BACKGROUND INFORMATION
Company background
Founded in Thailand in 1963, Srithai Superware expanded to Vietnam in 1996, establishing a joint venture called Vietthai Industrial Plastic Co Ltd in Ho Chi Minh City In 2005, the company relocated its head office and factory to Binh Dương province Today, Srithai Superware operates three factories, with two located in southern Vietnam and one in the north.
Srithai has more than 20 year’s experiences in Viet Nam with 46 Injection Machines and 20 Compression Machines The capacity is plastic 2.500 Tons/year, beverage 8.000 Tons/year, household 500 Tons/year
Srithai stands out as a prominent manufacturer and distributor in three key product categories: Industrial Plastic Products, Food & Beverage Packaging, and Melamine Tableware The company partners with major players in the plastic industry, including GS Battery, Pinaco, Suntory Pepsi, Sapporo, and Jotun, showcasing its strong market presence and commitment to quality.
The business vision of Srithai Vietnam Co Ltd is using quality products and services to achieve customer's complete satisfaction, thereby ensuring company profitability and sustained market growth
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Company symptoms
1.2.1 The method of scan symptom
The research started from researching KIP of Plastic sales department There are five group of products such as Original Equipment Manufacturer (OEM), Material
The thesis focuses on Material Handling Equipment (MHE), specifically highlighting the plastic pallets and containers imported from Srithai Superware Thailand Since June 2015, Srithai Vietnam has been trading these products, achieving its first customer by mid-2016 after a year of outreach Although the MHE group met its targets in 2017, data analysis revealed a significant profit loss, prompting numerous meetings among the Sales, Purchasing, and Finance departments in early 2018 to identify the causes and develop corrective actions and solutions.
In the first half of 2018, a significant disparity was observed between the sales budget and actual revenue, affecting not only the MHE group but also other groups within the industry.
The sales budget for 2018 was developed using actual sales data from 2017 and customer forecasts, leading to two key questions for the board of managers: why does the 2018 sales forecast significantly differ from actual returns, and what strategies are in place for the third and fourth quarters to recover from the revenue decline experienced in the first half of the year?
2018 Thus, the research starts from the history data such as sales report, profit report and customer’s satisfaction survey report, references from sales, finance and ISO department
1.2.2 Justify the importance of symptoms
A business runs because of many purposes Goldman et al researched that
Business organizations play a vital role in society by producing goods and services that meet societal needs while continuously learning and improving to drive societal advancement Additionally, modern theories emphasize that a primary objective of these organizations is to achieve sustained long-term profits, ultimately maximizing returns for shareholders and investors.
In today's fast-paced business landscape, both practitioners and the general public recognize that profit is essential for a company's survival and growth Organizations must continuously adapt and reinvent themselves to thrive amid rapid technological advancements and disruptive innovations, such as smartphones and e-commerce The dynamic and unpredictable nature of the modern business environment means that companies that quickly learn and respond to these changes will gain a competitive advantage, while those that fail to adapt risk mediocrity or even complete failure.
A decline in a company's profits significantly affects its overall operations, prompting the need to identify the underlying causes of this decrease If a business fails to promptly recognize and address these issues, it risks struggling to survive in today's rapidly changing environment.
Customers are essential to a company's survival, as they bring significant value To thrive, businesses invest heavily in understanding customer needs and behaviors to enhance satisfaction Consequently, the customer satisfaction rate is crucial for a company's success Various indicators help assess a company's position, revealing its strengths and weaknesses.
Most of improvements will base on customers’ behaviors
Dawson highlighted the crucial role of an organization’s knowledge capabilities in navigating the dynamic competitive and market landscape He stated that the effective real-time development and implementation of strategy, vital for organizational success, relies entirely on these knowledge capabilities Therefore, it can be inferred that an organization’s effectiveness is directly tied to its knowledge capabilities, and any enhancements should be grounded in a clear understanding of these capabilities.
1.2.3 General symptoms 1.2.3.1 The first symptom: Low Customer’s satisfaction
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Figure 1: The average customer’s satisfaction in 2017 and 2018 of importing products group
Source: Customer’s satisfaction index report 2018, ISO department
ISO department will conduct a survey about customers’ satisfaction in middle of year
The survey has been concentrated on four main points First point is about quality of products Second point is about service after sales Third point is delivery service
Final point is salesman’s knowledge
Between 2016 and 2018, Srithai engaged in the import of products and conducted a survey over the same period The results, illustrated in the chart above, indicate that customers expressed a high level of satisfaction with the quality of products, the delivery service, and the knowledge of the sales staff.
In 2017 and 2018, customer satisfaction with the delivery service of the company was notably low, with disappointment rates at 45% and 50%, respectively Specifically, Srithai managed to deliver only 30 out of 91 orders on time in 2017, and in the first two quarters of 2018, they delivered just 10 out of 38 orders punctually.
In 2018, the majority of late delivery orders were associated with significant projects, including the supply of pallets to major companies like Suntory Pepsi, MM Mega Market, Nestle, and Mondelez Kinh Do, as well as container provisions for retailers such as Big C, Pharmacity, and Bach Hoa Xanh.
