mgt103 introduction to business bamboo airways jsc

Introduction of Bamboo Airway Bamboo Airways JSC, operating as Bamboo Airways, is a Vietnamese leisure airlineowned by the FLC Group.. They are set by the board ofdirectors and top mana

A Introduction

1 Purpose of our assignment

After studying the course “Introduction to Management”, with the knowledge that wehave been taught in the class, the experience that we have gained in the past, we want

to apply and mix both of those factors to reinforce our abilities and competencies as amanager This type of practice will help us a lot in the future, to avoid the mistakes ofthe manager that we mentioned below and stimulate his abilities

2 Introduction of Bamboo Airway

Bamboo Airways JSC, operating as Bamboo Airways, is a Vietnamese leisure airlineowned by the FLC Group Founded in 2017, the airline launched operations onJanuary 16, 2019 Bringing the mission of connecting tourist lands on the S-shapedstrip of land, raising the image of the country and people of Vietnam on theinternational map In order to be able to provide passengers with new experiences,especially 5-star-oriented quality services, Bamboo Airways' in-flight entertainmentsystem will help passengers feel most comfortable during the journey

B Literature Review & Critical Analysis

I Literature Review

1 Organization Structure

An organizational structure is a system that outlines how certain activities aredirected in order to achieve the goals of an organization These activities caninclude rules, roles, and responsibilities

2 Functional Organizational Structure

A functional organizational structure is a structure used to organize workers.

They are grouped based on their specific skills and knowledge It verticallystructures each department with roles from the president to finance and salesdepartments, to customer service, to employees assigned to one product orservice Functional organizations contain specialized units that report to a singleauthority, usually called top management

3 Planning & Decision-making process

Strategic plans

General plans outlining decisions about the resource allocation, priorities, and

action steps necessary to reach strategic goals They are set by the board ofdirectors and top management, generally have an extended time horizon, andaddress questions of scope, resource deployment, competitive advantage, andsynergy

Tactical Plans

Plans aimed at achieving tactical goals and developed to implement specificparts of a strategic plan Typically involve upper and middle management and,compared with strategic plans, have a somewhat time horizon and a morespecific and concrete focus

Operational plans

Plans that focus on carrying out tactical plans to achieve operational goals.They are developed by middle- and lower-level managers, have a short-termfocus, and are relatively narrow in scope

4 Business Strategy

A business strategy outlines the plan of action to achieve the vision and setobjectives of an organization and guides the decision-making processes toimprove the company's financial stability in a competing market

5 HRM - Human Resource Management

Human resource management (HRM) is the set of organizational activitiesdirected at attracting, developing, and maintaining an effective workforce

C Critical Analysis

1 Organization structure

Bamboo Airway applies the Functional organization structure

Bamboo Airway operates in separate departments, including 16 main departments andthe basic functions of these departments are:

+ General Meeting of Shareholders

+ Administrative Council: Make decisive decisions.

+ Board of Directors: Responsible for operating the organization's activities + Chairman of the board: Prepare program and plan of activities and convene

and chair meetings of the Board of Directors Organize the adoption of thedecision of the Board of directors

+ Councils, committees, boards, subcommittees, of the bamboo group: receive

orders of the Board of Directors and execute them simultaneously when makingdecisions for other departments

+ The general director is responsible to the Board of members for reporting on

performance as well as implementing the assigned strategy

+ Deputy general director is a job title used in many organizations around the

world and is a deputy for a director-general

+ Fundraise and Financial performance analysis division is the process of

identifying the financial strengths and weaknesses of the firm by properlyestablishing the relationship between the items of the balance sheet and theprofit and loss account

+ The chief financial officer is the officer of a company that has primary

responsibility for managing the company's finances, including financialplanning, management of financial risks, record-keeping, and financialreporting

+ Accounting Department: Solve all financial-related issues of the group + Information Technology Department: Department of receiving technologies

and analyzing applications

+ Corporate legal counsel: include archiving documents, reviewing employment

relations, examining real estate, contracts, technology licenses, trademarks, taxand legal records, and litigation

+ Legal Department: Directly handle legal issues.

