485- FRONTSHEET- Assingment 1

ASSIGNMENT FRONT SHEET Qualification BTEC Level HND Diploma in Business Unit number and title Unit 1: Business and Business Environment Submission date DateReceived1stsubmission Re-submissionDate DateReceived2ndsubmission Student Name Mai Thi Thanh Huyen Student ID GBD18703 Class GBD0704 Assessor name Nguyen Minh Thanh Student declaration I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism I understand that making a false declaration is a form of malpractice Student’s signature Huyen Grading grid P1 P2 P3 M1 M2 D1 Summative Feedback:ResubmissionFeedback: Grade: AssessorSignature: InternalVerifier’sComments: Signature&Date: Date: Table of Contents Introduction 1.Background of company 2.The size and scope of Vietjet 10 a) Company size 10 b) Targeted customer 12 c) Markets 13 d) How the structure, size and scope of different organizations link to the business objectives and product and services offered by the organization 14 The relationship between different organizational functions and how they link to organizational objectives and structure 17 a) structure map 17 b) Function of key departments 18 c) The advantages and disadvantages of interrelationships between organizational functions and the impact that can have upon organizational structure 23 4.Conclusion 26 5.References 26 INTRODUCTION VietNam is a country, which has young population with over 90 millions people The population is growing and the demand for transportation is an indispensable factor Some common means such as motorbikes, cars, bus,ect… However, the increasing quality of life in Vietnam so convenience criteria are put on top Therefore, aircraft in Vietnam are increasingly popular because they meet the needs of people like fast and save time An airline, young, dynamic, VietJet is trusted by many passengers and becomes the favorite airline in the country and the region VietJet has expanded its flight network throughout the country and has plans to develop flight routes in the Asia-Pacific region Meeting the increasing travel needs of domestic and international people with the rate of punctual flights and the quality of aviation services are always leading the industry The outstanding point of the airline is that it always brings many choices of flights, not only transportation, VietJet is always creative, bringing passengers many interesting and fun things on flights Background of company INTRODUCTION Company name Trade Name Business Code VIETJET AVIATION JOINT STOCK COMPANY VIETJET AIR 0102325399 issued by Hanoi Department of Planning and Investment for the first time on July 23, 2007, changed for the 27th time on August 1, 2018 Air transportation No 04/2016 / GPKDVCHK issued on December 30, 2016 business license Charter capital VND 5,416,113,340,000 Total number of 541,611,334 shares ordinary shares Established Headquarters November 2007 302/3, Kim Ma Street, Ngoc Khanh Ward, Ba Đình District, Hanoi City, Vietnam 8th Floor, CT Plaza Building, 60A Truong Son, Ward 2, Tan Binh District, Ho Chi Minh City, Vietnam Phone (84-24) 7108 6668 Fax (84-24) 3728 1838 Company website www.vietjetair.com Shareholder relations www.ir.vietjetair.com page Contact email ir@vietjetair.com - Leadership Full name Position Year of birth Stock holding Chairman of the board 1950 297,984 Vice Chairman of the Board 1967 5,358,076 1970 88,576,914 Executive 1961 168,000 Executive/ Deputy 1969 672,000 Mr Luu Duc Khanh Executive 1960 1,054,440 Mr Do Xuan Quang Deputy N/A 30,320 Mr Luong The Phuc Deputy 1948 230,400 Ms Nguyen Thanh Ha Mr Nguyen Thanh Hung of Directors Ms Nguyen Thi Phuong Thao CEO/ Vice chairman of the board Mr Chu Viet Cuong Mr Dinh Viet Phuong Mr Nguyen Duc Tam Deputy 1943 110,091 Mr Nguyen Duc Thinh Deputy 1961 420,000 Mr Nguyen Thanh Son Deputy N/A 134,400 Ms Nguyen Thi Thuy Binh Deputy 1973 480,000 Mr To Viet Thang Deputy 1968 336,000 Mr Tran Hoai Nam Deputy 1965 168,000 Ms Ho Ngoc Yen Phuong Deputy 1967 - * Company Type - Company Type: + First we need to find out VietJet Aviation Joint Stock Company is a profit or non-profit organization As the name implies, for-profit and non profit businesses vary greatly in some aspects of their operations and most certainly in the common purpose of their existence A forprofit organization is an organization whose purpose is to maximize profits and hand over these profits to the heads and their shareholders In contrast, non-profit organizations are interested in the purpose of society, what they care about is the revenue to carry out social activities Another difference is that profit organizations are required to pay taxes based on their net income, whereas non-profit organizations will be completely tax exempt Finally, the profit organizations will produce annual financial statements and the nonprofit organization will provide its sponsors and the public with a statement of activities that will cover all revenues, expenses and plus net assets According to the financial report of Vietjet Joint Stock Company, Cash on dividend payment is 2.016.955.829.400 (vnd) and the tax payable to the State is 1,167,393,145,330(vnd) From these basic differences and financial report , it can be concluded that VJA is a profit organization +According to the Securities Law, public companies are joint stock companies that fall into one of the following three categories: Clause 1, Article 25 of the Securities Law 2006 provides for public companies: (1) The Company has offered shares to the public; (2) The company has stocks listed