Quality of product Delivery After delivery service Salesman's knowledge
Customer satisfaction of importing products group
The average late delivery time for imports ranges from 7 to 20 days, which is considered standard in the industry Typically, the lead time for imported products is around 30 days from the release of the purchase order, accounting for potential delays Notably, Srithai has the longest lead time for delivery compared to its competitors in the import sector.
Figure 2: Delivery lead time of Srithai, Dino and Platinum
Source: Internal meeting minutes of Sales department in January 2018
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1.2.3.2 The second symptom: Gross profit decreases
Figure 3: Sales and %Gross Profit of Plastic Business Quarter 1, 2 in 2017, 2018
Source: Finance report in July 15 th 2018
The figure 3 shows the big gap between revenue of quarter one and two in 2017 and
In 2018, actual sales during the first half of the year diverged significantly from initial forecasts Specifically, the sales and gross profit of the imported products group mirrored the trends seen in the plastics business, both showing a notable decline compared to 2017.
Figure 4: Sales and Gross Profit of import products group quarter 1, 2 in 2017,
Source: Finance report in July 15 th 2018
1.2.3.3 The third symptom: High failing projects rate
In 2018, the Material Handling Equipment group faced significant challenges, with a project failure rate exceeding that of 2017, resulting in a 50% failure rate among existing customers This decline led to the loss of major clients such as ABI Bev, MM Mega Market, and Suntory Pepsi to competitors like NPC Toda and Long Thanh Company Additionally, daily customers like Kureha and SABMiller ceased orders due to pricing issues that were uncompetitive in the market Despite the MHE team approaching an average of five new customers each month, they struggled to secure deals, as seen with Asia Saigon Foods, which required 10,000 plastic pallets but became entangled in low pricing negotiations.
Jan Feb Mar Apr May June
Sales & GP of importing products group
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Srithai Superware's quotation speed and lead time are significantly slower compared to competitors like Dino and Platinum While Srithai takes approximately one week to generate a quotation, Dino accomplishes this in just twenty-five minutes, as noted in the sales department meeting minutes from March 2018 Additionally, Dino's delivery lead time is only fifteen days, whereas Srithai requires nearly forty days for delivery.
PROBLEM IDENTIFICATION
Methodology
To identify the core issue, four research methods will be utilized, with in-depth interviews being particularly effective due to the small number of employees in sales, purchasing, and finance—under thirty individuals This approach allows the interviewer to probe deeper and elicit more candid responses, as participants often feel more comfortable expressing themselves Additionally, in-depth interviews enable the interviewer to gauge the emotions and behaviors of respondents, allowing for adjustments in the interview technique if any discomfort arises.
Identifying and Diagnosing Tentative Problems
Purpose: The research focus on MHE group consisted plastic pallet and container those in imported from Thailand There are three specific purposes:
Which reasons make profit decrease in period 2017 and 2018
Low customers ‘satisfaction in period 2017 and 2018
Between 2017 and 2018, several projects at Srithai faced significant failures To explore the reasons behind these failures, qualitative research was conducted through in-depth interviews with three experienced managers who have been with the company for over five years Their extensive knowledge of Srithai Viet's activities provided valuable insights into the challenges encountered during this period.
Nam from its policy, style of boar of director management and employees’ ability
Nevertheless, they have many relationships in company and Mother Company in Thailand They have overview knowledge of Srihai Company
The depth interview will be taken from July 27th, 2018 to July 30th, 2018 with three respondents from three departments in Srithai Vietnam as below:
No Full name Position Date
1 Nguyen Ngoc Thanh Finance Manager July 27 th 2018
2 Puripong Pinanong Sales Manager July 28 th 2018
3 Nguyen Thi Le Purchasing Manager July 29 th 2018
Table 1: The first depth interview arrangement Research findings
I have worked with Srithai Company for several years, and my experience has been overwhelmingly positive The company's support policy fosters a collaborative and inclusive working environment, encouraging employees to share ideas and contribute to team success The management style is approachable and supportive, with managers actively engaging with their teams to provide guidance and feedback Overall, the employees exhibit a strong sense of camaraderie and professionalism, creating a motivated atmosphere that drives productivity and innovation.
All respondents have worked at Srithai for five years, gaining extensive experience in relationships, management, and company policies Many noted that Srithai has slow transaction processes and a weak caution system.
Le highlighted that the company's workload management is insufficient, failing to prevent issues before they arise Respondents noted a lack of clear accountability within the organization, with no designated individuals responsible for specific problems, leading to a weak appraisal and punishment policy that does not foster fairness or improvement Additionally, Mr Puripong Pinanong pointed out that Srithai Company does not effectively empower its employees, resulting in a lack of engagement and a tendency for workers to focus solely on their tasks without regard for their colleagues' responsibilities.
The working environment at Srithai Company is characterized by three key aspects Firstly, employees experience a low workload, which significantly reduces stress levels and promotes a healthier work-life balance.
