(Tiểu luận) topic a study on the financialsustainability of social enterprisecyberkid vietnam

Outsourcing Cost for Design and Product Development: To ensure high-quality Trang 21 In summary, CyberKid's revenue streams are diversified, encompassing product sales,consultancy servi

FOREIGN TRADE UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION

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MIDTERM INTERNSHIP REPORT

Major: International Business Administration

TOPIC: A STUDY ON THE FINANCIAL SUSTAINABILITY OF SOCIAL ENTERPRISE

CYBERKID VIETNAM

Submission Approval Student Name: Nguyen Lam Phuong

Student ID: 2012250056 Class: English 01 Batch: 59 Instructor: PhD Nguyen Thi Khanh Chi

Ha Noi, August 2023

TABLE OF CONTENTS

INTRODUCTION 3

CHAPTER 1: COMPANY OVERVIEW 4

1.1 History of Formation and Development 4

1.2 Organizational structure 6

1.2.1 CyberKid organizational structure chart 6

1.2.2 Functions of departments 7

1.3 Overview of business activities 13

CHAPTER 2: FINANCIAL SUSTAINABILITY IN CYBERKID VIETNAM 15

2.1 Current financial situation in CyberKid Vietnam 15

2.1.1 Financial sustainability in social enterprises 15

2.1.2 Overview of the revenue stream and cost of CyberKid 16

2.1.3 Analysis of financial situation of CyberKid products 19

2.2 Financial strategies assessment in CyberKid Vietnam 21

2.2.1 The advantages of strategies in financial aspect 21

2.2.2 The disadvantages of strategies in financial aspect 23

2.3 The cause of financial unsustainability in CyberKid 26

CHAPTER 3: RECOMMENDATION TO IMPROVE FINANCIAL SUSTAINABILITY IN CYBERKID VIETNAM 28

3.1 Business development orientation 28

3.2 Suggested solutions to enhance financial sustainability in CyberKid 29

3.2.1 Review and simplify financial request & tracking process 29

3.2.2 Re-conduct market analysis and customer segmentation 30

3.2.3 Review marketing and sales strategies for educational products 30

3.2.4 Develop more customize packages for sponsorship 30

3.2.5 Analyze on new legal status in order to diversify funding 31

Social enterprise stands as a formidable force in modern business, driven by the dualpursuit of addressing societal challenges while maintaining financial viability As anadvocate for sustainable development and positive change, I have chosen to explore thetopic of financial sustainability in social enterprises, aiming to uncover the strategiesthat enable these transformative organizations to thrive over the long term The allure

of social enterprise lies in its ability to harmonize profit-driven motives with altruisticendeavors; thus, understanding how these ventures strike the balance betweengenerating revenues and reinvesting them to fulfill their social missions is ofparamount importance This report will delve into critical aspects, including innovativerevenue supporting social initiatives and efficient resource management for lastingviability By examining their financial health, growth patterns, and resource allocation,

we gain profound insights into their impact-driven strategies, ultimately contributing tothe discourse on responsible business practices and highlighting the potential of socialenterprises as agents of enduring, positive change in our global society

However, it is important to emphasize that, owing to privacy restrictions andconfidentiality concerns, I, as a Partnership Development Executive, do not haveunrestricted access to the complete dataset pertaining to the company The dataprovided in the subsequent discussion has been approximated and rounded up forillustrative purposes Additionally, it is worth noting that certain data points maypertain to the previous quarter, and the current figures might vary from those presentedherein Despite these limitations, I will endeavor to present a thorough and insightfulanalysis based on the available information, aiming to provide valuable insights intothe subject matter

Chapter 1: Company overview

1.1 History of Formation and Development

CyberKid Vietnam was founded in September 2020 by Ms Quynh Nguyen-Nhu –master of public policy at the National University of Singapore During her universitytime at the Diplomatic Academy of Vietnam, she went to more than 10 underdevelopedand developing Asian countries, participating, organizing, and operating more than 50non-profit educational projects for children This experience has become a strongmotivation for her to establish CyberKid Vietnam in the context of the rapidlyincreasing situation of child abuse in cyberspace - an undesirable consequence of themassive development of technology

CyberKid Vietnam is a not-for-profit social enterprise with 100% ideas initiated andoperated by Vietnamese people, being launched to support and protect more than 24million Children in cyberspace, as well as equip Children and Young adults with digitalcompetence

