Communication problems of vietnam airlines andacecook vietnam

1 NATIONAL ECONOMICS UNIVERSITY School of Advanced Education Programs REPORT BUSINESS COMMUNICATION PROBLEMS OF VIETNAM AIRLINES AND ACECOOK VIETNAM Supervisor: Dr Le Thi Thu Mai Class: Advanced Finance 63A Group Lai Anh Dung Nguyen Minh Duc Le Duc Minh Phan Hien Hanoi, May 15th, 2023 Table of Contents CHAPTER I: VIETNAM AIRLINES Company Background Description of the situations 3 a Reason for choosing this situation Lack of Communication Skill (Chapter 1): b Power Distance (Chapter 3) c Business messages errors (Chapter 5) Consequences of the situations .5 Solution Lesson from the case .6 CHAPTER II: ACECOOK VIETNAM Company Background Business Communication Context Description about the situation .8 Reasons for choosing the situations a Business communication obstacles caused by the diversity of cultures among different countries (chapter 3): b Internal communication misunderstanding (Chapter 1) Consequences of the situations .9 Solutions from the case Lessons for the future References 11 CHAPTER I: VIETNAM AIRLINES Company Background Vietnam Airlines (Vietnamese: Hãng Hàng không Quốc gia Việt Nam) or 'Vietnam National Airlines' is the flag carrier of Vietnam The airline was founded in 1956 and later established as a state-owned enterprise in April 1989 In 2015, the airline marked an exceptional milestone to become a joint-stock company Vietnam Airlines, being a state-owned carrier, sets the standard for flight and passenger quality service, particularly as the only airline in Vietnam having a set of requirements for epidemic prevention and control levels during the COVID-19 era 19 Despite refining the brand image, improving in response to societal changes, and developing acceptable standards, Vietnam Airlines continues to experience communication issues in key times, generating major consequences Large losses must be handled meticulously The communication issues that Vietnam Airlines must address are discussed in further detail below Description of the situations From 18 to 28/11/2020, the male flight attendant VNA - BN1342 got the SARS-CoV-2 but did not comply with the isolation regulations, causing the spread of nCov, causing many other VNA flight attendants to be scorned, insulted, and even "assaulted" such as putting cigarettes on their clothes, throwing them raw eggs, After that event, the Customer Service Instructor of VNA - Anh Anna, had a controversial post on her social media account and things got out of hands: In the article with her hashtag #WeApologize, 90% of the post she moaned about her job’s difficulties, mentioned the noble business' destiny and mission with her personal ego and finally gave a somewhat bitter reproach Due to her one-sided and dull point of view, the article created a furious wave to the social media community with thousands of likes, shares and comments Even more, there were other attendants who agreed with the CS Instructor’ post, which was why the image of VNA got worse rapidly 4 Reason for choosing this situation a Lack of Communication Skill (Chapter 1): The writer of the article misspelled the hashtag, from an apology post to a post criticizing everyone Vietnam Airlines should have received sympathy from the community, but because of a personal article, it led to a misunderstanding for a major airline Among hundreds of apologies to be treated civilly, there is one apology that is no different from meritoriousness, promoting oneself, causing the community to lose sympathy with the whole business b Power Distance (Chapter 3) The poster creates a big gap between customers and airlines, with a "superior" nature: “Chúng tơi ai”, “Chúng tơi có trách nhiệm phải làm …” It means to tell them about their suffering and assume that they are obligated to it Too high a personal "me" has made the image of Vietnam Airlines ugly and distant from customers, misspelled the nature of the hashtag: “WeApologize” c Business messages errors (Chapter 5) Business messages: Being negative, competing readers, it makes readers feel negatively about Vietnam Airlines This situation means Vietnam Airlines are not guaranteed about training staff carefully before publishing information in relation to the corporation Consequences of the situations Firstly, this incident has damaged VietNam Airline's image with customers, especially loyal customers who have supported the company for a long time This incident is considered as an excuse for many people to raise discrimination and urge company boycotts Secondly, the reputation of a woman posting the blog will be impacted The impression and pretty image of VNA employees which had been built up before got worse after this event Solution Due to the unexpected consequences, this problem seems to be an expensive lesson for VietNam Airlines, especially in the way of communication that needs some notes to address They need to excuse and justify the problems VNA needs to be more responsible and cautious with its statements They should consider it in accordance with the general context of society combined with the difficult context that the airline is facing However, the problem belongs to the company's responsibility, the company needs to show more sincerity in the way of admitting mistakes and fixing mistakes in the future  For communication, VNA should revise restrictedly before publishing information related to the reputation of VNA 6  For problem solving, they should deal with them immediately to reduce the detrimental outcomes and avoid misunderstanding  For training: The staff need to be trained about attitudes towards what they are about to to avoid corporation misunderstanding, try to be positive and not criticize or complain towards a wave of community  Be quiet or be a victim to have sympathy from customers Lesson from the case Firstly, the development of society has led to the explosion of social networking platforms It is a double-edged sword, both an opportunity and a challenge for any company or brand that uses it Thus, the company's representative and spokesman as well as all employees must have a close agreement when expressing on social networks Hence, it's a lesson in speech Secondly, the lesson for corporations in speech during the crisis: Sincerity, honesty, immediacy, and reciprocity are the ways to regain image and reputation Therefore, make sure to be precise and comprehensive in every action towards clients and media 7 CHAPTER II: ACECOOK VIETNAM Company Background Acecook