unit 1 business and business environment

Legal structure: State-owned enterprises are regulated in Chapter IV of the Enterprise Law 2020 including: One-member limited liability company owned by the State with 100% charter capit

ASSIGNMENT 1 FRONT SHEET Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

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Table of Contents

I INTRODUCTION: 5

1 Introduction of the report: 5

2 Introduction of the Vinamilk: 5

II MAIN CONTENTS: 6

1 Types, purposes, legal structures of different organizations of 3 business sectors: 6

3.1.4 Example of voluntary sector: 10

2 Size and Scope: 11

2.1 Size: 11

2.1.1. Degree 80/2021/NĐ-CP: 11

2.1.2 Size of the Vinamilk: 12

2.2 Scope of the Vinamilk: 12

2.2.1 Mission, Vision and Core Value: 12 2.2.2 Objective:

2.2.3 Stakeholder: 13

a Shareholder: 13

b.Customer: 13

c Partner: 13

d Explain how the Vinamilk company meets the need of the stakeholders: 13

3 Functions and Organization Structure: 14

3.1 Organization Structure of Vinamilk: 14

3.1.1 Shareholders meeting: 15

3.1.2 Board of directors: 15

3.1.3 Audit committee: 15

3.1.4 Internal control & risk management director: 16

3.1.5 Internal audit director: 16

3.1.6 Sales department: 16

3.1.7 Marketing department: 16

3.1.8 Human resources department: 16

3.1.9 Project department: 16

3.1.10 Logistics supply department: 16

3.1.11 Finance and accounting department: 17

3.2 Key functions of the Vinamilk: 17

3.2.1 Key functions: 17

3.2.2 Explain how key functions work together to achieve the objectives: 18

III CONCLUSION: 19

IV REFERENCES: 19

I.INTRODUCTION: 1 Introduction of the report:

Currently, Vietnam's dairy industry is making many great developments According to Euromonitor Vietnam's milk market reached a value of 135,000 billion VND in 2020, up 8% compared to 2019, thanks to the rapid growth of the yogurt and drinking milk segment Industries with high growth include liquid milk (+10%), yogurt (+12%), cheese (+11%), butter (+10%) and other dairy products meeting the increasing demand of the market That means that many new dairy brands will appear and create significant competition However, Vinamilk still maintains its position and is always a leading enterprise in the dairy production industry in Vietnam In this study, the author will analyze in depth respect to types, sizes and scope, functions, and organizational structures for the investment plan of the Vietnam Dairy Products Joints Stock Company

2 Introduction of the Vinamilk:

Vinamilk is the dairy company with the highest market share in Vietnam today with 240,000 traditional retail outlets; 5,400 supermarket channel retail points; 2,400 retail outlets in convenience stores, 12 Global G.A.P standard farms; 132,000 is the total number of cows being exploited (Topi, 2023)

Company Name: Viet Nam Dairy Products Joint Stock Company Initials: Vinamilk

Contact Information:

• Head Office: No 10, Tan Trao Street, Tan Phu Ward, Quan 7, HCM City • Phone: (84-8) 54 155 555 - Fax: (84-8) 54 161 230

• Email: vinamilk@vinamilk.com.vn • Website: www.vinamilk.com.vn

Logo of Vinamilk:

Company logo meaning: The main symbol in Vinamilk logo is a combination of stylized letters and round shapes The round shape symbolizes perfection, the fullness of product quality Inside the Vinamilk milk logo is a stylized VNM symbol by connecting with each other softly The upper and lower gliding lines in Vinamilk logo design symbolize cool, nutritious milk droplets (Vinamilk, 2022)

The organizational structure consists of 17 affiliated units and 1 Office Total number of staff - employees: 4,500 people (Vinamilk, 2022)

Main function: Production of milk and dairy products

Over the years, with outstanding efforts, the Company has become one of the leading enterprises in Vietnam in all aspects The Company's achievements have actively contributed to the development of the cause of Industrialization - Modernization of the country

II.MAIN CONTENTS:

1 Types, purposes, legal structures of different organizations of 3 business sectors: 1.1 Public sector:

1.1.1 Definition:

The public sector is the segment of the economy owned, operated, and controlled by government agencies It provides services to the public that contribute to societal well-being, such as law enforcement, national defense, public transportation, transit infrastructure, educational institutions, and health services Unlike the private sector, the public sector does not seek to make a profit from its services (MasterClass, 2022)

