Untitled MGT103 Group Assignment Introduce Management (MGT103) 0 0 Tieu luan Ho Chi Minh, 3rd July 2021 GROUP ASSIGNMENT FPT University Course MGT103 Class MKT1602 Group 2 Member’s information Student[.]
MGT103 Group Assignment Introduce Management (MGT103) 0 Tieu luan Ho Chi Minh, 3rd July 2021 GROUP ASSIGNMENT FPT University Course: MGT103 Class: MKT1602 Group Member’s information Student Code Full Name SS160412 Hoàng Trung Kiên SS160605 Nguyễn Phương Trang SS160013 Nguyễn Nhã Quỳnh SS160640 Lê Trung Tín SS160688 Lê Văn Nguyên Khánh SS160301 Bàng Kim Bảo Hân 0 Tieu luan TABLE OF CONTENT INTRODUCTION GOOD ACTION 2.1 Context 2.2 Specific Action 2.3 Explanation 2.4 Analysis of action 2.5 Affect related parties 4 5 BAD ACTION 3.1 Specific Action 3.2 Explanation 3.3 Analysis of action 3.4 Affect related parties 9 12 UGLY ACTION 4.1 Context 4.2 Specific action 4.3 Explanation 4.4 Analysis of action 4.5 Affect related parties 14 14 15 15 16 18 CONCLUSION 19 REFERENCES 20 0 Tieu luan THE GOOD, THE BAD, AND THE UGLY OF VIETJET INTRODUCTION VietJet Air is a minimal expense airline company based in Vietnam and also provides consumer needs for goods and services using e-commerce platforms They are the first private airline to be established in Vietnam They successfully got announced as a member of the International Air Transport Association (IATA) and got the IOSA Certificate Vietjet's campaign began in December 2011,with the help of their principal investors: T&C, Sovico Holdings, HD Bank they had successfully launched three A320 planes serving in HCM City and Da Nang After numerous attempts, they successfully expanded their service across Asia in 2012 Eventhrough Vietjet just established in 2012, there are a lot of good ratings about Vietjet: AirlineRatings.com rated them as one of the top airlines in the world, giving them a 7-star rating Vietjet was previously promoted with the title “The best low-cost airline in 2018 - 2019” by AirlineRatings.com Vietjet Air was named one of the top 50 aircraft in the world for service in 2018 by Airfinance Journal Magazine They currently own 80 A320 and A321 airplanes, fly more than 385 flights per day, and successfully transport more than 65 million passengers, with 105 domestic and international flight routes to Japan, Hong Kong, China and other destinations Vietjet is also seeking to expand their flight network to cover Oceanic locations Vietjet Airways entered a long list of Vietnamese companies valued more than 0 Tieu luan $1 billion after its initial public offering on the HCM City Trading Floor Also it's worth mentioning that the company's IPO had been the largest in Vietnam's history, with a market capitalization of US$1.43 billion by the end of the day Their service benefits alot for their customers such as: cargo service, service for luggage, service of seat selection, service for quick check-in, supportive service for people with disabilities, service to make goods Tax-free GOOD ACTION The definition for good action is a business or social initiative that helps both the firm and the community For a huge corporation, good works are more honorable and influential, especially when it comes to promoting social welfare And it would be preferable if they emphasized national pride and cultural traditions, as well as creating value for both the business and the impacted parties 2.1 Context The Central region suffered 13 consecutive tropical storms, causing the worst floods and landslides in the past 100 years Massive floods and landslides in five central provinces of Vietnam have put more than 1.5 million children at risk of disease, poor nutrition and developmental delays At least 135,000 families have been directly affected in some communes with flood water levels as high as 2m and more than half a million people without clean water As a result, nearly 1.2 million students are currently absent from school and their education is disrupted The opportunity to immediately carry out relief operations is not much because another storm is forecasted to come from similar waters and may make landfall in the coming days 0 Tieu luan 2.2 Specific Action In the situation of complicated floods, individuals and organizations have made great contributions to charity activities for disadvantaged people in the Central region, Party and State agencies, organizations and social organizations have also sent donations to the flood area and call for people to help the central region But because of difficult geographical conditions, there are many people who want to help but not know how Vietjet has created flights to send people's clothes and food to the central region At the same time, it also helps passengers with flights to the central region by reducing ticket prices and giving free returns Vietjet Air has launched the campaign “ Flights for love” to help the Central of Vietnam.” 