btec level 4 hnd diploma in business unit 1 business and business environment

As a business analyst at VCBF Vietcombank Fund, I analyzed and researched the operations of Masan Group to determine the factors that meet all of the requirements that VCBF can invest in

ASSIGNMENT 1 FRONT SHEET

Unit number and title Unit 1: Business and Business Environment

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3.4 Large business 15

IV SIZE AND SCOPE OF MASAN GROUP 15

4.1 Introduction to Masan Group 15

4.1.1.Vision 16

4.1.2.Mission 17

4.1.3.Goals 17

4.1.4 Core value 17

4.2 Size and scope 18

4.2.1 Size of Masan Group 18

4.2.2 Scope of Masan Group 19

4.2.3 Total amount of capital 20

4.2.4 Total equity 21

4.2.5 The total revenue 21

4.2.6 The total employees 22

I INTRODUCTION

People have more educated and wise options in their investing selections as the country improves As a business analyst at VCBF (Vietcombank Fund), I analyzed and researched the operations of Masan Group to determine the factors that meet all of the requirements that VCBF can invest in long-term in the 2020-2025 period, including in-depth research on the type, size and scope, functions, and organizational structure

The business environment is the sum total of factors, factors (external and internal) interacting with each other, directly and indirectly affecting business activities of enterprises Stemming from this concept, the business environment can be considered as the limit of the space in which a business exists and develops

This report will highlight three key points related to the business environment That is the main feature of the types and purposes of business organizations with different legal structures, size and scope of Masan Consumer, followed by the interrelationships of the various organizational functions associated with their business structure

2.1 Private sector

2.1.1 Private sector

The private sector is that part of the economy where ownership and control of the –organization are in the hands of private individuals or groups and where profit-seeking is a central goal (Worthington, Britton, and Thompson, 2018) The private sector is run by individuals or firms and not the government Some of its types include sole proprietorship,

company, and partnership firms

The capital for the private business is arranged by the business owners, shareholders, bank loans, or any combinations of the above

As opposed to the public sector that the government operates, the primary objectives of the private sector are profit maximization and acting in the best interest of the stakeholders Although focused on profit maximization, private firms help economic development by

enhancing the GDP, employment rate, per capita income, infrastructural facilities, etc

2.1.2 The legal structure

The legal structure of the private sector consists of a sole trader; partnership; “registered” limited companies

2.1.2.1 Sole trader

Sole trader is a business owned by one individual who is self-employed and who may, in some

cases, employ other people on either a full-time or a part-time basis (Worthington, Britton, and Thompson, 2018) Sole traders are self-employed individuals who own and operate their own firm In

other words, there is no legal separation between you and your firm, which is why sole traders are sometimes referred to as sole traders

2.1.2.3 The disadvantages

Unlimited liability

Potential credibility issues Sole responsibility

Fewer tax planning opportunities Barriers to finance

Sale limitations

2.1.3 Partnership

A partnership is a formal arrangement by two or more parties to manage and operate a business and share its profits There are several types of partnership arrangements In particular, in a partnership

business, all partners share liabilities and profits equally, while in others, partners may have limited liability

A partnership is an arrangement between two or more people to oversee business operations and share its profits and liabilities

In a general partnership company, all members share both profits and liabilities There may be tax benefits to a partnership compared to a corporation

2.1.4 “Registered” limited companies

A limited company is a type of business structure that has been incorporated at Companies House as a legal ‘person’ It is completely separate from its owners, it can enter into contracts in its own name, and it is responsible for its own actions, finances, and liabilities

From 1 to 50 members: a limit of 50 Legal entity status

Liability of members: Limited 2 types:

Limited liability company with 1 member

Limited liability company with equal or more than 2 members

2.1.5 Sub Conclusion –

The private sector is a very diverse sector and makes up a big part of many economies It is based on many different individuals, partnerships, and groups Types of private-sector business include:

