1 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business VU THI BICH HOP FINAL THESIS LACK OF CAREER GROWTH OPPORTUNITY IN OPERATION DEPARTMENT AT THI GROUP VIETNAM HCM BRANCH MASTE[.]
UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business VU THI BICH HOP FINAL THESIS LACK OF CAREER GROWTH OPPORTUNITY IN OPERATION DEPARTMENT AT THI GROUP VIETNAM HCM BRANCH MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2019 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business VU THI BICH HOP FINAL THESIS LACK OF CAREER GROWTH OPPORTUNITY IN OPERATION DEPARTMENT AT THI GROUP VIETNAM HCM BRANCH MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2019 CONTENTS EXECUTIVE SUMMARY CHAPTER I: INDUSTRIAL OVERVIEW AND COMPANY BACKGROUND 1.1 Industrial Overview 1.2 Company Background CHAPTER II: PROBLEM JUSTIFICATION 10 2.1 Problem finding process 10 2.2 Company’s Symptoms 10 2.2.1 Low Revenue 10 2.2.2 High turnover rate in Operation Department 13 2.3 Problem Identification 15 2.3.1 The Initial cause-effect map 15 2.3.2 The Updated cause-effect map 20 2.3.3 The Final cause-effect map 24 CHAPTER III: ALTERNATIVE SOLUTIONS 31 3.1 List of real causes 31 3.1.1 Lack of training 31 3.1.2 Lack of knowledge sharing 31 3.1.3 Lack of orientation 32 3.1.4 Lack of promotion 32 3.2 Proposed solutions 33 3.2.1 Solution 1: Provide an effective orientation program 35 3.2.2 Solution 2: Provide an official training process 35 3.2.3 Solution 3: Open sharing session between teams 36 3.3 Alternative sets of solution 37 3.4 Action plan 40 3.4.1 Objective of action plan 40 3.4.2 Timeline and Cost 40 CHAPTER IV: SUPPORTING INFORMATION 43 4.1 Interview Transcripts 43 4.2 Questionnaire for the existence of problem 65 4.3 Questionnaire for the chosen set of solutions 67 REFERENCES 68 LIST OF FIGURES Figure 1: Organization Structure Figure 2: The initial cause-effect map 19 Figure 3: The update cause-effect map 23 Figure 4: The final cause-effect map 26 Figure 5: Solution Map 34 Figure 6: Sets of solutions 37 LIST OF TABLES Table 1: Summary revenue of THI Group in years ··············································· 11 Table 2: Operation Department customers’ situation ··············································· 12 Table 3: Turnover rate of operation department ······················································ 14 Table 4: The result of survey ···················································································· 38 Table 5: Cost-benefit analysis ··················································································· 39 Table 6: Timeline and estimated cost for Solution 1················································· 41 Table 7: Timeline and estimated cost for Solution 2.1·············································· 42 Table 8: Timeline and estimated cost for Solution 3················································· 42 ACKNOWLEDGEMENTS I would like to express my gratefulness for the period two years studying in ISB Ho Chi Minh City I also would like to express my deep sense of gratitude to Dr Thu Phan for her valuable guidance, keen interest and especially encourage me at various stages of doing this thesis Besides, I would like to thank my family; friends who always stand by me to support me finish this thesis well Especially, many thanks for my colleagues who gave me valuable information and advices so that my thesis can be done well EXECUTIVE SUMMARY This study analyzes the case in Operation Department of THI Group Viet Nam Ho Chi Minh Branch with the symptoms are high turnover rate and the declining in revenue of Operation Department There are three main chapters in this paper In chapter I, an overview of the logistics industry as well as the background of the company THI Group Vietnam will be introduced Chapter II will be all about the existing problem in the department Firstly, based on the primary and secondary data, there are two symptoms low revenue and high turnover rate found out After that, through depth-interview with some related people, a problem mess is figured out on the initial cause-effect map Next part is the updated cause-effect map, in this section three potential central problem are figured out based on the information from interview and literature review Finally, the final map with all details about the central problem is demonstrated The central problem is lack of career growth opportunity, which lead to many consequences; thus, it has been chosen as a central problem, which need be solved in this paper Chapter III is included a list of real causes of the central problem and a set of solutions for the problem In Chapter IV, all supporting information for this paper is indicated CHAPTER I: INDUSTRIAL OVERVIEW AND