The poor experience in meal cost management in aeon mall viet nam

UNIVERSITY OF ECONOMIC HO CHI MINH CITY International School of Business - Ho Thi Nguyen Thien THE POOR EXPERIENCE IN MEAL COST MANAGEMENT IN AEON MALL VIET NAM MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2017 UNIVERSITY OF ECONOMIC HO CHI MINH CITY International School of Business - Ho Thi Nguyen Thien THE POOR EXPERIENCE IN MEAL COST MANAGEMENT IN AEON MALL VIET NAM MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: Dr Pham Phu Quoc Ho Chi Minh City – Year 2017 SUPERVISOR’S REPORT ON THE THESIS SUBMITTED FOR DEGREE OF MASTER of BUSINESS ADMINISTRATION The thesis title: THE POOR EXPERIENCE IN MEAL COST MANAGEMENT IN AEON MALL VIETNAM Student Name: HO THI NGUYEN THIEN Supervisor: Dr PHAM PHU QUOC General comments:  Remarks on the student’s attitude: …………………………………………………………………………… ……………………………………………………………………………  Remarks on the assignment’s academic quality: …………………………………………………………………………… …………………………………………………………………………… Overall assessment: Meet requirement for submitting Not meet requirement for submitting Other remarks:  Did the student follow the report schedule? Yes No  The Turnitin plagiarism percentage: Supervisor’s signature: Other………………………… TABLE OF CONTENTS EXCUTIVE SUMMARY PART I – BACK GROUND INFORMATION Company information 2 Company symptoms PART II – PROBLEM IDENTIFICATION Potential problems Theory informs and define the central problem 10 PART III – CAUSE VALIDATION 11 Possible causes 11 Theory informs and determine potential causes of the problem 15 PART IV – SOLUTIONS 20 The money solutions 21 The money – free solutions 22 The recruitment new managers 23 PART V – ACTION PLAN 24 Plan A: Retain the current managers 24 Plan B: Recruiting the new managers 27 Comparison and selecting action plan 29 REFERENCES 31 APPENDIX 1: INTERVIEW GUIDE 33 APPENDIX 2: TRANSCRIPT 34 APPENDIX 3: SUMMARY OF TRANSCRIPT 53 APPENDIX 4: QUESTIONNAIRE 58 APPENDIX 5: SUMMARY OF SURVEY 60 EXCUTIVE SUMMARY According to economist Milton Friedman, the main purpose of doing business is maximizing profits for its owners To this, it is necessary to minimize the organization’s cost through cost management and controlling process If it has some issues in cost management, company’s situation will be failure to get business purpose This thesis provides an analysis and evaluation of current problem about the poor experience in meal cost management in AEON Vietnam Co., Ltd and to recommend ways of solving this problem The thesis draws attention to the fact that the total number of employees has trend decreasing in months early of Y2017 Conversely, the average cost per person for meal is increasing Further investigations reveal that there are three existing problems: lack of experience to control situation, the big gap between number of order meals and the actual meals and the increasing in cost for per meal Moreover, this thesis also finds out the factors appear to be the major causes of these problem in AEON Vietnam Co., Ltd This thesis finds the prospects of the company in its current situation are not positive The major problems require further investigation and remedial action by management Based on analysis, some recommendations discussed include: how to retain experienced managers and setting up the other regulation to choose the industrial catering company The thesis also investigates the fact that the analysis and evaluation conducted have limitations Some of the limitations include: the information is not provided nature and the reasons cause the problem are not known clearly nor the data limitations as not enough information is provided or enough detail i.e the other hidden reasons details are not known and the old employees, who leaf company already are not present to be invited the in – depth interviews PART I – BACK GROUND INFORMATION Company information AEON is now one of the largest retailing groups in the world with over 179 member companies both inside and outside Japan Founded 1758, AEON Group with its history spanning over 250 years has one of the longest histories as a retailer in Japan During its operation, AEON Group has kept the unchanging commitment to putting “Customer First” AEON Group’s fundamental principles are the pursuit of prosperous and stable society and peace through the retail business Under this corporate accountability, AEON Group has won the customer’s trust widely and expanded more businesses not only within Japan territory but also in other countries in Asia for such a long period of time AEON Vietnam Co., Ltd has been presented in Vietnam since 2009, at first under format of Representative Office (1st Dec 2009 – 10th Jul 2012) On 7th Oct 2011, with the approval from People’s Committee of Ho Chi Minh City, AEON had set up its Vietnam Company Limited to invest for