ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

Submission date DateReceived1stsubmission

Re-submissionDate DateReceived2ndsubmission

Student Name Dang Thi Anh Hong Student ID GBD191234

Class GBD0805B Assessor name Badr Badraoui

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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.

Student’s signature Dang Thi Anh Hong

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Contents
I. INTRODUCTION. ................................................................................................................................................................. 4
II. The type and purpose of Hoa Sen Group........................................................................................................................... 6
1. The type ............................................................................................................................................................................. 6
2. The purpose ....................................................................................................................................................................... 8
III. The size and the scope of Hoa Sen Group. ..................................................................................................................12
1. The size of Hoa Sen Group : .............................................................................................................................................12
2. Scope: ...............................................................................................................................................................................14
IV. The function of Hoa Sen Group....................................................................................................................................16
VI. CONCLUSION ............................................................................................................................................................18
V. REFERENCES: .................................................................................................................................................................19
I. INTRODUCTION.

Company Profile

Company name Hoa Sen Group

Legal name Hoa Sen Corporation

Established 2001

Founder Le Phuoc vu

The head office address 183 Nguyen Van Troi, Ward 10, Phu Nhuan District, Ho Chi Minh City.

Company type Join Stock Company

Structure of ownership Shareholder

Total capital 4.234.694.890.000 VND

 Core business areas building materials, machines, warehouse

Telephone (028) 39990 111

Fax 0274.3791792

Email sales@hoasengroup.vn

Website www.hoasengroup.vn

The first Hoa Sen Group Join Stock is the Hoa Sen Join Stock Company, was established on August 8, 2001. In
the first time, total capital of Hoa Sen was 30 billion VND. On November 11,2008, the company was renamed to
Hoa Sen Hoa Sen Group Join Stock Company. Hoa Sen group was the first foreign-invested enterprise in
Vietnam and cold rolled steel factory. (hoasengroup , 2020)

At the beginning, the charter capital of VND 30 billion, 22 employees, and had no profit. After 9 years of
development, Hoa Sen Group has increased its charter capital to VND 1007.9 billion. with nearly 3,000
employees, Hoa Sen Group is headquartered at 09 DL Thong Nhat, Song Than II Industrial Park, Di An, Binh
Duong and Representative Office at 215 - 217 Ly Tu Trong, Q1, TP. HCM.

Principal activities: - Manufacturing roofing sheets by Galvanized, zinc alloy, paint galvanized zinc,..

- Producing steel purlins, galvanized purlins

- Manufacturing black steel pipes, galvanized steel pipes and other alloys
- Manufacturing steel mesh, galvanized wire, steel wire.
- Producing PVC ceiling tiles
- Producing construction material
- Buying and selling building material, capital goods and consumer goods
- Renting warehouse and transporting goods
- Building industrial and civil constructions
- Producing cold rolled steel coils
- Leasing machinery and equipment and other tangible belongings (hoasengroup ,
2020)
Hoa Sen Group is proud to be the leader of the Galvanized steel industry in the whole country in terms of
growth rate and consumption volume, being the first enterprise - the only one in Vietnam that has a system of
both production and business with a closed distribution network. 82 branches spread across the country. Be
announced by VietnamNet and Vietnam Report organization on the rank of 36/500 largest non-state
enterprises in Vietnam (in 2020).