1.1.2 Purpose:

Organizations in the public sector are motivated by their purpose of providing services to the public at a reasonable cost In contrast, organizations in the private sector are driven by profit The purpose of the public sector is for the benefit to citizens: the interests of the public at large Social goals: democracy, cooperation, job creation, mutual trust Goals laid down by politicians and generally couched in social and financial terms, rather than profit maximization (Trevino, 2022)

1.1.3 Legal structure:

State-owned enterprises are regulated in Chapter IV of the Enterprise Law 2020 including: One-member limited liability company owned by the State with 100% charter capital Limited liability companies with 2 or more members are held by the State with more than 50% of charter capital Joint stock companies held by the State with more than 50% of charter capital (ThuVienPhapLuat, 2020)

1.1.4 Example of public sector:

Vietnam Oil And Gas Group is a one-member limited liability company owned by the State and holds 100% of charter capital, operating in accordance with the Law on Enterprises (PETROVIETNAM, 2021)

PVN's total capital on June 30 , 2021, is 24,564,321,350.898 VND; revenue is 25,193,32,395,700 VND; ththe number of employees of the corporation is 700 excluding subsidiaries

PVN's vision is to “Become the leading energy group in the country, the region, with a position in the international arena” With the mission of “Optimizing oil and gas energy sources, sustainable development of new energy sources, contributing to building and protecting the Fatherland”

From the above data, it can be concluded that PVN is CA one-member limited liability company in the a public sector with a large scale

2.1 Private sector: 2.1.1 Definition:

The private sector is the part of the economy owned and controlled by individuals and businesses rather than the government Unlike the public sector, which is funded primarily through tax dollars, the private sector generates revenue from selling goods and services (Hartill, 2021)

2.1.2 Purpose:

Firstly, the private sector has a goal of making money The main and most essential goal of the private sector is to survive and grow In contrast to the public sector or the voluntary sector, private sector companies mainly aim for personal ambitions such as profit search, revenue, corporate growth, etc The engine of the market economy is profit and haven’t in any economic sector that expresses a desire for profit

Figure 1.Vietnam Oil And Gas Group (PETROVIETNAM, 202

like the private sector Putting profit goals first for the state economic sector is both unreasonable and feasible because the characteristic of the private sector is to take profit as the central factor, which is the absolute driving force to promote development, increase labor productivity and increase the efficiency of production and business activities (Anh, 2019)

Secondly, the private sector also has a purpose for the interest of the owners Comprised of three

ownership interests are economic rights, managerial control, and ownership as an asset (MSA, 2018) 2.1.3 Legal structure:

According to the Law on Enterprises 2020, there are 4 types of private sector including: Sole trader/proprietorship, partnerships, limited liability companies and joint stock companies

Sole trader/proprietorship: A sole trader/proprietorship is a type of business that does not have legal

status, owned by a single individual, and this individual is solely responsible for all his or her assets for all activities of the business (TWIN, 2023)

Partnerships: Partnerships another common type of business in Vietnam is partnership companies A

partnership company must have at least two general partners In addition to general partners, it can have capital contributing partners The partnership company will not be allowed to issue any securities to raise capital The partnership company will have legal status when receiving the Enterprise Registration Certificate General partners must be individuals, unlimitedly liable to the company in all their assets Capital contributing partners can be organizations or individuals and only have limited liability to the enterprise to the extent of their contributed capital (FIRM, 2020)

Limited liability companies: Limited liability companies are divided into two types, single-member

limited liability companies and limited liability companies with two or more members

• Single-member limited liability company is an enterprise owned by an organization or an

individual The company owner is responsible for the company's debts and other property obligations within the scope of the company's charter capital (ThuVienPhapLuat, 2020)

• Limited Liability Company with two or more members is an enterprise with 02 to 50

members who are organizations and individuals Members are responsible for debts and other property obligations of the enterprise within the amount of capital contributed to the enterprise, except for the cases specified in Clause 4, Article 47 of the Law on Enterprises 2020 The member's contributed capital is only transferred according to the provisions of Articles 51, 52 and 53 of the Law on Enterprises 2020

(ThuVienPhapLuat, 2020)

Joint Stock Company: According to the provisions of Article 111 of the Enterprise Law 2020, a joint-stock

company is a type of business in Vietnam whose charter capital is divided into equal parts called shares

