Business Strategy ASSIGNMENT 1

In this paper, I will analyze the macroeconomic impact and impact of an organization and its business strategies, and moreover, I will evaluate and apply the results of an organization analyzing using the Porters Five Forces model for a given market area. More specifically, in order to do this research, I will apply the Bao Viet company to do the requirements in this exercise 1.

ASSIGNMENT FRONT SHEET Qualification BTEC Level HND Diploma in Business Unit number and title Unit 32: Business Strategy (574) Submission date Date received (1st submission) Re-submission date Date received (2nd submission) Student name Student ID Class Assessor name 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: Grading grid P1 P3 M1 M3 Summative Feedbacks: Resubmission Feedbacks: Grade: Assessor Signature: Internal Verifier’s Comments: Signature & Date: Date: Contents I Introduction II Analyze the impact and influence which the macro environment has on an organization and its business strategies .5 2.1 Vision , mission , Objectives 2.2 PESTLE Application in Bao Viet Insuarance III Evaluate and apply the results of an analysis using Porter's Five Forces model for a specific market area .8 3.1 Porter's Five Forces Model 3.2 Organizational structure 10 3.3 Human Resources 11 3.4 Internal stakeholders of Bao Viet 12 3.5 External stakeholders of Bao Viet 13 3.6 O and T application in Bao Viet .14 IV Conclusion .15 V References 15 I Introduction In this paper, I will analyze the macroeconomic impact and impact of an organization and its business strategies, and moreover, I will evaluate and apply the results of an organization analyzing using the Porter's Five Forces model for a given market area More specifically, in order to this research, I will apply the Bao Viet company to the requirements in this exercise II Analyze the impact and influence which the macro environment has on an organization and its business strategies 2.1 Vision , mission , Objectives VISION Maintaining its position as the leading Financial - Insurance Group in Vietnam, improving international competitiveness, strong financial potential, and sustainable and efficient growth MISSION Ensuring the peace, prosperity and long-term benefits for customers, investors, employees and communities OBJECTIVES With a vision to 2025 is Maintain its position as the leading Financial - Insurance Group in Vietnam, enhance international competitiveness, strong financial potential, sustainable and efficient growth, Bao Viet aims to maintain the No position in the market in the field of life insurance and non-life insurance; is a leading enterprise in the field of fund management, providing domestic financial services; has an international standard foundation and infrastructure for information technology, which satisfies the requirements of administration and business throughout the system 2.2 PESTLE Application in Bao Viet Insuarance Political environment The growth of the insurance sector is deeply influenced by the political stability and value of the national economy The level of corruption in Bao Viet insurance - especially the regulation of the insurance industry is still high Vietnam's policies have a great impact on the development of insurance companies, especially Bao Viet insurance In terms of government administration, in general, after the transition to market mechanisms The government has made important efforts to shift the concept of operating the economy from public action to indirect regulation under law Previously the government did not pay attention to the insurance industry, but since recent years the government has been more actively interested in this industry Economic environment Vietnam has the following economic sectors, according to the new government definition: the state economy, the collective economy, the private economy (individuals, small investors, private capital), the private economy A variant of the administration, an economy of foreign venture money (Wekipedia, 2020) The economy has a high level of government interference in the demand for goods The Government also agrees that a commercial system works according to the economy Vietnam has a mixed economy, as can be seen The outbreak of COVID-19 has brought unparalleled problems that are projected to have a major effect on the economic growth of Vietnam this year The pandemic also raises threats to the rapidly rising economy of Vietnam Pre-pandemic estimates indicate that Vietnam's GDP growth this year will hit 6.8 percent, but it has dropped to 0.36 percent in the second quarter of 2020 The pandemic and its related prohibitions have adversely impacted the employment of individuals Over 30 million employees were affected at the height of the so-called 'development slowdown' in April, according to the General Statistics Office of Vietnam Citizens employed in the industry were the hardest affected Services (72%), led by workers employed in the industries of manufacturing and construction (67.8%) and agriculture, forestry and fisheries (25.1%) Due to the incremental elimination of sanctions, of course, the bulk of firms, as well as leaders of small and medium-sized organizations and workers, have continued to operate The Covid 19 translation has significantly influenced market practices in the Bao Viet insurance sector in particular and the Vietnamese economy in general, lowering productivity and degrading the economy in all respects.