II. The type and purpose of Hoa Sen Group.

1. The type

Hoa Sen Group Joint Stock Company is a profit company and was established to Business Registration
Certificate No. 4603000028 by Binh Duong Department of Planning and Investment date in 08 August 2001,
with an initial charter capital of VND 30 billion and 22 employees. On March 16, 2007, Hoasen Group
announced to increase its 7th charter capital from VND 250 billion to VND 400 billion, and changed its name to
Hoa Sen Corporation (Hoa Sen Corp.). In December 2007, Hoa Sen Joint Stock Company was renamed Hoa Sen
Group Joint Stock Company according to the business registration certificate No. 4603000028 by Binh Duong
Department of Planning and Investment on November 8, 2007.On December 5, 2008, listing 57,038,500 shares
of Hoa Sen Group on the Ho Chi Minh Stock Exchange. HCM with stock code HSG. This mean Hoa Sen Group is a
public company.Furthermore, issuing bonus shares and shares paying dividends of the fiscal year 2008 to
shareholders increased charter capital from VND 700 billion to VND 839,960 billion and issuing shares to pay
dividends of the fiscal year 2008-2009 to shareholders, increasing the charter capital from VND 839,960 billion
to VND 1,007,907 billion. (hoasengroup, n.d.)
 Figure 1- list main shareholders of Hoa Sen Group in 2020

Figure 2- shareholders structure in 2018, 2019,2020

As reported in ownership structure of Hoa Sen Group, the company had been completed operating without
government; besides there are many shareholders have been owning since 2008 of the company’s shares.Since
its inception, HSG’s shareholder structure has been concentrated as the percentage of ownership of the Board
of Directors (mainly Mr. Le Phuoc Vu) fluctuated between 38% and 44%.The Group’s shares have received much
attention from many domestic and foreign institutional investors. In the past, the shareholder structure
included the participation of foreign funds such as STIC Investments from South Korea and SSF Capital from
Malaysia. In addition, major foreign shareholders (holdings more than 1%) own 32% of the Group’s shares.

(finance.vietstock , 2020)

Figure 3-Stock Market Price of HSG 31/07/2020

Based on the information displayed on the stock exchange, we can organize that the stock price is decreasing( -
4,33%). There was a period of time that the stock market price reached to VND12,300 per share in the last 52
weeks. It leads us to gain an overview of the firm’s business development and growth. According to Hoa Sen
Group, the steel industry in 2020 will continue to have unpredictable fluctuations. Firstly, the US-China trade
conflict may continue to escalate and a final agreement has not been reached. Export activities will be more
difficult due to trade remedies, reducing demand and increasing competition from domestic supply in export
markets. Besides,due to the impact of the COVID-19 pandemic, the economy of the whole world was in
recession and it also partly affected the company.

2. The purpose

This company is the leader in the national corrugated iron industry, with a brand that is considered as a strong
and friendly brand; moreover a retail system was widely distributed throughout the whole country and over
10,000 traditional customers. This facilitate them to giving an advantage to HSG diversifies its products, can
develop of other items successfully at low cost, can increase sales and profits many times in a short time.

The reason for the development of Hoa Sen Group is set up goals, visions, missions, core value and objectives.

1. Vision: (prezi, 2020) - Become a leading economic group in Vietnam and the region in the field of
construction

Material.
 - Focus on traditional products: corrugated iron, steel and plastic.

- Building and developing a chain of retail advantages.

- developing a strong brand chain, friendly and community-oriented.

- HSG aims to be a pioneer in investing in technological innovation and creating a unique

corporate governance and corporate culture system to bring the highest added value to
shareholders, employees and society.

➢ Hoa Sen Group was appreciated have a good vision: (text.123 , 2020)

√ HSG offers a clear vision with future development directions for businesses.

√ HSG's vision also shows clear product and distribution strategies. As a result, the employees
know clearly what they need to do and will achieve in the future, inspire work, increase the
loyalty and trust of employees towards the group.

√ HSG vision also satisfy the value for customers: by providing the best products, value for
employees and society→customers can believe in the product they buy,so it will be increase
revenue for business and create a name brand in customer HS.

√ The vision of the group also mentioned to bring the highest added value to shareholders;
consequently, the interests of shareholders are always increased and will attract a lot of
investment capital for the business of the group.

2. Mission: ‘To provide products and services with international quality, reasonable price, diversified and
environmentally friendly designs under the Hoa Sen brand in order to meet customers’ needs and
contribute to changing the country’s architectural landscape and developing the community.