COMPANY BACKGROUND 1.1 Industrial Overview Vietnam grows vigorously in trade over the coming years, which will support for the development and expansion of logistics industry, one of the fastest growing industries in Vietnam There are many main logistics hubs in Viet Nam which are located in the North including Ha Noi – Hai Phong area and in the South, Ho Chi Minh City area, Dong Nai province, Binh Duong province as well as Ba Ria - Vung Tau The logistics industry is estimated to grow at a pace faster than the GDP growth rate, and currently, the logistics service accounts for 15-20% of GDP in Vietnam There are many parties involved in this industry, such as liner who are owners of vessels to transport cargo, forwarding company, the manufacture, the seller, the buyer, custom official, trucking company and so on All these parties will cooperate to serve customers by taking cargo from supplier and delivering to the final customer 1.2 Company Background THI Group Viet Nam is one forwarding company, which belongs to a Taiwan Group and was established in 2004 in Ho Chi Minh City Now, it is one of the leading international logistics service providers in Vietnam with branches With almost 150 friendly and professional staffs working in four offices together with a reliable and robust partner network in the world, it serves every single demand of customers’ shipment at any corner in the globe History Timeline 2004 THI Group Viet Nam was founded in Ho Chi Minh City 2005 Set up Ha Noi and Hai Phong Branch 2015 Set up Da Nang Branch Vision THI Group will be a global company, providing professional logistics services, keep creating value for society and its people Mission The mission of THI Group is offering modern, integrated logistics solutions to customers based on the creativity and the ongoing optimization of our operations through our team The main business of THI Group Viet Nam – HCM Branch Ho Chi Minh Office is head office of THI Group Viet Nam, and it provides all logistics services to all customers around the world It provides customs brokerage service to customers In addition, with a global agent network, THI Group is able to provide its clients import and export FCL and LCL services from anywhere to Vietnam or from Viet Nam to any country around the world at most competitive rates Especially, THI Group operates regular import and export airfreight consolidation to and from cities throughout the world using our network Organization Structure General Director Accountant Operation Sales Pricing Admin and HR Department Department Department Department Department Figure 1: Organization Structure CHAPTER II: PROBLEM JUSTIFICATION 2.1 Problem finding process In order to identify the existing problems of the company, the following steps will be executed: - Referring to the reports from the company as well as from Operation Department to collect and analyze data - Conducting the depth interview with the related people, including Operation Manager, Admin Staff, Current Operators and Old Operators to understand the division symptoms and possible problems - Conducting a small survey to get data from a number of employees in three departments: Accounting Department, Operation Department and Sales Department to affirm the existence of central problem in the department - Review the literature and theory, which is relevant to the problem 2.2 Company’s Symptoms 2.2.1 Low Revenue As per information from the previous part, logistics industry is strongly developing in Vietnam, many forwarding companies are founded around the country, they grow very fast from year to year, and below is data about the revenue of five companies in three years: Unit: USD Seq Company 2016 2017 2018 Bee Logistics 8,638,105 9,537,682 9,767,562 Everich Vietnam 7,046,294 8,465,738 8,864,321 VVMV 6,830,976 7,341,986 8,024,673 Eculine 6,793,746 7,145,763 7,737,945 ANC VietNam 5,734,144 6,542,986 7,097,023 Table 1.1 Revenue of logistics companies Source: www.logisticsmgmt.com It can be seen clearly that, the revenue of above companies is increased year by year, these companies have same background with THI Group Vietnam Back to THI 10 ...UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business VU THI BICH HOP FINAL THESIS LACK OF CAREER GROWTH OPPORTUNITY IN OPERATION DEPARTMENT AT THI GROUP VIETNAM HCM. .. case in Operation Department of THI Group Viet Nam Ho Chi Minh Branch with the symptoms are high turnover rate and the declining in revenue of Operation Department There are three main chapters in. .. lead to a problem in Operation Department of THI Group Viet Nam The link between turnover rate and revenue in Operation Department At the end of the day, the issue high turnover rate also has effect