construction, organization, managements and trading of modern shopping malls, General Merchandises Stores (GMS), Supermarkets as a core business, and to carry out other business activities which links with import, export, trading, and researches Until now, the company has been developing with 04 the branches throughout Vietnam There are AEON Shopping Center – Tan Phu Celadon in Ho Chi Minh City, AEON Shopping Center – Binh Duong Canary in Binh Duong Province, AEON Mall Binh Tan in Ho Chi Minh City and AEON Mall Long Bien in Ha Noi, total charter capital is 192,383,000 US Dollar and total registered investment capital: 204,648,000 US Dollars The number of employees in entire mall is approximate 2,200 The internal structure one of the branch of company is showed in the graphic as follow: General Director Head of Human Resources Department Team 1, 2, 3,…, N Diagram – Company structure of AEON Vietnam Company symptoms Meals for company’s employees has an important role It not only provides energy and helps them relax and increase their productivity but also is a part of employee’s benefit that employees are paid Therefore, the service meal for employees is always paid special attention by business owners of AEON In AEON, both of full-time and parttime employees have the right to get this benefit from company Everyday, supervisors are responsible for counting and reporting the number of order meals to admin After that, leader will summary the figure and order to the industrial catering company Based on this number, the industrial catering company will prepare meals To control meal cost, AEON Vietnam gives the power to Administration Department to manage meal ordering progress and Accounting Department to record the meal cost A semi-annual, Administration Department will report the situation and result of controlling meals cost for Board of Directors and the other relavant departments In the meeting of the months early of Y2017 about the cost management in company, the Head of Administration Department already mentioned the increasing in meal cost for employees in head quarter and branches in months of Y2017 The below table shows the situation of these months in Y2017 compared with the same period Y2016: AVERAGE MEAL COST Y2017 Jan 672,887.32 Feb 529,304.25 Mar 604,511.10 Apr 641,765.02 May 642,900.49 Jun 636,161.37 Table – The average meal cost in months early of Y2016 and Y2017 (The data was provided by AEON Vietnam’s Administration Department) Following the report of the Administration Department, it shows that AEON Vietnam has problem in months of Y2017 in cost for employee’s meal Based on the comparision with months early Y2016, the meal cost of Y2017 is higher than its Y2016 This increasing rate goes up to 87.44% Specifically, the total number of employees has trend decreasing in months early of Y2017 Conversely, the average cost per person for meal is increasing The chart will show this trend as below: 800,000.00 700,000.00 600,000.00 500,000 400,000 300,000 200,000 100,000 Chart - The changing in average cost per one employee in months early of Y2016 and Y2017 (The data was provided by AEON Vietnam’s Administration Department) PART II – PROBLEM IDENTIFICATION Potential problems Following the information are conducted from in-depth interviews with Head of Administration Department, team leader, supervisor and accountant, who are working and have responsibility for meal cost management about the fact of meal cost management situation in AEON Celadon Tan Phu, AEON Binh Tan, Canary Binh Duong and AEON Long Bien, there are many potential problems for this symptom that cause the increasing quantity and price of meal as below: 1.1 Lack of experience to control situation: In the same period of Y2016, the situation is not like it in Y2017 In the same period of last year, the cost for meal is suitable with it’s employees But in months of Y2017, the meal cost is increasing although the number of employee trends of decreasing slightly The average cost per person is from 529,304.25 VND to 672,887.32 VND These figures are bigger than data of the same period in Y2016 The highest percentage of changing is up to 87.44% The current staffs not have understanding and experiences to solve problem of Y2017 deeply And they have not had any previous experiences to solve when the problem happend There are not many managers who have enough ability and experience to control the increasing meal cost Following the view of Head of Administration Department, “the number of experienced managers in AEON is small,…the experience managers quit job more and more” and “the turnover rate is about 10% per year” To solving this problem, the Human Resource Department has to recruit the new staffs who will be responsible for managing cost in the vacancy in company Because of this instability, the new employees have difficulty