ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

Submission date Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student Name Pham Nguyen Tuong Vy Student ID GBD210020

Class 1008B Assessor name Phan Tran Phuong Trang

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

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Table of Contents
I. Introduction about the report:........................................................................................................................................4
II. Different types and purposes of organizations:..............................................................................................................5
1. Public sector:............................................................................................................................................................... 5
2. Voluntary sector:.........................................................................................................................................................6
3. Private sector:..............................................................................................................................................................7
III. Size and scopes of a company:....................................................................................................................................9
1. Introduction about Vinamilk:......................................................................................................................................9
2. Size and Scope of Vinamilk:.......................................................................................................................................10
a. Size of Vinamilk Group:.............................................................................................................................................10
b. Scope of Vinamilk Group:..........................................................................................................................................11
1. Internal Stakeholder:.............................................................................................................................................11
2. External Stakeholder:............................................................................................................................................11
3. Economic Objectives:.............................................................................................................................................11
4. Social Objectives:...................................................................................................................................................12
5. Vision:.................................................................................................................................................................... 13
6. Mission:..................................................................................................................................................................13
Explain how size and scope of your chosen company helps it to achieve company’s objectives/ goals and products/
services:..........................................................................................................................................................................14
IV. Different organizational Function.............................................................................................................................14
V. Interrelationship between organizational functions:...................................................................................................16
VI. Conclusion:................................................................................................................................................................17
Reference list:........................................................................................................................................................................18
I. Introduction about the report:

The report's purpose is to present an overview of the company, provide an overview of the company's situation,
provide information on the size, scope, and organizational structure, and explain some related topics. In
 addition, the report also includes information on the performance of the company's
responsibilities and obligations. Through those data, predict the development trend of the business in future
periods. Finally, the report has six main sections, including the introduction, information on the types and
functions of the sector, the size and scope of the company, the organization chart, the interaction between the
functional parts, and the conclusion.

As a business analyst at Vietcombank Fund Management Company ("VCBF"), a joint venture between
Vietcombank and Franklin Templeton Investments, I will help my supervisors identify whether it is worth
investing in this company?

II. Different types and purposes of organizations:

1. Public sector:

Definition: The public sector refers to the component of an economy that is governed by national, state, or
provincial governments, as well as municipal governments. (Target, 2015).

Types: There are two types of the public sector: Public corporation: is that form of public enterprise which is
created as an autonomous unit, by a special Act of the Parliament or the State Legislature. (Ghuge, 2021)
Municipal enterprise: Municipal enterprises are firms held by local governments and offer services while
generating revenue for the community. Local governments have long administered public utilities and facilities
such as ports, parking lots, and airports. (Community- wealth, 2012).

Purpose: The objective of public sector entities is to provide fundamental public services to the general public at
a fair cost while also being self-sustainable and profitable in their particular sectors. Profitability, on the other
hand, isn't the main driver. (Thakur, 2019).

Evidence: VietNam airline’s owner structure. Vietnam airline is the group with the most state owner that
accounting for 86,19% state capital. (VietNamAirline, 2019).
 (VietNamAirline, 2019)
2. Voluntary sector:

Definition: The voluntary sector refers to businesses whose primary goal is to have a positive social effect
rather than make a profit. It's also known as the not-for-profit sector, civil society, or the third sector . (Reach
Volunteering, 2018).

Types: There are two types of the voluntary sector: Social enterprise: are firms that prioritize the well-being of
people and the environment before shareholder profit. These companies have a social/environmental objective
and reinvest earnings towards bringing about constructive social change. (Social Enterprisemark CIC, 2016).
Non-governmental organization (NGO): is a non-profit organization that operates independently of any
government. NGOs, often known as civil societies, are organizations that work on a local, national, and
worldwide level to achieve a social or political purpose, such as humanitarian aid or environmental protection.
( Folger, 2018).

