Ineffective internal communication of importing process in srithai limited company

1 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business NGUYEN THI THUY INEFFECTIVE INTERNAL COMMUNICATION OF IMPORTING PROCESS IN SRITHAI LIMITED COMPANY MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: NGUYEN PHONG NGUYEN Ho Chi Minh City – Year 2018 Table of Contents EXECUTIVE SUMMARY CHAPTER 1: BACKGROUND INFORMATION 1.1 Company background 1.2 Company symptoms 1.2.1 The method of scan symptom 1.2.2 Justify the importance of symptoms 1.2.3 General symptoms 1.2.3.1 The first symptom: Low Customer’s satisfaction 1.2.3.2 The second symptom: Gross profit decreases 1.2.3.3 The third symptom: High failing projects rate 10 CHAPTER 2: PROBLEM IDENTIFICATION 11 2.1 Methodology 11 2.2 Identifying and Diagnosing Tentative Problems 11 2.2.1 The first tentative problem: Ineffective internal communication 14 2.2.2 The second tentative problem: Weak leadership 18 2.3 The real problem: Ineffective internal communication 22 2.4 Problem definitions of ineffective internal communication 25 2.5 Verifying the importance of ineffective internal communication 26 2.6 Verifying the existence of ineffective internal communication 27 2.7 Causes and Effects chart of real problem: Ineffective internal communication in Srithai Vietnam company 29 CHAPTER 3: ALTERNATIVES ANALYSIS AND POSSIBLE SOLUTIONS 31 3.1 Verify causes of the real problem 31 3.2 Main cause of the problem: weak individual leadership 34 3.3 Possible solutions 37 3.3.1 Solution 1: Applying ROFO principle in office departments in Srithai Vietnam 37 CHAPTER 4: ACTION PLAN FOR SOLUTION 39 CONCLUSION 43 SUPPORTING INFORMATION 44 REFERENCES 75 APPENDIX 77 EXECUTIVE SUMMARY The thesis writes about improving internal communication of importing process in Srithai Company The essay focuses on main area office departments In specific, there are Plastic sales department, Purchasing department and Finance department The main process is followed during essay is importing process related main products of Material Handling Equipment (MHE) In specific, MHE products have been traded since 2016 and reached high overcome in 2017 However, report of finances about net profit of this group presented to decrease In addition, the analyses later of customers’ satisfaction and failing project rate also showed negative Therefore, the thesis will focus on analyze these issues and figure out what is the main problem of these things through the data from company and from some qualitative research Not only that, this thesis will evaluate and raise the most suitable solution as well as detail actions plan for solving problem And as finding from the research, the main problem leads to decline bottom profit of MHE group is ineffective internal communication This problem does exit due to low motivation employees, weak teamwork skill, different language and weak individual leadership Those causes have built a bad culture for working in company Hence, it is suggested that company should apply ROFO principles to encourage internal communication system in company More than that, it helps to build new culture, create facilitate working environment for employees CHAPTER 1: BACKGROUND INFORMATION 1.1 Company background Srithai Superware was established in Thailand in 1963 In 1996, Srithai comes to Vietnam and becomes a joint-venture company under the name of Vietthai Industrial Plastic Co Ltd located in Ho Chi Minh City However, it has moved head office and factory to Binh Dương provinces since 2005 Currently, it has factories, ones are in the south and one is in the North Vietnam Srithai has more than 20 year’s experiences in Viet Nam with 46 Injection Machines and 20 Compression Machines The capacity is plastic 2.500 Tons/year, beverage 8.000 Tons/year, household 500 Tons/year Srithai is one of the leading manufacturers and distributors of three products group below: Industrial Plastic Product, Food & Beverage Packaging and Melamine Tableware They business with huge giant in plastic industry such as GS battery, Pinaco, Suntory Pepsi, Sapporo, Jotun, etc… The business vision of Srithai Vietnam Co Ltd is using quality products and services to achieve customer's complete satisfaction, thereby ensuring company profitability and sustained market growth 1.2 Company symptoms 1.2.1 The method of scan symptom The research started from researching KIP of Plastic sales department There are five group of products such as Original Equipment Manufacturer (OEM), Material Handling Equipment (MHE), Paint Pail, Cinema and Promotion This thesis focus on Material Handling Equipment group The main products in this group are plastic pallet and container Both of them are imported from Srithai Superware Thailand, Mother company Srithai Vietnam started to trade imported products from Mother company from June 2015 However, it reached first customer in half of year 2016 after a year approached MHE group reached target in 2017, however, the data analyses show bottom profit is lost It raised many meetings between Sales, Purchasing and Finance department from early year 2018 for finding reasons, corrective actions and solutions On the other hands, there is big gap between sales budget and actual revenue in half year 2018 This issue is not only happened with MHE group but also another groups Moreover, sales budget was forecasted based on actual sales 2017 and customer forecast in 2018 That raised two questions for board of manager First question is why sales forecast in 2018 is too different from actual return Second question is plan of quarter three and four to cover back for decreasing of revenue in first half of year 2018 Thus, the research starts from the history data such as sales report, profit report and customer’s satisfaction survey report, references from sales, finance and ISO department 1.2.2 Justify the importance of symptoms A business runs because of many purposes Goldman et al researched that “the business organization is a part of society and exists to serve and advance society”(1) It could be said that the original purposes of business are continuously to produce goods to supply for society; simultaneously, non-stop learning, improving and driving society go advanced On the other hands, Goldman also explored modern theory that the primary purpose of organization is “realizing a sustained long-term profit, thereby maximizing return on investment for shareholders and investors”(1) Nowadays, most of practitioners and normal people both agree that profit is the most importance to ensure survival and development of company The need for organization to adapt and re-inventing itself to the forever changing business environment has become more and more apparent in recent years With fast pace technology changes and disruptive innovation such as smartphones, e-commerce, and Industry 4.0, the business environment now is most dynamic and unpredictable Then, organizations who can learn about these changes and be the first to re-invent itself to take advantage of the new development will possess a competitive edge and those who are slow to adapt or oblivious to these changes are doomed to mediocrity or, at the worst, complete failure When profit of company reduces, immediately it impacts on whole activities of enterprise Which reasons lead to decrease profit? If business is not timely to find out and solve it, business may not survive in non-stop changing environment today Otherwise, it could be said that customers are who bring value to company Without customer company will not survive Therefore, many companies invest very much money to find customers ‘need and their behaviors and make them happier Thus, customer ‘satisfaction rate is significantly vital to company There are many signals to indicate company that where it is position Which are its strengths and weaknesses Most of improvements will base on customers’ behaviors On the other hands, Dawson also emphasized the importance of organization’s knowledge capabilities Its ability to process the changing competitive and market environment By stating that “Effective Real-time development and implementation of strategy – which is essential for organizational success – depends completely on the organization’s knowledge capability”(2) Thus, it can be implied that an organization is only as good as its knowledge capabilities Any improvement should base on knowing clearly about knowledge capabilities of company 1.2.3 General symptoms 1.2.3.1 The first symptom: Low Customer’s satisfaction Customer satisfaction of importing products group 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2017 2018 Quality of product 88% 90% Delivery 45% 50% After delivery service 70% 80% Salesman's knowledge 70% 80% Figure 1: The average customer’s satisfaction in 2017 and 2018 of importing products group Source: Customer’s satisfaction index report 2018, ISO department ISO department will conduct a survey about customers’ satisfaction in middle of year The survey has been concentrated on four main points First point is about quality of products Second point is about service after sales Third point is delivery service Final point is salesman’s knowledge Srithai has traded import products in two years from 2016 to 2018 The survey has also conducted for two years The chart above shows results that customers are quite satisfied with quality of products, after delivery service and salesman’s knowledge However, they have been disappointed with delivery service of company with 45% and 50% in 2017, 2018 respectively In specific, Srithai delivered products on time 30 orders in amount 91 ones in 2017, 10 orders in amount 38 ones in first two quarters in 2018 Most of late delivery orders are related to projects such as project to supply pallet to Suntory Pepsi, MM Mega Market, Nestle, Mondelez Kinh Do and provide container to Big C, Pharmacity and Bach Hoa Xanh, etc Moreover, the average late delivery is to 20 days In fact, delivery is late to 20 days is normal in import field However, lead time of import products is 30 days from releasing PO is included estimated how many days be delayed In addition, Srithai has lead time delivery highest compare with its competitors in this industry Delivery Lead time 35 30 Day 25 20 15 10 Delivery Lead time Srithai 30 Dino 15 Platinum 20 Figure 2: Delivery lead time of Srithai, Dino and Platinum Source: Internal meeting minutes of Sales department in January 2018 1.2.3.2 The second symptom: Gross profit decreases Unit: Million VND Figure 3: Sales and %Gross Profit of Plastic Business Quarter 1, in 2017, 2018 Source: Finance report in July 15th 2018 The figure shows the big gap between revenue of quarter one and two in 2017 and 2018 Moreover, actual sales in half of 2018 significantly different from forecast in beginning of year 2018 In specific, sales and gross profit of import products group also same trend with sales and gross profit of plastics business in 2018 and very low compare with 2017 (Figure 4) 10 Sales & GP of importing products group 3,500 3,000 Million VND 2,500 2,000 1,500 1,000 500 -500 Sales 2018 Sales 2017 GP 2018 GP 2017 Jan 2,157 730 130 30 Feb 1,836 896 105 20 Mar 1,660 1564 -12 -30 Apr 601 3166 -65 179 May 288 2898 30 187 June 841 1250 31 50 Figure 4: Sales and Gross Profit of import products group quarter 1, in 2017, 2018 Source: Finance report in July 15th 2018 1.2.3.3 The third symptom: High failing projects rate Pallet and container are main product of Material Handling Equipment group They are usually sold as a project There are many failing projects in half of year 2018 The rate of failing project is higher than 2017 We have failed fifty percentage of projects with old customers We lost some main big customers as ABI Bev, MM Mega Market, Suntory Pepsi to competitors NPC Toda and Long Thanh company In addition, some daily customer as Kureha and SABMiller company have stopped ordering because price is too high compare with price of market Moreover, every month MHE team approach average five new customers and they are seemly got stuck in low pricing process such as Asia Saigon Foods with volume 10,000 pcs plastic pallet 64 TRANSCRIPT Topic The effective of internal communication system in Srithai Vietnam company Venue No.2, Street 2, Di An Ward, Di An district, Binh Duong province Time 17 pm, Wenesday, August 8th, 2018 Interviewer Nguyễn Thị Thủy (ID: 22160052) Interviewee Nguyen Thi Thuy Phương, Purchasing supervisor in Srithai Vietnam Company I want to thank you for taking the time to meet with me today My name is Thuy and I would like to talk to you about your experiences in the effective of internal communication system in Srithai Vietnam company The interview should take about 20 minutes I will be taping the session because I don’t want to miss any of your comments Although I will be taking some notes during the session, I can’t possibly write fast enough to get it all down Because we’re on tape, please be sure to speak up so that we don’t miss your comments All responses will be kept confidential This means that your interview responses will only be shared with research team members and we will ensure that any information we include in our report does not identify you as the respondent Remember, you don’t have to talk about anything you don’t want to and you may end the interview at any time Interviewer: Are there any questions about what I have just explained? Respondent: No Interviewer: Are you willing to participate in this interview? Respondent: Yes Interviewer: Personal information Your job/responsibility/position within the company Respondent: I am Thuy Phuong, working as purchasing supervisor in Srithai Company Interviewer: How long have you worked with Srithai company? How you feel about its working environment? Prompts: support policy of company, style of managers, attitude of employees in working, etc Respondent: I have worked in Srithai for five years As I see working environment in Srithai is quite stable It is not much pressure However, it also less benefits Every people work well but they have just finished their job, not effort more And most of employees try to avoid responsibility 65 Interviewer: Gross profit of importing products group has decreased since 2017, you think what the reasons are? Respondent: My job is related to procurement of importing So, I am not care much about profit But we meet huge problem in communicate with Mother company The person I often contact is Thai people But she is quite weak about English Therefore, we cannot understand well Interviewer: The failing project of importing products group rate is very high, you think what the reasons are? Respondent: This question is sales side, I don’t have opinion, however, I see that we often send products to customer late, I heard from sales department Any orders are seem urgent when they come the port and I heard salesman said that taking out immediately because we are late half of month Interviewer: Do you think that lack of effective communication in work organization would affect to employees’ productivity? How are its affects? Could you share some experiences? Respondent: Yes, I think effective communication in working organization affect very much on employees’ productivity Because most of people are in working process, if one not work well, it will influence on another Interviewer: What are your difficulties in your job? Do your boss and your colleagues support you? Respondent: I responsible for importing part in Srithai, Melamine, Plastic and beverage so my job is to much Sometimes I overload; special, I often meet difficulties with only plastics part My boss sometime helps to call to exporting department in Thai to ask information Interviewer: Are you initiative to make decision in your job? If answer is no, what reasons are in your opinion? Respondent: I have eight years experiences in import-export field, so I am confident about procurement Thus, I am quite active in my job because my job Interviewer: What are your opinions about cross communication of department in company? In scope my job, I see that I support colleagues well Interviewer: How you think of effective of sharing information between departments? Respondent: I see that there is not effective of sharing information between departments Each department works quite separately Interviewer: Are you clear your department’s KPI and your description job? Are you clear KPI of profit and cost of company? Respondent: I am very clear KIP of sales departments and my job; however, I have never heard about KPI of profit and cost of company 66 Interviewer: How you think of effective of leadership in company? Prompts: making decision ability, persuade ability, motivation employees, listening, etc Respondent: I see that Thai managers are quite good Interviewer: Are you easy to tell your boss your idea or improvement? Respondent: Actually, my department is not easy to share ideas People just their job and not share much about opinions Interviewer: Do you want to share more information? Respondent: No, thanks Interviewer: Thanks you very much for your taking time to join interview TRANSCRIPT Topic Finding evidences for proving importance of existence problem Venue No.2, Street 2, Di An Ward, Di An district, Binh Duong province Time 16 pm, Wednesday, August 15th, 2018 Interviewer Nguyen Thi Thuy (ID: 22160052) Interviewee Puripong Pinanong – Sales Manager, Srithai Vietnam Company I want to thank you for taking the time to meet with me today My name is Thuy and I would like to talk to you about your experiences in finding evidences for proving importance of existence problem The interview should take about 20 minutes I will be taping the session because I don’t want to miss any of your comments Although I will be taking some notes during the session, I can’t possibly write fast enough to get it all down Because we’re on tape, please be sure to speak up so that we don’t miss your comments All responses will be kept confidential This means that your interview responses will only be shared with research team members and we will ensure that any information we include in our report does not identify you as the respondent Remember, you don’t have to talk about anything you don’t want to and you may end the interview at any time Interviewer: Are there any questions about what I have just explained? Respondent: No 67 Interviewer: Are you willing to participate in this interview? Respondent: Yes Interviewer:Personal information Your job/responsibility/position within the company Respondent: I am Puripong Pinanong, working as sales manager in Plastic business unit in Srithai Company Interviewer: How long have you worked with Srithai company? How you feel about its working environment? Prompts: support policy of company, style of managers, attitude of employees in working, etc Respondent: As previous interview, I would like to move next question Interviewer: What are your opinions about effect of ineffective of organizational communication? Prompt: company performances, company reputation, Respondent: Now MHE performance is not good It does not only reduce performance of Srithai Vietnam in general, but also decreases whole MHE performance in Srithai group Everybody knows that performance of company is the best important, it makes company reputation They have correlation together Interviewer: How ineffective of organizational communication impact on shareholder and stakeholder of company? Respondent: Srithai Vietnam is one of biggest subsidiary of Srithai group Its performance influences directly to value of share of Srithai group in Thailand The wealth of shareholders are affected In addition, every year there are many groups of shareholder visit Srithai Vietnam The visiting impact strongly on investing in Srithai Vietnam in future About stakeholders, when company does not work well, first stakeholder is influence is employees Second one is suppliers Srithai may ask for being payed lower Third one is investors, company will increase loan and take more risk Interviewer: What effects of ineffective of organizational communication to working environment in Srithai? Respondent: As my experiences working in Srithai, I see that although working load is not much pressure, the employees’ productivity is still low Everybody still finishes their job; however, the spirit of support and effort to finish their job beyond expectation are low No matter what Srithai Vietnam has run business for twenty-one years, it still does not build good environment for create working spirit and employees’ spirit Thus, productivity of employees reduces, therefore, impacts directly negative on employees’ satisfaction Finally, the rate turnover also increases 68 TRANSCRIPT Topic Finding evidences for proving importance of existence problem Venue No.2, Street 2, Di An Ward, Di An district, Binh Duong province Time 16 pm, Wednesday, August 16th, 2018 Interviewer Nguyen Thi Thuy (ID: 22160052) Interviewee Tran Thi Tuyet, Human resources manager in Srithai Vietnam Company I want to thank you for taking the time to meet with me today My name is Thuy and I would like to talk to you about your experiences in finding evidences for proving importance of existence problem The interview should take about 20 minutes I will be taping the session because I don’t want to miss any of your comments Although I will be taking some notes during the session, I can’t possibly write fast enough to get it all down Because we’re on tape, please be sure to speak up so that we don’t miss your comments All responses will be kept confidential This means that your interview responses will only be shared with research team members and we will ensure that any information we include in our report does not identify you as the respondent Remember, you don’t have to talk about anything you don’t want to and you may end the interview at any time Interviewer: Are there any questions about what I have just explained? Respondent: No Interviewer: Are you willing to participate in this interview? Respondent: Yes Interviewer: Personal information Your job/responsibility/position within the company I am Tran Thi Tuyet, working as Human resource manager in Srithai Company Interviewer: How long have you worked with Srithai company? How you feel about its working environment? Prompts: support policy of company, style of managers, attitude of employees in working, etc Respondent: I have worked here for four years As my opinion, working environment is quite stable, not much changing Everybody cooperates well Company has enough policy follow the law And the Thai bosses are very good They care about employees’ life 69 Interviewer: What are your opinions about effect of ineffective of organizational communication? Prompt: company performances, company reputation, Respondent: Internal communication is very important If it is not good, it will affect on whole company As my knowledge, HR provides near fifty percentages of information in company such as notice, recruitment policy, internships, appreciation and appraisal, etc when company not have good communication, it influences on new comers and current employees New comer will not study and follow right company strategy as well as their specific job Therefore, they are easy to give up in first stage of working in company About current employees, the description is very vital because it guides to them which their jobs And it is used to evaluate and appraisal them Employees are the best value asset of company When they work well, their performances are increase, company performances also go up Moreover, company performance is high will rise it reputation Interviewer: How ineffective of organizational communication impact on shareholder and stakeholder of company? Respondent: I would like to move next question because I don’t have much knowledge about this concept Interviewer: What effects of ineffective of organizational communication to working environment in Srithai? Respondent: Good internal communication will create spirit of supporting of employees in company because it built good atmosphere working environment If atmosphere working environment is good, it will create extraordinary performances of company through employees’ performance Otherwise, if atmosphere working environment is not good, it will disturb every activity in organization Two transcripts for the fourth round of depth interview TRANSCRIPT Topic Exploring causes of real problem: ineffective in internal communication in Srithai company Venue No.2, Street 2, Di An Ward, Di An district, Binh Duong province Time 17 pm, Monday, August 26, 2018 Interviewer Nguyen Thi Thuy (ID: 22160052) Interviewee Withawin Laohakivjtoon, Executive Business Development in Srithai Vietnam Company 70 I want to thank you for taking the time to meet with me today My name is Thuy and I would like to talk to you about your experiences in exploring causes of real problem: ineffective in internal communication in Srithai company The interview should take about 20 minutes I will be taping the session because I don’t want to miss any of your comments Although I will be taking some notes during the session, I can’t possibly write fast enough to get it all down Because we’re on tape, please be sure to speak up so that we don’t miss your comments All responses will be kept confidential This means that your interview responses will only be shared with research team members and we will ensure that any information we include in our report does not identify you as the respondent Remember, you don’t have to talk about anything you don’t want to and you may end the interview at any time Interviewer: Are there any questions about what I have just explained? Respondent: No Interviewer: Are you willing to participate in this interview? Respondent: Yes Interviewer: Personal information Your job/responsibility/position within the company Respondent: I am Win, working as Executive business development in Srithai Vietnam Interviewer: How long have you worked with Srithai company? How you feel about its working environment? Prompts: support policy of company, style of managers, attitude of employees in working, etc Respondent: I have worked in Srithai Vietnam since 2016 Time flies, it is near years Comparing with my bosses in Srithai Superware and Srithai Vietnam, my working time in Srithai group is too small Most of my bosses have already