Business environment of Nam Duong Company

Contents EXECUTIVE SUMMARY: TASK 1: AN INTRODUCTION OF THE BUSINESS AND BUSINESS ENVIRONMENT:_4 1.1) Provide a briefing about what student learns from the instructor, classmates / friends, and the materials during the class sessions _4 1.2) Describe the importance, roles, objectives and reasons why student studies this module _5 TASK 2: A BRIEFING OF THE SPECIFIC BUSINESS ASPECT THAT STUDENT PAYS MOST ATTENTION _6 2.1) Definition of “Entrepreneurship and Small business” _6 2.1.1) Definition of Entrepreneurship 2.1.2) Definition of Small Business _7 2.2) The important of “Entrepreneurship and Starting small business” in enterprise 2.2.1) The important of Entrepreneurship in enterprise 2.2.2) The important of Starting small business in enterprise 2.3) Advantages and disadvantages of “Entrepreneur and Starting Small Business” for business environment in Vietnam _9 2.3.1) Advantages of “Entrepreneur and Starting Small Business” for business environment in Vietnam _9 2.3.2) Disadvantages of “Entrepreneur and Starting Small Business” for business environment in Vietnam 10 TASK 3: APPLIED BUSINESS PRACTICES TO WHAT STUDENT GAINS FROM THE MODULE _12 TASK 4: SELF-ASSESSMENT 14 4.1) Self-analysis’s table 14 4.2) Solutions and ways to improve: 15 CONCLUSION _16 REFERENCE 17 Executive summary: This assignment first presents an overview and definition of business and business environment; the second part, the author believed that “Entrepreneurship and starting a small business” is the desire of every businessman, in this chapter, the author declares the deeper description about start-up and also exploits strengths and weaknesses of starting a business in Vietnam Simultaneously in task three, the author chooses Nam Duong Company, which is a Veterinary Pharmaceutical Company as well as a limited company; to compare between theoretical and practical in business environment For the last part, the author creates a table for personal selfassessment with the characteristics of a business administrator; moreover, how to improve and develop skills in macroeconomic situation will also be mentioned Task 1: An introduction of the business and business environment: 1.1) Provide a briefing about what student learns from the instructor, classmates / friends, and the materials during the class sessions First, a business is defined as an organization or enterprising entity engaged in commercial, industrialized, or professional activities Businesses can be for-profit entities or non-profit organizations that operate to fulfill a charitable mission or further a social cause A for-profit business is also any activity that seeks to provide goods and services to others while operating at a profit Moreover, it is an organization or economic system where goods and services are exchanged for one another or for money Every business requires some form of investment and enough customers to whom its output can be sold on a consistent basis in order to make a profit On the contrary, a non-profit organization is a business that has been granted tax-exempt status by the Internal Revenue Service because it furthers a social cause and provides a public benefit Donations made to a nonprofit organization are typically tax-deductible to individuals and businesses that make them, and the nonprofit itself pays no tax on the received donations or on any other money earned through fundraising activities It must serve the public in some way, whether through the offering of goods, services, or a combination of the both It’s also required to make financial and operating information public so that donors can be informed about how their contributions have been used The different between two kinds of businesses is its purpose, a profit business focus on revenue and interest while the other’s target is social benefit Second, business environment is the total of factors, factors (external and internal) that mobilize interaction with each other, direct and indirect impacts on the business activities of the enterprise In more detail, business environment embrace many factor, for example: political, macroeconomic factor, microeconomic factor, social factors, technology factor, organizational culture, organizational structure, management structure Furthermore, many departments in the company are also explained and supplemented more detail knowledge about specific office 1.2) Describe the importance, roles, objectives and reasons why student studies this module For this module, knowing how the company runs and the way to organize a business is importance It is provide the insight of the environments created by the economy, technology, competition, diversity, global opportunities, and social responsibility Also is help students comprehend the need for stewardship in business organizations, how to develop the role of administration in an organizational system, and the process of manufacture products and services that customers pleased Its roles to help students comprehend how a company operating and manage employees to get the highest productivity while creating an effective and friendly business environment Another role of this course is to help students not be surprised when starting to work in the office The main objective of this module is teaching pupils surviving in the business; besides, steps to communicate effectively during the interview process, making the right decisions and many others detailed instructions