Purpose: The purpose of the private sector is to help and enrich society, typically without regard for profit and
with little or no government interference. The volunteer sector's goal is to build social wealth rather than
material gain, according to one perspective. (Henneman, 2021)

Evidence: Food Bank Vietnam (Food Bank Vietnam) is a non-profit organization that gives away free food to the
poor and works to reduce food wastage. Food Bank works in Vietnam as a social business under the auspices of
 the Vietnam Red Cross Association's Central Committee and the Center for Social Work for Young
People of Vietnam (affiliated with the Vietnam Youth Union's Central Committee). (Foodbank, 2022)

(Foodbank, 2022)

3. Private sector:

Definition: The private sector is the component of the economy that is operated for profit by individuals and
businesses rather than by the government. As a result, all for-profit firms that are not owned or run by the
government are included. ( Chappelow, 2019).

Types: There are four types of the private sector:A sole trader: is a firm that owns or controls an individual
and is responsible for all of the choices, earnings, and responsibilities that come with it. (SmallBusinessPro,
2019). A partnership: is 'the relationship between people carrying out a company together for-profit.' Because
this type of corporate entity lacks its legal personality, the owners – the partners – are personally liable for an
unlimited amount, both jointly and severally. (Ian Worthington and Chris Britton, 2006) A limited liability
corporation (LLC): is a corporate form in which the owners are not personally accountable for the firm's debts
or obligations but are responsible for the contributed capital. The elements of a partnership and a single
proprietorship are combined in these business formations. (Cekindo Business, 2021). A joint-stock corporation
(JSC): is a legal entity with an equal number of shares in its charter capital. A minimum of three stockholders is
required. There are no limitations on the maximum number of stockholders. ( Cekindo Business, 2018).

Purpose: The goal of private-sector businesses is to make money while adhering to the country's norms and
regulations. (Tejswini Bhosale, 2019)

Evindence: KIDO is an example of the private sector because 100% of its shareholders are individuals in the
company or private organizations. In addition, a portion of the company's profits is paid to the members or
shareholders. In 2021, dividends paid to the shareholders of the parent company of 335,265,451,270 VND.
( KiDo, 2021)
 (KiDo,
2021)

(KiDo, 2021)
III. Size and scopes of a company:
1. Introduction about Vinamilk:

(Vinamilk, 2021)
 2. Size and Scope of Vinamilk:
a. Size of Vinamilk Group:

(Vinamilk, 2021)

In 2021, the total assets of the Vietnam Dairy Products Joint Stock Company (VINAMILK) are VND 53,332
billion.Despite the fact that many businesses in the consumer goods and services sector were bankrupt due to
the pandemic last year, Vinamilk worked hard to keep income flowing growth.In 2021, total consolidated
revenue was VND 61,012 billion, reaching the VND 60 trillion mark for the first time and up 2.2 percent from
2020. In addition, total revenue increased by around 10% in the fourth quarter of 2021, the most significant
quarterly increase in the five years.

 Total number of employees: As at 31 December 2021, the Group had 9,732 employees (Vinamilk, 2021)
 Filed of industry: Milk and dairy products production, processing, and trading. (VNR500, 2022)
  Based on the Vinamilk 2021 annual report, we can conclude that Vinamilk is a large
company.
b. Scope of Vinamilk Group:

Stakeholder:

1. Internal Stakeholder:
- Employees: Vinamilk staff has 9,732 employees as of December 31, 2021. The main concerns of the whole
Vinamilk's employees are safe working environment, working regime, salary and bonus, social welfare,
recognition of achievements, training and development and respect for human rights. (Vinamilk, 2021)
- Managers: They care about the growth strategy and business operations of the company's annual profits
from product sales, personal power, and status. (Vinamilk, 2021)
2. External Stakeholder:
- Customer: There are high requirements for safe product quality, reasonable prices, diversified products
that are easy to use, concern about company reputation and brand, service policy, sales, and after-sales.
(Vinamilk, 2021)
- Society: They want good quality products, safety, reasonable price, community and local economic
development, and corporate social responsibility. (Vinamilk, 2021)
- Shareholder: interested in Vinamilk must use investment capital effectively and Information transparency,
understand business strategy and ensure the interests of shareholders. (Vinamilk, 2021)
3. Economic Objectives:

In 2022, Vinamilk confidently set a total revenue target of VND 64,070 billion, and earnings before tax reach
VND 12,000 billion. In addition, the Market share of Vinamilk in the value of 56% will increase by 0,5%.In 2026,
Vinamilk set a total revenue target of VND 86,200 billion, and earnings before tax reach VND 16,000 billion.
From 2021 to 2026, Vinamilk Group desire revenue will boost and peek at 7,2%. (Vinamilk, 2021)

(Vinamilk, 2021)
(Vinamilk, 2021)

4. Social Objectives:

During 45 years of development, the Vinamilk group has made many positive impressions in implementing
social objectives in 2021. Vinamilk has set a goal of creating a massive effort for the community, like raising fund
10 billion VND for the government and nearly donating four million nutritious products for children.In addition,
Vinamilk has set a goal of implementing 17 development goals of the United Nations to join hands to contribute
to a sustainable and compassionate community.( Vinamilk, 2021)

(Vinamilk, 2021)
 (Vinamilk, 2021)

5. Vision:

To become a world-class brand in the food and beverage business, where consumers have complete faith in
nutrition and health goods. ( Vinamilk, 2022)

6. Mission:

We will offer vital sustenance to the community with respect, love, and responsibility.( Vinamilk, 2022)

With mission, vision, and agility, Vinamilk has constantly built and re-branded, bringing great values to the
community. And towards the goal of bringing Vietnamese milk, "Stand tall Vietnam - Reach out to the
world" will help VINAMILK's profits increase, ensuring the benefits of other stakeholders. Vinamilk's goal of
enhancing employee qualifications and good remuneration plans will help the firm grow while also providing
its employees the perks, such as insurance, salary, and professional advancement. Vinamilk has met
customers' needs by improving production lines, always creating new products, and enhancing the brand's
reputation in the hearts of users by implementing television programs, promoting products, and the
company's activities on major social networking platforms. After more than 45 years of establishment and
development, Vinamilk is one of the pioneering corporations in providing high quality dairy products to
consumers.Vinamilk's products are increasingly trusted and chosen by customers.
 Explain how size and scope of your chosen company helps it to achieve company’s objectives/
goals and products/ services:

Scope: Vinamilk has set a target that by 2022, the company will reach a total revenue of 64,072 billion VND.
(Vinamilk, 2021). With scope being a joint-stock company, that could quickly help Vinamilk achieve that goal.
Because, Vinamilk has enough reputation and can mobilize significant capital to meet the needs of investing in
machinery and raw materials, creating new high-quality products, and implementing plans and services.
towards the goal set in 2022.

Size: Vinamilk is a large company in Milk and dairy products production, processing, and trading. (VNR500,
2022). In 2021, Vinamilk aims to create great help for the community by providing free milk to those in need
(Vinamilk, 2021). With the size of a large company, Vinamilk has many advantages in realizing its set social
goals. Vinamilk has a significant source of capital and revenue that will provide enough finance to produce safe
and high-quality dairy products for everyone. In addition, Vinamilk has many employees, ensuring that the
services are performed at the best level and can maintain an uninterrupted production chain when large
amounts of milk are needed for charity activities.

IV. Different organizational Function

 (Vinamilk, 2022)

- Research And Development (R&D) Department: The R&D team at Vinamilk has worked tirelessly to deliver
consumers the most cutting-edge products possible. Vinamilk continues to stay current with consumer
trends, grow its product portfolio, improve the nutritional content of existing product lines, and engage
more actively in community health counseling, all of which contribute to Vinamilk's long-term sustainability
goals. (Vinamilk, 2021)
- Marketing department: keeps track of market developments and determines what consumers want. The
team then devised a marketing plan to raise client awareness and encourage sales. They also undertake
market research, test marketing, advertising, and branding, among other responsibilities and operations.
(Nasrudin, 2022)
- Supply Chain department: contains functions such as making orders and maintaining safe inventory levels,
thus able to promptly and fully address the needs for raw materials and other production inputs during the
pandemic that had disrupted the supply chain both domestically and globally. (Vinamilk, 2021)