2.3 Explanation In order to share the difficulties and losses for the people in the Central Region after the flood, General CEO Nguyen Thi Phuong Thao launched the campaign with the desire to help the people there Flooding is a serious problem in the country Vietjet became the first airline to act decisively and radically to help This was a good action at the time 2.4 Analysis of action By the parallel use of the two concepts Decision Making and Diagnostic Organization Vietjet became the first airline in donating and supporting the people At the same time, using the definition of Project Management, Vietjetair have strictly followed the roles to materialize their plan Actions that benefit society: To deploy resources, Vietjet Air President Nguyen Thi Phuong Thao was the first to participate in the charity program In the South, leaders also began to 0 Tieu luan participate in charity activities, in the North, they also actively responded to situations (with a total donation of 400,000,000 VND) They have started to carry out a number of activities such as helping to free freight and prioritize the fastest transportation on Vietjet Air flights departing from Ho Chi Minh City, Hanoi to reach people as quickly as possible (more than 24 tons of supplies and 2,000 support boxes for free), spend a part of ticket sales to support people - for each ticket sold, they deduct 10,000 VND to support the program The airline also offers free air tickets to officials of the Vietnam Fatherland Front at all levels and local People's Committees moving to and from the Central region to carry out relief missions during this period Create an exchange policy for free airline tickets with unlimited number of times, only the fare difference (if any) A representative of Vietjet Air said that right from the first day of the flood, Vietjet Air launched the program "Swing wings with love, with Vietjet regarding the central flood area", mobilizing all officers and employees to donate money Directly at all of the company's offices nationwide and internationally Donations will be given by a dedicated team of Vietjet Air to the people in the central region Actions that benefit the company: Building the brand "low-cost airline", Vietjet now continues to strongly reduce prices to support people in the central region, while thoroughly promoting the ticketing market and also bringing in a huge amount of profit Vietjet Air is one of the pioneering companies in supporting and helping the people in the Central region What makes the company able to act so quickly and decisively is thanks to the two concepts of Decision-Making and Organization Diagnosis It is easy to see that the situation of storms and floods in Vietnam is not unexpected Therefore, Vietjet's Diagnostics Department has foreseen this risk and 0 Tieu luan set up a number of campaigns and reports to ask for permission to keep a certain source of money for bad cases Through data analysis and identification, Vietjet has been extremely successful in following the key steps in a diagnostic cycle including goal setting, data collection, planning and execution After identifying the target risk as the upcoming flood season, the company simultaneously collected data and analyzed - very essential as it can diagnose and plan growth, diversification the analysis also shows the strengths as well as the weaknesses that need to be eliminated for prevention Because no company can afford to pay and create a support campaign with a loss of money if they not plan in advance It is also thanks to the analytical ability that Vietjet can come to the second concept of Decision Making Through reviewing the data and history of risk handling, Vietjet conducts an internal assessment, considers whether the company has dealt with the flood season and succeeded or failed In addition, they also assessed from external sources and found that this flood season is larger than previous years, the damage will be more terrible Only then can specific and effective decisions be made After planning and making decisions, Vietjet acted as soon as possible so that the campaigns could achieve maximum effectiveness as well as bring significant benefits to the community By using a combination of two management concepts, diagnosis and decision making, combined with a project management model Vietjet was ready to lose a huge amount of money to set up the campaign This requires assertiveness and the ability to take risks However, Vietjet has been extremely successful in promoting the brand Because of the extremely difficult economic situation at that time, Vietjet was the first airline to reduce ticket prices, which made people choose Vietjet more, 0 Tieu luan promoting purchases by making each ticket beneficial for everyone in Central It is by hitting the customer's psychology that they want to something useful for society In just a short time, Vietjet has earned profits as well as social benefits 2.5 Affect related parties The campaign has motivated other businesses to participate, motivating them to participate in the work of helping people in the central region, creating benefits for the community as well as customers of Vietjet At the same time, this campaign demonstrates the traditional spirit of Vietnam of always helping each other Bring benefits to Central Vietnam, improve many lives and overcome difficulties Vietjet has also built a good image and brand name Become an airline with brand recognition up to 98% BAD ACTION A bad