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 Da.
ASSIGNMENT FRONT SHEET Qualification BTEC Level 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 Nguyễn Hoàng Chánh Student ID GBS210671 Class GBS1003 Assessor name TuanDM Student declaration I certify that the assignment submission is entirely my work and I fully understand the consequences of plagiarism I understand that making a false declaration is a form of malpractice Student’s signature Grading grid P1 P2 P3 M1 M2 D1 Summative Feedback: Grade: Resubmission Feedback: Assessor Signature: Internal Verifier’s Comments: Signature & Date: Date: Contents INTRODUCTION COMPANY PROFILE TYPES AND PURPOSES OF ORGANIZATIONS Public Sector: 1.1 Public sector: 1.2 Purpose: 1.3 Example: VIETNAM AIRLINES Voluntary sector: 2.1 Voluntary sector: 2.2 Purpose: 2.3 Example: WORLD VISION INTERNATIONAL Private Sector 3.1 Private sector: 3.2 Purpose: 3.3 Example: SIZE AND SCOPE OF PNJ Introduction to PNJ: Size and scope: 10 2.1 Size: 10 2.2 Scope: 11 Economic objectives and Social Objectives: 11 Stake Holder: 12 How the vision, mission, and goals meet the needs and interests of stakeholders? 13 How size and scope to help PNJ to achieve PNJ’s objectives/goals and products/services: 14 FUNCTION OF PNJ 15 The structure chart of PNJ: 15 The main functions of various key departments of PNJ 15 THE RELATIONSHIP BETWEEN THESE DEPARTMENTS 16 IF THERE IS ONE DEPARTMENT CHANGE, IT WILL AFFECT TO ORGANIZATIONAL STRUCTURE AND OBJECTIVE? 17 COMPLEXITIES OF DIFFERENT ORGANIZATIONS AND STRUCTURE 17 CONCLUSION 17 INTRODUCTION With the growth of human civilization, there is a larger need for a variety of things across a wide range of disciplines, notably in the realm of beauty, such as fashion or jewellery PNJ has developed to become one of the major organizations in the field of production in Vietnam, starting with the Phu Nhuan Jewelry store in 1988 and now in 2022 Currently, the company’s main areas are manufacturing and trading gold, silver, gemstone, business gifts, fashion accessories, … and real easted business The company has nearly 6500 employees with a wholesale network, and more than 400 retail stores spread across the country I chose this company for analysis not only because of its celebrity but also because, based on PNJ's 34 years of expertise in this industry in Vietnam, I am confident that PNJ is a successful corporation and a bastion in the Vietnamese economy This article will discuss the organization's type and purpose, the size and scope of its activities, as well as the function and complexity of PNJ's various organizations and structures COMPANY PROFILE ❖ Company name: Phu Nhuan Jewelry Joint Stock Company (PNJ) ❖ Ownership: 346 stores converting 52/63 provinces and cities ❖ The headquarters: 170E Phan Dang Luu, Ward 3, Phu Nhuan District, Ho Chi Minh City, VN ❖ Phone: (+84) (028)3995 1703 ❖ Fax: (+84) (028)3995 1702 ❖ Charter capital: 2.276.123.620.000VND ❖ Website: https://www.pnj.com.vn/ ❖ Ticker symbol: PNJ ❖ The structure of shareholders: TYPES AND PURPOSES OF ORGANIZATIONS Almost every country separates businesses into three categories: public sector, private sector, and volunteer sector The structure, type, and purpose of each sector are distinct Public Sector: 1.1 Public sector: The part of the national economy providing basic goods or services that are either not, or cannot be, provided by the private sector It consists of national and local governments, their agencies, and their chartered bodies The public sector is one of the largest sectors of any economy (Filegi, 2020) 1.2 Purpose: Public sectors include public goods and government services such as the military, law enforcement, and infrastructure (public roads, bridges, tunnels, water supply, sewers, power grids, telecommunications), public transport, public education, health care for people working for the government such as elected officials The public sector provides services such as street lighting, services that benefit all of society instead of just individual users Public enterprises or state-owned enterprises are self-funded commercial enterprises that are publicly owned and provide a variety of private goods and services for sale (Filegi, 2020) 1.3 Example: VIETNAM AIRLINES A state-owned enterprise is defined as a state economic organization that owns the entire charter capital or has shared or contributed capital that is only distributed and is organized in the form of a water company, shares, or limited liability companies, according to the 2003 Law on State Enterprises State-owned firms (independent water companies, state-owned corporations), state-owned joint-stock companies, singlemember limited liability companies, owners' liability companies, and so on are examples of state-owned enterprises