+ Enterprise resource planning division is a process used by companies to

manage and integrate the important parts of their businesses

+ Research and Development and Application Department: A place to

research new technologies and find ways to apply them in practice

+ Business support division is a business support block for businesses to invest

and earn profits from which both parties benefit

+ Project financial division is industrial, and public service projects that use a

non-trusted organization or limited trust financial structure The debt and equityused to finance the project are returned from the cash flows generated by theproject

2 Planning and Decision-making process

a. Process

Strategic plans

The plans serve the strategic plans of the company & Determined and established bysenior managers The list of Bamboo Airways' Board of Directors currently consists of

7 people, which are:

+ Mr Trinh Van Quyet: Currently Chairman of the Board of Directors of FLCGroup Joint Stock Company, Chairman of the Board of Directors of BambooAirways

+ Mr Dang Tat Thang: Currently, Mr Thang is Deputy General Director of FLCGroup Joint Stock Company, General Director of Bamboo Airways and alsoholds the position of Head of Strategic Customers Department He is the personwho has accompanied Bamboo Airways throughout the process of planning andapplying for a flight license to date

+ Mr Nguyen Manh Quan: Deputy General Director of Bamboo Airways.+ Four other Deputy General Directors:

+ Mr Nguyen Ngoc Trong: Currently, he is the first Deputy General Director ofBamboo Airways

+ Mr Eddy Doyle: was appointed Deputy General Director of Bamboo Airways

The strategic goals of the organization will be discussed and decided by the

members of the company's board of directors and approved by the Chairman ofthe Board of Directors It will then be approved at a meeting of the Board ofDirectors with the participation of all shareholders of the company From there,Strategic plans for all the organizations will be established

Tactical Plans

From high-level strategies, they will be deployed to departmental managers such as the Accounting Department, Capital Mobilization and Investment Evaluation Department, ERP System Management Division, to deploy From the general tasks in the strategy plan, each department is different from there to set Tactical Goals From there, the Tactical Plans were established

The head of each departmental block will be decided by the heads of the affiliated departments in that department to discuss, implement and the final decision will be decided by the department and then submitted to the members

of the Board of Directors who are responsible for managing the departments that departmental block approves such as: Deputy CEO, Deputy General Director of Business Development,

Operational Plans

The tactical plans will be sent down to the small departments below in charge

of each segment creating operational goals, each department establishes

corresponding operational plans and the head of the department will decide tosubmit to the departmental blocks for approval.

b Example

With the mission of connecting tourist lands on the S-shaped strip of land,

raising the image of the country and people of Vietnam on the international map

Objective: To build Bamboo Airways into a 5-star airline, serving both domestic and international routes Besides the advanced operating model, Bamboo Airways wishes to bring new service standards to bring comfort, relaxation and enjoyment to passengers on every journey

Strategic plans: A plan to cooperate with the world's leading brands in the field

of aviation

● Purchased 24 new A321NEO aircraft with French Airbus Group worth US$3.1billion, under the witness of General Secretary Nguyen Phu Trong andPresident of the French National Assembly Francois De Rugy

● New purchase of 20 Boeing 787-9 Dreamliner aircraft worth US$5.6 billion inWashington, D.C

● Buy 10 more wide-body Boeing 787-9 Dreamliner aircraft worth nearly 3billion USD with Boeing Corporation (USA)

Tactical Plans: For example, the Capital mobilization and investment

department will set Tactical goals, which is how much capital will be mobilized

to implement, and how many investors will be connected From there, set up atactical plan to raise capital and connect with investors to bring down the smalldepartments below

Operational Plans: After receiving the tactical plan, the small departments will

start implementing the operation goals set by the department heads In theDepartment of Capital mobilization and investment, the Investor RelationsDepartment will look for suitable investors The capital mobilizationdepartment will try to convince the parties to cooperate and the generalcompany to get capital From there, the performance evaluation department willevaluate and monitor for the best results Implement actions to realize tactical

plans such as understanding investors, potentials, evaluation,

3 Business Strategy

Dang Tat Thang said that Bamboo Airways' basic strategy is to exploit the niche market, instead of focusing on crowded airports like Tan Son Nhat and Noi Bai, the airline aims to connect potential destinations about tourism but has

not been fully exploited This is a differentiation strategy.

