The different types and purpose of asphalt bussiness company (ASP ICT)

Table of Contents EXECUTIVE SUMMARY I INTRODUCTION II MAIN BODY The different types and purpose of ICT 1.1 Legal form and Size 1.2 Purpose The different types and purpose of Asphalt Bussiness Company (ASP - ICT) 3 Stakeholders of ASP-ICT The structure and interrelationship of functions of ICT 10 III CONCLUSION 13 IV APPEDIX 14 V REFERENCE 15 Table of Figures Figure Key role of Mission and Vision (University of Minnesota, n.d) Figure Output value and revenue by the plan for 2018-2020 Figure 3: Stakeholder Mapping of ASP – ICT Figure 4: The organizational structure diagram of ICT .10 Figure 5: The organizational structure of the market management department .11 Figure 6: The organizational structure of the market management department .12 EXECUTIVE SUMMARY After a period of research on ICT, I wrote a report describing how the organization operates First of all, I explained about some aspects related to types and purposes of ICT such as legal form, size, vision, mission, goals and objectives in the first part of the report Moreover, I also analyzed the objectives due to the SMART standard and the stakeholder mapping to indicate the interest and importance of ASP-ICT’s stakeholders, then, I explained how the organization meet their expectation Last but not least, this report provided the analysis about the structure of ICT, benefits and drawbacks of this kind of structure In the last part, I also gave readers the overall function of each divisions and the relationship between them I INTRODUCTION International Investment Construction and Trading Corporation (ICT) is private joint-stock company which was constituted in 1999 There are five main business activities at ICT:      Asphalt business Invest in hydropower plants Civil engineering Trading in real estate Production and trading of healthy food Charter capital in 2015 is over 350 billion VND (initial billion VND) (Cơ sở liệu thông tin doanh nghiệp, 2015) This assignment will concentrate on Asphalt business – a subsidiary of ICT corporation because these five areas of business operate completely independent and asphalt business is the main activity of the organization as well from the beginning ICT Asphalt Bussiness Company (ASP - ICT) is a unit of asphalt production and trading under the International Investment Construction and Trading Corporation (Vnr500, n.d.) II MAIN BODY The different types and purpose of ICT 1.1 Legal form and Size International Investment Construction and Trading Corporation (ICT) is private joint-stock enterprise At the company, there are many shareholders such as: Director General (accounting for the highest proportion), two Vice managing directors and many other small shareholders (all of them working at the company) According to Thomas (2016), A business entity in which shares of the company's stock can be bought and sold by shareholders is called a joint-stock company Each shareholder accounts for company stock in own proportion which is proofed by their shares Until May 2018, there are more than 320 people working at ICT According to Worthington and Britton (2006), one of the ways to measure the size of company is the number of employees Therefore, ICT is a large organization because the company has over 250 people The larger organization is, the more complex it gets Whatever, this may exist both advantages and disadvantage for ICT With the substantial resources, the company may specialize the work and enable effective division of labor On the contrary, it also leads to some problems in planning, control and combining 1.2 Purpose ICT's mission is to create "sustainable foundations" so that all members have the opportunity to improve their human duties (Ta, 2018) The image that ICT want to focus on is: Professionalism, humanity, sustainability and class Those are core value which help ICT to develop more in the future (ICT, 2018) The different types and purpose of Asphalt Bussiness Company (ASP - ICT) 2.1 Types and Activities 2.1.1 Level of economic activity The activities of ASP comprise secondary sector and tertiary sector which will include the manufacture and the provision of services to customers and businesses (Worthington and Britton, 2006) After the liquid asphalt was bought from Singapore or Taiwan, in order to form an asphalt concrete block, ICT must put it into the asphalt station to mix with stones, sand and other additives to combine stones and asphalt Finally, it is delivered to customers and other companies by specialized tank trucks (Ta, 2018) 2.1.2 Private organization At ASP Company, it exists with objectives other than purely profit Hence ASP refers to the voluntary sector They want to create the habit of using high quality asphalt products for asphalt users in Vietnam rather than increasing the profit (Ta, 2018) The ‘voluntary sector’ related to companies whose primary aim is to create social influence rather than profit It is often called the third sector, the not-for-profit sector or civil society (Reach Volunteering, n.d.) 2.2 Purpose Organizational purpose is offen juxtaposed alongside terms such as vision and mission (Hauge, and Knudsen, 2017) Figure Key role of Mission and Vision (University of Minnesota, n.d) 2.2.1 Vision: A vision will make clear about the company’s direction, providing a whole picture of what the business will look like in the future (5-10 years) (Nagy & Fawcett, n.d.) Vision of the company is: Become a leading supplier of asphalt and other products in Vietnam It can be said that this is a simple and clear statement On the other hand, in the customer’s view, it may a bit hard to understand what other products