To constantly innovate and develop to affirm the stature and mission of a dynamic and
innovative Vietnam enterprise in both business and community activities, to reach a high position in the
international market.

Being aware of the responsibility of enterprises to the community. HSG always focuses on practical
social activities, targeting many different subjects. For many years, Hoa Sen Group has accompanied the
"Overcoming Yourself" and "Loving Leaves" programs as the main sponsors, in addition to sports activities such
as Hoa Sen Group as a co-unit. with Vietnam Television and Vietnam Volleyball Federation to organize the
International Women's Volleyball Cup VTV Cup Hoa Sen Plastic Pipe

In addition, the group also has a series of other social-oriented activities held annually such as
social security funds, support for the flood victims, and the Vietnamese family.
 With strong developments in business activities and positive contributions to the social-economic
development of the country, HSG has received many noble awards: Third-class Labor Medal, Business Merit
Award. typical Binh Duong province, top 10 gold stars write with many other awards.

3. Core value: "Honesty, community and development"

∞ HSG has built on the culture platform with : Honesty - Loyalty - Dedication - Intellect - Friendly. This
is an important factor contributing to the rapid and sustainable development of HSG in recent years.

∞That is the difference, confirming the mission of an enterprise for the community and for the
common development of the country. In fact, HSG has contributed to the national economy with key, high-
value products, creating jobs for thousands of workers, participating in and sponsoring many charitable and
social activities

∞From these core values, HSG's "drivers" have gradually turned this company into a leading
corrugated iron exporter in Southeast Asia nowadays - A brand that has entered the hearts of people from the
mind.

∞In order to continue promoting the cultural values in enterprises, a HSG leader said that the company
is currently cooperating with a consulting and support unit to the cultural values of businesses such as: research
about labor regulations, human resource development policies, internal issues, websites ... to better
understand the true vitality of core values into the actual operation of HSG.

∞In addition, there are qualitative, quantitative, synthetic and scientific surveys based on the available
data. This is the basis to reflect the strength of the organizational culture value, the level of organizational
knowledge of each unit and evaluate the level of knowledge and compliance of employees with the cultural
values of the group. Thereby, there are reasonable adjustments in order to raise the cultural heritage towards a
more completion.

4. Objectives : Hoa Sen Group set a target of 400 billion dong of profit in 2020, "by all means, must exist
before the refinement of the market"

►Hoa Sen Group Joint Stock Company (HOSE: HSG) aims to increase domestic consumption and
diversify export markets. The company will improve its gross profit margin for the 2019-2020 period to 12.1%,
compared to 11.4% in the previous year.
 Figure 4- Profit after tax

►Hoa Sen Group has published the meeting document for the 2019-2020 General Meeting of
Shareholders (the fiscal year of Hoa Sen starts from October 1 of the previous year and ends on September 30
of the following year) with the revenue plan of VND 28,000 billion. and profit after tax of VND 400 billion.

Figure 5-net sales of Hoa Sen Group

►Compared to the results made in 2019, Hoa Sen's revenue is almost unchanged, while profit
increased by about 11%. Hoa Sen expects sales volume in 2020 to be 1.5 million tons, approximately compared
to 2019.
 ►Hoa Sen intends to tighten the norm and reduce the amount of inventory in business units,
contributing to reducing outstanding loans and expenses incurred related to inventories.

III. The size and the scope of Hoa Sen Group.

1. The size of Hoa Sen Group :

In the first three quarters of 2020, the company has always achieved a steady growth in revenue but the
third quarter revenue compared to the second quarter decreased. Specifically, the revenue of Q2 2020 is
12% compared to Q3 2020. The reason for the decrease is due to the trade war between the US and China,
which has significantly affected the company's export activities.

Besides in the domestic market, Hoa Sen is still the leader in building materials and steel pipe business, so
the after-tax revenue still saw a stable growth from Q4 2019 to Q3 2020.

In addition, the company still maintains the profit after fax for shareholders of the parent company, this
helps them to show that the company has created a reputation for investors and also attracted many
investors for Hoa Sen Group.
 Given the statistic table about balance sheet, it indicates that current assets in Q3 2020 are 7,392,336 million
dong and total assets are16,436,398 million dong. But, we also recognized the liabilities of the firm reach to
10,285,568 million dong, decreases 857,000 million dong than Q2 2020. The company still keeps decreases
liabilities every quarter of the year and that leads to an increase in its own capital 6,150,830 million dong for the
company. These advantages have helped Hoa Sen Group establish and maintain the No. 1 position in
manufacturing and trading corrugated iron and steel in Vietnam, accounting for nearly 40% market share of
corrugated iron, nearly 20% market share of domestic steel pipes and being the leading exporter of corrugated
iron and steel in Southeast Asia.
With a solid foundation built in the past 15 years, Hoa Sen Group is gradually asserting the stature of a dynamic
Vietnamese business in economic integration, constantly advancing its position in the world marke

2.Scope:

- Product quality of international standards, fast delivery time, reasonable price, good customer service, Hoa
Sen Group always best and fastest response to all customer needs in the market. both domestic and export.
Currently, Hoa Sen Group owns 11 large factories, a system of nearly 300 distribution - retail branches across
the country. In addition, Hoa Sen Group also promotes export activities, products of Hoa Sen are present in
more than 70 countries and territories around the world. In addition to traditional export partners, the Group
also expands exports in potential markets such as the Americas, Europe.
Nowadays, Hoa Sen Group not only leads the steel and steel sheet manufacturing and trading enterprises in
Vietnam, accounting for more than 30% market share of corrugated iron and more than 20% market share of
steel pipes nationwide but also exporting enterprises. leading steel sheet, steel in Southeast Asia. The main
market is only Indonesia, Thailand and Cambodia. After 8 years of constant striving, the average export output
per month is currently about 60,000 tons / month. Up to this point, Hoa Sen Group's products have been
exported in more than 70 countries and territories worldwide. Export revenue accounts for nearly 40% of the
Group's total revenue. In addition to traditional export partners, Hoa Sen Group also expands exports in
potential markets such as the Middle East, South Asia, Australia, the Americas, Europe, Africa, ...
 Figure 6- Subsidiaries of Hoa Sen Group

At the same time, deploying to set up subsidiaries under the form of One Member Company Limited with 100%
invested capital by Hoa Sen Group.

IV. The function of Hoa Sen Group.

(hoasengroup , 2020)

Figure 7- the function of Hoa Sen Group

From the organizational chart of Hoa Sen Group, the top leader of the organization is assisted by functional
leaders to prepare decisions, guide, and examine decision implementation. Structure model – function.
Furthermore, The leader of the organization is responsible for all aspects of the business and all decision-
making within the business. The leader in the functional departments does not give direct orders to the
executives in the linear production sections. (hsg quy che quan tri cong ty , 2020)

→Hoa Sen is a company with a functional structure.

Base on hsg quy che quan tri cong ty, we will research about the work of each department:

Leadership : Board of Directors.

-The Board of Directors is the leading body of the Company, having full power on behalf of the Company to
decide and implement the rights and obligations of the Company that are not under the authority of the
General Meeting of Shareholders. Business operations and affairs of the Company are subject to the supervision
and direction of the Board of Directors. The Board of Directors is responsible for overseeing the Chief Executive
Officer and other managers; Rights and obligations of the Board of Directors are stipulated by the Law, the
Company Charter and the Resolution of the General Meeting of Shareholders.

Executive management: Board of Directors.

-The Board of General Directors operates under a collective mechanism of leaders and individuals in charge. The
functions, duties and powers of the members of the Board of Management are stipulated by the executive
decentralization and the approval authority of the Company and the authorization of the Chairman of the Board
of Directors and the legal representative.