act of a business is defined as an act that negatively affects the interests of related parties (partners, competitors, customers, etc) and the interests of the business itself (image, revenue, reputation, etc) Bad actions can bring short-term benefits to the business but will have long-term consequences 3.1 Specific Action At the beginning of 2020, the public was agitated and angry about the ticket sales policy that Vietjet Air misappropriated the ticket money of customers by opening and selling many flights to collect customers’ money Vietjet Air canceled the flight when the flight date was near After that, they set up a new flight with a different time frame, code, with a higher price 0 Tieu luan 3.2 Explanation Vietjet announced that: “Vietjet has urgently adjusted the flight schedule, increased chartering of hired aircraft, to serve the needs of customers However, due to the delay in the delivery time of the aircraft by the manufacturer and the strategic partner, it still affects the operation of the company Several other flights were affected.’’ However, there are many things that mention the opposite Thus, the cancellation is according to Vietjet Air's schedule, so when the flight is canceled, the airline has an obligation according to the provisions of Clause 5, Article 145 of the Law on Civil Aviation of Vietnam, implemented in 2014, In the case that due to the fault of the carrier, the passenger has been confirmed to have a seat on the flight but cannot be transported or the If the flight is canceled or the flight is delayed for a long time without prior notice by the carrier, the carrier is responsible for performing the obligations specified in Clauses and of this Article and must pay an advance compensation amount which is non-refundable for passengers 3.3 Analysis of action This decision of Vetjet was made based on steps in Rational of Decision Making To begin with, Vietjet made its first step, which is recognizing and defining the decision situation Because of the Covid-19 virus, the government has brought out the policy of social distancing The amount of international flights and domestic flights decreased abundantly This makes people unable to join the flights as regularly as before In December of 2019, more than 45,000 flights were canceled or delayed Vietjet has more than 23,000 delayed flights In addition, Vietjet has to pay for other maintenance costs VietJet has 75 A320, A321 aircraft, it is estimated that the amount it has to pay can be up to about 20 million USD/month Secondly, Vietjet identified their alternatives Vietjet’s possible alternatives: plan 0 Tieu luan up a marketing campaign and make the customer pay extra for the booked flight If Vietjet wants to plan up a marketing campaign, creating promotions is worth considering For example, Vietjet can create some discounts on the price of their flight tickets In addition, Vietjet can some advertising in order to attract more customers For instance, Vietjet can bring their image to televisions to attract people’s attention One the other hand, Vietjet can make the customer pay extra for the booked flight The scheme is to sell tickets at a cheap price, then close to the flight time, cancel the flight and set up a new flight in the same time frame with a higher price Customers can only choose to add money for a new flight instead of waiting for a refund and book another airline's flight The third step is to evaluate these alternatives First, Vietjet has to think about the marketing campaign Planning up marketing campaigns can attract new customers This may increase the number of customers that use Vietjet’s services However, this can lead to some negative consequences Social distancing is a substantial problem for Vietjet In Vietnam, people not even want to go out because of the social distancing policy Moreover, the government also reduced the amount of flights on every airline Furthermore, costs for marketing campaigns such as advertising and promotions,etc, will increase input costs and reduce output profits In addition, Vietjet has to evaluate the action of making the customer pay extra for the booked flight: This is an optimal solution in the short term Businesses will not have to spend a lot of money for flight cancellations, but they will gain more profit from the extra money that customers must pay for new flights in the same time frame Customers only have two options: the first is to accept the extra cost for the new flight at the same time, or the second is to cancel the ticket and pay a larger amount for another airline’s flight and wait for the refund from Vietjet However, the 10 0 Tieu luan refund period is not instant, so instead of paying a larger amount for another airline's flight, customers often choose to pay a smaller amount for a new flight with the same time frame as Vietjet However, this solution carries risks in the long run Using this action will often reduce customer loyalty and negatively impact brand value Next, Vietjet selected their best alternative During the period of social distancing and government restrictions on flights, the second solution will bring more benefits to business Because of social