Vietnam Joint Stock Company was established on December 15, 1993 and officially came into operation in 1995 Nearly 30 years of establishment and development, Acecook brand has constantly grown to become a food company leading synthetic, always standing firmly in the Vietnamese market Up to now, Acecook Vietnam Joint Stock has continuously grown to become a leading general food company leader in Vietnam with a strong position in the market, specializing in providing high quality and nutritious instant products Our group will discuss further details regarding the brand crisis that threatened the Acecook’s reputation and provide solutions to solve communication crises as well as to restore brands and production and business 8 Business Communication Context A brand crisis is any situation that threatens the stability or reputation of a business and is often caused by negative public scrutiny Therefore, businesses need to pay special attention to building solutions to solve communication crises as well as solutions to restore brands and production and business Description about the situation The crisis which damaged Acecooks’ credibility and reputation began on August 20, when the website of the Food Safety Authority of Ireland (FSAI) posted a notice to recall a number of batches of instant products including Hao Hao noodles due to the presence of banned substances Ethylene Oxide, is in Group 1B for mutagenic carcinogenicity and reproductive toxicity, and in Class for acute toxicity by the Council of Europe, this is a substance not allowed to be used in food sold in the European Union (EU) and the FSAI has issued a recall warning for these batches Accordingly, the distributor in Ireland will stop the sale and notify at the point of sale of the recall of the sold product Consumers can return purchased products and receive a refund according to the invoice Not a decision to ban sale or force destruction 9 Reasons for choosing the situations a Business communication obstacles caused by the diversity of cultures among different countries (chapter 3): The FSAI posted an announcement for recalling many batches of products of Hao Hao Chicken Flavour Instant Noodles due to the presence of the unauthorized pesticide ethylene oxide This pesticide is not authorized for use in foods sold in the EU Meanwhile, in Vietnam, ethylene oxide (EO) is not mentioned in the ban list of prohibited chemicals used in the production process Due to lack of research about EU policy and standard, AceCook’s products have been recalled The company has to stop producing these types of noodles and the plan to enter the EU market of AceCook has also been canceled b Internal communication misunderstanding (Chapter 1): The organization structure of Hao Hao is known as the department structure, this creates challenges in the communication process between the internal departments In this case, the marketing department cannot possibly communicate with the product department regarding the 10 sharing of such information about product quality As a result, export products did go through the quality accreditation but with the standard of Vietnam not EU Consequences of the situations The reputation and credibility of AceCook Vietnam was affected in a negative way This tendency not only forced other products of the companies in the EU market to examine but also lowered the preference of customers since Europeans care a lot about biological safety This led the company to stop exporting packed noodles to the EU market Also in Vietnam, regarding the core market, consumers were expressing their worries about the quality of Acecook products, especially Hao Hao noodles Vietnam at that time witnessed a trend of boycotting Hao Hao noodles As a result, the revenue of the companies experienced a fall during this period of time as the Vietnamese government conducted examinations on domestic AceCook products and the company had to face the risk of legal liabilities Solutions from the case Acecook has coordinated with the authorities including holding press conferences, posting information about the happenings; give clear explanations of products and taking actions to bring to a quick conclusion of a case with a sincere, learning attitude Thereby, somewhat temporarily "calming" public opinion, reassuring consumers while waiting for product test results, and also showing professionalism in the communication process of a long-standing brand Acecook also needs to guarantee the training process with their employees in order to avoid internal communication misunderstanding in case of another further crisis Moreover, not only lessons for Acecook, searching strictly for information must be required before exporting products into other markets, especially difficult markets such as the EU market Lessons for the future In order to export the products to foreign markets, research on foreign markets should be conducted carefully before entering any unfamiliar environment including: Policies, consumer’s preference, competitors, All of the criterias need to be studied appropriately in order to achieve the best business goals Businesses also need to be transparent about information to handle communication crises It is not simply an apology, but above all, showing sincerity and sympathy is what a business must Let alone the fix bugs, businesses also need to better respond to both consumer preferences and market requirements Businesses not need to hesitate to interact with customers to handle problems Instead, that quickly to enhance customers’ experiences This will make customers not lose faith in the brand 11 that the business is creating Finally, businesses always need to maintain good relations with information and media units so that all case information is reported as quickly, transparently and objectively as possible 12 References Nguyễn, L N (không ngày tháng) The description of the Acecook situation HOT Case Study Notes, L (2020, 12 5) The controversial media post of the CSI of VNA ĐưYc truy lZc t[ spiderum.com: https://spiderum.com/bai-dang/WeApologize-Nu-tiep-vien-truongcua-Vietnam-Airlines-co-dang-bi-chi-trich-w2e Vy, N (2021, 6) Từ kiện “Hảo Hảo”, doanh nghiệp cần hành động để vượt qua khủng hoảng thương hiệu ĐưYc truy lZc t[ phapluatbanquyen.phaply.vn: https://phapluatbanquyen.phaply.vn/tu-su-kien-hao-hao-doanh-nghiep-can-hanhdong-gi-de-vuot-qua-khung-hoang-thuong-hieu-a555.html/ Wikipedia (2023) ĐưYc truy lZc t[ wikipedia.org: https://en.wikipedia.org/wiki/Vietnam_Airlines