at a stock exchange or a stock exchange center; (3) The company has shares owned by at least one hundred investors, excluding professional stock investors and has a charter capital of VND 10 billion or more => From the Vietnam Securities Law, it can be confirmed that : VietJet Aviation Joint Stock Company is a public company Because according to Vietjet's 2018 annual report of VietJet Aviation Joint Stock Company: VietJet Aviation Joint Stock Company participated in securities on February 28, 2017, the first transaction on HOSE with reference price of 90,000 VND / share and quickly entered the VN30 portfolio from January 22, 2018 The company's current market capitalization is more than VND 66,000 billion (equivalent to nearly US $ billion), among the top 10 companies with the largest market capitalization in the market + According to Vietjet 2018 financial statements, Vietjet's equity as of January 1, 2018 was VND 10,594,134,518,111, of which equity accounted for VND 4,513,432,840,000 Ownership structure does not include any state organization As the diagram below shows, the ownership structure consists of components as shown below Where can one conclude that this is a private company * Company Purpose VISION Becoming a multinational aviation corporation, having a wide network across the region and the world, not only developing aviation services but also providing consumer goods on ecommerce platform, a brand that is popular with customers favorite goods like and trust MISSION ▶ Exploit and develop a wide network throughout the country, region and the world ▶ Bringing a breakthrough in aviation service ▶ Doing transportation and transportation services is common in Vietnam and internationally ▶ Bring joy, satisfaction to customers with outstanding service, elegance and friendly smiles VALUE Safe - Fun - Cheap - Punctuality Currently, Vietjet is operating a network of routes covering all destinations in Vietnam and more than 30 regional destinations to Thailand, Singapore, Malaysia, Myanmar, Taiwan, South Korea, China, Japan, Hong Kong, exploiting modern fleet of A320 and A321 aircraft with an average age of 3.3 years Vietjet is an official member of the International Air Transport Association (IATA) with the IOSA Operational Safety Certification Safety culture is an important part of Vietjet's corporate culture, thoroughly understood from the leadership to every employee in the system OJECTIVES * International aviation market In the context of the global economy tends to grow slowly Because of trade conflicts and political instability, the Government of Vietnam has set general targets for the 2019 plan to continue macroeconomic stability and control inflation At the same time, focusing on improving the investment and business environment, promoting economic growth, applying advanced science and technology, and promoting the tourism and service industry According to forecasts of the International Air Transport Association (IATA), in the period of 2017-2036, passenger and freight transport in the aviation sector in Asia - Pacific will grow at a rapid rate The average is 4.7% and 4.2% per year IATA also forecasts that Vietnam will be the 5th fastest growing aviation market in the world and the fastest in Southeast Asia, expected to achieve an average growth of nearly 14% in the next years and reach 150 million milestones passenger transport in 2035 According to the annual report of Vietjet (2018),with the superior utilities of aviation services, Vietjet successfully explores completely new customer segment - a group of customers who are using the services of means of transportation other (train, car ) 30% of passengers using Vietjet services are the first time to fly C) Markets Domestic flight Currently, Vietjet operates a total of 17 domestic routes to cities and provinces in Vietnam including: Hanoi, Ho Chi Minh City, Buon Me Thuot, Can Tho, Chu Lai, Da Lat, Da Nang, Dong Hoi, Hai Phong , Hue, Nha Trang, Phu Quoc, Pleiku, Quy Nhon, Thanh Hoa, Tuy Hoa and Vinh This is the airline now has the most domestic routes today (Traveltop.vn) International flight About Vietjet's international routes are quite wide including 57 routes: Bangkok, Busan, Kaohsiung, Changchun, Changle, Changsha, Chiang Mai, Chiang Rai, Kunming, Daegu, Taipei, Tainan, Taichung, Dieu Tuong Jinan, Hangzhou, Harbun Taiping International Airport, Haikou, Hedong, Hong Kong, Hehhot Baita, Hop Phi, Jinjiang, Krabi, Kiala Lumpur, Lanzhou, Macau, Nanjing, Nanchang, New Delhi, Turkey , Nghia O, Ngo Vu Nam Ninh, Ningbo, Osaka, Phnom Penh, Phuket, Quinhdao, Quy Duong, Seoul, Shijiazhuang, Siem Reap, Singapore, Taiyuan Wusu, Xi'an, Chengdu, Shenyang, Tianjin, Changzhou , Shanghai, Tokyo Narita, Zhengzhou, Chongqing, Zhangjiajie, Wuxi, Wuhan, Xingdong, Yangon Vietjet's international routes will depend on departure points in Ho Chi Minh City, Hanoi, and Da Nang For example, there will be a flight from Hanoi but non-stop flight in Ho Chi Minh City to connect flights and vice versa (traveltop.vn) It can be seen that Vietjet's international routes mainly focus on Northeast Asian countries such as China, Taiwan, Korea, Japan, Hong Kong In the list of Vietjet's international routes without Australia's arrival, this is not small The airline is actively promoting routes to Australia in early 2019 (Traveltop, 2019) => It can be seen that Vietjet has a multinational scope 13 d) How the structure, size and scope of different organizations link to the business objectives and product and services