10170420 BBE A1 - Grade: B PDF

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Tran Trung Kien_10170420_BBE_A1 Table of Contents EXCUTIVE SUMMARY........................................................................................................ INTRODUCTION................................................................................................................. CHA...

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Tran Trung Kien_10170420_BBE_A1.2

Table of Contents EXCUTIVE SUMMARY.........................................................................................................2 INTRODUCTION..................................................................................................................3 CHAPTER I:.........................................................................................................................5 ICT: DIFFERENT TYPES, SIZE AND SCOPE..............................................................................5 I.

Definition of the ICT organization.........................................................................................5 1.1 Legal structure and company size...........................................................................................5 1.2 Vision and Mission of ICT........................................................................................................6 1.3 Core values of ICT....................................................................................................................6 1.4 Goals and Objectives of ICT.....................................................................................................7 II. Stakeholders of ICT..............................................................................................................9

CHAPTER II.......................................................................................................................11 ICT: THE INTERRELATIONSHIP OF DIFFERENT FUNCTION...................................................11 I. II. III.

The structure of ICT............................................................................................................11 Flat or Tall Organization?....................................................................................................14 The interrelationship of functions of the organisation.......................................................14

CONCLUSION....................................................................................................................17 REFERENCES LIST..............................................................................................................18

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EXCUTIVE SUMMARY

This assignment paper was divided into two large sections. Chapter I will explain the different types, size, and the scope of ICT through the evaluation objectives, mission, core values of this company. Chapter II will demonstrate the interrelationship of the various function of ICT of the company, the strengths, the weaknesses of that structure. At the same time find out the links between the functions and the organization structure.

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INTRODUCTION

This article will study on ICT (International Investment Construction and Trading Corporation), which in the top 2 in Vietnam about the supplying asphalt. The ICT was founded in 1999, since then they work in four areas, asphalt business, real estate business and building hydropower plants.

The assignment was split into two different parts. In Chapter I, this report will explain the different types, size and scope of ICT by describe their mission, vision, goals, objectives, etc. The next chapter explaining the structure of ICT and show the interrelationship of various functions of this organization.

The ICT is active in the following areas: - Investing and importing liquid asphalt. - Investing, constructing of hydroelectric power plants. - Investing in real estate.

The first stage, from 1999 to 2002, ICT investment in construction, trading smallscale asphalt, asphalt storage building first.

From then until 2005, ICT manufacturing asphalt plant 3. In 2008, ICT investment focus on building materials, including artificial stone and sand in Dak Nong.

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2009 is the time for the introduction of ICT first depot - ICT Asphalt 04, marking a new era of asphalt economy. Along with the process of building ChiemHoa hydroelectric plants within 30 months. After the success of ChiemHoa, ICT continue to build hydropower plants in Lao Cai (2012). In the year 2014, ICT has ranked 272th among 500 largest private companies in Vietnam by VNR500 of Vietnamnet.

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CHAPTER I: ICT: DIFFERENT TYPES, SIZE AND SCOPE I.

Definition of the ICT organization

1.1 Legal structure and company size On the concept we have a couple of different legal structures: -

Sole Trader: Business will start trading quickly without too much investment. Business work will depend on business owners, they will decide the entire business.

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Partnership: In partnership, will have more than two people involved in business. They shared the risks, costs and profit related to the business.

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Limited company: Limited company has a private owner. The company's finances are separate from the owner's finances.

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Company or Corporation: Companies are separate legal entities from their owners.

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Limited Liability Partnership (LLP): “An LLP Partnership is a hybrid of a partnership and limited company, each partners liability is limited to the money that they have put into the business and the amount of personal guarantees they have given to raise any finance for the business”. Hwchamber.co.uk. (2017).

-

Community Interest Company (CIC): “A CIC is a legal business status and has only been in existence for a few years. This is a company whose objectives are primarily social rather than profit making”. Hwchamber.co.uk. (2017).

The ICT was founded in 1st March, 1999 as a private limited joint stock company and also the large size company (More than 320 staff members and employees). According to

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Ian Worthington in 1994, “the private limited company must have a minimum of two shareholders, but its shares cannot be offered to the public at large, although it can offer them to individuals through its business contacts”. ICT also limited the sale of shares.

1.2 Vision and Mission of ICT

“A vision is an inspirational statement which sets out the direction of the organization” (According to Business Queensland, 2018). Because of that, the vision of ICT is to “Become the biggest suppliers of asphalt and asphalt products in Vietnam”.

