Solutions to improve ineffective supervision at FPT digital retail joint stock company

1 SOLUTIONS TO IMPROVE INEFFECTIVE SUPERVISION AT FPT DIGITAL RETAIL JOINT STOCK COMPANY TRUONG THUY QUANG MBA THESIS INSTRUCTOR: Dr Nguyen Thi Nguyet Que Feb 6, 2017 Table of Contents Acknowledgement Executive summary CHAPTER I PROBLEM IDENTIFICATION 1.1 Company background 1.1.1 Industry overview 1.1.2 Market share and competitors 1.1.3 Company history and structure 1.2.Background of problem 11 1.3 Problem Justification 17 1.3.1 Potential central problem 17 1.3.2 Justify the existence of problem 19 1.3.3Jusify the importance of problem 21 1.4 Identification of potential causes: 23 CHAPTER II ALTERNATIVE SOLUTIONS 27 2.1.Causes validation 27 2.2.Solution design 30 CHAPTER III SELECTED SOLUTION AND CHANGE PLAN 37 3.1.Introduction to selected solution 37 3.2.Details plan 37 3.3.Change plan and counter measures: 41 CHAPTER IV SUPPORTING INFORMATION 42 4.1.Questionnaire development to justify central problem 43 4.2 Questionnaire development to justify causes 44 4.3 Transcript of all interviews 46 REFERENCE 77 List of Tables Table 1: Asia retails sales volume growth from Economist Intelligence Unit, 2016 Table 2: Electrical appliances and housewares: Market demand growth from Economist Intelligence Unit, 2016 List of Figures Figure 1: FPT Corporation structure from FPT Retail Human Resources, 2016 10 Figure 2: Staff growth at FPT Retail JSC from FPT Retail JSC Human Resources, 2016 11 Figure 3: Turnover rate at FPT retail JSC from FPT Retail JSC Human Resources, 2014 to 2016 11 Figure 4: Initial cause and effect map 16 Figure 5: Final cause and effect map 26 Acknowledgement I would like to express my deepest appreciation to my supervisor, Dr Nguyen Thi Nguyet Que, who always stands by me and motivates me to complete this Without her full support, this master thesis cannot be fulfilled Needless to say, her guidance helped me in all the time of writing this thesis In addition to that, I want to show my sincere gratitude to Prof Nguyen Dinh Tho, who are always dedicated and patient to us in every single moment Besides my advisors, I would like to thank my family and friends for encouraging me spiritually throughout writing this thesis Executive summary This thesis of “Solutions to improve ineffective supervision” had been composed and completed in four main chapters: problem identification, alternative solutions, selected solution and change plan, supporting information Chapter I included company introduction which is FPT Digital Retail JSC, main features about FPT as well as some recent issues that illustrated from a wide variety of secondary data To make it clearer and convincing, in depth interviews were conducted to explore problems further to see what was really going on in this company A problem mess had been created to show out all symptoms, organization outcomes and problems as a general picture Specifically, a central problem of ineffective supervision was selected to be solved as a core problem of company with the justification of its existence and importance After validating and selecting the central problem of organization, three causes of central problem listed as supervisory relationship, soft-skill training, gender-related leadership were investigated to verify and determine so as to give out alternative solutions which were presented in chapter II In this thesis, there were two solutions proposed for short-term and long-term to tackle problem with evaluation and comparison between these two solutions to best out the most relevant and suitable for organization which were discussed in chapter III The last chapter was named as the supporting chapter to support all information and information source for the above three chapters It composed three sections of questionnaire development to justify central problem, questionnaire development to justify causes and transcript of all interviews In-depth interviews were widely used at different levels from staff to manager to collect data and to diagnose various aspects of the problem with the methodology of design-oriented and theory-informed from a wide variety of fields such as retails, service industry, management etc After collecting data and information to analyze, it was believed that employee satisfaction had been greatly affected by lots of factors such as nature of work, pay and benefit, motivation etc However, this research illustrated that factor of supervision had been mostly influenced which led to the very alarming consequences such as high turnover, low job performance and employee satisfaction CHAPTER I: PROBLEM IDENTIFICATION 1.1 Company background 1.1.1 Industry overview In this constantly changing world, Vietnam is one of the most actively emerging markets Particularly, despite the world economic slowdown, retail sector of Vietnam is highly considered as high level of attractiveness As being illustrated in Table 1, over the past year, Vietnam had a pretty low growth rate in comparison with other developing countries such as China, Hong Kong However, recently from 2016, it is predicted that the second-highest growing country belongs to Vietnam though these figures varied slightly Table 1: Asia retails sales volume growth from Economist Intelligence Unit, 2016 Needless to say, retail competition of electric device market is getting gradually aggressive and expansive Follow the very similar pattern with the growth rate in the first table, this second table illustrates the rapidly growth of Vietnam in term of electrical appliances and housewares Since 2014, Vietnam won the second-highest place in market demand growth just after China as presented in table below: Table 2: Electrical appliances and housewares: Market demand growth from Economist Intelligence Unit, 2016 1.1.2 Market share and competitors Several biggest mobile phone retailer listed must be Thegioididong Joint Stock Company, FPT Digital Retail Joint Stock Company, Vienthong A etc During the past years from 2010 to 2014, Thegioididong drives the position of one of 500 leading retail companies in Asia Pacific area and won the first place of mobile retail business (according to doanhnhansaigon.vn) “The Vietnam mobile phone retail market is heating up with an enormous expansion of the largest retailers such as Thegioididong, FPT and VienthongA Therefore, smaller retailers in the mobile phone business need to adapt in order to survive in this competitive market Vietnam’s largest mobile phone retailer, Thegioididong has accounted for 40% share of mobile retail market in Vietnam and its revenue in 2015 was reported to increase 60% compared to the previous year from 15,800 billion VND to 25,250 billion VND “The market share of Thegioididong is up to 40% and not stoppable; It is really not easy for anyone who wants to penetrate into this market to compete with Thegioididong” Nguyen Duc Tai, the CEO of Thegioididong, said.” The strongest rival of FPT Shop must be Thegioigidong, the first comer in this playground with more than 688 stores, 16.969 employees in all regions of Vietnam It accounts for 30% market share followed by FPT Shop 10%, Vienthong A Viettel 20% and the remaining belongs to small and medium sized shops Nevertheless, due to this strong competition, it is confronting with one another giant competitor named FPT Shop whose number of shops sharply rocket in all around Vietnam To reach out this target, retail staff has made great contribution though this company is under threat of high turnover rate which is the result of low job satisfaction, working time, competition between staff etc 1.1.3 Company history and structure On August 28, 2007 FPT Digital Retail JSC was established with the store chain named [IN]Store nationwide After that, in 2008, [IN]Store changed its name to FPT Shop And since 2009, FPT brand name has become popular with customers Three years later, FPT Retail JSC changed its name to FPR Digital Retail JSC and this name has been widely used until now 10 Regarding the structure, FPT Digital Retail JSC (FPT Retail) operates under FPT Corporation as one of its subsidiary People in Vietnam witness this familiar name FPT Shop Until now, there are approximately 300 stores in around Vietnam mainly in Ho Chi Minh City, Ha Noi, Hai Phong, Can Tho, Da Nang and Hue Predictably, Year 2016 witness a sharp increase up to 400 shops FPT CORPORATION FE FIS FOC FRT FTEL FTG FS Figure 1: FPT Corporation structure from FPT Retail Human Resources, 2016 FPT Shop provides huge ranges of products from Mobile phone, Laptop, Accessories to Service, used mobile phones For staff, there is a dramatically increase in staff growth with career path from newbies to Regional Shop manager In 2015, the number of staff reached 4500 people and increase to around 5000 staff in 2016 5000 4000 3000 2000 1000 Staff growth 2007 2010 2012 2013 2014 2015 2016 ... competitors Several biggest mobile phone retailer listed must be Thegioididong Joint Stock Company, FPT Digital Retail Joint Stock Company, Vienthong A etc During the past years from 2010 to 2014,... 1.1.3 Company history and structure On August 28, 2007 FPT Digital Retail JSC was established with the store chain named [IN]Store nationwide After that, in 2008, [IN]Store changed its name to FPT. .. structure, FPT Digital Retail JSC (FPT Retail) operates under FPT Corporation as one of its subsidiary People in Vietnam witness this familiar name FPT Shop Until now, there are approximately 300 stores