Some solutions to improve the organizational structure in giang nguyen ltd co

1 National Economic University English For Business Department Faculty of Foreign languages Giang Thi My Trang Internship Report Some solutions to improve the organizational structure in Giang Nguyen Ltd.,Co Ha noi – 2010 National Economic University English For Business Department Faculty of Foreign languages Giang Thi My Trang Internship Report Some solutions to improve the organizational structure in Giang Nguyen Ltd.,Co Field code supeevisor English for business studies 701 Ms Nguyen Phuong hoai, m.a Ha noi - 2010 Acknowledgements I verily owe this study to Mrs Nguyen Phuong Hoai, my supervisor Her comments gave me insights that I did not get from my books in my university! Her kindness and understanding were palpable even though we have had much time to discuss I have indeed come a long way to complete this study – I met with many setbacks However, thanks to Mrs Hoai I have chances to reconsider and correct all gaps in before handing in the final draft I also am very grateful to all my lecturers in Foreign Language Department during my last semester in university Thanks to your all devotion I together with all students certainly collect lots of experiences after this internership Table of contents ACKNOWLEDGEMENT EXECUTIVE SUMAR .4 INTRODUCTION .5 CHAPTER 1: A SKETCHY INTRODUCTION OF GIANG NGUYEN LTD.,CO 1.1 An overview of Giang Nguyen Ltd., Co 1.1.1 History & developing process 1.1.2 Manufacturing and marketing situation of Giang Nguyen Ltd., Co in some recent years 1.1.3 Interaction between economic - technological characteristics and its organizational structure 1.1.4 Reality of Giang Nguyen’s organizational structure 11 1.2 Conclusion .14 CHAPTER 2: LITERATURE REVIEW 15 2.1 Organizations and management .15 2.2 Organizational structure and design 17 2.2.1 Work specialization .15 2.2.2 Departmentalization 18 2.2.3 Chain of command 19 2.2.4 Span of control 19 2.2.5 Centralization and decentralization .20 2.2.6 Formalization 21 2.2.7 Organizational design decisions 22 2.2.8 Common organizational designs 24 CHAPTER 3: ANALYSIS AND FINDINGS 26 3.1 Findings of the recent organizational design 26 3.1.1 Low work specialization at Manufacturing Department .27 3.1.2 Centralization at Board of Manager 28 3.1.3 Low Formalization at Sales Department .29 3.2 Conclusion 30 CHAPTER 4: RECOMMENDATIONS 32 4.1 Solutions to improve Giang Nguyen’s organizational structure 32 4.1.1 Focus on specializing works at Manufacturing Department 32 4.1.2 Strengthen administrative labour at Broad of manager 33 4.1.3 Renormalize at Sales department 34 4.2 Other recommendations 35 4.3 Conclusion 36 Conclusion .37 Reference .38 Executive Summary An organizational structure is the foundation of sustainable development of any economic institution The management process, however, is influenced continuously by environmental uncertainty such as political, technological, sociocultural and economic changes Therefore, in order to response simultaneously to unpredictable environment, particularly to the recent Vietnamese economy, reinforcing the organizational structure is related to survival Giang Nguyen Ltd.,Co has been dealing with a dozen of hazards coming from external factors as well as internal ones Whereas, this company has never reconsidered their organizational so that there are much of unsolved stuffs which is restricting the company’s development even an alarming to the survival of this company The staff in some crucial departments were interviewed to dig up the reality of S2M in Giang Nguyen Ltd.,Co Consult the organizational structure of other companies which are running in the same field for working out possibilities of similarity that is a merely own weak point of Giang Nguyen Ltd.,Co The study shows that constraints of the structure are preventing the operation smoothly in Giang Nguyen Ltd.,Co as well as some remarkable achievements previously On the other hand, some factors, namely personnel, marketing and technology are also valued in a combination with the organizational structure The study concludes that the company is suggested reorganizing the structure in cautious consideration ahead because the organizational structure contributes all of activities in per institute They must find out not only problems concerning management from the high position’s views but also from the lower ones who are directly coping with Introduction Consequences of the global crisis (2007-2010) have been affecting overall economy of all over the world in general and in each economic institution particularly The significance of an organizational structure is being put in a consideration than ever before Some people are of the opinion that it is a permanent set in any organization Actually it, in contrast, is one of changeable factors relied on internal and external interaction Obviously, the organizational structure of a company should be required to concord to these varying factors Moreover, when the technology evolution is booming exponentially, reorganizing the structure is becoming more essential to an economic institution The revenue problem as well as the up springing of rivalries have put lots of pressure on Giang Nguyen Ltd.,Co during the recent years Although the structure created some considerable achievements for many years ago, it is also exposing a few of alarming gaps in order to reinforce the stability of this company in unpredictable environment Moreover, remaining an obsolete structure has narrowed most of its operations The research questions will guide the study are: whether can Giang Nguyen Ltd.,Co survive and develop if it remains the current organizational structure? Which factors in the structure are hampering the company’s operation? And how can the company deal with