(TIỂU LUẬN) this article will study on ICT (international investment construction and trading corporation), which in the top 2 in vietnam about the supplying asphalt

Tran Trung Kien_10170420_BBE_A1.2 Table of Contents EXCUTIVE SUMMARY .2 INTRODUCTION CHAPTER I: .5 ICT: DIFFERENT TYPES, SIZE AND SCOPE I Definition of the ICT organization .5 1.1 Legal structure and company size 1.2 Vision and Mission of ICT 1.3 Core values of ICT 1.4 Goals and Objectives of ICT II Stakeholders of ICT CHAPTER II .11 ICT: THE INTERRELATIONSHIP OF DIFFERENT FUNCTION 11 I II III The structure of ICT 11 Flat or Tall Organization? 14 The interrelationship of functions of the organisation .14 CONCLUSION 17 REFERENCES LIST 18 EXCUTIVE SUMMARY This assignment paper was divided into two large sections Chapter I will explain the different types, size, and the scope of ICT through the evaluation objectives, mission, core values of this company Chapter II will demonstrate the interrelationship of the various function of ICT of the company, the strengths, the weaknesses of that structure At the same time find out the links between the functions and the organization structure INTRODUCTION This article will study on ICT (International Investment Construction and Trading Corporation), which in the top in Vietnam about the supplying asphalt The ICT was founded in 1999, since then they work in four areas, asphalt business, real estate business and building hydropower plants The assignment was split into two different parts In Chapter I, this report will explain the different types, size and scope of ICT by describe their mission, vision, goals, objectives, etc The next chapter explaining the structure of ICT and show the interrelationship of various functions of this organization The ICT is active in the following areas: - Investing and importing liquid asphalt - Investing, constructing of hydroelectric power plants - Investing in real estate The first stage, from 1999 to 2002, ICT investment in construction, trading smallscale asphalt, asphalt storage building first From then until 2005, ICT manufacturing asphalt plant In 2008, ICT investment focus on building materials, including artificial stone and sand in Dak Nong 2009 is the time for the introduction of ICT first depot - ICT Asphalt 04, marking a new era of asphalt economy Along with the process of building ChiemHoa hydroelectric plants within 30 months After the success of ChiemHoa, ICT continue to build hydropower plants in Lao Cai (2012) In the year 2014, ICT has ranked 272th among 500 largest private companies in Vietnam by VNR500 of Vietnamnet CHAPTER I: ICT: DIFFERENT TYPES, SIZE AND SCOPE I Definition of the ICT organization 1.1 Legal structure and company size On the concept we have a couple of different legal structures: - Sole Trader: Business will start trading quickly without too much investment Business work will depend on business owners, they will decide the entire business - Partnership: In partnership, will have more than two people involved in business They shared the risks, costs and profit related to the business - Limited company: Limited company has a private owner The company's finances are separate from the owner's finances - Company or Corporation: Companies are separate legal entities from their owners - Limited Liability Partnership (LLP): “An LLP Partnership is a hybrid of a partnership and limited company, each partners liability is limited to the money that they have put into the business and the amount of personal guarantees they have given to raise any finance for the business” Hwchamber.co.uk (2017) - Community Interest Company (CIC): “A CIC is a legal business status and has only been in existence for a few years This is a company whose objectives are primarily social rather than profit making” Hwchamber.co.uk (2017) The ICT was founded in 1st March, 1999 as a private limited joint stock company and also the large size company (More than 320 staff members and employees) According to Ian Worthington in 1994, “the private limited company must have a minimum of two shareholders, but its shares cannot be offered to the public at large, although it can offer them to individuals through its business contacts” ICT also limited the sale of shares 1.2 Vision and Mission of ICT “A vision is an inspirational statement which sets out the direction of the organization” (According to Business Queensland, 2018) Because of that, the vision of ICT is to “Become the biggest suppliers of asphalt and asphalt products in Vietnam” According to Mintzberg: “A mission describes the organisation’s basic function in society, in terms of the products and services it produces for its customers” The mission of ICT is "Sustainable development for society and the community, respect for the law, to contribute high-quality asphalt products on the development of transport and infrastructure in Vietnam" 1.3 Core values of ICT According to Nps.gov (n.d.), “The core values are the basic elements of how we go about our work” ICT has four main core values, so they can improve their work every day, and also follow the values that they have planned Firstly, in domestic and foreign, ICT wants a chance of development cooperation with many different audiences This value is called “You are us”, “We are a family” Secondly, in business and manufacturing, the value they have is “Serve community interests, applying ethical standards in business” In addition, they have extremely humanistic values for humans: “People are the most valuable assets of ICT”, and “Every decision, strategy, project, action plans are based and focused on people” And finally, the interests of the company is an essential thing “Personal interests are the interests of the business” 1.4 Goals and Objectives of ICT - About the Goals of ICT: Mintzberg defined goals as “the intentions behind decisions or actions, the states of mind that drives individuals or collective of individuals called organizations to what they do” And the long-term goal of ICT is “Create a habit of using high quality bitumen for asphalt users in Vietnam” This