Management levels.

- Senior management: Chief Accountant and Functional Units.

The Company appoints a Group Chief Accountant to manage the Group's accounting work.

The Group's management model is divided into Functional Divisions, headed by the Division Director / Division
Head (or directly under the Deputy General Directors). Assisting the Division Director / Division Manager include
the positions of Deputy Director / Deputy Director, experts and senior advisers.

- High and middle management: Department / Division of Operations.

The Division / Division is the direct subordinate unit of the Functioning Division, headed by the Division of
Division is the Director of the Division, and headed by the Division of Chief Operation. Depending on the size
and function, the Division will be structured to Deputy Directors.

- Grassroots management: Division / Specialized Group.

The specialized section is the direct subordinate unit of the Operation Department, headed by the Head of the
Division responsible directly to the Head / Deputy Head or Director / Deputy Director of the Division,

Depending on the specific characteristics, the components may consist of many specialized groups performing
certain tasks, headed by the group leader or under the charge of experts, Specialized department.

●◊The advantages of a functional organization model:

1. Simple, clear and logical,

2. Can promote the advantages of specialization because functional departments focus on work of similar
nature, promote the scale advantage, reduce duplication of activities, simplify training,
3. Retain the power and prestige of basic functions,
4. Paying more attention to professional standards and employee status, and (5) facilitating close
inspection of the highest level.

●◊Disadvantages of this model are:

1. Leads to conflicts between functional units when setting goals and modes of operation,
2. Lack of coordinated action between departments
3. Over-specialization can create a narrow view of managers,
4. May reduce the organization's susceptibility to products or services
5. Services and customers,
6. Restricting the development of a pool of joint managers,
7. Relegate responsibility for implementing the organization's overall goals to the highest levels of
management .In its homogeneous form, the functional organization model is relatively easy to
understand and is used by most organizations in a certain stage of development, when an organization is
small and medium-sized, operating in single areas, product orders, market applications.

VI. CONCLUSION

To sum up, Hoa Sen Group is a profit company and private enterprise with a large score. After 19 years of
establishment and development, Hoa Sen Group is the leading company in the corrugated iron sheet industry in
the whole country, Hoa Sen brand is considered as a strong and friendly brand, plus the retail system is widely
distributed throughout the country and over 10,000 guests. Traditional goods have created an advantage for
Hoa Sen Group to diversify products, can develop dozens of other items successfully at low costs, which can
increase revenue and profit many times over time. Short, besides Hoa Sen Group was became a leading Steel
and Steel Group in Vietnam and the region. Consequently, Hoa Sen Group is the suitable choice for investment.
V. REFERENCES:

finance.vietstock . (2020, 7 31). Retrieved from finance.vietstock : https://finance.vietstock.vn/HSG/financials.htm

hoasengroup. (n.d.). Retrieved from hoasengroup : https://hoasengroup.vn/vi/bai-viet/cong-bo-thong-tin-so-43-2016-

giay-chung-nhan-dang-ky-kinh-doanh-ve-viec-thay-doi-dia-diem-chi-nhanh-cong-ty-co-phan-tap-doan-hoa-sen-
tai-hai-phong/2836

hoasengroup . (2020, 8 1). Retrieved from hoasengroup : https://www.hoasengroup.vn/en/gioi-thieu

hsg quy che quan tri cong ty . (2020, 8 4). Retrieved from hsg quy che quan tri cong ty :
http://images1.cafef.vn/download/020216/hsg-quy-che-quan-tri-cong-ty.pdf

prezi. (2020, 7 31). Retrieved from prezi: https://prezi.com/-jz_nmoo62tw/tam-nhin-va-su-mang-kinh-doanh-cua-tap-oan-

hoa-sen/

text.123 . (2020, 7 31). Retrieved from text.123: https://text.123doc.net/document/3567569-phan-tich-tam-nhin-su-

mang-cua-tap-doan-hoa-sen.htm