are Although this is a big dream for ICT, it is quite realistic, because ASP of ICT is ranked second supplier in the asphalt industry (behind Petrolimex) This vision statement is believed to challenge and inspire They use vivid phrases and powerful words in order to stress the kind of institution trying to become Therefore, according to Millard (2010), ASP’s vision statement is quite “good” (effective statement) 2.2.2 Mission: Mission is a foundational statement which depicts the aim of the organization’s existence It will answer the questions: 'who we serve' and ‘why we what we do' ASP develops sustainably for society and the community, respects the law and contributes high quality asphalt products to the development of transport and infrastructure in Vietnam That is an attractive mission statement of ASP-ICT Perhaps, this also is a good statement because it answered exactly the reason of ASP’s existence (Millard, 2010) 2.2.3 Core value: There are core values of ASP-ICT:  External and internal: With a team of dynamic professionals, professional leaders and prestigious collaborators, all members of ICT-ASP family stick together for the common good of the company under the motto: “You are us”, “We are a family”  Manufacturing – Business: ASP serves the public interest and applies ethical standards in business  Benefit: The benefit of the individual is the benefit of the business  People: Humans are the most valuable asset of ICT They get people to be root in every decision, strategy, project, action plan As a result, ASP-ICT completely takes care of people In particular, they usually adapt the employee’s expectations with the motto: giving workers career, not work 2.2.4 Goal: At present, there are many contractors who give up very low bids They are only interested in how to buy cheap products to construct Consequently, after a period of time, the road will be degraded and the person paying the price is the user Thus, ASP-ICT set a goal: Create the habit of using high quality asphalt products for asphalt users in Vietnam Since the brand development perspective, the company has imported goods which are high quality from Singapore, and also invited foreign experts to consult and support the construction team in Vietnam so that they can bring the best product to consumers Not only sales, ASP also provides after sales service to the customer such as repairing broken roads to minimize damage to the customer 2.2.5 Objective: While missions and visions give an overall sense of the organization’s direction, objectives are narrower purposes that should provide for employees a significant and tangible guidance The most effective way to evaluate the objective is SMART (including specific, measurable, attainable, realistic, and time-bound) Indeed, SMART objectives help to provide accountability, clarity and transparency As detailed below, one SMART objective is ICT-ASP’s aim to: by the end of 2020, total asphalt output is 200 thousand tons, double the amount compared to 2018 (Ta, 2018) Figure Output value and revenue by the plan for 2018-2020 The table below will analyze the company's objective by the end of 2020 (Objectives assessment): Specific ICT stressed significantly what they want to achieve in specific period They set an explicit objective for their output (100 and 200 thousand tons of asphalt respectively in 2018 and 2020) However, it is still quite ambitious In order to reach the target easier, ASP should plan the quantity can be sold by each quarter, especially each month Measurable After a period researching the market, ASP calculated the figure and diminished the risk as much as possible The company measured the output approximately 100 thousand tons by the end of 2018 In other words, they target around 130 billion VND It is double in 2020, accounting for 200 thousand tons Attainable In 2017, the total amount of asphalt sold by company increased considerably, accounting for 80 thousand tons That means the decreased in revenue compared to the period of 2014 and 2015 It is because the demand was quite low, as a result, the supply also declined Hence, the company just set an objective with 100 thousand tons by 2018 By contrast, the company can believe in the increased demand in the future as well For example, ASP will be involved in the construction of the North-South Expressway, with the length around 3,000 kilometers by the period of 2018 - 2020 Moreover, ASP-ICT also plans to develop the market in Laos and Cambodia by 2020 Realistic According Mrs Giang, in 2020, they not target the total quality is times, times more than 2018 because the objective is related to the company’s goal which is creates the habit of using high quality asphalt products for Vietnamese., Otherwise, until second quarter of 2018, the total quantity of asphalt was 50,000 tons, reaching a half of intended output Therefore, it is proved that the amount of asphalt decreased compared to the same period last year because of the unexpected change of weather On the other hand, the company also can believe in the plan which they described in advance because of projects in the period of 2018 - 2020 Time-bound They intended to complete this objective by each year: 2018, 2019 and 2020 To sum up, the objective of ASP-ICT may be possible because the unexpected change of weather could lead to interrupt construction Stakeholders of ASP-ICT Figure 3: Stakeholder Mapping of ASP – ICT Stakeholder Interest Shareholder They want to raise How to meet the interest and expectation of stakeholders Importance (Power) They reach the In the annual general meeting, the the s Managers and Directors return on highest authority in investment as fast the company, as