distancing, investing in marketing plans to increase customer demand will not be highly effective due to the fear of contracting the Covid-19 virus during the flight The cost of the marketing campaign is also very large This is low efficiency and expensive In contrast, Using the strategy of selling tickets with a low price and then cancelling the flight when it is close to the flight day to sell new tickets at a higher price would be effective even though the number of customers is low This is because Vietjet’s target customers are people who really need to join the flights They are willing to pay more money to use Vietjet’s services The next step of Vietjet is to implement the chosen alternative The implementation process includes steps To begin with, Vietjet made specific plans ( implementation process, risk response plan, implementation cost, legal, ) , and distributed them to relevant developments to coordinate implementation Secondly, Vietjet started selling tickets with preferential prices The third step is to issue a cancellation close to the date the flight takes off Next, Vietjet saled new tickets at the same time slot but at a higher price The following step was that Vietjet got profit from the extra money customers pay for new flights For customers who cancel tickets: the amount paid for the canceled flight will be directly deducted from the fare for the next purchase (within 360 days) or refunded within 90 days Finally, the 11 0 Tieu luan departments coordinate to control the situation, evaluate the effectiveness of the implementation plan The bad of the action is clearly proof in the evaluating process, which is the last step Insurance is required to prove that the chosen alternative has served its original purpose Vietjet compares the result with the two original goals Short-term goal is to quickly increase the revenue of Vietjet in the pandemic time Side by side, the long-term affection is that this action from Vietjet is not against the law but it created a bad image of Vietjet to the public This had decreased the amount of loyal customers and potential customers of Vietjet Therefore, the revenue would be decreased in long-term business 3.4 Affect related parties Consequences in Internal Environment: The first audience affected are the owners (Business Owners) Vietjet's actions have had a negative impact on Vietjet's image, and at the same time reduced the value of Vietjet's shares This directly affects the owner's assets Same as the owners, the assets of the board of directors are affected because they are the owners of the shares The next affected object is employees When the incident happened, Vietjet's staff, especially the Customer Service department, were seriously affected, they had to deal with thousands of calls from customers In addition, the Public Relations department also had to work harder than usual because of pressure from the management and the press Employees face the challenge of balancing business profitability and customer satisfaction Consequences in External Environment: The first is the impact on competitors This bad action causes customers to lose 12 0 Tieu luan confidence in Vietjet, leading to the decision to choose to use another company's services This bad image adversely affects Vietjet in particular and the aviation industry in general People may lose their trust in other companies such as Vietnam Airlines, Jetstar Pacific, Bamboo Airways, Customers are affected because they are the ones who pay to buy the organization's products or services The cancellation of tickets close to the flight time affected the schedule they had planned In addition, customers will have to pay extra money to take the same flight Vietjet's solution and refund process not satisfy customers Moreover, when demand for flights decreases, the number of flights also decreases Therefore, the brand will cut production costs, affecting the supplier's revenue In this case, the regulatory agencies are most affected because they have to come up with a solution for the bad action of Vietjet In addition, Interest groups can apply consider- able impact by utilizing the media to consider Vietjet's actions to protect consumers' interests This action also created an impact on strategic partners Because of the Action, customers would lose their trust in Vietjet and other companies in avigational industry which lead to a decrease in the number of people buying flight tickets on online platforms These platforms, which are strategic partners of Vietjet, will lose a substantial number of customers UGLY ACTION An ugly action of business is described as an activity which is conscious, systematic, and ethically reprehensible These acts provide the benefits that companies desire 13 0 Tieu luan and assist businesses in achieving their objectives, but they also leave them with disadvantages in all aspects 4.1 Context On January 26, Vietjet Air announced that it would send a special plane to Changzhou to welcome the national team back home half a day earlier than planned With the request from Vietjet, the Vietnam Football Federation sent an official letter to the General Department of Physical Education and