The working environment at Srithai Company is characterized by weak leadership from management, leading to disempowered employees who lack initiative in their roles Additionally, there is a noticeable lack of supportive relationships among employees, contributing to an unhealthy workplace culture This environment reflects the organization's overall culture, which is crucial for the successful implementation and sustainability of a learning organization Consequently, these factors hinder the company's development and growth.
In the first half of 2018, the company reported a decline in profits, particularly within the imported plastic sector This downturn raises questions about the underlying factors contributing to the losses experienced in this segment over the past year and a half.
Candidates identified that Srithai Company faced significant losses due to ineffective cost management Mr Puripong Pinanong and Mr Thanh noted that the company struggled during 2017 and the first half of 2018, attributing this to excessively high input costs and transportation expenses Additionally, Ms Le pointed out that sales representatives were selling products below the break-even price.
The lack of cooperation between the sales and purchasing departments has led to delays in information updates, resulting in salespeople often selling products below break-even Additionally, the overlapping responsibilities of these departments have compounded the issue Mr Puripong highlights that the slow importing process prevents timely access to input prices, hindering the ability to set competitive selling prices for customers in the Vietnam market.
Therefore, most of cases salesman based on historical data to make quotation to customers However, in-put price may change because of price of raw material change”
The purchasing department failed to deliver timely and sufficient input to the sales department, while the finance department provided analyses only after deals were finalized Additionally, the finance team did not participate in the quotation process or offer necessary caution to the sales department These factors indicate a significant lack of effective communication between the departments.
The 2018 customer satisfaction report from the ISO department indicates a concerning issue, revealing that the on-time delivery rate stands at only 50% This low percentage raises questions about the underlying reasons contributing to this problem What are your thoughts on the factors that may be causing these delivery delays?
Both the sales manager and purchasing manager acknowledged that a 50% on-time delivery rate is unsatisfactory, attributing this issue primarily to the "complicated import process." There is minimal transaction activity between Srithai Vietnam and the Mother Company Mr Puripong noted that external factors, such as seasonal demand for trading pallets and containers, exacerbate the situation, particularly at year-end when demand peaks He emphasized that the complexities of the import process lead to significant delays in obtaining input prices and delivery schedules, resulting in wasted time.
Consequences, it impacts seriously to our advantages competitive in the market”
The importing process at Srithai Vietnam is characterized by three key issues Firstly, there is a lack of clarity regarding input information, particularly the pricing and costs between Srithai Vietnam and the parent company, as noted by Mr Puripong, who stated, “The mother company does not have a price framework for us.” This variability in pricing, influenced by fluctuating raw material costs in the plastic industry, complicates establishing a consistent pricing structure Secondly, salesmen often base their quotations on historical data rather than current market conditions, leading to potential inaccuracies in input pricing and increased risks in logistics that could result in profit losses This situation also creates a dilemma for salesmen, who must balance customer demands with company constraints Lastly, there is a lack of smooth cooperation among the sales, purchasing, and finance departments, further complicating the importing process.
Consequences, each link of importing chain is not controlled effective
2.2.1 The first tentative problem: Ineffective internal communication
Initial cause-effect map was draw base on face-to-face interview three people, sales plastic manager, finance manager and purchasing manager
Complicated quotation In fact, importing process begins with asking quotation from
The process of acquiring information for sales representatives has been lengthy, as they rely heavily on historical data to provide accurate pricing to customers This is crucial because fluctuations in resin prices and currency exchange rates can significantly impact buying costs.
The download link for LUAN VAN CHAT LUONG is available at luanvanchat@agmail.com, in accordance with the policies of the Mother Company The approved buying price originates from higher management, but the responsible party lacks the necessary information to proceed correctly The selling price aligns with successful projects at Srithai Vietnam, while the approved buying price is often exceeded during the importing process This discrepancy results in vague information at the initial stages of importing, leading to profit losses and ambiguity regarding job responsibilities and descriptions.
The real problem: Ineffective internal communication
The updated map shows two potential problems during interviewing face-to-face in three departments sales plastic, purchasing and finance; then reviewing literature
First problem is ineffective communication Second one is weak leadership Two problems have close relationship together and also lead to many variables
Effective communication is essential for all aspects of business operations and daily life, as highlighted by Hunjet et al (3) A robust internal communication system is critical for gaining competitive advantages and enhancing performance within a company Unfortunately, Srithai Company struggles with an ineffective internal communication system, which adversely affects various daily activities, particularly those related to the importing products group.
The import process often lacks official commitment, allowing employees involved to evade responsibility Additionally, ineffective communication undermines trust among team members, hindering collaboration This disarray negatively impacts the company's logistics, making it difficult to manage costs effectively and increasing the risk of financial losses.
Research by Hola, J indicates a strong connection between internal communication and employee loyalty Effective communication unites all employees towards a common objective, enhancing competitive advantage and fostering a sense of purpose in their work.
On the other hand, leadership is extremely importance for company However, it is very large impact on company and structure of organization in Srithai Company
Leadership encompasses both theoretical understanding and practical application in real-life scenarios The management board is comprised entirely of Thai individuals, and the organizational structure is established by the parent company Furthermore, the leadership style is influenced by the knowledge, experience, and characteristics of the board members Consequently, the leadership approach of the Thai management team represents an external factor that Srithai Vietnam cannot influence.