State-owned businesses with two or more members, businesses with shares, and capital contributions distributed solely by the state (shares or contributed capital by the State using more than 50 %of the capital conditions and the State retains the controlling right to State ownership) (LuatMinhKhueVN, 2021) Voluntary sector: 2.1 Voluntary sector: Non-profit organization can be understood as an organization established to operate in many different fields but not for profit These organizations are often tax-exempt because they are created to operate for the community, not for profit, with contributions to the organization to be used for the community (Master Dung, 2022) 2.2 Purpose: Voluntary organisations achieve their aims through a wide range of activities, such as providing services or other forms of direct support and advice to the groups they help; for example, running a women’s shelter or providing legal advice Some also aim to achieve long-term or systemic change They may work at a local or national level, or globally (reachvolunteering.org.uk,2022) 2.3 Example: WORLD VISION INTERNATIONAL Private Sector 3.1 Private sector: The private sector is the part of the national economy that is owned, controlled and managed by private individuals or businesses The private sector has the goal of making money and employing more workers than the public sector A private-sector organization is established by establishing a new business or privatizing a public sector organization A large private sector company may be privately or publicly traded (Sotaydoanhtri.com, 2022) 3.2 Purpose: The private sector has a profit motive and employs more people than the government A private-sector organization is formed by starting a new business or privatizing an existing one A huge private company might be privately owned or publicly traded (THE INVESTOPEDIA TEAM, 2020) 3.3 Example: PNJ Image of the 2020 annual report: List of the shareholder structure of PNJ PNJ is a private joint-stock company because the company's capital is sold in the form of shares on exchanges and the state has no part in the company SIZE AND SCOPE OF PNJ Introduction to PNJ: First of all, PNJ is a private joint-stock company with the vision to become an Asian leading jewellery manufacturer and retailer with products honouring the beauty and reaching a global market As a result, PNJ aim to: ❖ Producing and trading jewellery, gold, silver, gems, fashion accessories, watches, and gold bars ❖ Inspection services of diamonds, gems, precious metals From the Gross Profit that the company earns from the sale of goods and rendering of services, PNJ has to pay the tax, which is obligatory according to the regulation In 2020, net revenue reached more than 17,510 billion VND and net profit reached more than 1,069 billion VND PNJ Brand has been constantly increasing in value at 93.1 million USD to Forbes Vietnam With the huge amount of profit, PNJ strongly believed to have sustainable development Second, PNJ is a publicly-traded corporation The shares of PNJ can be freely exchanged on the stock exchange People who pay money for shares become shareholders of the company, and no managerial skills are required The most significant advantage of selling equities on the stock market is the ability to quickly raise large sums of money One disadvantage is that if a substantial number of shares are acquired as part of a 'take-over deal,' the original shareholders will lose control of the company As a result, stockholders may easily keep track of stock market fluctuations Finally, PNJ is a private company headed by Ms Cao Thi Ngoc Dung, who also performs as Chairman and CEO She has been with PNJ for 32 years and has made a significant contribution to the company's current development and prosperity All earnings, as well as all liabilities, belong to the organization Furthermore, this economic entity has to make choices on its own, without the assistance of the government Size and scope: 2.1 Size: According to the Annual Report 2020 of PNJ, the total assets are 8,4 billion VND, owner’s equity is 5,2 billion VND and liabilities are 3,2 billion VND.In comparison to the previous year's figures, the company's total assets and capital resources have declined by 1,4% Furthermore, the company's debt is still less than its overall assets As a consequence, PNJ can afford it, and the residual earnings are sufficient for a forward-thinking firm These data demonstrate the company's gradual rise to the top of the local and global brand names PNJ has more than 6000 employees working in different domains in different regions To be part of this company, workers need to meet a wide range of criteria As the result, all staffs are well-educated, creative, productive, and devoted to the development of the