Sports, requesting to cancel the flight ticket for the Shanghai - Hanoi route previously booked at Vietnam Airlines The players in the U23 Vietnam team will have to move earlier than expected and have a shortened rest time to recover after the dramatic final match in extreme weather conditions In the same extreme, they were almost exhausted physically That situation makes them feel tired and in need of rest Witnessing the scene of a forest of people stretching up to 30km with colorful flags waiting for Vietnam U23 players to return from Noi Bai airport, you will see the longing, hope, joy of the fans That is the beginning of the UGLY of Vietjet Airways 4.2 Specific action As usual, every time there is a special event, Vietjet often puts sexy bikini beauties on the plane to perform to welcome visitors, which is quite meaningful Model Lai Thanh Huong dressed sexy, walked around hugging members of the U23 Vietnam team on the plane booked by the airline Classic and pompous in a foreign land, the players are especially embarrassed to turn away, not wanting to be disturbed, which is actually an image that makes "half of the world" extremely angry to the belief The news is criticism on social networks, especially showing more clearly how delicate criticism on social media is for that unprofessional act of Vietjet 14 0 Tieu luan 4.3 Explanation In fact, Vietjet wants to celebrate the glorious victory that the national team brought home The fact that a model dresses sexy, walks around, and hugs the shoulders of the members of the U23 Vietnam team on the plane is really offensive, not suitable for Vietnamese culture and way of thinking First, not the right time With the miraculous feat of reaching the final of the Asian U23 Championship, the coaching staff and the boys of the U23 Vietnam team have become heroes in the hearts of millions of Vietnamese Fans' hearts were devoted to U23 Vietnam members on social networks Those sensitive images are making fans feel uncomfortable and even offensive to them And of course they will not easily ignore that incident, thereby creating a wave of criticism on newspapers and social networks Secondly, the main character is the U23 players of Vietnam after a series of stressful matches, both mentally and physically are in a very tired state, accompanied by a little regret for losing the championship in the final minutes of injury time of the match At that time, their biggest wish was to quickly return to meet their family, to join in the wonderful atmosphere with the fans back home with their glorious victory in the snow and rain match at Truong Chau 4.4 Analysis of action During the process, Vietjet has recognized and defined the decision situation Decision making can refer to either a specific act or general process The decisions made when Vietjet decided to release these ads It is important to create assessment criteria in order to compare and pick the best alternative The fact that Vietjet congratulates them shows that Vietjet has done a good deed - A marketing strategy that makes a good corporate image Because this action was carried out the 15 0 Tieu luan wishes of Vietnamese people that football players went to Vietnam by the national airline Vietjet demonstrates fan responsive methods to win customers' trust Vietjet's selection evaluation method has research and foresight to the media Among many options to branding such as storytelling, leverage images of high influencers, enhance the attractiveness of the crew, take advantage of the images of politicians, increased services at the transit airport, using robots, leveraging the diversity of communication platforms,… To emphasize the business's identity, all companies focus on generating media content that is completely delivered through social media The heat of beauty is something that can resonate in the media segment This led Vietjet to choose a way to increase the attractiveness of the crew so potential customers would notice them When Vietjet evaluated alternatives,they found that having an attractive crew would bring many benefits to them To select the best alternative, Vietjet has reviewed and selected their strengths - Their crew are young, professional, and eager Their target audience is young, dynamic people who often travel, so they choose the marketing plan of enthusiastic and hot young people Media has a great influence on all social issues Communication affects the perception of customers, from perception to the attitude and buying behavior of the public When a customer's behavior or word of mouth is repeated over and over, it will become a routine and become habits Customers will think about Vietjet first when they intend to travel by air Consequently, Vietjet will have more profit from ticket sales and services at the flight lounge Vietjet chooses an explosive option that can bring high communication efficiency However, Vietjet's communication strategy made a big mistake At the time of considering the options, Vietjet did not carefully choose the option that brought a high communication effect but left a negative impression for the community This 16 0 Tieu luan strategy ignores an important cultural factor