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Lack of trust amongst employees
Slow importing process Unclear job description
Unclear KPI of profit and cost
Figure 6: The updated cause effect map LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com
Problem definitions of ineffective internal communication
Communication encompasses various definitions, with Manoela describing it as a dialogue between a speaker and listener aimed at notifying or convincing each other through the exchange of signals Additionally, research by Hunjet et al highlights that communication involves the sharing of information, ideas, and emotions through both verbal and non-verbal methods.
According to Zondi et al., internal communication is essential for organizations, acting as their lifeblood It involves the exchange of information among employees, which is crucial for enhancing both individual performance and overall organizational effectiveness.
Figure 7: The internal corporate communications process
Miller outlines a clear process for effective internal communication in businesses, emphasizing the importance of informing employees, engaging them in dialogue, and obtaining feedback However, the internal communication system at Srithai Vietnam is currently inefficient.
The influence of three factors on the Srithai situation highlights significant challenges in internal communication Firstly, low cross-departmental communication and inadequate policies hinder effective communication systems, leading to an unclear working process that allows employees to evade responsibilities Secondly, a lack of empowerment and motivation among employees diminishes their engagement and interaction, which are crucial for knowledge transfer and sharing Lastly, employees at Srithai exhibit passive responses and feedback due to a lack of trust and the perception that their opinions are not valued.
According to Hunjet et al (3), there are four part of internal communication in business:
Electronic business communication”(3) Otherwise, there is easy to misunderstand and misuse the term “communication”
Many managers fall into the trap of misidentifying communication-related issues, leading to poor decision-making in problem-solving Research by Minter highlights that there are four key components of communication channels that are essential for effective management.
Overall communication culture/subcultures within hierarchical structures”(12)
Basing on theory, the real problem ineffective internal communication in Srithai related three aspects communication attitudes, interpersonal communication behavior and overall communication culture.
Verifying the importance of ineffective internal communication
During two interviews, it could be said that ineffective internal communication is happening in Srithai Company First evidence is control in-put price of importing
To address the communication gap between the sales and purchasing departments, Mr Puripong Pinanong, the sales manager, emphasizes that obtaining quotations from Srithai Thailand is the responsibility of the purchasing department However, due to the urgency of Vietnamese customers who cannot afford to wait for pricing, the sales department frequently bypasses this protocol and requests quotes directly.
Salesmen do not get timely selling price lead to reduce company competitive advantages He also shared that the process of competitors is faster and more facility
Second evidence is weak to control cost lead to decrease bottom profit of importing products group Sales, purchasing and finance department work quite separately Ms
Interdepartmental meetings are infrequent and typically occur only when significant problems arise, leading to a lack of proactive collaboration This disconnection results in departments not sharing relevant information, ultimately prolonging and complicating the import process.
Verifying the existence of ineffective internal communication
Reducing enterprise’s reputation The research of Holá, J shows that internal communication is used a powerful tool that connect employees and company (4)
Moreover, the study also indicates that it strongly develops “company’s reputation”
Word-of-mouth marketing is often more effective than traditional methods, highlighting the importance of strong internal communication within a company Poor communication can hinder the flow of relevant information, leading to inefficiencies and a negative work environment This breakdown can adversely affect employee relationships and overall job satisfaction, ultimately impacting external communication and the company's reputation Therefore, effective internal communication is crucial for both internal operations and external performance.
Declining employees ‘satisfaction and employees’ productivity Many studies show that internal communication has positive relationship with employees’ satisfaction
Weak organizational communication can lead to low employee commitment, reduced job satisfaction, higher turnover rates, and decreased productivity, as highlighted by Abugre, J B Additionally, research by Fletcher, M indicates a positive correlation between employee satisfaction and organizational profitability Ineffective internal communication disrupts performance and triggers a series of negative consequences for a company's success.
Holá, J also indicated many results of unproductive internal communication such as
“High rate of employee turnover (fluctuation);
Ineffective coordination of all activities of the company;
Failing to reach the company’s target;
Purpose: Finding evidences for proving importance of existence problem
Mr Puripong Pinanong and Ms Tran Thi Tuyet, both experienced managers at Srithai for five years, were selected for an interview due to their extensive knowledge of management and the company's operations They highlighted critical issues such as high turnover rates, low employee satisfaction, and decreased productivity, all linked to human resources management challenges Mr Puripong's insights are particularly valuable for this research, given his understanding of the company's performance and reputation.
The depth interview will be taken from August 15th, 2018 to August 18th, 2018 with two respondents from two departments in Srithai Vietnam as below:
No Full name Position Date
1 Tran Thi Tuyet HR department manager August 15th, 2018
2 Puripong Pinanong Sales Manager August 16th, 2018
Table 3: The third depth interview arrangement
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The reputation of the company has been significantly impacted, leading to a serious decline in profits for the importing group over the past two years Specifically, sales figures have decreased in the first and second quarters of 2018, and this downward trend is expected to continue The budget for 2018 diverges greatly from actual sales, which has adversely affected the overall performance of Srithai Vietnam, particularly within the Material Handling Equipment group Mr Puripong Pinanong noted that this decline in performance will negatively influence the company's reputation, resulting in a reduction of investment capital from equity sources.
Ineffective internal communication can lead to a detrimental working environment, as highlighted by Ms Tuyet It particularly affects newcomers, who rely on relevant information such as company policies, history, strategies, and job guidelines Providing these essential documents helps new employees adapt to their roles more efficiently and effectively.
The support from colleagues plays a crucial role in helping newcomers adapt to their roles A collaborative and supportive work environment fosters employee morale and enhances overall performance Conversely, a negative atmosphere can hinder organizational activities and impact productivity.
Reducing productivity of employees, employees’ satisfaction and increasing rate turnover Secondly, internal communication in Srithai Viet Nam is not fluent
At Srithai, the lack of individual accountability leads to a culture of blame among employees, which undermines teamwork and morale This toxic environment hampers the working spirit, resulting in decreased productivity and negatively affecting employee satisfaction Consequently, this situation contributes to a higher employee turnover rate.
Causes and Effects chart of real problem: Ineffective internal communication in
Different language Nowadays, economic integration is a trend of economic global
Many multinational companies, such as Pepsi, Coca-Cola, Apple, and Samsung, operate subsidiaries across various countries, benefiting from cost savings in labor, taxes, and distribution networks However, these advantages come with challenges, including cultural conflicts, communication barriers, and legal complexities Research indicates that the presence of multiple languages within a company significantly influences management decisions in international enterprises In such organizations, the processes of knowledge transfer and sharing are crucial, with internal communication serving as a vital tool Consequently, language plays a critical role in effectively transferring knowledge and strategies from the parent company to its subsidiaries Additionally, studies reveal that language differences can create substantial barriers to building trust within diverse teams, a factor particularly relevant in the context of Srithai Vietnam regarding the transfer of strategies from the parent company and the dynamics between Thai supervisors and their subordinates.
Inadequate employee motivation significantly impacts organizational success, as highlighted by Grynko's research, which underscores that well-motivated employees are essential for a thriving company Employee motivation encompasses both external factors, such as salary, benefits, and bonuses, and internal factors, including job satisfaction, enjoyment, challenges, and recognition In the case of Srithai, the lack of adequate motivation is particularly evident in the internal aspects, where employees feel unsatisfied, unappreciated, and unrecognized in their roles.
Weak teamwork skills hinder effective collaboration in today's rapidly changing environment Successful teamwork relies on the collective knowledge, skills, and attitudes of each member to achieve specific goals The overall competency of a team is determined by the quality of interactions and the integration of individual contributions Consequently, weak teamwork skills indicate that members struggle to connect effectively across these three critical factors, ultimately preventing the team from achieving its objectives.
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Weak individual leadership Individual leadership is call personal leadership
Personal leadership is considered as a significant element in management today(19)
Freidman defied personal leadership through a person have leadership vision
Leadership vison concentrates three factor as the importance thing, living goal and desire(20) According to Klagge, personal leadership emphasized four aspects such as
“mental, emotional, volitional, physical and spiritual boundaries”(19) In specific, he also demonstrated characteristics of personal leadership behaviors as:
use of facts and data;
Weak individual leadership in organizational area in Srithai is expressed clearly during previous analysis They are irresponsibility, finger-point together and explanation for their faults often.
ALTERNATIVES ANALYSIS AND POSSIBLE SOLUTIONS
Verify causes of the real problem
Purpose: Exploring causes of real problem: ineffective in internal communication in Srithai company
Mr Withawin Laohakivjtoon and Mr Do Quoc Tu are both strong candidates for this interview At just twenty-seven years old and having worked at Srithai for over two years, Mr Withawin's youth and dynamism are significant advantages He possesses a bold mindset, along with keen observation and critical thinking skills Most importantly, his relatively new tenure at Srithai allows him the opportunity to learn and shape his career path effectively.
Mr Tu, who has worked at Srithai for twelve years, possesses extensive knowledge of the culture and perspectives within the company, making him an ideal candidate for this interview His deep understanding of relationships in Srithai Vietnam and valuable experiences will significantly contribute to the thesis.
The depth interview will be taken from August 26th, 2018 to August 27th, 2018 with two respondents from two departments in Srithai Vietnam as below:
No Full name Position Date
2 Do Quoc Tu Assistant to Director August 27th, 2018
Table 4: The fourth depth interview arrangement Research findings
During interviews, language barriers are not seen as a primary issue within Srithai Vietnam; however, they significantly affect transactions related to import orders Misunderstandings can lead to the production of incorrect products, failing to meet customer needs and quality standards This can escalate into major problems, such as customers refusing to accept products and demanding contract fees Such issues can severely impact the company's reliability Mr Withawin noted that the key contact at the parent company has limited English proficiency, yet all communications are conducted in English, leading to significant misunderstandings Although this challenge originates from the parent company, it adversely affects the MHE group and complicates the importing process.
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It could be said that employees are weak team work skill; therefore, they don’t have skill to communicate and solve conflicts together [theory about team work skill] Mr
Withawin shared that “the quality of each communication is key point to impact on quality of transaction, quality of works The spirit supporting of employees is low
The team has completed their tasks but lacks motivation and effective collaboration Mr Tu noted that half of the employees are related, which leads to avoidance of open discussions and differing opinions Most employees adhere strictly to their job descriptions, showing little concern for the overall process.
The interview revealed that Srithai's work environment suffers from inadequate motivation, primarily due to familial relationships among fifty percent of employees While these connections foster a supportive atmosphere, they also create barriers to the company's development, as employees tend to avoid addressing conflicts Mr Tu noted that "the spirit of supporting between employees is low," attributing this to a lack of motivation, where all employees receive the same salary regardless of performance, without bonuses or rewards Mr Thanh echoed this sentiment, describing the working environment as complicated with various benefit groups, further impacted by the familial ties within the company Mr Tu emphasized that this familial dynamic leads to a reluctance to voice differing opinions, resulting in employees merely fulfilling their job descriptions without engaging in the process.
Weak leadership is a significant issue at Srithai Vietnam, as highlighted by Mr Withawin, who identified two types of weak leadership within the company He noted that departments often operate in isolation, leading to minimal collaboration on projects, which reflects the ineffective leadership of the Thai members on the Board of Managers This sentiment was echoed by most interviewees, who observed that the departments tend to function independently Additionally, Mr Hai pointed out that cross-departmental communication within the company is notably low, further exacerbating the problem.
Moreover, Mr Withawin and Mr Tu agreed that “Most of Thai members in Board of
Manager are over sixty years old So, their style is more traditional, low dynamics and avoid risk” They depended too much on commands of Mother company
Weak individual leadership is prevalent not only among office employees but also within the Board of Management at Srithai Vietnam Mr Withawin noted that the influence of weak leadership from the Board of Directors leads to a lack of strong leadership at all levels, resulting in low individual morale and a challenging company culture that has persisted over time This situation creates significant obstacles to development, as Mr Tu highlighted that the interconnectedness of weak leadership fosters a culture devoid of support, cooperation, innovation, and progress within Srithai Vietnam.
Main cause of the problem: weak individual leadership
In four interviews conducted with employees at Srithai Vietnam, respondents highlighted three notable characteristics: empathy, adherence to job descriptions, and a strong work ethic However, the company faces significant developmental challenges, primarily due to a lack of clear accountability, as emphasized by Ms Le in the first interview.
“The employees are not empowered so that they often wait for their bosses solving problems, they are not initiative to deal with their issues” She also mentioned that
“there is not specific person who responsible for specific problem The faults often belong to group”
Many interviewers at Srithai Vietnam noted that while the workload is manageable and does not overly stress employees, the overall working environment is lacking Mr Tu emphasized that the spirit of support, cooperation, innovation, and progress within the company is sluggish Additionally, Mr Withawin highlighted two key factors that reflect the quality of communication among employees: the frequency and quality of interactions He pointed out that although interactions occur frequently, the quality of these communications remains low.
Final point is they often finger point and explain for their faults Those action are symptoms of avoiding responsibility Three points connect together create bad
Organizational culture significantly impacts sustainable growth at Srithai Vietnam, posing a threat to its survival in today's rapidly changing and unpredictable environment.
The weak individual leadership at Srithai Vietnam Company is primarily attributed to three key characteristics This thesis emphasizes the impact of ineffective leadership on the organization Notably, it has been observed that the entire board of management consists exclusively of Thai members, which may influence the leadership dynamics within the company.
The organizational structure is established by the parent company, with the leadership style influenced by the knowledge, experience, and characteristics of the management board These external factors are beyond the control of Srithai Vietnam.
The board of managers at Srithai Vietnam plays a crucial role in driving the company's success, as each member is a dedicated employee contributing to the organization's leadership Their actions and support foster a culture of organizational learning, which is essential for growth By instilling a leadership spirit in every individual at Srithai, the company can achieve sustainable success and development.
Figure 8: The final cause-effect map
Reducing enterprise’s reputation Weak individual leadership
Declining employees’ satisfaction, employees’ productivity
High rate of employees’ turnover
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Possible solutions
3.3.1 Solution 1: Applying ROFO principle in office departments in Srithai Vietnam
Introducing ROFO principle of Mr Ah Bee Goh, COO of Schaffner Thailand company
The content of ROFO principle is(21)
Mr Ah Bee Goh, COO of Schaffner company, emphasized that ROFO is not only a deeply perception of management, but also powerful tool to deal with issues(21)
Moreover, it is a useful “guiding principle for the working behavior of the staff”(21)
Mr Ah Bee Goh emphasized the importance of self-internalization and self-motivation among employees, which empowers them to take ownership of the entire process until the desired outcomes are achieved He identified three interconnected factors—ownership, focus, and timely corrective action—that create a continuous cycle fostering cooperation and learning This ongoing interplay among these elements ultimately enhances organizational effectiveness and drives successful results.
