
can clearly understand more about the organization's goals. From there, employees will make their plans and create
strategies to work towards the same goal (Pawliczek, et al., 2022).
Specific: Your goal must be clear and specific, or else you won't be able to focus your efforts or feel truly motivated
to achieve it. Remember, the narrower your goal, the better you understand the steps needed to achieve it (tinphat,
2022).

13
 Measurable: You must have measurable goals so that you can track your progress and stay motivated to do better.
Measuring progress helps you stay focused, meet deadlines, and feel excited as you get closer to achieving your goals
(tinphat, 2022).
Achievable: Your goals also need to be realistic, achievable and achievable in order to be successful. You must
consider whether the goal is now achievable, or whether you should make any extra preparations to achieve it. Coming
up with a good strategy and setting appropriate goals that you can accomplish within a given time frame will keep you
motivated and focused to break through, challenge your limits, and achieve success (tinphat, 2022).
Relevant The goals set by the leadership must be related to the overall vision of the development of the business,
it must solve the problems that other departments are facing. The goals of each individual employee must be related
to the job development orientation, the field of the position they are working on, in line with the company's
development goals (tinphat, 2022).
Time-Bound Every goal needs a plan, a timeline, and a deadline, with deadlines that help you focus and spend
time working toward this set goal. Promote important jobs that will be completed well, ensuring the right
development process of the business (tinphat, 2022)

Total Quality Management is a method to manage centralization and attention to the quality of management
in all aspects, aspects of the life of employees and organizations. For this method, the relationship between
employees and the organization has a better attachment, intimacy, and cooperation. It is also a strategic
management method and management philosophy for all activities of the organization. In affiliated businesses the
processes in this tool force production to meet and exceed the needs and expectations of a company customer
(Pawliczek, et al., 2022).
Kaizen is a developed and improved method that focuses on optimizing work and production processes,
practicing quality improvement, and reducing waste, material, and time savings resulting in reduced costs and work
safety, and reduced accidents in the workplace (Pawliczek, et al., 2022).
JIT Production
According to Banton, (2022) state that “The just-in-time (JIT) inventory system is a management strategy that
aligns raw-material orders from suppliers directly with production schedules. Companies employ this inventory

14
 strategy to increase efficiency and decrease waste by receiving goods only as they need them for the production
process, which reduces inventory costs. This method requires producers to forecast demand accurately”.
2.3 The role that leaders and managers play
A leader always has to assume and perform certain roles in a business organization and managers are directly
involved in performing functions in business and production activities. Leadership and management are applied in the
following contexts and circumstances.
Organizing is an Indispensable stage to be able to allocate material resources and resources to be able to balance
and use resources efficiently. It also cuts down on resource waste and ensures their effective use (Chopra and Meindl,
2016). The leader's role is to organize resources according to plan and motivate employees to work effectively, improve
work accountability, and help employees understand roles and plan for themselves (circlebizz, 2022).
Directing is the most important task of a manager to be able to guide employees to be able to go in the right
direction and follow the strategies of the leadership. The leader motivates and motivates. groups in such a way that
task completion can be accomplished efficiently and effectively. Their main goal is to motivate employees to achieve
goals and objectives in the right way (circlebizz, 2022).
Co- Coordinating is an essential element among members in an organization to perform tasks quickly and create
accuracy. It ensures the relationship and cohesion between departments and functions. to bring the best benefits to
the business. It helps the organization to coordinate and communicate between departments and build their working
linkages for more benefits. Leaders keep departments together, and managers ensure the department's motivation and
trust in getting things done (circlebizz, 2022).
Controlling is another task and function of the manager who controls the activities of the business. To ensure quality
performance, leaders and managers need to control the situation and employees of the organization (Chopra and
Meindl, 2016). It ensures the right implementation of the plan and the work must be suitable for the employee's
capacity (circlebizz, 2022).
Leaders and managers are Marks and Spencer Ltd.'s practical application in their business activities. The
management and leadership theories used by the organization are given below:
The contemporary theory of management: Marks and spencer (2022) state that the purpose of using this
management theory is to solve and deal with problems related to production costs higher than the current situation of
the enterprise. Managers of the organization try to cut costs. reduce raw material costs by negotiating with suppliers

15
(Giuliani and Kurson, 2007). Leaders motivate employees to change and respond to new suppliers and maintain their
performance (circlebizz, 2022).
Classical management theory: According to Circlebizz (2022) said that Classic helps to improve and improve the
productivity of employees, bringing useful results to an organization. The theory is also known as Kaizen. This strategy
builds a process of continuous product improvement in the production process (Giuliani and Kurson, 2007). Marks and
Spencer follow a participatory leadership style for decision-making and production improvement (circlebizz, 2022).
Contingency theory: Circlebizz (2022) expressed that Contingency theory focuses on changing and adapting
strategies to business situations. Organizations use theory to reduce and manage risk and in this situation, leaders'
Leadership plays the most important role in implementing changes and helping employees cope with market conditions
and changing circumstances (circlebizz, 2022).
Situational leadership theory: In this approach, it requires leaders to develop strategies to understand and identify
skills and tasks that must fit within the employee's framework to be completed quickly. Marks and Spencer used Use
this leadership strategy to meet their needs in different situations (circlebizz, 2022).

2.4 Application of operation management approaches in VINAMILK

Vinamilk's leadership has developed business strategies in the period from 2022 to 2024 based on the Smart
model and applied a Classic approach to the production and business process to bring about some high profit and
brand enhancement.
Specific: The leadership has used the intelligent model to come up with specific goals that the business wants
to achieve during its operation. From 2023 to 2026, the company will reach VND 500,000 billion and profit after
tax of VND 450,000 billion, monthly revenue of VND 100,000 billion, and own 56% market share, up 0.5%
compared to 2022. In addition, Vinamilk will expand and develop some new product lines to build a strong brand
and strengthen the market, taking consumer experience as the focus in developing access and distribution
strategies. Multi-channel distribution, Speed up product research and development of new products, to serve
nutritional needs with comprehensive care. Apply the technology of the Internet of Things, big data, automation,
and robotics, thus improving the transparency, efficiency of exploitation, and biodiversity research of cultivation,
husbandry, and mining. Developing the largest international standard dairy farm system in Vietnam Implement

16
 international standards on sustainable development, increase energy use, green energy, circular economy, protect
water and earth resources.
Measurable: Vinamilk's leadership will measure and break down the set goals by achieving 100,000 billion per
year in annual revenue to be able to achieve the company's biggest goals. Every day must provide adapt and produce
several product lines suitable for the market to avoid excess costs that may affect the annual revenue of the business.
Achievable: Based on marketing teams and management with many years of operation with a long production
experience in the field of dairy production along with the largest brand in the Vietnamese market, which many
customers choose to use for life. This means that the management's big goals are easily achieved. Moreover,
Vinamilk's financial resources are strong and have a very large number of investors and always ensures and serves to
make quick decisions to implement strategies to be able to accomplish the set goals.
Relevent: In order to achieve the sales figures, Vinamilk's leadership will expand its business, invest in the
Marketing department, and invest money in the Marketing and Sales departments to boost revenue. Sales staff will
aim to close more orders to further develop the company.
Time- bound: Time can help Vinamilk complete plans and achieve goals within 3 years so that it can make the most
of time to try to achieve great achievements. Promotion of works It is important to complete well, to ensure the correct
development process of the business.
2.5 The role of operational management approaches on competitive advantages
Vinamilk applies the approach of Management by Objectives and Total Quality Management to the operation
process and sets the goals of the organization to be able to manage employees to accomplish the goals. Methods This
helps Vinamilk to better understand the working process and directly monitor the employees' activities so that they
can support and adjust to achieve the goal. In addition, the comprehensive quality management method helps
Vinamilk always has an overview of resources and aggregates assessment of each employee's job completion level to
offer welfare and salary regimes to suit each member. In short, Vinamilk applies these two methods bring benefits to
the organization being able to set reasonable goals and track the achievement of the goals.
III. The role of operation management
3.1 The key operational function
Wolniak (2020) state that” The basic role of operation management in the company is its transformation role in
the process of converting inputs such as raw materials into finished goods and services (Domingues and Machado, 2017;