that any marketer must worry about when entering a new market on the scale of a country Vietjet’s strategy violates morality, pure customs and traditions This is a very important issue, especially Southeast Asian countries like Vietnam In social life, there are many issues that have not been regulated by the law There are actions that are not prohibited by law but are still considered immoral, contrary to pure customs and traditions and condemned by society because pure customs are a very important measure in society, preserving a good lifestyle, moral conception and social order This plan is ugly because it uses a bad image (hot flight attendant), leading to people having a bad impression and will not choose Vietjet to accompany their flights On the media side, the press always captures important events from small events to big impact events Vietjet is building its bad reputation with domestic and international tradition Vietnam is a country with beautiful customs and habits dating back thousands of years and the bikini outfit of Vietjet's flight attendants is not suitable for Vietnamese customs and traditions 4.5 Affect related parties The first effect is the image aspect of the company This caused the company's brand to face many obstacles The event created a lot of controversy in the media Vietjet was fined 40 million VND and received a written warning for violations by the government As for the company's partners, receiving a lot of criticism has made partners have a different view of Vietjet Partner corporations will not appreciate the value and potential of Vietjet The entire staff of a company's advertising department can be held responsible for advertising content because of the lack of professionalism and mistakes in the strategy This has made Vietjet unprofessional in organizing and 17 0 Tieu luan building strategies For the partners, to doubt and not appreciate the company's business strategy and direction Vietjet will lose the opportunity to cooperate with potential partners to develop Vietjet will lack investment capital from those partners Vietjet used to be a good company in Vietnam so customers will be unsatisfied if there is any ugly action This content is not suitable for the viewers Some people will take this as a reason to criticize Vietjet's advertising department Customers will look for better choices and Vietjet may lose a number of potential customers For competitors in the same class, this could be a good opportunity for competitors such as Vietnam airline or Bamboo Airways More specifically, as mentioned, customers tend to look for better options After the Vietjet’s scandal, customers are looking for other professional image brands Taking advantage of that opportunity, the company's competitors will offer better incentives or services to meet their needs to attract a large number of customers Increase your chances of getting more potential customers in the future In addition, other competitors can cooperate with major partners that Vietjet has lost the opportunity to cooperate with CONCLUSION To sum up, for an action to be considered good, it must meet the criteria of the company's interests and bring benefits to society In this case, Vietjet anticipated risks and prioritized social welfare as an important mission However, making wrong decisions have created bad action for Vietjet and left a huge damage on the reputation, revenue of Vietjet in particular and the whole aviation industry in general They were criticized for their profit-maximizing strategy of canceling flights and replacing customers with higher-priced tickets It can be said that one wrong step in the process of decision making can lead to a bad action On the other hand, the ugly action occurred when Vietjet was taking The National football team back home but in 18 0 Tieu luan a wrong way Exploiting the most popular topic of a nation is good but Vietjet used the image of models dressing inappropriately has ruined the whole campaign, which results in getting criticized on many public communications REFERENCES GOOD ● Vietjet Air provides free transportation of relief goods and gives tickets to officials to flood areas Available at: https://bnews.vn/vietjet-air-van-chuyen-mien-phi-hang-hoa-cuu-tro-tang-vecho-can-bo-den-vung-lu/175035.html ● Vietjet Air offers free unlimited ticket exchange for customers going to the Central region Available at: https://bnews.vn/vietjet-air-doi-ve-mien-phi-khong-gioi-han-cho-khach-di-denmien-trung/175324.html ● Airlines "energize" the central region - Nhan Dan Newspaper Available at: 19 0 Tieu luan ... 20 0 Tieu luan THE GOOD, THE BAD, AND THE UGLY OF VIETJET INTRODUCTION VietJet Air is a minimal expense airline company based in Vietnam and also provides consumer needs for goods and services... you will see the longing, hope, joy of the fans That is the beginning of the UGLY of Vietjet Airways 4.2 Specific action As usual, every time there is a special event, Vietjet often puts sexy... attention One the other hand, Vietjet can make the customer pay extra for the booked flight The scheme is to sell tickets at a cheap price, then close to the flight time, cancel the flight and set