“outcome is attained with enthusiasm, passion and without blaming others”(21)
Key factors that can be achieved with ROFO in training, applying and reflecting are
Ownership Mindset o Once every staffs in the process own the process together Everyone takes their tasks seriously o There will be no more smart talk, excuses, finger-pointing and etc
Cooperation and trust are essential for effective teamwork, as shared ownership of the process fosters unity The principle of ROFO emphasizes addressing problems collaboratively rather than assigning blame, promoting a constructive approach to resolving issues Additionally, it encourages tactfully reminding individuals of past mistakes to prevent future occurrences, ensuring a positive and productive work environment.
This will introduce trust and future cooperation among staffs
A willingness to learn mindset involves a commitment to timely corrective actions and continuous process improvements By adopting the ROFO mindset, individuals ensure that learning occurs consistently, fostering ongoing development and adaptation every day.
In their article "Why Organizations Don’t Learn?", Gino and Staats identify key actions to overcome barriers to learning within organizations They emphasize the importance of fostering a culture that encourages experimentation, providing constructive feedback, and promoting open communication to enhance organizational learning.
Increase awareness and engage workers(22)
Encourage workers to own the problems that affect them(22)
Give workers different kind of experience(22)
Empowering employees to leverage their experience aligns with the ROFO model, fostering a culture of learning and ownership When each team member embraces a leadership role, ROFO cultivates an organizational environment built on trust, continuous learning, and a proactive mindset.
The solution identified is specifically applicable to the case of Srithai Vietnam, primarily due to the similarities between Schaffner and Srithai Schaffner operates factories and offices globally, including locations in Kecskemét (Hungary), Lamphun (Thailand), Shanghai (China), and Wytheville (USA) The ROFO initiative was first implemented at the Thailand factory, embodying the valuable lessons learned by Mr Ah Bee Goh throughout his life He emphasizes that people are at the heart of all actions, serving as the catalyst for change Notably, when Mr Ah Bee Goh first arrived at Schaffner Thailand, the circumstances mirrored those currently faced by Srithai Vietnam.
The working environment at Schaffner Thailand has deteriorated, negatively impacting employee performance and company productivity Long-standing issues such as finger-pointing, irresponsibility, and a lack of accountability have become ingrained in the company culture As a result, the pace of work has slowed significantly, leading to Schaffner Thailand being perceived as an icon of inefficiency.
LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com changing in Thailand No one does not know about this case after applying ROFO
Recognizing the same context between Schaffner Thailand and Srithai Vietnam, ROFO principles should apply in Srithai Vietnam case.
ACTION PLAN FOR SOLUTION
The purpose of applying ROFO principle in office depatments in Srithai Vietnam
ROFO is a set working principles (mindset) and by getting staffs to adopt this mindset as their own is, in effect, to create a new corporate culture
Leadership committed to Companywide training and learning keep staffs at all levels equipped with the appropriate knowledge required in successfully implementation of the intended Strategy
As can be seen in the table 1, timeline for each task will be applied in 2019 as follow:
The first step should be training for whole office employees of each department Mr
Ah Bee Goh will be invited to train for Srithai Vietnam employees He is a great father of ROFO principles so that he has extraordinary inspired for whole listeners
In December 2018, Mr Ah Bee Goh will conduct initial training sessions to prepare for the implementation of ROFO principles at Srithai in 2019 Additionally, a follow-up training session will be held in the first quarter of 2019, led by members of the board of managers from Srithai Vietnam.
Action 2: Evaluating effectiveness of conducting ROFO principles
The effectiveness of implementing ROFO principles will be assessed through three methods The first method involves a comprehensive 360-degree evaluation conducted quarterly across the entire department, highlighting improvements over each quarter The other two methods focus on peer evaluations and self-assessments within each department, reinforcing employees' understanding of ROFO and encouraging its daily application This approach aims to cultivate a habitual use of ROFO among employees, enhancing overall performance.
Action 3: Encouraging employees conduct ROFO principles
To promote the implementation of ROFO principles, the appraisal program will be structured at two levels: the entire office department and individual departments The office department level will oversee evaluations on a quarterly basis, while each department will manage its own assessments.
Table 5: The prize and recognition of appraisal level
Each quarter, a 360-degree evaluation will be conducted at the office, allowing one representative from each department to be voted for a special prize The awarded employee will receive one million dong, with this recognition being showcased company-wide every three months.
Each department will conduct monthly evaluations where three individuals are selected through a voting process The peer who receives the highest evaluation will be awarded a prize of two hundred dong This initiative aims to recognize outstanding employees within each department on a monthly basis.
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Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Evaluating effectiveness of conducting ROFO principle
Action 3 Encouraging employees conduct ROFO principles
Table 6: The timeline for implementing set solution 1
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Ineffective internal communication is a critical issue for MHE Group, leading to reduced profits, decreased customer satisfaction, and a high project failure rate This communication breakdown also undermines the company's reliability in the pallet and container market and fosters a negative work environment at Srithai, where employee satisfaction is low and recognition is lacking Analyses indicate that weak individual leadership is the primary cause of these problems To address this, implementing ROFO principles is recommended, although resource limitations may pose challenges to effective execution.