is a really clever long-term goal This goal has just give reputation to customers, retaining the old clients reliably, and also creating a huge name brand for new customers - Objectives of ICT: First of all, we take a look back at the ICT's revenue in the year 2017 (separate each field): + Liquid asphalt business: from 90 to 120 billion VND + Chiem Hoa hydro power plants: From 190 to 230 billion VND + Factory in Vinh Ha: From 65 to 84 billion VND + Real estate (Office rental array in the ICT building floors): from 4.5 to billion VND In addition, investment in the construction of ICT West Lake (expected 37 floor) + Tourism and clean food: ICT Is investing, no revenue According to tutor2u.net, “Objectives give the business a clearly defined target Plans can then be made to achieve these targets This can motivate the employees It also enables the business to measure the progress towards to its stated aims” ICT have some objectives in the next period (2018-2020) to improve the revenue from last year Planning growth in quantity of ICT asphalt production in the period from 2018 to 2020 In 2018, they want the output of asphalt sold reached 100000 tons The next stage is 2019, asphalt production increased to 150000 tons And with the year 2020 is 200000 tons To evaluate an objective is possible and clever or not, they will get S.M.A.R.T as the assessment tool S.M.A.R.T stands for Specific, Measurable, Attainable, Results-oriented and Time-bounded + Specific: Reaching total output plans and expanding the carrier to Laos and Cambodia + Measurable: ICT create targets total production for the year 2020 to double the yield of the year 2018 (from 100000T up 200000T) They produce less than 70 tons of asphalt (also 50 tons of asphalt, because the company their competitors (Petrolimex) imports of liquid asphalt from many different providers, while ICT is just entered the liquid asphalt from Shell and ExxonMobil Singapore, from which ICT ensures the quality of their products is always best + Attainable ICT has built up asphalt production plant in My Tho, very close to Thailand and Cambodia, two extremely promising market, in order to minimize travel expenses, in order to give reasonable pricing for this market Since then, ICT has more money to complete the NorthSouth Expressway Project in the year 2020 + Relevant: Vietnam sea very long to economic development Cambodia and Laos did not have that advantages, but both of these have achieved GDP growth rate is extremely good, about 7.7 percent and 7.8 percent in 2017 (The Word Bank in Cambodia and Laos) Sources of ICT previous asphalt derived from Tipco Thailand, causing dust and polluting the environment This is an opportunity for ICT products with higher quality to foreign markets + Time-bound: ICT has built three timelines, that is 2018, 2019 and 2020 In 2018 they will achieve 100,000T, 2019's and 2020's are 150,000T and 200,000T When a company puts out an objective need to follow a couple of conditions: + Survival – this is a short-term objective for a company recently started established, or are a company are falling into crisis + Profit maximization - find out the best approach to maximize profit for the company + Profit satisficing – profitable growth equally, minimizing the risks to business owners feel comfortable when investing + Sales growth - the business to maximize the ability to sell as many productions as possible, because it is the measure of the success of the company The objectives of the ICT companies had the time of completion and estimated data, however this goal was not too specific, and also not too feasible According to a presentation of this company at the IBD - National Economics University (October 2018), they did not break even in the first half of the year 2018 The rest of the year will wait the ICT in action, but does not mean that the target is feasible to achieve II Stakeholders of ICT According to SearchCIO (2017), “A stakeholder is a person or group who has an interest vested or otherwise in an enterprise and whose support is required in order for an enterprise to be successful” There are three types of stakeholders: Internal stakeholders, External stakeholders and Connected stakeholders Internal Stakeholder are the people in the company, working directly in the company, with ownership or investments in companies Insiders include the staff, management, board members, directors, sponsors and investors External Stakeholders are outside the company, indirectly affected by the company These stakeholders include customers, suppliers, government agencies, creditors, labor unions and community The most important External Stakeholders of ICT mainly the clients and partners of ICT In particular, with the asphalt business company, our partner is the agent of plastic and block the Bank links; the customers are businesses This relationship was maintained to ICT 10 mutually beneficial Customer is the object contribute extremely important part in the success or failure of the ICT So, creating sustainable relationships with customers, and creating trust for the external stakeholders are extremely necessary Directors and managers are very interested in investing in the company They work in the company, they know the strengths and weaknesses of the company, and they had taken the company to success They guide the company, discovered the method to achieve the goals fastest They also have the responsibility to care about shareholders in the companies and people who want to join ICT Shareholders are the owners of the company They invested the money to the company activities They are also vital elements of ICT, so they should join most of meeting of the company, listen and give the solution brings high profits They also are the ones who are giving the right strategy for the company, allowing the program to be active in the company The provider is what the ICT needs, contribute to promoting ICT become a large company ICT need quality items, so they required to build sustainable relationships with all of suppliers Sales consultant doesn't have too much power, but they still have to manage the work and meet the customers every day ICT's clients are mostly business owners, managers of the project, and they must participate in the process of dealing with no small amount of money Can say, although they don't have big power, but they have contributed in no small way to the ICT Security have low power and low interest, however they are extremely important for the company They must seal the lid of the container of the container, make sure the volume of the goods to be moved Asphalt cement is very expensive and has great value because this product Vietnam can't produce that are imported, so there will be many drivers hired for ICT wants to steal, leak out products for the purpose of retail sale fraud for profit Therefore, Security must constantly monitor 24/7 to ensure the safety of the company's product quality 11 International trading department manager who has an enormous power, plays an important role, participate in all activities on the import or export of the company The duty of this person is directing, ordering the employees who work for this manager and create relationships, sales and negotiate with customers about the price First, create a good relationship with the suppliers is essential, because ICT need a supply of products of good quality and big quantity Second, ICT need to sell products with reasonable price, and buy supplies not too expensive This is why ICT need International trading department manager, who can bring success and profits for the company To assess the key internal stakeholders, stakeholder mapping will be the best tool to perform: POWE R International trading High Low department manager Security Sales consultant Low High 12 INTERES T CHAPTER II ICT: THE INTERRELATIONSHIP OF DIFFERENT FUNCTION I The structure of ICT There are main type of the company structure (According to Daniel Karrel, 2018), Functional structure, Divisional structure, Matrix structure and Flatarchy structure ICT company structure is related to two most basic structures: Functional and Divisional The ICT (International Investment Construction and Trading Corporation) use the Mixed Structure, which is a combination between both structure, Functional and Divisional structure The combination of the two structures was somewhat mitigate the main weaknesses of the two structures above Companies now have better links, and related intimacy between departments has also increased At the same time, each Division of the company has taken the decision faster, more efficient and bring greater resources to the company Pros: This structure have a huge flexibility, all the departments are organised and operated separately, so that they can reach every single market targeting Cons: Really difficult to communicate with others divisions, really easy to have conflict between all department Also, each division will be demanded by the Directors, so that they cannot make a decision This structure can clearly see this through the following chart (according to ICT Guest speaker): 13 Board of Directors General Director Deputy technical director Deputy General Director of Internal Affairs Company office Director of business Director of Vinh Ha hydropower plant Director of Chiem Hoa hydropower plant Director of ICT Commune Human Resource Department General Department General Department General Department General Department Financial Accounting Department Business Department Electrical Engineering Group Electrical Engineering Group Technical Department Administrative Office Technical and Purchasing Department Mechanical Engineering Group Mechanical Engineering Group Buillding management ASP Stations 14 II Flat or Tall Organization? ICT is a flat organization, these are some basic features: extensive executive power, many inferiors, formal relationship, coordination between departments is not good enough and making decision more quickly However, there is little chance of promotion III The interrelationship of functions of the organisation Basically, the departments under the office has a close relationship with all the subsidiaries / other remaining departments of ICT Example with Finance department personnel will have a close relationship with all the subsidiaries / room / department rest for all activities related to the personnel of that department (recruitment, training, transfer, rotation, layoffs, wage regime ) are subjected to censorship / evaluation of Finance and human Resources The same with Administration department and Accounting department This Mixed structure helps companies improve human resources, employee experience, brings many advantages in the management of human resources of a company At the same time each division can function separately, so the cooperation of this Department is the most viable way to bring about success for the company Please mention the Divisional structure of the ICT companies This structure has split each of the specific parts of the company such as a Company Office, Business Office, the Everest 2008By United hydropower plant factory, Vinh Ha hydropower plant factory, ICT Commune Divisional structure giving the company a lot of advantages First, it helps the company control of the independent parts easily The effect of the employee's work can be measured by the monthly profits And managers will be willing to retrain the staff not yet eligible through their labor productivity From which create extra motivation for the employees, so they bring more benefits to the company Moreover, when employees are 15 more motivated to work, they will communicate with customers better, create the relationship to benefit the ICT company However, as mentioned above, this structure has the big drawback Managers need to have talent, acknowledge and resolve conflicting issues quickly Moreover, they must report to the boss regularly, also communicate with others division as well The advantage of this structure is to ensure the high professional level of each employee in each Department This will avoid wasting staff time to these things Along with that, they'll work with people who have the same qualifications, increase the likelihood of coordination between those employees to the same The investors not directly involved in daily work of the company, but they played a role in the change of Directors and management of an entire Division The Director General plays an important role, as the bridge between the parts of the company and Board of Directors Successful or failed, depending on the General Director because the General Director is responsible for many of the fields from the different departments Resolve the conflict for the company to work smoothly is also the responsibility of the General Director Also, cannot ignore the role of the Deputy General Director of Internal Affairs and the Deputy technical director Each person has an individual function, a person performing the technical work and technology, another person does all things in office work, transactions, etc Both of them, along with the General Manager to make the ICT company to achieve all project and predetermined objectives, manage all programs, review the labour productivity of the employees In addition, there are ICT Company office manager, business manager and Director of ICT Commune They manage employees in their own departments, and use their own personal knowledge to help complete the work of the company At a time like now, technology can be seen as a tool to support response force for the operation of ICT, especially with trading company Asphalt, the technology is applied widely, from software weight, to manage bookkeeping, managing customer debt management tank truck (GPS, sensors tub lid, security camera system at each station as well as on each tank 16 trucks) With the application of such technology to help manage the process of minimizing the time, fast accurate, scientific and effective But the biggest threat to use technology to manage that leaks of confidential information Besides, is dependent in part on the technology, when technology broken, they will be somewhat passive in the management Therefore, the role of managers in companies acting extremely intimate, ensuring the security of the company In ICT, the firm pursues top-down administration style of the most noteworthy position officer giving requests, directions and independence end to bring down position officers and after that these officers will report back to their higher-position officers in the chain (Harper, 2015) Pros: Specific objectives, less diversion for workers in term of taking an interest gatherings, fast directions, obvious due dates This administration style works viably if legitimately looked into Cons: Dictatorship, imbalance, choices and ends may have negative impact on execution With divisional structure, the task of every division is free as a solitary firm by overseeing capital and spending plan without anyone else (Karell, 2018) Pros: Great adaptability, creation and promoting are worked autonomously somewhat and better market focusing on Cons: Bad correspondence with different divisions, neighborhood level confliction among focal and tasks' need and points and issues with bookkeeping 17 CONCLUSION This article studies on ICT has partly been clearly expressed Different types, scope, size and structure of The International Organization Investment Construction and Trading Corporation (ICT) This is a great company, is expected to become the biggest asphalt business companies and largest asphalt delivery company in Vietnam With the model being developed by the company, I expect that ICT will soon gain more achievements in the future For me it is an honor to be studied a large company such as ICT 18 REFERENCES LIST ICT ORGANISATIONAL STRUCTURE & CULTURE IN PRACTICAL BUSINESS (2018) Business.qld.gov.au (2018) Create a business vision | Business Queensland [online] Available at: https://www.business.qld.gov.au/startingbusiness/planning/business-planning/vision [Accessed 16 Oct 2018] Worthington, I., Britton, C and Thompson, E (2006) The Business Environment 5th ed Harlow, United Kingdom: Pearson Education Limited Nps.gov (n.d.) What are Core Values? [online] Available at: https://www.nps.gov/training/uc/whcv.htm [Accessed 16 Oct 2018] Point Park University Online (2018) Types of Organizational Structures | Point Park Online [online] Available at: https://online.pointpark.edu/business/types-oforganizational-structures/ [Accessed 16 Oct 2018] SearchCIO (2017) What is stakeholder? - Definition from WhatIs.com [online] Available at: https://searchcio.techtarget.com/definition/stakeholder [Accessed 16 Oct 2018] The World Bank In Cambodia (2017) Overview [online] Available at: https://www.worldbank.org/en/country/cambodia/overview [Accessed Oct 2018] 19 The World Bank In Lao PDR (2017) Overview [online] Available at: http://www.worldbank.org/en/country/lao/overview#1 [Accessed Oct 2018] Tutor2u (2018) Aims and Objectives of a Business (GCSE) | tutor2u Business [online] Available at: https://www.tutor2u.net/business/reference/aims-and-objectivesof-a-business [Accessed 16 Oct 2018] 10 Karell, D (2018) Types of Organizational Structures | Point Park Online [online] Point Park University Online Available at: https://online.pointpark.edu/business/types-of-organizational-structures/ [Accessed Oct 2018] 11 Harper, M (2015) Top-down vs Bottom-up Management Styles - Touro University WorldWide [online] Touro University WorldWide Available at: http://www.tuw.edu/content/business/top-down-bottom-up-management/ [Accessed 11 Oct 2018] 20 ... Investment Construction and Trading Corporation), which in the top in Vietnam about the supplying asphalt The ICT was founded in 1999, since then they work in four areas, asphalt business, real... Functional and Divisional The ICT (International Investment Construction and Trading Corporation) use the Mixed Structure, which is a combination between both structure, Functional and Divisional... Investing and importing liquid asphalt - Investing, constructing of hydroelectric power plants - Investing in real estate The first stage, from 1999 to 20 02, ICT investment in construction, trading