they can change the possible Otherwise, they board thus, easily by relate to growth of removing the director share or refuse to re-elect price and dividends them (High interest) They take (High power) responsible for controlling and They managing the decisions and have company What detailed information of can make ICT’s managers company care is the other hand, they have and a power with every performance On development of the employee as well organization in the (High power) the company must meet and fulfill the established sales and profit targets The directors take care of satisfing both the shareholders and other employees as well Hence, they need to come up with the strategies that can help to maximize the profit for both satisfy of the employees and the shareholders future (High interest) What they care is the legal operation, Government the tax from business and job (Low interest) They really about Suppliers care prompt payment, the longterm contract, and growing purchase Employees (High interest) The main interests are salary, job’s The government's policies and laws will impact the company (High power) In order to contribute the overall GDP of Vietnam, the company makes more profit to raise the tax They just decide the Company should pay attention in input quality payment on time If decisions made and provide product to delay payments to supplier to ease availability case follow, suppliers may cease (Low power) supply good for the company They have a limited According to Martin, the company power should encourage their employees by price, at the satisfaction and company, as a result, giving them the opportunities to motivation, job they may not affect promote in both position and salary In some situations, it may cause a conflict of interests that the staffs want to raise their salary, as a result, security (High interest) much the decisions or it will impact significantly in the overall strategies By profit of the firm At ICT, the company employee always makes a win-win negotiation turnover will impact to create the long-lasting cooperation the performance of To the company organization and empower the staffs, (Low power) the cost pays their employees should contrast, be improve 40% warehouse the more productivity than any companies of other (Weisul, 2014) To meet the expectation and interests of customers, the company must The demands of prioritize and listen demands of them are the Customers company can They have no power supply high quality to impact the products, services organization directly and value for (Low power) money (High interest) customers They support the company in purchasing and they make it by showing the company what products and services to invest in further (Martin, n.d.) Thus, in order to adapt the demand of customer, the company should try to provide the best quality services and products The structure and interrelationship of functions of ICT Figure 4: The organizational structure diagram of ICT A structure of organization is a framework that the different responsibilities can be outlined by the firm The structure of International Investment Construction and Trading Corporation is built based on a mixed structure, separating the company by function, product and geography This allows the company to have a particular focus on specific areas in its business operations The reason which they use mixed structure is that ICT is a big corporation which has many different activities and they are not interested For instance, looking at the diagram, it can be seen that there are independent departments at ICT: Office Department, Asphalt Business Company (Subsidiary), ICT Chiem Hoa hydropower plant, ICT Vinh Ha hydropower plant and Commune department Office department is a typical example of function structure It is grouped together due to specialisms and technical expertise Especially, HR is only one department taking responsibility for recruitment and hiring new people The limited point of this structure is that employees in the other functional groups might not communicate with another, leading to decline innovation and flexibility The company focuses on main activities, they are asphalt business and hydropower plant The strength of product structure is to have particular good lines which are substantially different 10 and between each department, ICT also can encourage positive competition between each department Moreover, due to geography, it is divided by hydropower plants: Vinh Ha, Chiem Hoa That is necessary to be near sources of supply such as Chay river (in Lao Cai) and Gam river ( in Tuyen Quang) respectively (Van, 2017) Because each activity is not related to each other, departments are completely separated In the past, asphalt business was the only and most profitable business for the company After that, ICT has to spend money on investing and building two hydropower plants and 36-storey buildings of ICT thanks to the money earned from the asphalt business However, at the current stage, 2016-2017, asphalt business encountered many difficulties and they are suffering losses Therefore, they rely on the operation of two hydropower plants to offset losses during this period This is the relationship between the departments of ICT (Ta, 2018) The interrelationship of function in ASP-ICT: Figure 5: The organizational structure of the market management department At the asphalt business company, there is a director who is responsible for developing business strategies, controlling losses and profits Who support for the director are deputy of sales and deputy of technique The basic of the market management department is the sales department The Sales Department will consist