company PNJ also has an incentive scheme, which encourages employees to be more industrious, for the one who has excellent performance 2020, the Organization recognized many awards for prestigious use for human resources activities: consecutive years in the ranking of “ Top 100 best workplace in Viet Nam” ( From 2014 to the present) and continues to advance 04 ranks to 23rd and ranked in the Retail sector: Wholesale, Trade; Top 50 Enterprise with attractive Employer Brand; Enterprise award with excellent human resource responding policy – Vietnam HR award 2020- One of two Vietnamese enterprises in the top 10 enterprises honoured: etc ➢ The evidence shown above demonstrates that PNJ is a huge and profitable company 2.2 Scope: PNJ's vision is to become Asia's top jewellery maker and retailer, with items that celebrate the beauty and reach a global audience The company's primary source of information is vision It is a vision of how a company should look in the future, forming a core philosophy and the company's life's purpose, and driving the basic path of the desired firm's growth Economic objectives and Social Objectives: a) Sustainable Growth: The company ensure annual profit growth compared to the general market level, compared to previous periods They use the capital resource effectively, bring the highest benefits to shareholders and investors, help increase brand value, and competitiveness, maximize market share and increase new market share b) Developing talented human resources: They build a work atmosphere that encourages individuals to enhance their skills and increase productivity, as well as policies that attract and retain talent They also encourage collaboration, rather than competing, by forming synergies for execution capacity, and developing HR rules that can adjust quickly and keep up with changing trends c) Developing a green capital market and establishing a sustainable business ecosystem: They bring firms together through trade activities, strategic cooperation, and reference implementation of the Sustainable Business Index (CSI) and GRI standards for developing sustainable development reports They also collaborate with stakeholders to create an environment that encourages entrepreneurship, contributes to the development of the green capital market, provides financial support for emissions reduction activities, develops green financial products and instruments, and contributes to "greening" products They enhance the status of women in high leadership positions, boosting the degree of efforts for gender equality d) Completing the social security system: They strengthen study promotion efforts, promote educational development, design a community health action plan and evaluate its success annually, and pioneer and disseminate activities to safeguard, care for, and promote legal strengthening for vulnerable populations They also assist disadvantaged households, particularly in rural areas, in developing their economies and improving their lives e) Protecting the living environment: They upgraded technology to reduce waste, use resources efficiently, and save money; they build an advanced waste treatment system, treating the maximum amount of waste before releasing it into the environment and partnering with a third party to handle 100 per cent of emissions; and they launch large-scale campaigns to collect waste, clean up the environment, and increase green areas in the community, and they call for community participation Activities are maintained, and they are linked to economic and social factors Stake Holder: External Factors: Customer They concentrate on product quality and customer service, as well as prestige and brand recognition in the marketplace Competitor They concentrate on the company's challenges in selling products, blocking the company from reaching customers, or businesses that frequently employ market dirty tricks Internal Factors: Shareholders Making the best use of the company's resources Investors' benefits are ensured through information transparency Stock market value and company value are two different things Capacity for corporate management Employees They want appropriate benefit and compensation policies, as well as opportunities for training and growth Occupational health care, as well as a safe working environment, equality, and independence How the vision, mission, and goals meet the needs and interests of stakeholders? Based on the data gathered, it can be concluded that PNJ's objectives, vision, and mission can address a significant portion of the needs of stakeholders To begin with, PNJ has declared that the company's principal purpose is to increase earnings and build the company There is also a bare minimum requirement for stakeholders As a result, achieving social goals