The reason student should learn this subject is it brings lots of benefit for students when they graduate and start their job in a business environment Task 2: A briefing of the specific business aspect that student pays most attention A business aspect which the author pays most attention is chapter – “Entrepreneurship and Starting a Small Business” 2.1) Definition of “Entrepreneurship and Small business” 2.1.1) Definition of Entrepreneurship Entrepreneurship is accepting the risk of starting and running a business as well as the process of designing, launching and running a new business, which is often initially a small business The people who create these businesses are called entrepreneurs It is also as known as startup, the individual entrepreneur exploiting new technology or market opportunity The skill to spot opportunities and create new ways to exploit them is at the heart of the innovation process Entrepreneurs are risk-takers, but they calculate the costs of taking a bright idea forward against the potential gains if they succeed in doing something different – especially if that involves upstaging the players already in the game (John Bessant and Joe Tidd, 2015) Entrepreneurship also has been described as the "capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit" While definitions of entrepreneurship typically focus on the launching and running of businesses, due to the high risks involved in launching a start-up, a significant proportion of start-up businesses have to close due to "lack of funding, bad business decisions, an economic crisis, lack of market demand —or a combination of all of these (Business Dictionary) According to Understand business (Nickel, Mchugh, Mchugh, 2016, p.152), age at start-up from 18 to 24 is 8%, 25 to 34 having the highest number 71%, the number significant decrease after it, from 35 to 44 is 13%,while 45 to 54 is only 6% and the rest is 2% more than 55 year-old 2.1.2) Definition of Small Business Small business is a business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size (set by the Small Business Administration) in terms of employees or annual receipts A small business is considered “small” only in relationship to other businesses in its industry (Nickel, Mchugh, Mchugh, 2016, p.162) Small business also defined with depending on its industry, a small business could be defined as business with a maximum of 250 employees or a maximum of 1,500 employees They’re privately owned corporations, partnerships, or sole proprietorships that have less revenue than larger businesses (McIntyre, 2019) 2.2) The important of “Entrepreneurship and Starting small business” in enterprise 2.2.1) The important of Entrepreneurship in enterprise Entrepreneurship is a beginning for the business, no matter it is a whole – scale or small – scale It is easily to established but also easy to collapse There are many reasons people are willing to take entrepreneur risks, but the author focus on four things First, it is opportunity, to be able to enter a competitive market with the opportunity to develop their ideas, as well as be able to manage their own businesses Second, profit is another important reason to become an entrepreneur Many start-up projects get huge profit base on owner ideas, which is the exclusive products and the whole market wants to own it For example, Microsoft owner – Bill Gates, the richest man in the United State and the world Third, entrepreneurship synonymous with independence, many entrepreneurs simply not enjoy working for someone else, they can take something that motivates or inspires them and act on it without roadblocks Last but not least, entrepreneurs are excited to take challenge In general, entrepreneurs seek achievement more than power (Nickel, Mchugh, Mchugh, 2016, p.154) 2.2.2) The important of Starting small business in enterprise Small business is very important to any country base on its productivity for pushing economy Firstly, major employers, Businesses that employ fewer than 500 employees provide job opportunities for many different types of employees, and rely heavily upon their workers for success Because so many jobs are provided by small businesses, the economy thrives due to their successes Secondly, small business is the main job – creators Small businesses create more new jobs than larger firms The Small Business Administration reports that from 2005 to 2008, small businesses were responsible for creating 81.4 percent of the net new jobs in the U.S Job growth is imperative for the continued growth of the United States economy and small businesses meet those needs with new jobs being created all the time Thirdly, inventive minds, small business encourage their employees to be innovative and creative, using their technical skills and common sense to create new inventions and technology These small companies' contributions to the economy are significant through their inherent and marketable worth Fourthly, payroll significance, not only small businesses responsible for major employers and job creators, they also pay a significant chunk of U.S workers' paychecks The Small Business Administration figures indicate that small businesses pay out 44 percent of the U.S payroll annually to their employees That substantial part of the economy stimulates and drives the rest of the U.S economy by providing funds for employees to spend on necessities and other items they desire As these employees spend money, additional life is