Sole proprietorships Partnerships

Small and mid-sized businesses Large corporations and multinationals Professional and trade associations Trade unions

Even though the state may control the private sector, the government does legally regulate it Any

business or corporate entity operating in that country must operate under the laws (Private Sector Definition, 2020)

The purpose private sector is for-profit and to become a leading organization in its line of business To own the whole amount of profit and for the personal touch and personal contact with the customers and easy maintenance of the business

2.1.6 Example

Hoa Phat Group

Hoa Phat group is a private sector Founded year: 01/08/1992 Stock code: HBG

Tax source code: 0900189284

Headquarters: Pho Noi A Industrial Park - Giai Pham Commune - Yen My District - Hung Yen Province Authorized capital: 21.239.071.660.000 VNĐ

Founding member Chairman of the BOD: Mr Tran Dinh Long

Figure 1: Chart of shareholder structure

(Source: Annual report, 2021)

2.2 Public sector

Public sector is that part of the economy under the control of the government and its agencies –and where the state establishes and runs the different types of an organization on behalf of its citizens and for their general well-being (Worthington, Britton, and Thompson, 2018)

2.2.1 The types of the public sector

Public sector organizations are formed in three different forms: Departmental undertakings

Public corporations/statutory corporations Government company

2.2.2.Departmental Undertakings

This is the most traditional type of public-sector enterprise One of the departments of the government is the departmental undertaking It does not exist independently of the government It operates under the direction of a single government ministry or department

The main characteristics:

They operate under the overall control of one of the ministries of central or state government They are a part of government only, there is no separate entity

The revenue of departmental undertakings is deposited in the treasury of government They are financed from the annual budgets of the government

2.2.3 Public corporation

Public corporation is a legal entity established by a special act of parliament or by a state or federalnn legislature It is entirely subsidized by the government The legislature determines its powers,

objectives, and constraints, among other things The main characteristics:

It is created by an act of parliament or central or state legislature

The powers, objectives & limitations of a public corporation are defined in the act only Under total control of central or state government operations of public corporations takes place A public corporation is a separate legal entity It gets incorporated automatically when the act is

passed in the parliament

2.2.4 Government Companies

Government Firm is a company in which the central or state government owns at least 51 percent of the paid-up share capital, or when the central or state government owns a portion of the paid-up share capital Like any other registered company, government firms are managed and ruled by the rules of the Companies Act, 2013

government & other shareholders The government has the authority to appoint a majority of the directors

2.2.5 Example

Figure 2: Logo Vietnam Airlines

(Source: Vietnam Airlines | Sải cánh vươn cao | Website chính thức, 2022)

Vietnam Airlines: the flag carrier of Vietnam The airline was founded in 1956 and later established as a state-owned enterprise in April 1989 Vietnam Airlines is headquartered in Long Bien District, Hanoi, with hubs at Noi Bai International Airport and Tan Son Nhat International Airport The airline flies to 64 destinations in 17 countries, excluding codeshared services

Name : Vietnam Airlines JSC

Business registration certificate for Joint Stock Company number 0100107518, issued by Hanoi Department of Planning and Investment, and registered for the 6th change on 26 February 2019 Charter capital: VND 14,182,908,470,000

Ticker: HVN Par value: VND 10,000/share - Total number of outstanding shares: 1,418,290,847 shares (as of 31 December 2020)

The resion Vietnam Airlines is Public Sector:

+ Government Occupied: 86,19% (HVN | Cổ đông lớn | Danh sách các cổ đông lớn, quan tr ng ọcủa doanh nghi p, 2022) ệ

+ Core values: corporate social responsibility is a business practice to ensure all decisions made and actions taken are in line with social sustainability

2.3 Voluntary sector

The voluntary sector comprises those organizations, including charities, voluntary bodies, and –community businesses, that are not-for-profit enterprises and non-governmental (Worthington, Britton, and Thompson, 2018)

The voluntary sector plays an important role in providing services in the community The organization serves specific client groups and, although they may make a charge for their services, they are non-profitmaking Whereas the primary goal of private sector organizations is to make a profit for shareholders