worked in Srithai group for fifteen years and more So, my experiences are limit, hopefully, I can share useful knowledge to you There are two factories of Srithai in Vietnam One is in the south, Binh Duong province and another is in the north, Bac Ninh provinces I have worked in Srithai Ha Noi for half a year and in Srithai Vietnam for two and half a year Srithai Ha Noi have set up since 2015 so that it is quite new and not to develop like Srithai Vietnam Therefore, the transaction is also less and slow Amount of orders are concentrated on Srithai Vietnam The volume of work is also bigger and more transactions Thus, the interacts between employees are increase I think that frequency and quality of interacts between employees are present quality of working environment in company These factors are very vital to influence to how much volume of work that be done and how are they efficiencies? As I observation and understand about Srithai Vietnam, frequency of interacts between employees is high; however, quality of them is low It makes Srithai Vietnam develop slowly 71 Interviewer: What are your appreciations about internal effective communication of office? Prompt: exchanging information between departments, spirit of supporting between employees and departments, communication between foreign managers and Vietnamese people, communication between employees in Srithai Vietnam and Mother company, etc Respondent: Number of employees in Srithai Vietnam are five hundred people The number of office employees is one hundred twenty people Every day, they take huge transactions Therefore, they conduct communication together very frequencies So, the quality of each communication is key point to impact on quality of transaction, quality of works The spirit supporting of employees is low Obviously, they have finished their job but they are not put more efforts I see that they are weak team work skill Each department tend to work separately The connect of them in a project is low Therefore, it could be seen that leadership of Thai BOD is weak However, it is decision of Mother company of each BOD position, we cannot change Each Thai manager in here has Vietnamese class every week So, the barrier of different language between employees and Thai managers is low Srithai Vietnam have three business cores as Melamine, Beverages and Plastic About import part of Melamine and Beverages, the transactions between Srithai Vietnam and Mother company is smooth; however, with plastic it is meeting problem The key person of Mother company who Srithai Vietnam often contact is weak English but whole dialogue is presented by English Therefore, some big misunderstandings have happened We need an international purchasing know both English and Thai language Interviewer: What are your opinions about leadership in Srithai Vietnam? Prompt: spirit leadership in Srithai Vietnam of BOD, leaders and employees, etc Respondent: About leadership of BOD, I have already shared with you Influencing from weak leadership of BOD, leadership of leader level is also weak It leads to low spirit individual leadership too I think that it become culture of company in long time And now it is too hard to change or improve Interviewer: Workshop in July 2018 showed three points are happening in Srithai Vietnam There is finger point together, no single responsible and explanations So, what are your opinions about these points? And what are the reasons? Respondent: Yes, I agree with main point of that workshop My opinion is there are two main cause: leadership and motivation About leadership, we should focus on increasing individual leadership About motivation, we concentrate on spirit of supporting These two points will flow new wind to company culture Interviewer: Do you want to share more information? 72 Respondent: No, thanks TRANSCRIPT Topic Exploring causes of real problem: ineffective in internal communication in Srithai company Venue No.2, Street 2, Di An Ward, Di An district, Binh Duong province Time 16 pm, Tuseday, August 27, 2018 Interviewer Nguyen Thi Thuy (ID: 22160052) Interviewee Do Quoc Tu, Assistant to Director in Srithai Vietnam Company I want to thank you for taking the time to meet with me today My name is Thuy and I would like to talk to you about your experiences in exploring causes of real problem: ineffective in internal communication in Srithai company The interview should take about 20 minutes I will be taping the session because I don’t want to miss any of your comments Although I will be taking some notes during the session, I can’t possibly write fast enough to get it all down Because we’re on tape, please be sure to speak up so that we don’t miss your comments All responses will be kept confidential This means that your interview responses will only be shared with research team members and we will ensure that any information we include in our report does not identify you as the respondent Remember, you don’t have to talk about anything you don’t want to and you may end the interview at any time Interviewer: Are there any questions about what I have just explained? Respondent: No Interviewer: Are you willing to participate in this interview? Respondent: Yes Interviewer: Personal information Your job/responsibility/position within the company