Shareholders will be referred to as shareholders A joint stock company has legal status from the date of establishment A joint stock company has a management structure consisting of the General Meeting of Shareholders, the Board of Management, the Director (General Director), and the Supervisory Board (if there are more than 11 shareholders) Shareholders can be individuals or organizations Shareholders have limited liability for the operation and obligations of the enterprise to the extent of the contributed capital Shareholders can freely transfer shares, except for the cases specified in Clause 3, Article 120 and Clause 1, Article 127 of the Enterprise Law 2020 This type of business requires a minimum of 3 shareholders, and there is no limit to the maximum number of shareholders Joint stock companies are entitled to issue

securities to raise capital but must comply with the provisions of the law (FIRM, 2020)

2.1.4 Example of private sector:

Viet Nam Dairy Products Joint Stock Company: Based on Vinamilk's 2021 financial statements, the state ownership rate is 36.00%, F&N investment group holds 20.04%, Platinum Victory fund holds 10.06% and the rest are other shareholders hold 33.00% (Vinamilk, 2022)

The capitalization on December 31st 2022 is VND 159,546 billion; total consolidated revenue is VND 60,075 billion; the number of employees is 9,506 people (Vinamilk, 2022)

With the vision of "Becoming a symbol of Vietnam's leading belief in nutrition and health products for human life" and the mission "Vinamilk is committed to bringing the community the leading source of nutrition and high quality with its own respect, love and responsibility for human life and society" (Vinamilk, 2022)

From the data provided above, it can be concluded that Vinamilk is a joint stock company in the private sector with large scale and scope

Figure 2 Vietnam Dairy Products Joint Stock Company (Vinamilk, 2022)

3.1 Voluntary sector: 3.1.1 Definition:

The voluntary sector refers to organisations whose primary purpose is to create social impact rather than profit It is often called the third sector, civil society, or the notfor-profit sector It is independent from local

and national government, and distinct from the private sector (Reachvolunteering, 2022)

3.1.2 Purpose:

NGOs operate as non-profits The organization does not operate for commercial purposes Not for profit, for the benefit of society: the interests of the public at large Social goals: environment, fair trade, community support, poverty eradication… Tax support for social enterprise (Vietcetera, 2019)

In pursuit of its goals, an NGO can carry out profitable activities for the organization to pay employees' salaries or other expenses to operate the organization However, if the organization's activity yields any profit, that profit will not be allocated to members of the organization either (Vietcetera, 2019)

The operational goals of NGOs must be in the public interest It can be the purpose of economic, social development or activities related to environmental relief, human rights, or natural disasters, or it can be in

fields such as science, culture, charity, health, or education (Vietcetera, 2019) 3.1.3 Legal structure:

Social enterprises: A social enterprise is an enterprise established and operated under one of the types

of enterprises prescribed by the 2014 Enterprise Law, operating not for the purpose of maximizing profits but established with the goal of solving certain social problems that this enterprise pursues, in addition to economic goals (Vietnambiz, 2019)

NGOs: An NGO is an organization formed that is relatively independent of the Government Authorized

by competent agencies to establish or recognize, with State management Established by the willingness of

the people Non-profit activities within the framework of the law (ASSOCIATION, 2020) 3.1.4 Example of voluntary sector:

UNICEF: In accordance with UNICEF's mission statement, UNICEF is authorized by the United Nations General Assembly to protect children's rights, help meet children's basic needs, and expand children's opportunities to reach their full potential For Viet Nam, UNICEF has had cooperation and support programmed since 1975 including 4 cycles Cycle 1 (1975-1979) provided emergency assistance totaling US$127 million Cycle 2 (1981-

1983) provided aid to children with a total aid of US$20 million Cycle 3 includes the 3rd Viet Nam-UNICEF Partnership Programmed (1983-1987) worth US$27 million and the 4th (1988-1991) worth US$34 million (UNICEF, 2022) Through the above evidence, UNICEF is a voluntary social and not-for-profit NGO that works for social and not-for-profit purposes

2.Size and Scope: 2.1 Size:

2.1.1 Degree 80/2021/NĐ-CP:

According to the Degree 80/2021/NĐ-CP usiness size can be understood as the division of business A general understanding of business size is the size of a business unit or organization Enterprises are currently divided into 4 groups: large enterprises Small business Medium business Micro business To determine the size of the business based on 3 criteria: number of employees, total capital, total revenue (ThuVienPhapLuat, 2020)

Agriculture, Forestry and

Fishery Industry, Construction Trade, service

Turnover (billion VND)