entails meeting their requirements Each object has varied obligations and interests when it comes to social objectives Beneficiaries, such as shareholders and investors, get the ability to ensure annual profit growth, effectively utilize capital resources, and provide the most value to shareholders and investors Customers enjoy high-quality products and excellent customer service They may gain more trust and agree to be a customer of that company as a result of such activities Secondly, the mission of PNJ The statement is extremely specific and focuses on the demands of the key target groups: customers, employees, and shareholders, as a result of those ideas Finally, there is the company's mission statement PNJ's vision, in addition to its major consumer, is extremely broad: to contribute to the nation's riches and strength With such a worldwide perspective, it is apparent that all stakeholders will be satisfied with their needs, particularly in terms of long-term growth and profits, as well as the delivery of high-quality products and services to a global market 3 How size and scope to help PNJ to achieve PNJ’s objectives/goals and products/services: On a local scale, PNJ has earned the Vietnamese market's trust, as seen by its remarkable achievements and significant income, particularly in 2020, when the pandemic is still raging PNJ continues to make large earnings, amounting to 17,511 billion VND PNJ has always been one of the companies with remarkable achievements in foreign markets, even though it has not really resonated or expanded in other countries and only focuses on domestic activities It has regularly entered the Best Retailer rankings, and JNA awards collaborated with Walt Disney and accompanied the APEC 2017 conference With this steady growth, PNJ is projected to increase its market shortly Its market has expanded to include other Asian countries and even the entire world PNJ's continued growth and success are a testament to its mission of becoming a top Asian jewellery manufacturer and retailer of products that honour the beauty of Asia and reach out to the rest of the globe FUNCTION OF PNJ The structure chart of PNJ: Portfolio firms' growth can be tracked and favourably influenced by corporate governance structures This structure is critical because it enables private equity firms to raise additional funds from their investors in the future, as well as outperform rival investors in future investment opportunities, and fulfil their commitment to the economy as a whole (Bruce Kogut; PeterK Cornelius, 2003) The main functions of various key departments of PNJ The Governance Structure of PNJ is depicted in the diagram Shareholders at the general meeting, in particular, have the ultimate authority in the firm With less power, the Board of Directors, led by Ms Cao Thi Ngoc Dung, consists of nine members, three of whom are independent The Board of Management, which also includes Ms Cao Thi Ngoc Dung, is responsible for it In addition, PNJ maintains a Supervisory Board that assists the General Meeting of Shareholders According to the Corporate Structure section in the Annual Report 2020 of PNJ, there are some main functions of these departments: Shareholders' General Meeting: Supervise and ensure that the Board of Supervisors understands the Company's operations; the Board of Supervisors and the Board of Directors' decisions, management, and administration activities have had very good coordination with the Board of Management to make timely and correct decisions and policies to overcome challenges, and knowledge of the market and the business to achieve the best results for the business Administrative Council: The Board of Directors is the highest-ranking management body in the organization Members of the Board of Directors are either directly or indirectly involved in the stock market Present the yearly financial settlement report to the Shareholders' Meeting; Propose the number of dividends to be paid; decide on the time limit and procedures for paying dividends, or cope with company losses Proposing the company's reorganization, dissolution, or bankruptcy; and other rights and obligations as outlined in this Law and the company's charter The General Director: The General Director will write the group's plan, oversee operations, and report the group's financial outcomes to the chairman The General Director, on the other hand, will act as a consultant, advising on group development strategies, major goals, projections, or long-term business visions in the industry that the company is pursuing THE RELATIONSHIP BETWEEN THESE DEPARTMENTS • The General Meeting of Shareholders: is the most competent department, responsible for considering and handling violations of the members of the Board of Directors, the