Without rushing into price competition with low-cost carriers or directly in

the C-class segment, Bamboo Airways chose a niche market strategy, focusing

on the following factors: punctuality, safety and quality 5-star quality, rich in added value

"Fly on time" and safely: is an important key of Bamboo Airways Since take-off, private airlines have consistently led the way in the highest punctualityrate in the entire aviation industry, with an average punctuality rate of 95.4% The International Air Transport Association (IATA) has awarded the IOSA operation safety assessment certificate - one of the important certificates in aviation safety to Bamboo Airways The IOSA (IATA operational safety audit) standard audit is carried out every two years and covers about 1,000 standards After two years of taking off, Bamboo Airways operates absolutely safe flights

Flying 5-star quality

Customers buy flight tickets not only to fly, but also to look at the added

values (airplanes are only a part, people make up emotions) That emotion is expressed through the image of a hand placed on the left chest of a Bamboo Airways flight attendant "This is a symbol of the airline's 5-star oriented 'more than a flight' service spirit It is the dedication of the team from the friendly and professional cabin crew to the ground service, technical, flight safety as well as each member of the Executive Board"

+ The "5-star" human training factor is especially appreciated by the company Bamboo Airways' crew not only "eats points" in appearance, but also from very small things when communicating with passengers such as walking, makeup, smiling, to operations such as first aid for passengers customers, recognizing and distinguishing dangerous goods, aviation safety, communication skills,

service skills, customer care and how to exercise physical and mental health.+ Bamboo Airways is currently the first private airline in Vietnam to own abusiness class private lounge This is also the first Vietnamese private airline toown the modern wide-body Boeing 787-9 Dreamliner and put it into operation

on domestic routes

Entering the third year, Bamboo Airways aims to capture 30% of the domesticaviation market share by 2021, transporting 50 million passengers by 2025

Rich in added value

Bamboo Airways' fleet

Right from the first year, Bamboo Airways is determined to make a biginvestment and put into operation 20 Airbus A320 aircraft, this is the biggestdifference between Bamboo Airways compared to other airlines Bamboo Airways willmake a big investment so that passengers and people don't have to worry about lack ofseats This is a bold step for Bamboo Airways because in the past, most airlines diedprematurely because of losses when they only operated 1-3 aircraft It is expected that

by 2020, Bamboo Airways' fleet will increase to 40 Airbus A320, A321 and 20 BoeingB787-9 aircraft After 2 years, Bamboo Airways will own 60 A320, A321 and 40Boeing 787-9 aircraft

Bamboo Airways' flight network.

Bamboo Airways will prioritize exploiting 37 routes connecting provincesand cities with famous tourist destinations in Vietnam, especially resorts with resortcomplexes of FLC Group After that, Bamboo Airways will gradually increase thefrequency of operation and expand international routes to countries in Asia, Europeand America…

Bamboo Airways also said that it will open direct flights from Ho Chi MinhCity to Los Angeles (USA), their partner - Boeing will also create conditions forBamboo Airways to do this Talking about its flight strategy, Tre Viet will not focustoo much on the golden routes that are currently overloading Noi Bai and Tan SonNhat airports such as the Hanoi - Ho Chi Minh City route

Example:

Passengers in some northern provinces who want to go to a southern province must

necessarily go to Noi Bai airport and vice versa This is the cause of the overload atsome major airports in Vietnam, causing trouble for many customers when delayed ormissed flights.

The model of combining aviation with tourism, focusing on exploiting airports thatare not yet operating at full capacity has brought a "new breeze" to the aviationmarket Taking advantage of the parent company of FLC Group - the developer andoperator of the 5-star FLC Hotels and Resorts chain across the country, BambooAirways quickly established a network of over 50 routes with wide coverage, focusing

on new tourist destinations Flight services, flight - vacation - golf products are used

by a wide range of customers thanks to their convenience, flexibility, reasonable price,and high quality

Bamboo Airways is one of the first airlines to operate the Ho Chi Minh City flight

Ho Chi Minh City - Van Don and here Van Don - Da Nang In addition, the "FlyBamboo for FLC" offer is also one of the "specialties" that only Bamboo Airways has

on the market today, something not every airline or company can do

4 HRM - Human Resource Management

Bamboo airway divides personnel into Functional Departmentalization

LABOR FORM At the airline's leadership positions, in addition to human

resources from FLC Group, there are also many experts in the aviation industry,including from Vietnam Airlines, Canada Air As the newest airline to take off

in 2019 in Asia, Bamboo Airways is facing a great challenge from the thirst forpersonnel In order to serve the future expansion plan, Bamboo Airways willcertainly continue to have new recruitment rounds

RECRUITMENT POLICY + TRAINING

Attracting: Senior HR: Hunting for Big Names

Despite having the first flight in January 2019, Bamboo Airways only

launched its leadership in May 2018 and then its senior personnel wasconstantly disturbed One of the first names introduced by FLC in Bamboo