to find and solve the current problem which happend in the company now The new satffs cannot catch up with the the current staffs Futhermore, because of not using any machines to control the ordering, the process of calculating and forecasting meals for employees depends on the manual working of human absolutely As a consequence, it cannot avoid inaccuracy management APPENDIX 4: QUESTIONNAIRE RESEARCH QUESTIONNAIRE THE FACTORS AFFECT EMPLOYEES QUIT JOB IN AEON CELADON AND CANARY Dear all, This research is conducted to find out the factors, which affect employees quit their job at AEON Vietnam in Celadon Tan Phu, AEON Binh Tan, Canary Binh Duong and AEON Long Bien Please help us to collect data for this research Your all information is confidential Looking forward to getting your contribution Thank you for your supporting! I Personal and job position information: Gender: Job position: How long have you worked in AEON? II Research questions: How long you work in a day? Do you often work overtime? Are you happy with your current job? Do you intend to quit current job in AEON Vietnam to find the new job? Which reasons make you intend quit current job in AEON Vietnam? Arrange the piority reasons make you intend to quit current job in AEON Vietnam (Notice: From to corresponding with increasingly important level) 58 No It No care opportu Overloa workin Stress Low in salary r Loss be manage way Not rec for you contrib Job dut boring/ challen Miscon about th Mismat betwee person 10 Other reasons Can you make some comments to solve these job problems in AEON Vietnam? 59 APPENDIX 5: SUMMARY OF SURVEY Based on answers are conducted from 10 respondents, who take part in make survey and are cost managers the result as below: I Personal and job position information Gender GENDER Male Female 40% 60% Male Position Female POSITION Controlling gerneral cost 20% Controlling meal cost 80% How long have you worked in AEON? EXPERIENCE YEARS Over years 10% years 20% Under years 70% 60 Summary II Research questions How long you work in a day? Do you often work overtime? YES 90% YES NO 61 Are you happy with your current job? PLEASURE WITH JOB YES 30% NO 70% YES Do you intend to quit current job in AEON Vietnam to find the new NO INTEND QUIT JOB job? NO 30% YES 70% Which reasons make you intend quit current job in AEON Vietnam? 62 The reasons make you intend to quit current job in AEON Vietnam No 10 Not recognized for Factors your No career contribution opportunities Job duties Overload boring/not working challenge Stress Misconceptio Low ns about the increasing work salary rate Mismatch Loss believe between job in and person management Other way reasons 63 Summary III Recommandation Based on information, which was collected from 10 participants, caculating the Mean, Standard Deviation and Coefficient of Variation (CV) of each factors based on the formulas as bellow: Mean ( ̅) = ∑ Standard Deviation ( ) = ∑ ̅ ̅̅ Coefficient of Variation (CV) = In which: i : Sequence number of variables n : The number of attendees x : The value of variables The Mean and the Standard Deviation are two important indexs in anlaysis The Mean shows the average value of a set of numbers, in which the Standard Deviation and Coefficient of Variation are a measure of how spread out number 64 Factors No career opportunities Overload working Stress Low increasing salary rate Loss believe in management way Not recognized for your contribution Job duties boring/not challenge Misconceptions about the work Mismatch between job and person Other reasons Based on the survey result, apply the formula of calculating Mean, Standard Deviation and Coefficient of Variation (CV), we have the calculating table as below: 65 Factors No career opportunities Overload working Stress Low increasing salary rate Loss believe in management way Not recognized for your contribution Job duties boring/not challenge Misconceptions about the work Mismatch between job and person Other reasons Summary: There are four factors which have the highest Mean: No career opportunities (Mean = 4.5); Not recognized for your contribution (Mean = 4.3); Stress (Mean = 4.2) and Overload working (Mean = 3.5) It shows that there are factors, which affect experienced managers quit job strongly 66 ... Minh City – Year 2017 SUPERVISOR’S REPORT ON THE THESIS SUBMITTED FOR DEGREE OF MASTER of BUSINESS ADMINISTRATION The thesis title: THE POOR EXPERIENCE IN MEAL COST MANAGEMENT IN AEON MALL VIETNAM... are AEON Shopping Center – Tan Phu Celadon in Ho Chi Minh City, AEON Shopping Center – Binh Duong Canary in Binh Duong Province, AEON Mall Binh Tan in Ho Chi Minh City and AEON Mall Long Bien in. .. ECONOMIC HO CHI MINH CITY International School of Business - Ho Thi Nguyen Thien THE POOR EXPERIENCE IN MEAL COST MANAGEMENT IN AEON MALL VIET NAM MASTER OF BUSINESS ADMINISTRATION