GROUP ASSIGNMENT

Research on Small Business

Member:

Phan Thành Trung (20%)

Lương Trí Luân (20%)
Lê Lý Ngọc Ánh (20%)
Lý Thị Ngọc Mai (20%)
Ngô Thị Khánh Linh (20%)
                 
A. PART 1 – GENERAL INFORMATION. 

o   Business name: MST BINH DUONG GROUP

o   Location of the business: Tru Van Tho Commune, Bau Bang District, Binh Duong Province,
Vietnam.

o   Interview date: 27/05/2022

o   Interview time began: 9h30

o   Interview time finished: 9h45

o   Position of the interviewee: deputy general director

o   Main area of business and production activity: manufacture beds, cabinets, tables, and
chairs.

o   Number of employees: 950

o   Number of employees with a college degree or above: 75

o   Educational level of the business owner: higher education.

 B. PART 2 – INTERVIEW

Ask the manager the following questions on Business Ownership: 

1.    
 A joint-stock company without a state capital
  

2.     
 It will bring them high transparency.
  It also helps them quickly solve the firm’s problems to make the development process
dash.
3.    
 If sales were to double, they would try to maintain the quality and consolidate it. 
 Besides, they're going to expand the company and increase the quality of goods
and other aspects.
4.  
 The owner spends at least four days a week participating and working for their business.
5.    
  The owner thinks that their business images are incompatible with the current market. So
if they have the chance to change in building their business, they would change the firm's
image.
6.     
 Entrepreneurs must, day by day, create a brand for their company.
 Entrepreneurs must carry about labor opportunities and health. 
 Entrepreneurs should spend enough time on the training step to practice their employee
career skills and management skills.
 They are giving employees enough reliance and trust at a particular level.

Ask the manager the following questions on Management: 

1. 

 They generate one type of goods: Houseware, like manufacturing beds, cabinets, tables,
and chairs.

2. 

 Businesses have both long-term and mid-term plans. Based on the annual production plan
of each year to plan and target for the next five years. In addition, the company also has
to calculate the number of products to produce, the cost of producing the product, and the
personnel to accomplish the set goals. For example, if this year's profit target is 10%
higher than the previous year, then five years later, it must achieve 50% of the current
rate according to accumulated accumulation.

3. 

 They have many strategies for producing: the annual plan, monthly plan, weekly plan,
and daily plan. 
 To ensure that the plans are achieved, the company has: 
o Intent to supply raw materials for production according to the production plan.
o Make a plan to allocate labor resources reasonably in production.
o Re-evaluate whether machinery and equipment are guaranteed for production—
plan to equip new or backup essential machinery and equipment to ensure
production progress.
o Every day at the end of working hours, re-evaluate the production results of the
day to have a better plan for the next day.
4. 

 The company has an Unscheduled reward plan for individuals who do well and exceed
the goal. Commendation for production improvement, quarterly bonus, and finally, year-
end bonus. In addition, the company also creates conditions and organizes for employees
to go on a trip.

  Analysis

1.    
Strengths: 

Business Ownership
 Implementing this type can raise significant capital easily from numerous sources and
is adequate for doing business in industries that require tremendous investment like
Samsung, Apple, etc. 
 Shareholders only take responsibility for the corporation's debts and other property
obligations within the scope of contributed capital, so the risk level is low.
 The company's operation has possibilities to work immensely wide in most fields and
industries. The capital structure is incredibly flexible, permitting several people to
give capital contributions to the corporation. As a result, the enterprise can attract
talented stakeholders. 
 The ability to raise capital is highly significant through distributing shares to the
public.
 The transfer of capital is relatively effortless, so the scope of people joining
corporations is extensive.
 The independence between management and ownership is high, and the
administration will be more effective.

Management
 The company set obvious long-term goals.
 Organize a strict system for supervising and managing the enterprise’s operation so
the firm can ensure those objectives are obtained.
 The company uses extrinsic rewards to motivate employees to be more productive
because they can feel satisfied when the leader has recognized their efforts.

Weaknesses: 
Business Ownership
 The number of shareholders can be huge; thus, the management and administration of
the company are relatively complex, particularly conflicts between shareholders when
opposing benefits appear.
 Financial confidentiality is restricted, resulting from disclosing and reporting to
shareholders.
 When establishing a corporation, the initial cost is vast.
 Founders face several required extensive paperwork. 
 Shareholders must pay more taxes 
  It is difficult to terminate the company. 

Management
 Despite preparing goals, this plan is near-sighted. The company should mention the
unfortunate accidents that may happen to set up a contingency plan. Moreover, the
enterprise considers broadening its impact by creating a new product, doing
campaigns that attract a new target market, etc. 
 Although the employees receiving awards can be motivated, it is not sufficient.
According to HERZBERG, the company ensures good hygiene factors: company policy
and administration supervision, working conditions, interpersonal relations, salary, status,
and job security. Moreover, the company should create opportunities for employees to
work themselves, obtain achievement, recognition, and responsibility, and help them
grow and advance. 

2.     
The firm generates general housewares with products like chairs, sofas, tables, etc. However, to
be more successful or famous, they should have a little chance: 
 Firstly, they should focus on a specific houseware such as the sofa. Give it a particular
reputation with its brand and its customers, such as the elite, middle class, or civilians.
Therefore the firm has a fixed number of customers and its popularity, which means there
is a good place in the market. 
 Next, the firm gradually extends other kinds of houseware like tables, chairs, etc.
 Finally, the firm should sell various goods parallel with the collection when combining
different types.

3.     
 There may be many workers who are committed to long-term contracts with their
employers. The reasons for making work have a high commitment from beneficial
reward mechanisms such as commendations for production improvement, quarterly
bonuses, year-end bonuses, etc. Moreover, having a wise hand, the company is creating
an active environment through trips among workers and leaders, having a mutual
understanding. From all conditions and chances, most workers desire to work for long
periods and are most willing to work.