17
Fiorentino, 2018). The transformation role of operation management makes this function very important part of the
whole organization. As a result it is directly responsible for many decision within the company and activities that give
rise to product design and delivery problems (Peinado et al., 2018). The design and management of operations strongly
influence how much material resources are consumed to manufacture proper goods or deliver a service to customer.
This way we have to make sure that there is enough inventory to produce the quantities that need to be delivered to
the customer, and ensuring that what we made is what our customers want (Wilson, 2018) The characteristic of main
function of operation management” ( Wolniak, 2020).
Product and Process Design
According to Lo, state that“Product design is the process of identifying a market opportunity, clearly defining the
problem, developing a proper solution for that problem and validating the solution with real users”.
Lo (2022) show that “The Product Design process is a critical framework that designers use to solve problems. As
we walk through each section of this article, you’ll notice that the concepts and skills required of a product designer is
varied and will change depending on which stage of the process you’re at”.
Transformation process:Accoriding to Adesuko (2019) show that “A transformation process is any activity or group
of activities that takes one or more inputs, transforms and adds value to them, and provides outputs for customers or
clients. ... Changes in the physical characteristics of materials or customers” (Adesuko, 2019).
Scheduling: is to consist of the activities involved in setting the start and end times for each step in production
process. It includes planning and checking the use of labor, machinery and materials to production went smoothly.
Make a schedule ensure that the job will be completed on time ( Wolniak, 2020).
Purchasing: In order for production and business activities to take place continuously, a company needs to
provide adequate raw materials to produce its goods or supply service. It must also have machines, offices supplies
and any other supplies it uses. Obtaining raw materials, machinery and supplies is a purchasing function of the
manufacturing process and is concerned with getting the best out of it ransactions for the company. Buyers goods for
a business must decide what buy, from whom, and at what price.
Inventory control: Almost all manufacturers and many service businesses, such as dry cleaners, need inventories,
or stockpiles, of the materials they use for making their products or offering their services. Manufacturers and
businesses, such as supermarkets, also keep inventories of finished goods on hand for sale, but inventories are costly.
The more inventory a business has, the less capital it has for other activities. In deciding how much inventory to keep

18
on hand, those in charge of inventory control also have other costs to consider. If the price of a raw material is
expected to rise, a business may stockpile it to keep future costs down. Often a supplier will discount large orders.
Some businesses may decide that the discounts outweigh the other costs of maintaining a large inventory ( Wolniak,
2020).
Capacity Management: Capacity management refers to the act of ensuring a business maximizes its potential
activities and production output—at all times, under all conditions. The capacity of a business measures how much
companies can achieve, produce, or sell within a given time period (Andrew, 2020).
Control and Distribution Systems: According to Controlstation, (2018) show that” the DCS is a system of sensors,
controllers, and associated computers that are distributed throughout a plant. Each of these elements serves a unique
purpose such as data acquisition, process control, as well as data storage and graphical display. These individual
elements communicate with a centralized computer through the plant’s local area network – often referred to as a
control network. As the ‘central brain’ of the plant the DCS makes automated decisions based on production trends it
sees them in real-time throughout a plant”.
3.2 Value and importance of key operational functions
Along with the development of a commercial center, there are a number of benefits for businesses operating
in the manufacturing sector. Most businesses, in order to achieve revenue goals, are interested in inventory
management and allocating input materials reasonably. In this time, effective inventory management is one of the
important factors for the success of any business. Effective inventory management helps to balance the amount of
goods needed in the warehouse: When you know exactly the amount of inventory in In your warehouse, you will
know exactly how much stock you need, avoiding excess or shortage of stock compared to actual demand. In
addition, inventory management Customer retention, There won't be a single customer No one wants to go back to
a store where the items they want to buy are "out of stock". That's why good inventory management to have a
reasonable stocking plan will help you to retain your customers. The two core points of the benefits of good inventory
management will help for businesses to save and optimize costs to achieve revenue and build a customer database,
meet current needs of customers and drive revenue growth.
3.3 The role of key operational functions in VINAMILK

19
 To begin with, the dairy industry is a very large production industry, which requires that in the production process,
it is necessary to check and monitor very complicated inputs and to determine specific numbers. How much milk is
produced and how long it takes to complete the product. Vinamilk's leadership has applied the Schuduling function
to the production process so that it can be produced at the right time the market is in. There is high demand and
customers prefer products that can get a profit very quickly without having to spend a lot of time and resources to
avoid incurring unnecessary costs that can promote the company to achieve revenue in 2023 to 2026.

Secondly , the management considers the product design and cares about the quality of the product. Therefore,
there is always supervision from the stages of research and product development to be able to design breakthrough
products in terms of design and quality that attract customers' attention. This motivates customers to have demand
for the product and helps the company to gain profits to fulfill major goals.

Finally,Vinamilk's leadership will expand the distribution system from agents and retailers to distribute many
products in large quantities and create trust in partners and build gaining trust, product brand is known by many
customers, brand is getting stronger and stronger. When building a wide distribution system, the quantity of
products produced to provide customers with more and more promotion revenue goals and breakthroughs.

3.4 The role of management and leadership in VINAMILK

Vinamilk's leadership will apply a behavioral approach to be able to observe and directly monitor the attitudes
and working gestures of each employee and employee to improve performance so that find ways to help employees
improve and work better, ready to contribute and give personal views to the development of the organization. These
methods help Vinamilk managers make decisions Better decisions are based on better employee morale and attitude
and have a good view of each member of the organization.
Second, the leadership will apply a participatory leadership style to be able to directly and help employees have
the opportunity to give their own ideas and thoughts and support employees to work to solve problems. related to
important issues that may affect the objectives. This helps the organization to build a quality working environment
with the participation of all members, helping the management to have a clear understanding. more on the
improvement of staff's strength and working ability.

IV. The impact of business environment on operation management and decision-making process

20
4.1 Factors from external environment

Corporate Social Responsibility (CSR) is the idea that a company should play a positive role in the community
and consider the environmental and social impact of busines decisions. It is closely linked to sustainability − creating
economic, social, and environmental value – and ESG, which stands for Environmental, Social, and Governance. All
three focus on non-financial factors that companies, large and small, should consider when making business decisions
(bdc, 2022).

Ethics is the philosophical principle used to deal with what is good and bad, with duty and moral obligation. It is
a set of ethicsprinciples or values. Business ethics is the study of business situations, activities and decisions where
issues of right and wrong are addressed (Webster’s New Collegiate Dictionary, 2008).

Culture is that complex whole which includes knowledge, belief, art, morals, law, custom, and any other
capabilities and habits acquired by man as a member of society (Spencer-Oatey, 2012).

Substainability may then be defined as maintaining well-being over a long, perhaps even an indefinite period. This
covers largely the environmental dimension of the triple bottom line, but environment and sustainability are not
synonymous ( Kuhlman & Farrington, 2010).

StakeholderS are those people who stand to gain or lose by the policies and activities of an organization.

The covid -19 pandemic attack that has negatively impacted the entire economy has been in crisis for some time
and affected businesses making it difficult for the management processes of every business.In this article , we offer
some initial checks on how the Covid-19 pandemic might affect the development of CSR, culture, value, ethics and
sustainability. We believe that the Covid-19 pandemic presents a great opportunity for businesses to shift towards
more authentic and authentic CSR, while contributing to solving pressing global environmental and social challenges.
We also discuss some potential directions for how consumer ethical decision-making will be shifted due to the
pandemic. In our discussion on impact, we outline how we believe governance is being impacted by this pandemic
and how we think this will change, not just the regulatory landscape. Also, the way organizations approach and
influence management strategy has changed.

4.2 The impact of external environment on the operations of VINAMILK

21
 As one of the leading enterprises in Vietnam, Vinamilk is well aware of its influence on the community and the
sustainable development of society. We also understand that the success of a business will not simply be the sales
figures shown on the annual reports but also the outstanding and long-term values that the business builds. and make
it available to everyone.With its right wishes and practical actions, Vinamilk has been remembered as the "Brand
sticking to the community( Vinamilk, 2021).