Regarding economic goals, In 2022, Vinamilk expects total revenue to reach VND 64,070 billion and a pre-tax
profit of VND 12,000 billion. To achieve the target, Vinamilk's R&D department plans to introduce 21 new and
 28 innovative products to the market by 2021, including core product categories such as
powdered milk, liquid milk, and drinking yogurt. In addition, to ensure the completion of the target on time, the
supply chain department needs to ensure the adequate and timely supply of raw materials according to the
production needs of the R&D department. Finally, after the product is completed, the departments need to
coordinate with the marketing department to introduce the new products closer to consumers.

(Vinamilk, 2021)

V. Interrelationship between organizational functions:

The supply chain department: has the function of procuring raw materials and other resources that are
required to manufacture the goods, coordinating with suppliers to deliver the materials without any delay, and
must be able to arrange for an alternative conveyance immediately when facing an adverse situation,
arrangement of devices for packing and labeling of goods are also part of supply chain department functions.
(Talentedge, 2018).

Marketing department: keeps track of market developments and determines what consumers want. The team
then devised a marketing plan to raise client awareness and encourage sales. They also undertake market
research, test marketing, advertising, and branding, among other responsibilities and operations. (Nasrudin, 2022)

The financial department: is also in charge of managing the organization's cash flow and ensuring that sufficient
money are available to satisfy day-to-day obligations. This area also includes the credit and collections rules for
the company's customers, as well as a payment policy for the company's suppliers, to guarantee that the
organization gets paid on time. (J.A Smith & Associates, 2017).

The departmental goals appear to be varied but suggested that they are goals that are very specific and
functional in nature and yet are aligned directly or indirectly with the company goals. (Teo and Low, 2016). For
example, within a company, the marketing department and R&D departments have a close relationship and
cannot be separated. Marketing has the function of strategic positioning and customer segmentation. From the
results and activities of the marketing department, the R&D department will conduct research, product
development, and production process improvement so that the business can operate optimally. Companies can
 offer the best quality products with improved processes while minimizing production costs. And
then, from the results of the R&D department, marketing will implement plans to introduce new products on
social networking platforms or find a representative to introduce new products to consumers. Every activity of
all departments is related to cash flow. The finance department controls all the cash flows in the company, and
this department is where decides the feasibility of the strategies outlined in the company. Thereby providing
money for sound systems, the respective departments will implement that strategy to bring the best results for
the company.

All departmental goals must be aligned to organizational goals. Therefore, if one department in the company
changes, it will lead to the department pursuing their own goals without integrating with other departments’
goals and without aligning with organization goals, then organization effectiveness will be adversely affected .
(Teo and Low, 2016). In addition, if the purpose or the function of a particular department changes, it will lead
to a change in the overall an entire organizational structure. Changing organizational structure affects the
achievement of business objectives. (Teo and Low, 2016)

Assuming in 2021 that the finance department in Vinamilk has a change such as removing the finance
department from the organizational structure, it will cause a severe impact on other departments in the
organizational structure. Finance is a department that has close links with other departments. The finance
department is removed from the organizational structure, and no departments will be responsible for reviewing
the feasibility of the company's projects and development plans and providing the corresponding funds to
implement those projects. As a result, the implementation of the goals of other departments may be delayed or
canceled and seriously affect the overall goals of the whole company.

VI. Conclusion:

According to this article, the business environment influences the goals, success, and survival of a firm. This
research has provided important information about Vinamilk, such as total financial resources, company goals,
ideal strong company structure, major business markets, and branches stretching from domestic to overseas. In
addition, well-trained quality staff will help Vinamilk maintain its record of trading and exporting dairy products
and become the top 30 enterprises with the most significant total revenue globally. We can see that investing in
Vinamilk is a worthwhile risk and that our money was well spent.
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