2.3.1 Types of voluntary sector

Social enterprise

Social enterprises are businesses that put the interests of people and planet ahead of shareholder gain These businesses are driven by a social/environmental mission and reinvest profits into creating positive social change

Non-government organization

A non-governmental organization (NGO) is a non-profit group that functions independently of any government NGOs, sometimes called civil societies, are organized on community, national and international levels to serve a social or political goal such as humanitarian causes or the environment

2.3.2 Social enterprise

The voluntary sector plays an important role in providing services in the community The organization serves specific client groups and, although they may make a charge for their services, they are non-profitmaking Whereas the primary goal of private sector organizations is to make a profit for shareholders

2.3.3 Features

Conduct business as usual

Profit is not distributed to owners/no dividend is allocated Profit for reinvestment or other social rescue/public benefits Tax advantages

Like corporate communication systems, they aim to make a profit, but it’s what they do with the profits that set them apart-reinvest or donate to create positive social changes More importantly, social enterprises are located in our communities Social enterprises are businesses that are changing the world for the better

2.3.4 Purposes

Not profit

For the benefit to society: the interests of the public at large `

Social goals: environment, fair trade, community support, poverty eradication…

2.3.5 Example: KOTO - Voluntary sector

Figure 2: KOTO Logo

(Source: Dining with a difference at KOTO, 2022)

Social enterprise - KOTO, short for & quot; Know One, Teach One & quot; Maintain 100% employment rate of KOTO students Enterprises registered for establishment under the provisions of the Enterprise Law 2014: KOTO is recognized as the first Social Enterprise in Vietnam The enterprise has operational objectives to solve social and environmental problems for the benefit of the community: searching for children in difficult circumstances, carefully reviewing conditions and identities, ability to ensure they can attend school KOTO Enterprises use all profits to reinvest to realize social and environmental goals: KOTO is currently divided into two independent operating divisions: KOTO Foundation focuses on training street children and young people in difficult circumstances besides KOTO Enterprise, the restaurant business dedicates all profits to the budget brother KOTO Foundation

III EXPLAIN THE SIZE AND SCOPE OF A RANGE OF DIFFERENT TYPES IN VIET NAM 3.1 Micro business

A microbusiness is a subcategory of a small business, defined specifically by its small number of employees, annual revenue, and startup costs Microbusinesses are often run by solo preneurs, freelancers, and side hustlers who begin a business with very small operational and capital needs Micro enterprises operate in the following fields: Number of employees participating in social insurance: no more than 10 people per year on average; Total source of capital: no more than 03 billion VND; Total revenue: no more than 03 billion VND/year ( Decree 80/2021/NĐ-CP)

Example: Ms Lo Thi Thong, the owner of Muong Then Cuisine Co., Ltd., a firm that does business in the domains of agriculture and services, employs 25 people, with an average of 10 persons participating in social insurance each year The entire capital of the corporation is 2.5 billion VND

3.2 Small business

Small enterprises in the fields of agriculture, forestry, fishery, industry, and construction with an average annual number of social insurance participants of not more than 100 people and a total annual turnover of not more than VND 50 billion, or a total capital of not more than VND 20 billion, but not a microenterprise as defined in Clause 1 of this Article. ( Decree 80/2021/NĐ-CP)

Small businesses in the sphere of commerce and services with a total annual income of not more than VND 100 billion or a total capital of not more than VND 50 billion, but not a micro-enterprise as defined in Clause 1 of this Article

4.1.4.4 Trust

We believe each individual, when trusted, will perform better We respect our colleagues, partners, and consumers, treating all fairly We believe we are strong when we trust each other

4.1.4.5 Passion for winning

We want to be one of the first internationally recognized Vietnamese companies as a consumer unicorn

We always aim for the best results in everything we do Our strength is our perseverance until reaching success

4.2 Size and scope

Size of Masan Group