of two divisions: Sales Department (in charge of direct sales) and Asphalt station (production) When asphalt is imported and put into the tanks at the stations, the task of the sales staffs is to search for all the projects (when they watch TV, read newspapers or know through relationships, etc) Hence, when they know projects preparing for construction, they need to find out all the information about these projects, they have to know how much the total length of the project is, how the demand for asphalt of the project is as well as the time that the project will use this product Thus, business people need 11 to find out about all of those issues and establish relationships as well as reaching out the project so that they can sell their products Figure 6: The organizational structure of the market management department Once the customer agrees to buy the asphalt of ICT, the salesman must report the amount of asphalt sold to the head of station Then, they contact with deputy station to order the operation department pumping the asphalt into the tank trucks In addition, the deputy station needs to regulate the vehicles to deliver the goods to customers, contemporaneously, notifying the accountant about the delivery of goods out of the warehouse Accountants take responsibility for writing carefully quantities to ensure that the goods are not lost, as well as giving the drivers advance money during their journey In addition, accountants also need to tell the driver to drive the car to the weighing station for checking Before allowing driver to get out of the warehouse, the guard will check again and put the lead sealing pliers in order to avoid cheating when transporting As such, the process of management, shipment of asphalt stations is very strict and the functions are closely linked At present, the structure of asphalt station consists of head of station, deputy station, accountant and operators, security men, and supporter In the Department of General Administration, the foreign trade division takes responsible for importing asphalt from abroad, and selling asphalt to other countries The accounting - finance division should record all the numbers that arise after the sales contract with the customer, such as direct costs, indirect costs, sales This department also needs to monitor the customer's outstanding limited debt In addition, in administrative and regulatory division, administrative staffs are in charge of appendices of contract and dispatches, and the moderator should consider making a tanker decision efficiently and control driving on the road (Ta, 2018) 12 To sum up, at ASP-ICT, the departments are tightly coupled to ensure giving the best thing to the consumers III CONCLUSION In summary, this report has partly helped the reader to understand the organizational operation of the ICT Company, especially the subsidiary company, asphalt trading company as: different types and purpose of organization, stakeholders, organizational structure and relationships between functions within the organization Hopefully, ICT will achieve its goals and grow strongly in the future 13 IV REFERENCE Cơ sở liệu thông tin doanh nghiệp (2015) Công Ty Cổ Phần Đầu Tư Xây Dựng Và Thương Mại Quốc Tế [online] Available at: https://thongtindoanhnghiep.co/0100828742-cong-ty-cophan-dau-tu-xay-dung-va-thuong-mai-quoc-te [Accessed Oct 2018] Hauge, A L and Knudsen, D (2017) Organizational Purpose in Management Control Systems Organizational purpose in the management literature Bergen ICT, (2018) [online] Available at: http://qui.edu.vn/uploads/news/2018_05/ict_profile.pdf [Accessed Oct 2018] Martin, J M (n.d.) 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[online] Available at: https://reachvolunteering.org.uk/guide/what-voluntary-sector [Accessed Oct 2018] Ta, Giang (2018) Personal communication, IBD@NEU, 11 October Thomas, B C (2016) The Law of Private Companies (4nd ed.) p 26 University of Minnesota (n.d.) 4.3 The Roles of Mission, Vision, and Values – Principles of Management [online] Available at: https://open.lib.umn.edu/principlesmanagement/chapter/4-3-the-roles-of-mission-vision-andvalues/ [Accessed Oct 2018] Van, N E (2017) "Functional vs Divisional Organizational Structure." Bizfluent Available at: https://bizfluent.com/info-7830271-functional-vs-divisional-organizational-structure.html [Accessed Oct 2018] Vnr500 (n.d.) CÔNG TY CP ĐẦU TƯ XÂY DỰNG VÀ THƯƠNG MẠI QUỐC TẾ - ICT [online] Available at: http://www.vnr500.com.vn/Thong-tin-doanh-nghiep/CONG-TY-CP-DAU-TUXAY-DUNG-VA-THUONG-MAI-QUOC-TE ICT-Chart 2793-2016.html [Accessed Oct 2018] 14 Wayne State University (n.d.) S.M.A.R.T Objectives - Wayne LEADS - Wayne State University [online] Available at: https://hr.wayne.edu/leads/phase1/smart-objectives [Accessed 12 Oct 2018] Weisul, K (2014) How Paying Employees More Can Make You More Profitable [online] Inc.com Available at: https://www.inc.com/kimberly-weisul/four-strategies-to-raise-profits-bypaying-employees-more.html [Accessed 10 Oct 2018] Worthington, I and Britton, C (2006) The Business Environment 5th ed Pearson 15 ... develop more in the future (ICT, 2018) The different types and purpose of Asphalt Bussiness Company (ASP - ICT) 2.1 Types and Activities 2.1.1 Level of economic activity The activities of ASP comprise... companies of other (Weisul, 2014) To meet the expectation and interests of customers, the company must The demands of prioritize and listen demands of them are the Customers company can They have... to the same period last year because of the unexpected change of weather On the other hand, the company also can believe in the plan which they described in advance because of projects in the