Respondent: I am Do Quoc Tu, working as Assistant to Director in Srithai company Interviewer: How long have you worked with Srithai company? How you feel about its working environment? Prompts: support policy of company, style of managers, attitude of employees in working, etc 73 Respondent: I have already worked in Srithai company for twelve years Any thing has two aspects, good and bad The working environment in Srithai also have advantages and disadvantages The policy of Srithai is still poor, but it is quite enough with Law Most of Thai BOD are over sixty years old So, their style is more traditional, low dynamics and avoid risk Fifty percentage of employees have family relationship So, they often avoid together and show their points Most of employees have worked as their description and just that, they not care much about process Interviewer: What are your appreciations about internal effective communication of office? Prompt: exchanging information between departments, spirit of supporting between employees and departments, communication between foreign managers and Vietnamese people, communication between employees in Srithai Vietnam and Mother company, etc Respondent: To me I think that internal communication of office is not effective I have worked more than ten years in here, I see departments have worked separately together The spirit of supporting between employees is low I think the reasons are motivation Even you work less or more, you just get same salary, not bonus or complements or prize Interviewer: What are your opinions about leadership in Srithai Vietnam? Prompt: spirit leadership in Srithai Vietnam of BOD, leaders and employees, etc Respondent: As I share with you in question two, all Thai BOD are over sixty years old They are quite conservative Style of management of Thai people is not care much about life of employees Therefore, the policies are just conducted follow the Law Those policies not support to build advantages working environment much However, working load is not pressure and quite stable These points are advantages of Srithai Vietnam The spirit of BOD managers and employees in Srithai both are weak However, in last two year there are some changing in BOD of company Mother company have changed some important positions They tend to hire Singapore managers instead of Thailand It is very good signal that create improvement in managing of BOD and Srithai Vietnam in near future Interviewer: Workshop in July 2018 showed three points are happening in Srithai Vietnam There is finger point together, no single responsible and explanations So, what are your opinions about these points? And what are the reasons? Respondent: That workshop is the first time BOD of Mother company showed straightly three points that become barrier for development of Srithai Vietnam in many years I think that it influences deeply in culture of Srithai Vietnam and it is so hard to change The main reasons I think weak spirit leadership in both managers and employees The weak leadership both sides connect together creates 74 culture less spirit support, cooperating, working, improving, novating and moving forward in Srithai Vietnam Interviewer: Do you want to share more information? 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2008 [Available from: https://hbr.org/2008/08/title 21 schaffner.com OPERATIONAL EXCELLENCE: OUR GUIDLINES TO IMPROVE PROCESSES AND MOTIVATE OUR STAFF [Available from: https://www.schaffner.com/career/social-responsibility/guiding-principle/ 22 Gino F, Staats B Why Organizations Don’t Learn Harvard Business Review 2015:110-8 77 APPENDIX Figure 1: The average customer’s satisfaction in 2017 and 2018 of importing products group Year 2017 2018 Quality of product 88% 90% Delivery 45% 50% After delivery service 70% 80% Salesman's knowledge 70% 80% Figure 2: Delivery lead time of Srithai, Dino and Platinum Company Delivery Lead time (day) Srithai 30 Dino 15 Platinum 20 Figure 3: Sales and %Gross Profit of Plastic Business Quarter 1, in 2017, 2018 Sales figure (Million VND) Jan Feb Mar Apr May June Budget 2018 15,202 15,286 18,515 21,788 20,045 20,940 Actual 2018 16,719 8,884 15,592 17,762 13,427 14,623 Actual 2017 8,774 10,895 18,410 21,218 20,036 11,055 Jan Feb Mar Apr May June Budget 2018 7.7% 7.1% 8.2% 8.5% 8.1% 8.1% Actual 2018 2.1% -1.9% -2.6% -0.3% -2.1% 2.1% Actual 2017 2.1% 6.1% 8.2% 6.9% 6.8% 2.4% % Gross profit Figure 4: Sales and Gross Profit of import products group quarter 1, in 2017, 2018 Unit: Million VND 2018 Jan Feb Mar Apr May June Sales 2018 2,157 1,836 1,660 601 288 841 Sales 2017 730 896 1564 3,166 2,898 1,250 GP 2018 130 105 - 12 30 31 GP 2017 30 20 - 30 187 50 - 65 179 78 ... definitions of ineffective internal communication 25 2.5 Verifying the importance of ineffective internal communication 26 2.6 Verifying the existence of ineffective internal communication. .. communication system in Srithai Company is ineffective Therefore, it impacts on most of its daily activities, included activities of importing products group The process of importing is not official commitment... It constrains development of company According to report of half year 2018, Company is reducing profit in 2017 and half of year 2018, especially, importing plastic group In your opinion, what