breathed into the economy, making it strong Without these small businesses, the United States payroll would be much smaller The last point is exporting importance, small businesses are important due to their role in exporting to other nations Ninety-seven percent of identified exporters are small businesses, and they produce 26 percent of the export value through their products they ship to consumers in other countries Exporting U.S goods to other nations also helps to keep the U.S economy strong Without the impact of small businesses, American exports would be much lower, which would significantly damage the U.S economy (Wright) 2.3) Advantages and disadvantages of “Entrepreneur and Starting Small Business” for business environment in Vietnam 2.3.1) Advantages of “Entrepreneur and Starting Small Business” for business environment in Vietnam Although the theory of startup is very convincing but when applied to the business environment in Vietnam, there are many advantages and disadvantages for entrepreneurship and also for starting small business For advantages, the first point is strong economic growth rates, since the economic reforms launched in 1986, Vietnam’s economy has grown substantially even at the time of uncertainties Even though financial crisis slowed down the growth, the country’s economy remained quite resilient and soon afterward returned to pre-crisis numbers Currently fully recovered, the 6.41 rise of GDP in the first nine months of 2017 is expected to grow up to percent in the next year The country that used to be one of the world’s poorest is now becoming a hub for labor-intensive goods It has long been an attractive foreign direct investment destination, starting a business in Vietnam surely become popular among foreign investors (Cekindo) Second, young and skilled population, foreign investors might also benefit from the growth of the Vietnamese population The third largest population in South East Asia is relatively young, with more than half of the inhabitants below the age of 30 This vast, well-educated, and relatively cheap workforce has become one of the Vietnamese major assets Vietnam’s literacy rates are over 90 percent and one of the highest Internet penetration levels in Southeast Asia Foreign investors are taking advantage of its technological awareness, the solid entrepreneur community, and the country’s general openness to new ideas Together with that, starting a business in Vietnam will cost investors cheaper labor for local employees who are equally competitive, average salary of a worker is about 150 - 200 USD in big cities, in the countryside is lower Third, new market, Vietnamese economy has experienced a boom over the last 30 years Starting a business in Vietnam is relatively new and less tough than in other countries Consequently, investors not facing harsh competition while trying to implement innovative or risky ideas with their business Meanwhile, Vietnam is developing fast, with 92 million consumers it is becoming an interesting market for international companies Fourth, free trade agreements, Vietnam are a member of the ASEAN and World Trade Organization, enabling its relatively smooth trading with other countries Moreover, it has signed regional free trade agreements as well as bilateral one with the majority of the world’s leading economies The Free Trade Agreement with the European Union, which comes into effect in 2018, will support Vietnam’s eagerness to promote the country’s economic growth 2.3.2) Disadvantages of “Entrepreneur and Starting Small Business” for business environment in Vietnam Nevertheless, start – up in Vietnam have many problems First, infrastructure is not developed, there are barely a few hundreds km of highway in all the country In big cities people mostly use motorbikes as mean of transport thus the traffic is horrible and the air is polluted Second, lacking focus, entering a developing market as a foreign entrepreneur can feel like the beginning of a modern-day gold rush, but there are also too many good opportunities for any single person or company Third, the laws regarding the business environment are not complete, not clear, give room to interpretation and corruption So corruption is endemic, everywhere, in all the level of government and authorities Fourth, placing funds in Vietnam, there is a advice said that if 10 entrepreneurs are not Vietnamese, avoid placing money inside Vietnam Banking regulations make it hard to get it out, much better to have an offshore entity in Hong Kong or Singapore as the holding company, and then a local company to hire staff Lastly, just focusing on only Vietnam, Vietnam is a large but immature market, so it is not a bad idea to look at some neighboring markets as well An added bonus is that investors often love a regional plan There are some who have managed to it success (Xo tours) 11 Task 3: Applied business practices to what student gains from the module Nam Duong Veterinary Pharmaceutical Company is a private company which is also a limited company It was founded in 2009 by Nguyen Dinh Thu, at that times, he quit his job to begin his own business selling veterinary medicine At the beginning, having same problem with many entrepreneurs, he has to funding for his business to maintain his business with most of capital is from family and friends Nam Duong Company is a small private company so everything is irreducible to minimum, from website, department, core values, et cetera The main goal of this company is chiefly profit as well as creating stability for animal health and expand market share Mission in Nam Duong Company is trying the best to bring good products to Vietnam’s small and medium family farmers while its vision is becoming a major distributor of veterinary drugs in the southeast and south central regions Its organization chart has only one member, which is the founder of Nam Duong Company while other professional duties such as accounting, auditing, tax reporting, and legal advice is all hire people outside to it Nam Duong Company has the ability to compete with other competitors because Vietnam market still not yet has many competitors about veterinary medicine aspects So Nam Duong Company takes an advantage of new market To be more precise, it is easy to negotiate on proprietary products from small and medium-sized pharmaceutical companies overseas, especially new products Besides, as a private company, there is no pressure from investors and shareholders like big companies However, in the early days, it was not easy to compete with large corporations with many market shares There are big farms and family farms, as a entrepreneurship, Nam Duong Company only focus on small family farms, which is compete with exclusive products, others huge farms, Nam Duong Company cannot compete with large joint stock companies It means, although Vietnam is such a new market, but still have some 12 large joint stock companies The founder was being pinched down on large farms, could only sell to households Moreover, it also takes a disadvantage of infrastructure, as a small private company, so the CEO has to spend much time on business travel, to go to any province of Vietnam in order to promote the product 13 Task 4: Self-assessment 4.1) Self-analysis’s table Self-analysis No 10 Skills Communication in teamwork Work independently Be proactive at work Productivity Discipline Adapt to work pressure Proficient use of machinery Work planning Presentation Learn from the critics Score (out of 10) 9 7 14 4.2) Solutions and ways to improve: The author feels very nervous before and during a presentation, this is entirely normal and can even be helpful when the author may change it in the right way The author bought an instruction book for presentation and followed it until now Presentation has been the author’s weakness but the author still tries hard to improve it day by day Another skill that needs to be improved is using machine like projector, loudspeaker, and so on On the day author’s team presentation, the loudspeaker quite crackling lead to the presentation that day was not good In the future, the author will make sure that all the equipment work fluently before the speech, it means that if any problems appear, the author’s team will try their best to set up all done For work pressure, the author thinks maintain a calm demeanor no matter what happens Staying calm demonstrates that the author have the ability to take things in stride and complete tasks even in the face of difficult circumstances Even though the day may be stressful, the author will keep mind firmly focused on completing regular responsibilities For communication in teamwork, the author find it satisfied when can choose members in the group that the author pleased to work with, therefore, members in group easily to talk and discuss everything comfortably Another skill that the author feels good is work independently, either in group work or individual assignment, the author all the task that was divided by team leader and also help other members if they find anything difficulty In this semester, productivity of study process quite slow for the author As having a part-time job that decrease time and health for study so the solution is the author will find out to balance time for both working and studying, therefore the author will have time for look back and improve her skills 15 Conclusion Through this assignment, the author find opportunity to comprehend start-up knowledge, advantages and disadvantages of entrepreneur and starting small business, and why startups and starting small business are so important in Vietnam Moreover, this assignment also helps the author to look back and the personal self-assessment in the most accurate way; thereby, the author has a chance to create a future plan to be able to improve oneself in the best way 16 Reference Cekindo Reasons Why You Should Start Your Business in Vietnam Cekindo Retrieved from https://www.cekindo.com/blog/becoming-second-china-7-reasons-start-business-vietnam G, McIntyre What is the Definition of Small Business? Funderal Retrieved from https://www.fundera.com/blog/sba-definition-of-small-business Introduction, Meaning & Importance of Business Environment Toppr Retrieved from https://www.toppr.com/guides/business-studies/business-environment/introductionmeaning-importance-of-business-environment/ John, B and Joe, T (2015) Innovation and Entrepreneurship, 3rd edition, Wiley V, Wright Reasons Why Small Businesses are Important Azcentral Retrieved from https://yourbusiness.azcentral.com/reasons-small-businesses-important-1830.html Will, K Nonprofit Organization (NPO) (2019) Investopedia Retrieved from https://www.investopedia.com/terms/n/non-profitorganization.asp William ,N James, M Susan, M (2016) Understading business, 11th edition XO tours (2013) Entrepreneurship in Ho Chi Minh City Xo tours Retrieved from https://xotours.vn/blog/startups-in-ho-chi-minh-city/ 17