controller causing damage to the company, and the company's shareholders to decide to reorganize, dissolve the company, decide on the budget or total remuneration, bonus, and other benefits for the Board of Directors, the Supervisory Board, and approve the internal • Board of Directors: Overseeing and directing the Director or General Director, as well as other managers, in the day-to-day operations of the company, as well as for deciding on the company's organizational structure and internal management regulations • General Director: organize and carry out the Board of Directors' resolutions and decisions, issue internal management regulations (except for the General Meeting of Shareholders and the Board of Directors), present financial statements to the Board of Directors, and make recommendations IF THERE IS ONE DEPARTMENT CHANGE, IT WILL AFFECT TO ORGANIZATIONAL STRUCTURE AND OBJECTIVE? Other parts will have to work harder than they did before the part was dropped Because one part is missing, the workload of the dropped part will be split between other departments A large workload combined with a lot of responsibility can hurt other people's mental health Finally, because the amount of work is divided among other departments, it is possible that the quality of work will not be consistent, resulting in a situation of reduced working efficiency, which will have an impact on the company's development COMPLEXITIES OF DIFFERENT ORGANIZATIONS AND STRUCTURE As previously stated, PNJ currently has no outstanding foreign market activities Despite this, the company achieved remarkable results and received numerous prestigious awards If the epidemic is not contained, PNJ will likely have plans to attack foreign markets in the future, because the company has already made significant progress in the domestic market, with 341 locations across the country To easily penetrate foreign markets, I believe PNJ should: Research and learn thoroughly about interests, business environments, and emerging trends in foreign markets; learn about the culture of the country you intend to invade, particularly taboos about behavioural culture to avoid conflict; learn about politics to avoid political problems; and obtain legal, regulatory, and legal advice With 34 years of experience in Vietnam, I am sure PNJ will not face many difficulties when entering other markets with its experienced staff CONCLUSION It can be seen that PNJ is a successful company with many outstanding achievements such as Setting a record for the first enterprise to invest in current and largest jewellery production technology in Vietnam (2007), AsiaPacific Quality Award (2010), Vietnam Gold Star Award (2010), Top 500leading retailers in Asia - Pacific (2011), Top 100 best places to work in Vietnam (2015), Award“Employer of the Year” awarded by JNA magazine (2015), National brand (2016), Outstandingenterprise of the Year – ASEAN (2017), HR Asia Awards (2018), etc Reference List: Bruce Kogut; Peter K Cornelius, 2003 Corporate Governance and Capital Flows in a Global Economy New York: Oxford University Press Investing.com, 2022 PNJ Available at: https://vn.investing.com/equities/phu-nhuan-jewelry-jsc PNJ, 2020 Annual Report 2020 [Online] Available at: https://cdn.pnj.io/images/quan-he-codong/2021/PNJ_Sustainability_development_report_2020.pdf PNJ, n.d General introduction [Online] Available at: https://www.pnj.com.vn/gioi-thieu-ve-pnj/thong-tin-ve-pnj-en/ [Accessed 27 September 2020] www.wvi.org (n.d.) 2020 Global Annual Report, World Vision International [online] Available at: https://www.wvi.org/publications/annual-report/2020-global-annual-report-world-visioninternational Investopedia 2022 Private Sector Definition [online] Available at: < https://www.investopedia.com/terms/p/private-sector.asp > [Accessed 13 April 2022] Sổ tay doanh trí 2022 Private Sector là gì? Định nghĩa, ví dụ, giải thích [online] Available at: [Accessed 13 April 2022] Filegi.com 2022 Public sector gì? Định nghĩa giải thích ý nghĩa [online] Available at: [Accessed 13 April 2022] Reach Volunteering 2022 What is the voluntary sector? [online] Available at: [Accessed 13 April 2022] Trường, L., 2021 Doanh nghiệp nhà nước gì? Đặc điểm, loại doanh nghiệp nhà nước [online] luatminhkhue.vn Available at: [Accessed 13 April 2022] Vietnam Airlines 2017 [online] Available at: [Accessed 26 May 2017] ... 10 2 .1 Size: 10 2.2 Scope: 11 Economic objectives and Social Objectives: 11 Stake Holder: 12 How the... (2 010 ), Vietnam Gold Star Award (2 010 ), Top 500leading retailers in Asia - Pacific (2 011 ), Top 10 0 best places to work in Vietnam (2 015 ), Award“Employer of the Year” awarded by JNA magazine (2 015 ),... 1. 1 Public sector: 1. 2 Purpose: 1. 3 Example: VIETNAM AIRLINES Voluntary sector: 2 .1 Voluntary sector: