business report introduction of business administration topic analysis of internal and external factors of viettel post

HO CHI MINH UNIVERSITY OF BANKING SAI GON INTERNATIONAL SCHOOL OF BUSINESS

FACULTY OF BUSINESS ADMINISTRATION œ4-3#))#)

HUB Saig onlSB

HOCHIMINH UNIVERSITY OF BANKING

Faculty Adivsor: Tran Thién Ky

Student’s Name: Neuyén Kim Phuong Anh

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|HO CHI MINH UNIVERSITY OF BANKING SAIGONISB

Module: Introduction to Bussiness Administration Programme: Dual-degrees

Detailed mark (by Examiners)-

© Number of correct answers: co Number of correct answers:

INTRODUCTION TO BUSINESS

OPENING STATEMENT

The rise of information technology has led to the proliferation of commercial websites, resulting in a surge in the popularity of online shopping services and increased delivery demands While postal services in Vietnam have a long-standing history, they have primarily focused on mail delivery, with a limited proportion dedicated to goods transportation In contrast, numerous postal companies operate worldwide, with Viettel Post being a prominent player Viettel Post is dedicated to meeting customer expectations, aiming to provide a sense of trust, peace of mind, and the best experience to its customers Despite its accomplishments and a stable customer base, Viettel Post still grapples with shortcomings that impact the overall customer experience This is the rationale behind my choice to research the analysis of internal and external factors affecting Viettel Post The research project's objective is to engage in discussions, propose solutions, and contribute to the company's development The research's subject is the analysis of Viettel Post's internal and external factors, while the scope is yet to be defined The research will employ an integrated approach, analytical methods, document

retrieval, and data citation as its primary research methods

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INTRODUCTION TO BUSINESS

Contents

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Overall about business environment

II- ANALYSIS OF INTERNAL AND EXTERNAL FACTORS OF VIETTEL POST 11

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INTRODUCTION TO BUSINESS

LIST OF ABBREVIATIONS

3 C5ISR An acronym for Command, Control, Computers, Communications, Cyber, Intelligence, Surveillance,

and Reconnaissance

COMMERCE

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INTRODUCTION TO BUSINESS

I- THEORETICAL BASIS

Overall about business environment

Business environment is the totality of factors (internal and external) that move and influence each other, which can directly or indirectly impact the business activities of an

+ * InternationaL Technological

country's laws and policies and mechanisms for business State policies aim to promote healthy

competition and maintain a neutral attitude when dealing with conflicts In addition, the stability of state politics greatly affects, bus INESS 28, ww iedunote.com/organizational-environment-

Social: Issues related to population, culture, social class Above all, businesses need to

keep up with new trends to attract customers

Technology: Today with the development of scientific achievements, business products are associated with them

Ethics: Moral rules are defined as what one must do and what one is not allowed to do

International context: The globalization process has had different impacts on the local economy it helps the exchange of a large number of products and services between countries, and foreign direct investment increases or decreases is the continuous rise of multinational companies

Competition between sellers: all businesses, large and small, want to sell the largest number of products However, there will be many product suppliers in the same type of business, so competition between suppliers is inevitable

Substitute products and services: in the context of fierce economic competition, the continuous innovation of commodity products is obvious

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INTRODUCTION TO BUSINESS

Power of suppliers: Businesses are dependent on raw material suppliers Based on large or small dependence on suppliers to determine the opportunity to offer conditions as well as offer the best price for yourself

Consumer power: Human consumption needs are increasingly increasing, leading to

productselection criteria It is not easy for businesses to satisfy consumer demands

Internal-environment:

Organizational culture is the framework of values, vision, norms and habits shared by

members of an organization Business culture affects how employees within a business

interact with each other, their customers, and other stakeholders

Organizational structure is the way a business is organized to conduct its activities Organizations can be set up flat, with very few levels of hierarchy, or set up vertically, with many levels of hierarchy The way an organization is organized will affect how the business is managed and the level of control each employee has over their work Management structure is the way a business is managed Management can be centralized, where all decisions from above are taken down across the enterprise, or can be decentralized, where decision making is distributed throughout the organization and

decisions are made closer to relevant activities or issues (According to Shawn Grimsley,

What Is Business Environment?

The business environment is an important factor that directly impacts the business strategies of large and small businesses It can also be a factor that helps develop the

economy quickly and conversely it can also cause business entities to fall into crisis

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INTRODUCTION TO BUSINESS

Il- INTRODUCING VIETTEL POST 1 Overall

Viettel Post Corporation (Viettel post) was established on July 1, 1997 The initial goal is

to serve the Ministry of National Defense In 2006, Viettel Post converted from the

dependent accounting model to the independent accounting of Viettel Post One Member Limited Liability Company By 2008, this company operated as a joint stock company (Viettel Post, 2023)

Viettel officially became the first corporation in the military telecommunications group

model on April 13, 2012 (Viettel Post, 2023)

The history of the company's formation

01/07/19 | 1997- PB 2006 2009- 2000 2005 2008 2013

nu ; Hanoi- HCM _ delivery business companies Tan Sus EY hi delivery network in63 throughout Hanoi and logistics services 10g} ee a services and provincesand the domestic HCM, ee ce CR SG receiving a cities network renamed ¡ ‘ Ti °

established ĐH HUEIh stationery -Application -Network:

office and delivery management companies

INTRODUCTION TO BUSINESS

The organizational structure of Viettel Post consists of 63 branches across the country, nearly 40,000 employees, 04 Centers, 05 member companies (Viettel Post E-Commerce Company Limited, Viettel Logistics Company Limited, Viettel Post Technology Company Limited, MyGo Cambodia Company Limited, and MyGo Myanmar Company Limited), and 10 departments (Viettel Post, 2023)

Viettel Post network infrastructure

Viettel Post has serviced every delivery network segment, including island districts

across Vietnam's whole territory (Viettel Post, 2023)

Post offices, or locations where express mail is received: there are approximately 680 post offices, including: Plus 300 post offices at level 1 380 Post Office Levels Two and Three In the country, there are 300 mail delivery agents Nearly 1,000 tractor-trailers, container trucks, and full-tonnage vehicles are available to provide prompt, efficient, and

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INTRODUCTION TO BUSINESS

Viettel post ’s main segments

VTP’s major services are express delivery services and logistics

(warehousing, forwardingand freight

Express delivery | Logistics services Commercial sales

Domestic and intemational Domestic and intemational | Air ticket, stationery, (formerly trans po rtation

express delivery services, postal transportation, forwarding and ‘SiM/phone cards)

services and add-in services warehousing, digital shop services) These

68% of total net sales

enterprises in Vietnam by 2025 (Viettel Post, 2023) :

Ị

closer to domestic and foreign customers, affirming NV KỆ: ae Viettel post

that it is a business that fulfills its community Mo, 5 obligations and is socially responsible (Viettel Post,

2023)

With a long-term vision and _— sustainable development perspective, Viettel Post focuses on investing in technology in the delivery field Create

a professional, modern working environment,

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INTRODUCTION TO BUSINESS

Customer centered: Each customer is a separate individual that needs to be respected,

cared for, listened to, understood and served separately Continuously innovate, together

with customers to create increasingly perfect products and services (Viettel Post, 2023)

Doing business with Kindness: ind management thinking} ind products and services| ind staff

IIl- ANALYSIS OF INTERNAL AND EXTERNAL FACTORS OF VIETTEL POST

al factors 1.1.Strength: power

Great resources from parent group

Viettel has become the leading state-owned economic group in

Viet Nam after more than 30 years

of formation and development Main business lines include:

research, e-commerce and logistics (Minh Ngoc,2022)

Is a pioneering enterprise in the field of information technology and high-tech defense industry Profit

828/40 trillion/year, profit margin is above 25% (Thien

gure ¢ 6: "¬ //vietngmered: com vivnews/top largest-

Truong, 2022)

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INTRODUCTION TO BUSINESS

In 2020 and 2021, Viettel is an enterprise with great influence on mnovation in South Asia

and Southeast Asia Is the most valuable telecommunications brand in Vietnam, No 1 in Southeast Asia, 10th in Asia and 18th

among the world's most valuable network operators in 2022 (Thien Truong, 2022) After nearly 20 years of foreign investment, Viettel is currently in the top 20 leading

telecommunications investment To achieve

this result, the unit launched an early

overseas investment strategy to expand the market and

create new development space The Group develops business in 10 foreign markets, spanning three continents (Asia, Africa, America) In 7 foreign markets, Viettel ranks first and second in mobile market share (Minh

Tu,2023)

High growth rate:

Viettel post has an average revenue growth

rate of 43.3% over year (Viettel Post,2023) Accordingly, in the first 6 months of 2023, Viettel Post's revenue reached 9,778 billion

VND, completing 112%, pre-tax profit reached 218.6 billion VND, completing

103% of the plan (Nguyen Duc, 2023)

Notably, the postal sector is Viettel Post's core sector reaching 104.3% of the plan, growing 25.5% over the same period in 2022, an increase of approximately 10 times compared to 2014 (Nguyen Duc, 2023)

In the second quarter of 2023, total revenue

Cash on Delivery Logistic Service, ECommerce

Service, et

In 22, Viette post ochieved revenue of 21,452 bilion VND, up 24% over the some period ond groft offer tox reached 295.69 billion VND, down 23% compared fo the some patiog in 2020

Figure 8

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reached 4,974.79 billion VND, an increase of 3.8% compared to 1“ quarter of 2023 Of

which, the postal sector reached 101.4% of the plan, an increase of 16.5% in 1“ quarter of 2023, an increase of 29.4% in the same period in 2022 The fields of telecommunications and e-commerce all completed exceeding the plan plan, reaching 109.8% and 127% of the plan respectively (Van Phong-Thu Huong, 2023)

Pre-tax profit of 2"! quarter of 2023 reached 123.7 billion VND, reaching 103.3% of the plan, up 30.5% compared to 1* quarter of 2023 (Van Phong-Thu Huong, 2023)

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INTRODUCTION TO BUSINESS

Viettel Post has a network covering

62 provinces and cities with 85 post offices in large and small provinces, 11,235 delivery points nationwide, 829 stores and more than 21,000 delivery points nationwide

Not only that, Viettel Post is also a pioneer in developing postal and delivery services abroad, specifically in Cambodia and Myanmar These are two markets with great potential for development in logistics and e-commerce as people's demand for online shopping and using transportation services is increasing Meanwhile, there are very few businesses licensed by the government to operate in the delivery industry, with Cambodia having 25 companies and Myanmar having only 6 companies

1.2.Weaknesses

Lack of synchronization in business activities

Although invested and expanded, Viettel's network scale in general does not meet current needs, and lacks synchronization in business activities leading to difficulties in operations Operation, management, labor productivity is not high, and infrastructure is not modern, also affecting service quality (Viettel Post, 2023)

Not flexible in business activities

Management has many military culture features, so freedom to do business and operate according to the market is limited Management is heavily commanding, so the ability to

adapt flexibly is not high Governance is affected by many non-business factors such as defense and security

The shipping process 1s still

Marketing activities have not been

sales sites todayShipping costs of some shipping units are higher than other shipping units Customer care and support services on the