(forbesvietnam,2020) Bao Viet 's 2020 insurance market is highly affected by the changes in Covid-19 For example, in the life insurance market, the growth rate of new insurance premium income and overall premium income also suffered a substantial decrease during the same period during the Covid-19 epidemic Specifically, in the first six months of the year, current mining insurance premium income fell by about half relative to the same time in 2019 (the first six months of 2019 saw a 20.4 percent rise compared to the same period in 2018) Complete fee income growth rates have declined from 25.3 percent to 19 percent (BaoViet, 2020) Social environment Vietnam is a heavily populous nation in the world with several developmental benefits in terms of population By the end of 2018 , the population of Vietnam had reached more than 95 million people, of which the bulk were employees and children However, only around million people enter Bao Viet life insurance, the proportion of the population involved in life insurance is only around percent, although the average rate is 20-25 percent in nations, relative to countries in the region and across the world This is the presumption that life insurance in Vietnam is still very viable This shows that the Vietnamese market is full of opportunities for the growth of insurance firms such as Bao Viet.(BaoViet,2020) Technological environment In order to allow insurance firms to computerize their service systems, and the inefficient structure of insurance companies, diversify delivery channels and modes of service, and enhance customer experience with high-tech ancillary services, Bao Viet Insurance has applied information technology Moreover, Bao Viet has observed that a new market habit for consumers was created by the accelerated growth of information technology Increasingly , consumers need to find information by electronic forms of contact, such as the internet, phone , email, etc For general financial services, such as insuranceinvestment-payment, to be offered This is also an incentive for insurance firms such as Bao Viet to make good use of science and technology achievements, fulfilling the rising and diversified consumer requirements in terms of competitiveness and incorporation (BaoViet, 2020) Legal environment In the time from 1965 to 1993, the State exercised its monopoly on insurance undertakings with only one insurance undertaking, Bao Viet, both conducting insurance undertakings and performing the insurance country's home management role At present, more attention has been paid by the State and the Government to supporting the growth of the insurance industry in Vietnam With changes to the legal framework, the Government of Vietnam is committed to a fair and reliable insurance industry climate On December 2000, at the 8th session of the National Assembly, the National Assembly enacted the Law on Insurance Sector, which provided a significant legal framework for the stable and sustainable growth of the Vietnamese insurance industry Consistent with the regional integration pattern According to international standards, the system of legal documentation relating to the insurance industry was reasonably comprehensive The Ministry of Finance supervises insurance enterprises in business activities, from recruitment and agency training to a system of business monitoring indicators (BaoViet, 2020) Environmental The influence of the environment has a very strong impact on the business and operation of the Bao Viet insurance enterprise As in the recent fact, Covid 19 has had a great impact on Bao Viet's business activities, reducing the revenue of the whole enterprise, the revenue growth is poor because the company had to cancel many recruitment programs recruiting and training of new employees, sales and marketing events due to social outages during epidemics Social disparity causes customers' income to decrease, resulting in delayed premium payments The pandemic has put additional pressure on new premium growth to slow down (BaoViet, 2020) III Evaluate and apply the results of an analysis using Porter's Five Forces model for a specific market area 3.1 Porter's Five Forces Model The first factor of the year affects the number and ability of competitors to cut a company The more number of competitors and the number of comparable products and services offered, the less the strength of the company Bao Viet insuarance current competitors come from big enterprises such as Dai-ichi, Manulife, Prudential, AIA, etc (Vinare,2019) Bao Viet Insurance was established in 1965 and operates based on the majority of the state's charter capital Therefore, it can be seen that most of the insurance products and activities that companies business here rely on Vietnamese state suppliers The State of Vietnam has the power to promulgate, control and manage the products that Bao Viet does business, and Bao Viet must also report annual business results and pay tax as other businesses branch (Vinare,2019) The negotiation power of customers is powerful in shaping the company of Bao Viet This element of the research model of Porter's Five Powers determines how customer buying choices and related perceptions and behaviors impact firms The strong buyer influence is dependent on external factors as follows: low switching costs, limited size of