Vinamilk has enhanced its social responsibility towards the community to overcome the pandemic together and
use ethics in business. To share difficulties during the epidemic season, in the company's birthday month (August 2021),
Vinamilk implemented a gift support program to subsidize for consumers on a variety of essential prices of nutritional
products. The total value of this support package is up to nearly 170 billion VND.Specifically, from August 1 to the end
of August 31, Vinamilk will implement a program to support consumers with millions of essential nutritional products.
millions of Vinamilk's nutritional products will be subsidized up to more than 60,000 VND per product unit through the
gifting of products of the same type. The program is implemented in 63 provinces and cities quality, with a total value
of the support package of nearly 170 billion VND. It can be seen that Vinamilk is always interested in and aware of the
business' responsibilities to the community and the party. Besides, the pandemic has also caused some difficulties for
production and severely affected businesses( Vinamilk,2021).

Cultural factors bring some benefits to Vinamilk's dairy industry, because during the epidemic situation, people's
customs and lifestyles have changed markedly. Specifically, milk is an essential food product to serve human needs,
so most of the habits and lifestyles of customers have chosen dairy products as a good product to help their lives.
better everyday and overcome the covid 19 pandemic.

Although the pandemic has had a strong impact on businesses, Vinamilk's management is still committed to and
complying with business ethics. Specifically, Vinamilk is still committed to the labor code and pandemic rules that
must be used. People should reasonably not work overtime, affecting the health of workers. Moreover, Vinamilk
supports salaries and allowances to work with employees.

4.3 The impact of stakeholder's expectations on the operations of VINAMILK

As the definition of related party implies that a stakeholder is any group or individual who can influence or be
affected by organization (Freeman, 1984), the Different stakeholder groups have different hiring motives and unequal

22
 expectations the company's side. The management is aware that strategic investors and development companions
always have the expectation of getting a high profit from the company investment - high dividends, and therefore
demand high profit, growth and share price. If it does not meet the wishes of investors, it will make it difficult for
managers to approve shareholder committee, or simply they sell their shares.All these expectations cost the company
money, which can actually reduce wealth for Shareholder. Today, the objective function of a company that has
changed and continues to generate profits for its shareholders. The organization is required to include a wide range
of benefits are assessed by it related parties. In this way, the company can considered to be the connection of the
relationships between a company and its various stakeholders with mutual benefit (Bhattacharya, Korschun, 2008).
Vinamilk's leadership has fully understood the expectations and expectations of investors, who are part of the long-
term companionship and cooperation of the organization. Therefore, Vinamilk will apply modern governance models
and continue to develop strategic goals to help organizations and investors get the best profits. Besides, Vinamilk will
always pay attention. for the benefit of potential investors and continue to expand our relationship so that we can
continue to look for investors to achieve our mutual goals (Darkuviene & Bendoraitienė, 2014).

4.4 The role of management and leadership in Vinamilk

However, the covid 19 pandemic is very complicated, but the leadership and management have come up with
very good ways to operate, quickly adapt to the pandemic, and always care and support to do the right things for the
business community and act on social, ethical and culturally aware factors to set and develop culturally appropriate
goals. More specifically, the management board did the right thing, performed the right roles and oriented, well
managed the risks affecting business activities and came up with creative solutions to ensure occupational safety.
sustainably maintained. Management accomplished its goals and put in place methods and plans to implement safety
practices to protect employees and strategies around teleworking and proper automation. to perform a complex task:
Bringing the workforce back to the workplace after government bans, as in Vietnam (accenture, 2020).

For investors, Vinamilk's Board of Directors aims to create trust and attachment with fellow investors of the
organization. The leadership has made successful decisions and helped the business operate very well and adapt to the
epidemic situation, bringing about very good results and Vinamilk's revenue has been maintained sustainably over the
years(Vinamilk, 2021).