offered by the organization Market size and scope are defined as the number of buyers, potential customers, and the number of people selling products or services in a given market If the size of the organization is huge and invests huge amounts of money, then they set a big goal as their business goal (Wardet al 2011) Market size and scope also determine the potential revenue that can be generated by the business This is an important element of the company's business strategy, as well as the number of products or services it creates out The size of the market size greatly influences the business strategy of the company These may include pricing strategies, targeted market approaches, development of additional products and services later 14 Knowing the size and scope of the market is indispensable, because instead of general targeting, a business knows that it is targeting a market of a specific size and type of customers Vietjet recognizes that its flight market needs to be large enough to meet customers' convenient travel needs and that their range will expand to international markets on a larger scale and plan Vietjet Air's goal is to become a multinational airline group, with a wide network throughout the region and the world Therefore, Vietjet's human resources are recruited to meet the aviation competence and experience (especially pilots, aircraft repair engineers, flight dispatchers, flight attendants) On the basis of a healthy corporate culture, the foreign workforce and the Vietnamese workforce create a professional, international and highperformance working environment After many years of being continuously honored as "Asia's best recruiting brand", "Top best workplaces in Vietnam", Vietjet has attracted high quality human resources from more than 40 countries and regions territory in the world Preparing for the operation of 100 international and domestic routes in 2018, Vietjet recruited flight attendants nationwide on May 17, 2018 at Vietjet Office (Hanoi) and May 24, 2018 at Vietjet Training Center (HCMC) This is the largest recruitment of flight attendants in 2018 of Vietjet Therefore, at the end of 2018, according to Vietjet's financial statements, it opened flight routes to Tokyo and Osaka - Japan • Vietjet operates 118,923 flights with 105 routes including 39 domestic routes and 66 international routes, covering destinations in Vietnam and internationally to Japan, Hong Kong (China), Singapore and South Korea China, Taiwan (China), Thailand, Myanmar,Malaysia, Cambodia, China • The total number of Vietjet passengers is more than 23 million in 2018 Their goals will be enhanced to meet the needs of consumers It is understood that scale and scope greatly influence the objectives (Congluan.vn, 2019) According to products and services, if a company assesses its consumption of products and services, the company will evaluate its size, scope and goals If a product has a high consumption, large distribution market, they will set a goal and a large scale An example demonstrates the following: According to statistics in 2016, the number of passengers traveling was about 52.2 million, up over 29% over the same period in 2015 15 Domestic airlines such as Vietjet Air, Jetstar Pacific promote market exploitation: Increasing the number of flights, increasing flight frequency, expanding to 50 domestic flights linking to provinces of Hanoi and Saigon Danang For the international market, there are 52 foreign airlines from 28 different countries operating routes to Vietnam Besides, the number of low-cost airlines soared up to 55% of the number of domestic passengers Moreover, the number of aircraft of Vietnamese airlines has increased by more than 14 compared to 2015, with a total of 147 aircraft Thereby we can see that, the number of people choosing to use air travel services is increasing By: convenience, time saving and good service quality So it can be seen that the demand for services and products increases, the scale and scope will increase to meet the needs of customers 16 The relationship between different organizational functions and how they link to organizational objectives and structure a) structure map Based on the diagram, we can recognize that this is a functional organization structure because: Functional Organization Structure is the oldest and most popular organizational structure of all organizational structures Functional Organization Structure is a hierarchical type of organization structure where employees are divided into different areas (commonly called departments) The Functional Organization Structure classifies employees according to the function they perform in the organization, for example, sales department, marketing department, technical department, etc is the way organizations evaluate performance (Học PMP, 2019) 17 b) Function of key departments * Ground Operation function The ground exploitation unit has a very important function in protecting flight safety and security, in particular, performing the task of monitoring flight services; check and carry out procedures for transporting passengers, luggage and goods at airports and airfields; balance aircraft tonnage; inspect dangerous goods before boarding aircraft; aircraft cleaning; stacking instructions; loading and unloading of luggage and cargo on board and disembarking aircraft and other duties as prescribed in relevant specialized legal documents It can be considered that pilots and flight attendants are the people who are directly responsible for the flight, the