individual customers , high buyer knowledge It's quick for customers to shift labels, making them solid to ensure customer loyalty for appealing businesses such as Bao Viet This portion of the Five Forces review therefore illustrates that Bao Viet must have the bargaining power of customers or customers as one of the most significant strategic variables of the business (Vinare,2019) Risks found apply to life and non-life insurance, wealth management as well as the practices and conditions of the insurance industry Improvements of technologies are occurring However, technology, like smart grids or piping and hospitals, is often redundant in vital infrastructure areas As a consequence, insurance providers face greater liability escalation and the threat of unforeseen damages in the fields of collateral harm, personal injuries, market interruption, and network security threats G technologies can allow real-time wireless access to devices such as self-driving vehicles or sensorcontrolled factories with any network of items (IoT) Owing to possible elevated electric fields, existing issues are correlated with potentially harmful health consequences With central banks running out of options to boost the economy, there is a rising consensus that a financial solution would be required for another recession If policy changes result in financial growth and stabilization, the insurance / reinsurance industry can benefit However, the possible risk factor is uncertain growth, which induces higher uncertainty in capital markets and decreases asset prices Other threats include: vaccines, the difference of expertise between the dying generation and the replacement, traumatic sports injuries, the danger of tourism of plastic surgery, expanding the gap between urban and rural areas and toxins in our bodies and our climate (Vinare,2019) Bao Viet Insurance faced mild pressure from the threat from the new entrant This portion of the research model of Porter's Five Powers points to the influence and potential of new business entrants, such as high capital needs, high cost of brand growth and capability of newcomers It needs a high degree of capitalization to start up a firm to compete with businesses like Bao Viet Insurance It is also incredibly costly to build a good brand to compete with major players like Bao Viet in the insurance business Digital standards, high branding prices, and the expertise of prospective new entrants comprise these external variables that are weak for new entrants Three considerations include these external factors that make the new entrant weak: First: You need a lot of resources It takes a great deal of investment to develop engineering equipment and manufacture operating systems Factor two: financial scale Since dealing with competing brands such as AIA, Prudential, Manulife, Dai-ichi is hard for new players Factor three: Time of accession is timing of entry as another factor that can be defined as a restriction for new entrants As a result, the building up of their client base would be challenging for potential entrants (Vinare,2019) 3.2 Organizational structure Bao Viet's structure is decentralized It mainly works because it focuses on company departments That's because the organization is wide and there are many inner layers that use a hierarchical structure Bao Viet's structure is also based on features rather than location 3.3 Human Resources Bao Viet focuses on building human resources with high professional qualifications, structure reasonableness, positive working attitude, motivation, ability to access modern management methods and skills fulfillment of the Group's mission and values In particular, focus on building and developing a team of good experts in a number of key fields, creating an attractive, professional and friendly working environment Bao Viet Group also focuses on investment in human resource development, perfecting and expanding the application of an efficiency management system and performance-based salary payment in the whole system Continue to promote training activities based on learning maps, complete the construction of professional learning maps, and enhance professional-based training Implement planning staff training and developing potential staff, recruiting and attracting highly qualified staff Bao Viet has evaluated, reviewed and adjusted the organizational structure model of the entire Group's system in order to maximize and perfect the advanced corporate governance system, and at the same time deploy a management system human resources on the basis of applying an effective management system, implementing concentrated recruitment at Head offices, strengthening training, improving the quality of human resources, performing well appointment, re-appointment, staff rotation and succession officer planning work 3.4 Internal stakeholders of Bao Viet Bao Viet successfully equitized and started operating as a joint stock company from October 2007 under the model of Parent Company - Subsidiary Company Corporate governance model at Bao Viet Group includes: General Meeting of Shareholders; Supervisory Board, Board of Directors (including functional committees); Executive Board and Functional Committees The Holding Company 's organizational structure is built on the principle of assignment and management according to functional departments, with a close relationship with each other