Vision: To inspire a responsible, talented, and healthy generation of digital

citizens to take ownership of their own future and devote themselves to society

Mission: To enhance Internet safety awareness and skills as well as to equip

digital competence for Children and Young Adults to ensure their digitalreadiness

Action: (1) Equip Children and Young adults with essential skills to identify,

prevent and cope with cyber threats and (2) Develop digital competence forChildren and Young adults to confidently approach and engage in futurelearning and working opportunities in the digital economy and society

Vietnamese children have been using the Internet unsafely for many years due to thelack of proper guidance from schools, families, and government agencies Therefore,our CyberKid ecosystem applies the logic of the Change Management Model(ADKAR) to design solutions for children with the ultimate goal of helping them

change this online negative consumption habit Each product will serve a different goal

in the model described as follows:

Source: CyberKid VietnamFigure 1 CyberKid Ecosystem

There are some outstanding milestones during 3-year operation of CyberKid Vietnam

as following:

- 09/2020: Social Enterprise CyberKid Vietnam was founded

- 11/2020: CyberKid obtained official legal status as CyberKid Vietnam SocialJoint Stock Company with business code 0105900696 At the same time,CyberKid launched the first solution for Schools - CyberSchool

- 12/2020: CyberKid launched 2 solutions for Children and Cyber Victims,respectively - CyberClass and CyberHotline

- 03/2021: CyberKid appeared for the first time on National TV news programVTV1 as “pioneering organization to protect children in cyberspace

- 10/2021: CyberKid launched the “Nationwide Internet Safety classes” project in

5 Northern mountainous provinces

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Current situation of exporting in Tan Ph…

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Internship Report 7.2021 - Đào Minh…

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- 04/2022: CyberKid launched the “Nationwide Internet Safety classes” project inthe Southern region.

- 07/2022: CyberKid officially established a new branch in Ho Chi Minh city

- 10/2022: CyberKid collaborated with Meta Platform, Inc to organize SafetyCafé Vietnam with the purpose to enhance cyber safety awareness forVietnamese users, especially Young Adults

- 12/2022: CyberKid officially announced the rand update with the aim of raising

12 awareness and providing Vietnamese Children and Young Adults withessential cyber safety skills, as well

as equipping them with competence and ensuring digital readiness

05/2023: CyberKid launched a for-profit solution for Vietnamese families calledDigital competence box CyberHome

1.2 Organizational structure

1.2.1 CyberKid organizational structure chart

The figure below shows the CyberKid structure which will be explained moredetailedly in the next part

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Source: CyberKid VietnamFigure 2 Organizational structure of CyberKid Vietnam

1.2.2 Functions of departments

a Board of Advisors

Supporting and accompanying CyberKid from our first days is our Board of Advisors.They are respected individuals who believe in CyberKid’s vision and potential toprotect children in cyberspace, despite us being a new and young organization Thanks

to their support and encouragement, CyberKid has gained many achievements andrecognition from the public since our establishment With professional knowledge andpractical experience, our Board of Advisors has advised and critiqued short-term andlong-term ideas and strategies; methods for managing, developing human resourcesand partners, as well as legal consulting, all of which help guarantee CyberKid’seffective operation

Associate Prof Dr

Anh Ky Nguyen Vo

Director, Institute for Educational Research Development

of Human Potential

Mrs Hoa Hoang Thi Vice Chairwoman, National Assembly Committee for

Culture, Education, Youth, Adolescents, and Children

Mr Son Dang Hai Executive Director, VinCSS Cyber Security Services Co.,

Mr Hieu Ngo Minh Cybersecurity Specialist, National Cyber Security Center

Mr Ung Bui Dinh Director, Bui Dinh Ung Law Office

Table 1 List of Board of Advisors

b Board of Directors

The Board of Directors provide strategic direction, ensure corporate governance, andsafeguard the interests of various stakeholders They are responsible for makingimportant decisions that impact the company's performance, reputation, and long-termsuccess They have 5 members named Quynh Nguyen - Nhu, Chief Executive Officer;Thuy - Anh Luu, Talent management Director and CyberSchool & CyberHotlineDirector; Thu Ha Nguyen - Thi, Research and Development Director; My Nguyen -Tra, Marketing and CyberClass Director and Thu Anh Nguyen - Khac, Finance andLegality Director All of them have expertise in specific fields that help observe,consult and ensure each department operates towards organizational vision andmission

