T/618/5032

Unit 1. Business and the

Business Environment
 LECTURER

• Full name: BUI LE THUY TRANG

• Email: Trangblt@fe.edu.vn

• Phone No: 0963.829.993

• Bachelor of International Economics (FTU)

• Master of Project Management (Nantes University)

 LEARNING OUTCOMES (ASM 1)

LO1 Explain the different types, size and scope of organisations

• P1 Explain different types and purposes of organisations; public, private and
voluntary sectors and legal structures.

• P2 Explain the size and scope of a range of different types of organisations.

LO2 Demonstrate the interrelationship of the various functions within

an organisation and how they link to organisational structure
• P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.
 LEARNING OUTCOMES (ASM 2)
LO3 Use contemporary examples to demonstrate both the positive and negative
influence/impact the macro environment has on business operations
• P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.

LO4 Determine the internal strengths and weaknesses of specific businesses

and their interrelationship with external macro factors.
• P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses.

• P6 Explain how strengths and weaknesses interrelate with external macro factors.
 Lecture 1

Public and voluntary

sectors: Types and
Purposes
 Contents

1. Introduction of various business environments

2. Concepts of various sectors

3. Public sector: Types and Purposes

4. Voluntary sector: Types and Purposes

1. Introduction of various
business environments
 Types of Environment

General environment
(PESTLE)

<TITLE>
Economic Non-economic

External
Internal environment
environment
The company

Immediate environment Public

Competitors
(Competitive environment)
Customers
Marketing
Suppliers intermediaries
8
 Various business environments

1. Internal environment: the company itself

2. External environment: Immediate environment
(competitive/operational)
3. External environment: General (contextual) environment
(PESTLE)
Two levels of external
environment
The business organization as a
transformation system
The firm in its environment
2. Concepts of
various sectors
 Definition of Private sector

Private sector (công ty thuộc sở hữu tư nhân) – that part of

the economy where ownership and control of the organization is
in the hands of private individuals or groups and where profit-
seeking is a central goal.
Private owned company:
FPT EXAMPLE
 Definition of Public sector

Public sector (công ty thuộc sở hữu nhà nước)– that part

of the economy under the control of government and its
agencies and where the state establishes and runs the different
types of organization on behalf of its citizens and for their
general well-being.

E.g. AGRIBANK
 Definition of Voluntary
sector

Voluntary (or third) sector (doanh nghiệp xã hội/ tổ chức phi chính
phủ) – comprising those organisations, including charities, voluntary
bodies and community businesses, that are not-for-profit enterprises and
non-governmental.
 3. Public sector:
types and purposes
(Công ty, doanh nghiệp thuộc sở hữu nhà nước)
3.1 Public sector:
Types?
 Public sector

Vietnamese regulations
 Public corporation in Vietnam

• State/Government occupied more than 50% of the total

shares

• Source of data: Shareholder structure

 Evidence to prove the
company is Public sector

• The Owner structure chart of the company: (found in the

Annual Report, Website…)

• If the State owns equal to or more than 50%, the

company belong to the Public sector
 Ex: Find the annual report of:
VNA (Hãng hàng không Quốc gia Việt
Nam) and EVN (Tập đoàn Điện lực Việt
Nam)
 Public sector

Regulations in the UK
 Public sector: forms (UK)

• Central government departments (e.g. Department for Business, Innovation and Skills);

• Local authorities (e.g. Lancashire County Council);

• Regional bodies (e.g. the former Regional Development Agencies);

• Non-departmental public bodies or quangos (e.g. the Arts Council);

• Central government trading organizations (e.g. The Stationery Office);

• Public corporations and nationalized industries (e.g. the BBC).

 Public sector: types (UK)

• Public corporation (doanh nghiệp nhà nước)

• Municipal enterprise (xí nghiệp thành phố)

 Public sector:
Characteristics

• Owned by state government or local authorities

• Loss is borne by the state

• Tend to privatization or public/ private partnership

3.2 Public sector: Purposes?
 Purposes of public sector

• For the benefit to citizens: the interests of the public at

large
• Social goals: democracy, cooperation, job creation,
mutual trust
• Goals laid down by politicians and generally couched in
social and financial terms, rather than profit maximization
4. Voluntary sector:
types and purposes
(Doanh nghiệp xã hội hoặc các tổ chức phi Chính phủ)
 4.1 Voluntary sector
(private but for non-profit): Types
 Voluntary sector: types

• Social enterprise

• Non-governmental organization
 Voluntary sector

Social enterprise
(Doanh nghiệp xã hội)
 Social enterprise: Characteristics

• Conduct a business as usual

• Profit is not distributed to owners/ no dividend is allocated

• Profit for reinvestment or other social rescue/ public benefits

• Tax advantages.
Discussion:
Summarize and present
the content of report,
using canva, padlet,
prezi or ppt.
 Voluntary sector

NGO
(Tổ chức phi chính phủ)
 NGOs according to Vietnamese law

• Foreign non-governmental organizations, hereinafter referred to as

NGOs, in order to conduct development assistance and humanitarian
aid activities in Vietnam for non-profit or other purposes, must be
authorized by the Government of Vietnam.

(Decision 340/TTG 1996)

 Non Government Organizations:
Characteristics

• Not a company, It is an organization

• Not owned by state, it is private owned

• Not carry out a business

• Not for profit

Non-governmental organization
(NGO)
 4.2 Voluntary sector
(private but for non-profit): Purpose
 Purposes of voluntary sector

• Not for profit

• For the benefit to society: the interests of the public at
large
• Social goals: environment, fair trade, community support,
poverty eradication …
• Tax support for social enterprise
 Exercise 1

• Explain the main characteristics and the purposes of

Public and Voluntary sector.
• For each sector, you must give at least one example and
prove that the selected companies belong to these
corresponding sectors.
THE END