ground operators are responsible for logistics, ready in all situations and prepare the best elements to Apparel for safe flight For the aviation industry, accidents are the most taboo and no one wants that to happen, so every safety factor is always on top In order to set safety standards for people as well as aircraft, preventive measures for handling irregular incidents related to ground-based operations as well as requirements for professional competence of personnel serving to ensure safety in operation is always appreciated by airlines and ensures very strict performance * Flight Operation function The flight operator shall perform the flight planning task of the aircraft operator and perform the task of assisting the flight crew during the flight 18 Specifically, they are the people who coordinate with the captain to give information and signals to ensure flight safety, ensure the operation of the aircraft in accordance with the law and the ship's operator fly At airports, aerodromes, flight dispatchers and operators conduct research on meteorological conditions at the departure airport, on the flight route and destination airport as well as the alternate airport to select the optimal route most for flight In addition, based on the regulations of the airline and the aircraft operator, the flight operators are also those who calculate the distance, fuel and other factors that may affect the safety of flight from which flight planning, maximum takeoff weight, maximum landing weight; calculate aircraft tonnage balance, capture weather information (METAR, TAF, PIREP, ) and necessary notices for pilots (NOTAM); and other necessary information to ensure a successful flight Because the scope of responsibility of flight operators is quite large, they are entitled to prepare and sign the necessary documents so that the aircraft can depart and have the authority to make decisions to delay flights and change flight route or flight cancellation if it is considered that there are factors that threaten the safety of the flight, crew, passengers or cargo At the same time, they monitor the weather conditions and the location reports of the crew to promptly notify the aircraft captain of weather phenomena that may affect the safety of the flight By assessing the flight's progress and safety level, the dispatcher and flight operator shall request the aircraft commander to change the flight plan if necessary to ensure continued flight safely and assist the crew in unusual or emergency situations With a wide range of responsibilities that cover almost every factor affecting the operation of aircraft, dispatchers, flight operators are a key component, keeping a very important position for safety in activities of aviation industry and national security (Anon, 2019) *Training center function 19 Training center is a place to build human resources Ensuring high quality flight operations need to be done: Accurate planning and building effective development strategies; Develop training and coaching facilities and improve the quality of teaching staff and coaches; Applying effective arts / policies for attracting people: attracting talents, assigning / assigning appropriate work, working environment and management, respecting and developing opportunities, effective communication Bringing promising young engineers in the field of engineering to training in aviation techniques, in order to build a team of leading experts(Anon, 2019) * Engineering Function This department is responsible for technical maintenance of the aircraft, most technical staff members are engineers or technical workers Their mission is to check, monitor the engine, identify technical problems and carry out repairs The work requires good physical strength, skillful and accurate hands In addition, the personnel of this division are also responsible for the maintenance and repair of engines, fuselage, cabin, aircraft systems, wings and other components of the aircraft These engineers work directly outside the airport in noisy, urgent air, under all weather conditions (Facebook.com, 2019) * Customer service function Customer service is the service that employees in the department have the duty to care and serve customers in a thoughtful manner This division plays a key role in attracting and enticing customers, they can create a loyal customer base with a number of utilities such as wheelchair service on the park, wheelchair service and forklift truck, aircraft customer service, health care onboard, online customer care, support for flight-related answers, In-flight entertainment services In particular, they give back to the blind, hearing impaired and some other special cases (Anon, 2019) 20 *Finance department function Finance - Accounting Department has the function of advising the Company's leaders and organizing the implementation of the following tasks: - Accounting promptly and fully all assets, equity, liabilities; financial revenue and expenditure activities and business results according to the internal regulations of the Company, ensuring good service for business activities - Business planning and financial planning of the unit - To advise the leaders of units to direct and carry out the inspection and supervision of the management and compliance with the State's and internal financial and accounting regimes at the units (Anon, 2019) * Commercial department function Commercial is an important department of finding customers They are important factors that contribute to promoting brand development, increasing sales and branding for businesses Specifically, the function of the commercial department is to create images, develop brands, conduct market research, develop products, expand markets and carry out marketing programs approved by the Association co-management , advise the Director company about marketing strategy, products and customers (Anon, 2019) In a company, there must always be the alignment of the parts to create a solid company, it is like a chain linked together In order for Vietjet Airlines to achieve great success today, the connection between functions is indispensable At first, we always thought that the human resources department, or training center at Vietjet, was an unnecessary department However, this is completely wrong because the education center is the place that provides the best and most suitable human resources for the company 21 The main training center is the people management of Vietjet airline, including: recruitment, training, remuneration, reward - discipline, regime, But certainly all business leaders karma are interested Recognizing the importance of human resources in businesses Besides, the training center is a place with many influences in creating a culture in the business Good human resource management will partly boost employee productivity, thereby increasing labor efficiency Since then, the linkage between the divisions in the business will become closer Secondly, it can be said that in the current advertising era, the commercial department will be an integral part of business activities The department of commerce will be those who research, identify, assess needs and analyze customers, thereby providing operational and development orientation for the business In addition, the function of the Ministry of Commerce is to identify opportunities in the market, market segmentation, market positioning to obtain product strategy, pricing and distribution network product From the performance of the Ministry of Commerce, appropriate policies and operational strategies will be in place From there, other departments such as customer service will have action plans and actions based on the proposed studies and forecasts Next, the accounting department This is an integral part, regardless of whether the business is small or large Any activities of the department are associated with cash flow where accounting and finance is the control of cash flow in the business This department also determines the feasibility of the strategies set out in the company For example, if the commerce department wants to implement a marketing strategy, with the budget set out to be effective enough, whether the promotion will succeed with that budget Another example, customer care department to expand utilities for customers, it must go through the financial department to find capital to be able to proceed The finance department is responsible for calculating the company's budget to help the company minimize money loss They make long-term and short-term plans for reasonable 22 spending They balance spending with other departments to avoid the risk of loss and savings for the company Finally for technical department, there is always a direct impact on the mining sector Technical department is responsible for engine testing, repair and maintenance of the machine This is a job that requires calibration and does not cause any mistakes because it directly affects the mining block Operators are responsible for flight control, if there is a technical or technical problem, the operations staff will not be able to operate the plane smoothly and safely, which means that affect the safety of customers and staff on the flight Or when the operating unit detects an accident on the aircraft, they must be immediately reported to the technical department for immediate inspection These two department must always coordinate well with each other C) The advantages and disadvantages of interrelationships between organizational functions and the impact that can have upon organizational structure * How does organizational function impact organizational structure? One of the factors for the development of production and business activities of the enterprise is the contribution of the employees' abilities, to achieve that, firstly, the employees need to understand the duties and functions mine After that, a unified organizational structure was created to help employees as well as managers in the organization understand their roles, tasks, functions and importance to the organization This is a fundamental need for any business or organization Organizational functions, when self-aware of their functions, duties and powers, will enhance the spirit of learning and research to increase their professionalism and capacity and realize the need for a clear organizational structure Authority is the autonomy in the decision making 23 ... Chairman of the board 19 50 297,984 Vice Chairman of the Board 19 67 5,358,076 19 70 88,576, 914 Executive 19 61 168,000 Executive/ Deputy 19 69 672,000 Mr Luu Duc Khanh Executive 19 60 1, 054,440 Mr Do Xuan... the top 10 companies with the largest market capitalization in the market + According to Vietjet 2 018 financial statements, Vietjet's equity as of January 1, 2 018 was VND 10 ,594 ,13 4, 518 ,11 1, of... Duc Tam Deputy 19 43 11 0,0 91 Mr Nguyen Duc Thinh Deputy 19 61 420,000 Mr Nguyen Thanh Son Deputy N/A 13 4,400 Ms Nguyen Thi Thuy Binh Deputy 19 73 480,000 Mr To Viet Thang Deputy 19 68 336,000 Mr Tran