c President/Vice-president

President/Vice-president is a part of the Board of Management One is in charge offront offices (CyberSchool, CyberHotline, CyberClass and CyberHome) and onemanages back offices (Talent Management, Marketing, Finance and Legality,Partnership Development, Research and Development) They will support and workclosely with managers of each department to manage their teams and solve someurgent issues during operation

d CyberSchool

CyberSchool is a solution for Schools, providing free 45 to 90-minute “Internet Safety"classes for primary schools, middle schools, and high schools to enhance children’sknowledge and ability to utilize the Internet effectively Until 2023, CyberSchoolorganized 1,484 “Internet Safety” classes for 61,329 children They also held trainingfor more than 150 teachers and staff working in secondary schools in Thua-Thien Hueprovince

e CyberHotline

CyberHotline is a solution for Victims, providing free psychological counseling,support, and first aid services to Children and Young adults who are Victims of cyberthreats.

f CyberClass

CyberClass is a solution for Children, providing 100% free online courses to discoverand foster talents in Cybersecurity It includes a Customer service unit to take care ofstudents and a Content development unit that is formed by experts in Cybersecurity

g CyberHome

CyberHome is a solution for Families, providing educational content about digitalcompetence enhancement via the diversity of formats with the flexible combinationbetween education and entertainment with the aim to assist Vietnamese families to getready in the digital transformation era

h Marketing

This department manages the brand through experience customers and partners havewhen they interact with CyberKid They conduct campaign management for marketinginitiatives Marketing department has to contribute to manage and maintain thecompany's social media pages Besides Content Unit that is in charge of CyberKidfanpage, there are PR Unit that is responsible for working with newspapers, as well as public sectors; SEO Unit that focuses on optimizing keywords of CyberKid’s websiteand Design Unit that takes over all media publication images

i Talent Management

In CyberKid, this department participates in corporate decision-making that underliescurrent staffing assessments and projections for future workforce needs based onbusiness demand The training and development area of TM also provides training thatsupports the company's fair employment practices and employee development toprepare aspiring leaders for supervisory and management roles They determine the

most effective methods for recruiting applicants, including assessing which applicanttracking systems are best suited for the organization's needs.

j Finance & Legality

The F&L department is divided into 2 units Finance and Legality that work closelytogether The finance unit is responsible for managing the financial aspects of theorganization such as developing financial plans, setting budgets, and forecastingfinancial performance to achieve the company's goals, conducting financial analysis toassess the company's performance, identify trends, and make data-driven decisions andwork with the General Department of Taxation for tax reports The Legality unit isresponsible for handling various legal matters such as draft and sign contracts/MoUwith CyberKid’s partners, build some internal work ethics regulation, manage andsafeguard the organization's intellectual property rights, including trademarks, patents,copyrights, and trade secrets

k Partnership Development

The PD department is responsible for identifying, establishing, and managingpartnerships with external organizations that align with the company's strategic goalsand objectives in cultivating the next generation of digital citizens Mostly, they have tomanage and take care of schools over Vietnam and some key accounts such as PaloAlto Networks, VNG, Viettel, Vietnam Airlines, etc

l Research & Development

The R&D department consists of 3 units named Educational Content Developmentunit, Market Development unit and Data Management unit The ECD unit is in charge

of building and reviewing lesson plans for CyberSchool with deep knowledge inInternet Safety and Digital Competence The Market Development will conductsurveys and research to analyze the trend of education, technology, digital competence

in the market to suggest some innovations for CyberKid’s products, especially the

for-profit solution CyberHome The last unit works most of the time with data to assessCyberKid’s impact on the Internet Safety skills of Vietnamese children afterparticipating in CyberSchool’s classes

m Volunteer Network

Volunteer Network is a prominent strategy in CyberKid's product operational plan Inthe report of our market research, we find that besides financial issues, human resourceshortage is another main reason that blocks non-governmental organizations fromspreading their impact to a larger scale To avoid this, CyberKid plans to recruit andtrain local volunteers all year round They will be our main force helping CyberKiddeploy our solutions to the community They look forward to these following profiles:Local university students

High school students who seek extracurricular opportunities to apply forscholarships

According to statistics from the Ministry of Education and Training in 2020, there arecurrently more than 1.5 million full-time university students Cyberkid aims tomobilize 75% of these undergraduates to join with CyberKid practicalizing our vision,helping over 24 million Vietnamese children in need of a solution for their safety incyberspace