GUIDELINE 1 Topic The reasons that impact on profit, customer satisfaction in MHE group Venue No.2, Street 2, Di An Ward, Di An district, Binh Duong province Time 16 pm, Friday, July 27, 2018
Interviewer Nguyen Thi Thuy (ID: 22160052) Interviewee , Srithai Vietnam Company
I want to thank you for taking the time to meet with me today
My name is Thuy and I would like to talk to you about your experiences with the reasons that impact on profit, customer satisfaction in MHE group
The interview will last approximately 20 minutes and will be recorded to capture all your comments accurately While I will take notes, I may not be able to write everything down, so please speak clearly Your responses will remain confidential and will only be shared with the research team, ensuring your anonymity in the final report You are not obligated to discuss any topics you're uncomfortable with, and you can choose to end the interview at any point.
Are there any questions about what I have just explained?
Are you willing to participate in this interview?
1 Personal information Your job/responsibility/position within the company
I have been working with Srithai company for several years, and I appreciate its supportive company policies that foster a positive working environment The management style is approachable and encourages open communication, which significantly enhances team collaboration Additionally, the employees exhibit a strong sense of camaraderie and professionalism, contributing to a motivating atmosphere that drives productivity and job satisfaction.
In the first half of 2018, a report indicated that the company experienced a decline in profits during 2017 and the first half of 2018, particularly in the imported plastic sector This raises questions about the factors contributing to the losses in the plastic import group over this period.
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The 2018 customer satisfaction report from the ISO department reveals a concerning on-time delivery rate of only 50%, indicating significant room for improvement This low performance raises questions about the underlying causes contributing to this issue.
5 The failing project rate is very high as fifty percentage in 2017, do you think what the reason of this problem?
Does your company have a motivation program for employees? If so, please provide more details about the program If not, could you share your thoughts on why the company lacks a motivation program for its employees?
7 Who do you think that should responsible for loss profit? Why?
After completing any project, it's standard practice to hold a review meeting to assess its successes and shortcomings while extracting valuable lessons However, the plastic import group has incurred losses over the past year and a half Does your company implement an effective cost control system?
9 Are your employees clear their job description?
10 Do you want to share more information?
GUIDELINE 2 Topic The effective of internal communication system in Srithai Vietnam company
Venue No.2, Street 2, Di An Ward, Di An district, Binh Duong province Time 16 pm, Saturday, July 28, 2018
Interviewer Nguyễn Thị Thủy (ID: 22160052) Interviewee , Srithai Vietnam Company
I want to thank you for taking the time to meet with me today
My name is Thuy and I would like to talk to you about your experiences in the effective of internal communication system in Srithai Vietnam company
The interview will last approximately 20 minutes and will be recorded to capture all of your insights accurately While I will take notes, I may not be able to write everything down, so please speak clearly to ensure your comments are heard Your responses will remain confidential, shared only with the research team, and we will anonymize any information in our report You are free to decline to discuss any topic and can terminate the interview at any point if you choose.
Are there any questions about what I have just explained?
11 Are you willing to participate in this interview?
12 Personal information Your job/responsibility/position within the company
I have been working with Srithai Company for several years, and I appreciate its supportive company policies that foster a positive working environment The management style is both approachable and encouraging, which motivates employees to perform at their best Overall, the attitude of my colleagues is collaborative and friendly, contributing to a productive atmosphere where teamwork is valued.
14 Gross profit of importing products group has decreased since 2017, do you think what the reasons are?
15 The failing project of importing products group rate is very high, do you think what the reasons are?
16 Do you think that lack of effective communication in work organization would affect employees’ productivity? How are its affects? Could you share some experiences?
17 What are your difficulties in your job? Do your boss and your colleagues support you?
18 Are you initiative to make decision in your job? If answer is no, what reasons are in your opinion?
19 What are your opinion about cross communication of department in company?
20 How do you think of effective of sharing information between departments?
21 Are you clear your department’s KPI and your description job?
22 How do you think of effective of leadership in company? Prompts: making decision ability, persuade ability, motivation employees, listening, etc
23 Are you easy to tell your boss your idea or improvement?
24 Do you want to share more information?
GUIDELINE 3 Topic Finding evidences for proving importance of existence problem
Venue No.2, Street 2, Di An Ward, Di An district, Binh Duong province Time 16 pm, Wednesday, August 15, 2018
Interviewer Nguyen Thi Thuy (ID: 22160052) Interviewee , Srithai Vietnam Company
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I want to thank you for taking the time to meet with me today
My name is Thuy and I would like to talk to you about your experiences in finding evidences for proving importance of existence problem
The interview will last approximately 20 minutes and will be recorded to capture all your comments accurately While I will take notes, I may not be able to write everything down, so please speak clearly Your responses will remain confidential, shared only with the research team, and we will ensure your identity is protected in the report You are not obligated to discuss any topics you are uncomfortable with, and you may terminate the interview at any time.
Are there any questions about what I have just explained?
Are you willing to participate in this interview?
25 Personal information Your job/responsibility/position within the company