this obstacle? The methodology of this study is observing and analyzing in order to underline the reality of the structure in Giang Nguyen Ltd.,Co Therefore, some annual reports will be collected from the crucial departments in this company Interviewing some staff in all departments is to find out their daily troubles and their own views about Giang Nguyen’s organizational structure Chapter A sketchy introduction of Giang Nguyen Ltd., Co: Chapter one sets the context for which the study is motivated It provides an overview of Giang Nguyen Ltd.,Co as well as its organizational structure It finally identifies and discusses the problem statement and research question.s 1.1 An overview of Giang Nguyen Ltd., Co 1.1.1 History & developing process Giang Nguyen Ltd., Co has officially run in March 28, 1999 and received business registration certificate in August 16th, 2000 as a limited liability company with two members and over No: 0102000998 Transaction name: Giang Nguyen Company Limited Shorten name: Giang Nguyen Ltd., Co Address of head office: No.64, Trieu Khuc Street, Thanh Xuan Distric, Ha Noi City Giang Nguyen Ltd., Co is one of the well-known companies supplying kinds of accessories for some garment & textile factories in Hanoi With initial charter capital: billion VND, the company is trying continuously to widen a range of customers as well as diversifying its marketing Moreover, the company has been affirming gradually its stage in the Vietnamese market over 10 years although there was a hard period of time which reinforced its strength Here are some notable milestones: Year 2000 2002 Strategic Partner 20 Garment & Textile factory, 19-5 Garment factory and Ha Noi Textile & Garment factory 2003 2006 Representative of Itochu cooperation in garment Events Invested a new technology made in Korean: machines producing textile labels continued buying a colors printing machine for printed labels on all typical materials enlarged manufacturing shop in another place 2008 imported a Germany printing machine for printing workshop 2010 tend to relocate all company in the suburban of Hanoi so as to tighten the organizational problems 1.1.2 Manufacturing and marketing situation of Giang Nguyen Ltd., Co in some recent years Although the company registered a wide range of business scope: produce and trade the products of cotton, cloth, fibre, clothing ancillary materials; print, print out the brand, bag and services related to printing (according to the rules of current laws); Trade of printing ink, dye, chemicals (except the chemicals which are banned by the Government); Produce and trade constructional materials; Exporting, importing some goods and so on Only some of these above scopes have been focused on the long- term investments such as almost kinds of accessories together with clothes, printed products on most materials Thanks to owning a relatively cheap labor, lots of Vietnamese garment companies have contracted with foreign partners from many developed countries such as Japan, America and Europe As the result of the development of garment industry, a mess of domestic suppliers have been mushrooming in order to meet the huge demands of garment accessories In fact, the more benefits an economic field makes, the more new companies are established It also means that the pie of being a main supplier of any garment factories is smaller and smaller Giang Nguyen Ltd., Co is coping with its own stage in the field The decreasing marketing share has caused directly the manufacturing situation in the company in some recent years indeed The characters of producing as well as consumption are clearly different from other fields because manufacturing process after receiving an order of customer Thus, pushing consumption stage or marketing a new range of products are completely unnecessary for this typical of the company Table 1: Annual report from the accounting department of Giang Nguyen Ltd., Co (2005 – 2009) Figure in: 1000 VND Norms 2005 2006 2007 2008 2009 1.Annual revenue or Gross revenue Net revenue 3.Contribution to state budget 4.Operating capital Fixed capital 2.689.000 2.709.800 2.800.852 2.087.070 1.530.789 1.002.236 378.851 1.035.700 397.961 1.290.852 414.904 1.000.070 377.806 890.789 300.841 2.167.981 2.590.705 2.300.711 2.904.761 2.300.992 2.904.671 2.378.704 3.290.756 2.401.237 3.502.751 6.Working capital 458.900 721.832 821.467 740.001 602.495 (Source: accounting department) The table shows the revenue of the company considerably dropped in five years (2005- 2009) because it was partly affected by a post- crisis The rate of revenue had got a positively increasing trend but it dramatically plummeted after the collapse of financial market All fields of social life have not avoided of the crisis’ consequences including global garment industry It is one of main reasons that this industry in Vietnam has suffered from a lots of pressures such as: cutting labors, remaining familiar orders, offering the most reasonable price Depending on orders from garment factories crucially the company’s revenue also fell rapidly through each quarter especially in 2009 which was regarded as the hardest period for almost companies It is obvious that manufacturing process is being restricted to prepare a long step after the economic crisis Nonetheless, the number of rivalries is increasing although it has been an extremely difficult stage The majority of the company’s orders has been reduced the quantity depriving from the demands of consumption completely at the lowest rate ever 1.1.3 Interaction between economic - technological characteristics and its organizational structure 1.1.3.1 Consumption market There is a dominant point that the company does not worry how to consume its outputs connecting with consumption market In the others words, it has merely