Source: CyberKid VietnamFigure 3 Volunteer network of CyberKid Vietnam

1.3 Overview of business activities

Currently, there are two main activities that bring revenue for CyberKid Firstly,CyberKid provides consulting for some organizations about Internet Safety, PositivePsychology, Digital competence, etc They will apply for some projects of NGOs andpublic sectors, for example Plan International with Consultancy service for “Developthe training package on children protection from online GBV and Deliver the capacitybuilding for core members of School-based Child Protection Mechanism andCommunity-based Child Protection Mechanism”

Another business activity is selling Digital competence box called “Hộp Khám phá Vũtrụ mạng” The box contains some following items:

"Growing up together in the Digital Age" book series: This set consists of threebooks that guide children on how to protect themselves in the online spaceagainst technical and non-technical threats It also provides tips on utilizingInternet resources to develop themselves and explore hot industries in the digitalera

"CyberPlay" Board Game - Learn and play about online safety: A board gamedesigned to combine learning and fun, focusing on internet safety

Online courses for parents: Two online courses with short videos, only 5minutes each day, to equip parents with knowledge about safe and effectiveInternet usage and understanding children's psychology in the digital age 1-hour consultation with an educational psychologist: Experience a counselingsession with an expert in educational psychology

Collectible gift set: Stickers, bookmarks, keychains, character cards, and aninternet space travel passport

Their target customers are parents with 7 to 16 year-old children, schools, enterprisesthat focus on compensation and benefits for employees Their product is distributedinto Fahasa book stores, ecommerce platforms and facebook fanpage

Chapter 2: Financial sustainability in CyberKid Vietnam2.1 Current financial situation in CyberKid Vietnam

2.1.1 Financial sustainability in social enterprises

Financial sustainability refers to the ability of an individual, organization, or entity tomaintain its financial health and viability over the long term It involves managingfinancial resources in a way that allows for the fulfillment of current financialobligations while also ensuring the capacity to meet future financial needs andobjectives A financially sustainable entity operates in a manner that balances itsrevenue generation, expenses, and investment decisions to avoid excessive debt,maintain a positive cash flow, and build financial resilience

Financial sustainability in social enterprise refers to the ability of a social enterprise tomaintain its financial health and viability over the long term while fulfilling its socialmission and creating positive impact As a unique type of business entity, socialenterprises combine the principles of traditional business with a strong commitment toaddressing social and environmental issues In the context of social enterprises,financial sustainability goes beyond profitability and focuses on generating revenues in

a way that supports and advances their social objectives It involves managing financialresources efficiently, minimizing costs, and diversifying funding sources to ensure theorganization's ongoing operations and ability to deliver its social programs andinitiatives

Financial sustainability is critical for social enterprises to achieve lasting impact andavoid dependence on one-time grants or donations By establishing stable revenuestreams, such as through the sale of goods or services, social enterprises can reducetheir reliance on external funding and ensure their longevity and independence.Striking the right balance between financial viability and social impact is a corechallenge for social enterprises They must make strategic decisions that align withtheir social goals while also ensuring the financial stability required to sustain their

operations and scale their impact over time Furthermore, financial sustainabilityenables social enterprises to attract investors, partners, and stakeholders who areincreasingly interested in organizations that demonstrate a long-term commitment toboth financial success and social change It enhances credibility and instills confidence

in the organization's ability to make a meaningful difference in the communities orcauses it serves

Ultimately, financial sustainability in social enterprise is about achieving a harmoniousintegration of financial and social objectives, driving positive change, and leaving alasting legacy that benefits society and the environment By building a strong financialfoundation, social enterprises can continue to address pressing social challenges andcontribute to a more equitable and sustainable world

2.1.2 Overview of the revenue stream and cost of CyberKid

Revenue Stream:

1 Selling Educational Products: CyberKid's core revenue stream is derived from the

sale of its educational products The social enterprise develops a diverse range ofinteractive learning modules, digital resources, and engaging educational content thatcaters to the specific needs and preferences of learners and educators in Vietnam Theseproducts are designed to promote internet safety, digital literacy, and responsible onlinebehavior, making them valuable assets for schools, parents, and educationalinstitutions

2 Consultant Service: Leveraging its extensive expertise in the educational sector and

its in-depth understanding of internet safety, CyberKid offers consultancy services toNGOs and public sectors Through these services, the social enterprise providesvaluable insights, guidance, and best practices related to the implementation ofeffective internet safety programs and digital education initiatives This additionalrevenue stream not only helps sustain CyberKid's operations but also extends theorganization's impact by supporting other educational stakeholders in their efforts tocreate safe and positive digital environments