In general, the governance model applied nowadays has been built up and is close to international standards and practices The restructuring of the governance model has initially strengthened the efficiency of management, governance, and improved the governance efficiency of the Board of Directors (BOD) for the executive apparatus; implementing the function of capital management of the owners of Bao Viet Group in its subsidiaries through a system of governance regulations throughout the Group on strategy, investment, risk management, and control and appointment mechanism and reporting mechanism of the capital representative of the Group in subsidiaries invested by the Group In order to improve corporate governance efficiency according to international standards, the Board of Directors has established committees and functional committees to assist in implementing strategic direction, auditing, financial management, and risk management, risks, senior personnel and investment 3.5 External stakeholders of Bao Viet Bao Viet approaches stakeholders through various sources of information appropriately in order to listen to each party's opinions and concerns about Bao Viet's operations, especially governance issues company, economic growth, contribute to society and the environment Bao Viet's related parties include parties as follows: Shareholders / Investors • Meet face-to-face with investors • General Meeting of Shareholders • IR newletters newsletter • Website Bao Viet • Exchange programs, cooperation, investor introduction Workers • Annual employee meeting • Internal publications: Enewsletter, • Intranet, Bao Viet News, Magazines • Finance - Bao Viet • Training programs Press Agency • Organize press meetings • Press releases / Periodical reports on results Partners, suppliers  Meet and exchange face-to-face: supplement in bidding regulations, cooperation contracts with suppliers Local community  Coordinate with local authorities to contact and learn the feelings and aspirations of local people Regulatory Authority • Attend conferences and seminars organized by the Government and the Ministry • Joining organizations and associations: Vietnam Insurance Association; Business Council for sustainable development; World Economic Forum;… Customer • The team of agents and consultants directly contact with customers • Customer care center and hotline available 24/7 • Customer answer channel integrated on the website system The subject with a high impact on the business but with a low influence on the business of Bao Viet is the Regulatory Authority such as the government, the local community and supplier partners Objects with high power impact on the business such as the CEO, shareholders and customers have a strong impact on the operation and development of the business The subjects with low power but high influence on the business are employees and press agencies 3.6 O and T application in Bao Viet Opportunities are non-company entities (business markets, culture, government, etc.) who are helpful or helpful to help accomplish the objective Here, FDI inflows allow the non-life insurance income rise because of the fast economic growth The market for non-life insurance also rises as residential income increases The insurance industry in Vietnam is seen to be rich in opportunity and will record substantial growth over the next 20 years (BaoViet,2020) Threats are variables that are detrimental or find the target impossible to accomplish outside of the organization (business markets, culture, government, etc.) Bao Viet insurance entering the WTO lets the insurance and banking walls vanish, and the world's major giants leap profoundly Experience and financing for domestic insurance firms can be a daunting foe (BaoViet,2020) IV Conclusion Effective management strategies are directly connected to efficient leadership Management leadership means having set strategies and goals being productively achieved from top company positions to entrylevel jobs The more workers are inspired and motivated to complete their job tasks efficiently, the better the overall profit for the company V References Vinare.com.vn 2020 Những Rủi Ro Mới Mà Công Ty Bảo Hiểm/ Tái Bảo Hiểm Cần Phải Theo Dõi | Thông Tin Thị Trường [online] Available at: [Accessed 02 April 2021] vietnambiz 2020 Mơi Trường Chính Trị (Political Environment) Trong Marketing Là Gì? [online] Available at: [Accessed 02 April 2021] Trang thơng tin điện tử - Hội đồng lý luận TW 2020 Tác Động Của Đại Dịch COVID-19 Tới Nền Kinh Tế Việt Nam [online] Available at: [Accessed 02 April 2021] Ninhthuan.gov.vn 2020 CHÍNH SÁCH HỖ TRỢ DOANH NGHIỆP DO DỊCH BỆNH COVID [online] Available at: [Accessed 02 April 2021] TapChiTaiChinh 2020 Chính Sách Tài Chính Hỗ Trợ Doanh Nghiệp Phát Triển [online] Available at: [Accessed 02 April 2021] Baoviet.com.vn 2020 Bảo Việt - Hoạt Động Bảo Việt [online] Available at: [Accessed 02 April 2021] ... .8 3 .1 Porter's Five Forces Model 3.2 Organizational structure 10 3.3 Human Resources 11 3.4 Internal stakeholders of Bao Viet 12 3.5... stakeholders of Bao Viet 13 3.6 O and T application in Bao Viet .14 IV Conclusion .15 V References 15 I Introduction In this paper, I will... Covid -19 epidemic Specifically, in the first six months of the year, current mining insurance premium income fell by about half relative to the same time in 2 019 (the first six months of 2 019 saw