23
 V. Conclusion

Through this report, some production management methods and key functions have been presented, emphasizing
the very important role of management for the development and prosperity of enterprises. In addition, Vinamilk has
applied sigma methods and used management functions very successfully in business processes, always reacting and
setting strategic goals in line with the development situation of the company.

References
BANTON, . C., 2022. Just-in-Time. [Online]
Available at: https://www.investopedia.com/terms/j/jit.asp
[Accessed 3 May 20222].

Darskuviene, V. & Bendoraitienė, E., 2014. Stakeholder expectations and influence on company decisions. [Online]
Available at: file:///C:/Users/Acer/Downloads/Stakeholder_expectations_and_influence_on_company_%20(2).pdf
[Accessed 9 May 2022].

Green, L., 1904. Queueing theory and modeling. New York: Columbia Universit.

Hoffman, J., 2022. 5 Key Objectives of Lean Manufacturing You Should Know About. [Online]
Available at: https://wisdomplexus.com/blogs/lean-manufacturing-objectives/#CostReduction
[Accessed 24 April 2022].

Kuhlman, T. & Farrington, J., 2010. What is Sustainability?.

24
Wolniak, R., 2020. PRODUCTION ENGINEERING ARCHIVES. Main functions of operation management, 26(1), pp. 11-14.

Accenture, 2020. The state of leadership during COVID-19. [Online]

Available at: https://www.accenture.com/us-en/about/company/leadership-during-coronavirus
[Accessed 9 May 2022].

Adesuko, B., 2019. OPERATIONS MANAGEMENT TRANSFORMATION PROCESS. [Online]

Available at: https://www.linkedin.com/pulse/operations-management-transformation-process-adesuko-babatunde
[Accessed 5 May 2022].

Andrew, b., 2020. BUSINESS BUSINESS ESSENTIALS. [Online]

Available at: https://www.investopedia.com/terms/c/capacity-management.asp
[Accessed 8 May 2022].

Bamford, D. & Forrester, . P., 2010. Assential guide to operations management. United Kingdom: Wiley.

Bdc, 2022. What is corporate social responsibility (CSR)?. [Online]

Available at: https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/templates-business-guides/glossary/corporate-
social-responsibility
[Accessed 7 May 2022].

Circlebizz, 2022. Role of a Leader and Function of a Manager. [Online]

Available at: https://circlebizz.com/hrm/role-leader-and-function-manager/
[Accessed 1 May 2022].

Controlstation, 2018. What is a Distributed Control System?. [Online]

Available at: https://controlstation.com/blog/what-is-a-distributed-control-system/
[Accessed 8 May 2022].

Hayes, A., 2021. Operations Management. [Online]

Available at: https://www.investopedia.com/terms/o/operations-management.asp
[Accessed 21 April 2022].

Lo, G., 2022. What is Product Design and the Product Design Process?. [Online]
Available at: https://uxplanet.org/what-is-product-design-and-the-product-design-process-41b41a5bf795
[Accessed 4 May 2022].

Pawliczek, A. et al., 2022. MANAGEMENT TOOLS AND SYSTEMS – USAGE IN LOGISTICS. MANAGEMENT TOOLS AND
SYSTEMS – USAGE IN LOGISTICS, 9(1), pp. 85-98 .

Spencer-Oatey, H., 2012. What is Culture?A Compilation of Quotations. s.l.:GlobalPAD Core Concepts.

Tinphat, 2022. What is SMART Model? Define SMART Principles in Business. [Online]
Available at: https://tinphat.com/mo-hinh-smart-la-gi-xac-dinh-nguyen-tac-smart-trong-kinh-doanh/
[Accessed 9 May 2022].
25
Vinamilk, 2021. Anuual report 2021. [Online]
Available at: https://www.vinamilk.com.vn/vi/phat-trien-ben-vung
[Accessed 9 May 2022].

Webster’s New Collegiate Dictionary, W. . N. C., 2008. Ethics, as defined by the Webster’s New Collegiate Dictionary, are.
[Online]
Available at: https://www.writework.com/essay/ethics-defined-webster-s-new-collegiate-dictionary
[Accessed 8 May 2022].

26
27