According to Mintzberg: “A mission describes the organisation’s basic function in society, in terms of the products and services it produces for its customers”. The mission of ICT is "Sustainable development for society and the community, respect for the law, to contribute high-quality asphalt products on the development of transport and infrastructure in Vietnam".

1.3 Core values of ICT According to Nps.gov (n.d.), “The core values are the basic elements of how we go about our work”. ICT has four main core values, so they can improve their work every day, and also follow the values that they have planned.

Firstly, in domestic and foreign, ICT wants a chance of development cooperation with many different audiences. This value is called “You are us”, “We are a family”. Secondly, in business and manufacturing, the value they have is “Serve community interests, applying ethical standards in business”. In addition, they have extremely humanistic values for humans: “People are the most valuable assets of ICT”, and “Every decision, strategy,

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project, action plans are based and focused on people”. And finally, the interests of the company is an essential thing. “Personal interests are the interests of the business”.

1.4 Goals and Objectives of ICT -

About the Goals of ICT:

Mintzberg defined goals as “the intentions behind decisions or actions, the states of mind that drives individuals or collective of individuals called organizations to do what they do”. And the long-term goal of ICT is “Create a habit of using high quality bitumen for asphalt users in Vietnam”. This is a really clever long-term goal. This goal has just give reputation to customers, retaining the old clients reliably, and also creating a huge name brand for new customers.

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Objectives of ICT:

First of all, we take a look back at the ICT's revenue in the year 2017 (separate each field): +

Liquid asphalt business: from 90 to 120 billion VND.

+

Chiem Hoa hydro power plants: From 190 to 230 billion VND.

+

Factory in Vinh Ha: From 65 to 84 billion VND.

+

Real estate (Office rental array in the ICT building 8 floors): from 4.5 to 7

billion VND. In addition, investment in the construction of ICT West Lake (expected 37 floor). +

Tourism and clean food: ICT Is investing, no revenue.

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According to tutor2u.net, “Objectives give the business a clearly defined target. Plans can then be made to achieve these targets. This can motivate the employees. It also enables the business to measure the progress towards to its stated aims”.

ICT have some objectives in the next period (2018-2020) to improve the revenue from last year.

Planning growth in quantity of ICT asphalt production in the period from 2018 to 2020.

In 2018, they want the output of asphalt sold reached 100000 tons. The next stage is 2019, asphalt production increased to 150000 tons. And with the year 2020 is 200000 tons. To evaluate an objective is possible and clever or not, they will get S.M.A.R.T as the assessment tool. S.M.A.R.T stands for Specific, Measurable, Attainable, Results-oriented and Time-bounded. +

Specific:

Reaching total output plans and expanding the carrier to Laos and Cambodia. +

Measurable:

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ICT create targets total production for the year 2020 to double the yield of the year 2018 (from 100000T up 200000T). They produce less than 70 tons of asphalt (also 50 tons of asphalt, because the company their competitors (Petrolimex) imports of liquid asphalt from many different providers, while ICT is just entered the liquid asphalt from Shell and ExxonMobil Singapore, from which ICT ensures the quality of their products is always best. +

Attainable

ICT has built up asphalt production plant in My Tho, very close to Thailand and Cambodia, two extremely promising market, in order to minimize travel expenses, in order to give reasonable pricing for this market. Since then, ICT has more money to complete the NorthSouth Expressway Project in the year 2020. +

Relevant:

Vietnam sea very long to economic development. Cambodia and Laos did not have that advantages, but both of these have achieved GDP growth rate is extremely good, about 7.7 percent and 7.8 percent in 2017 (The Word Bank in Cambodia and Laos). Sources of ICT previous asphalt derived from Tipco Thailand, causing dust and polluting the environment. This is an opportunity for ICT products with higher quality to foreign markets. +

Time-bound:

ICT has built three timelines, that is 2018, 2019 and 2020. In 2018 they will achieve 100,000T, 2019's and 2020's are 150,000T and 200,000T.

When a company puts out an objective need to follow a couple of conditions:

+

Survival – this is a short-term objective for a company recently started

established, or are a company are falling into crisis.

+

Profit maximization - find out the best approach to maximize profit for the

company.

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+

Profit satisficing – profitable growth equally, minimizing the risks to business

owners feel comfortable when investing.

+

Sales growth - the business to maximize the ability to sell as many

productions as possible, because it is the measure of the success of the company.

The objectives of the ICT companies had the time of completion and estimated data, however this goal was not too specific, and also not too feasible. According to a presentation of this company at the IBD - National Economics University (October 2018), they did not break even in the first half of the year 2018. The rest of the year will wait the ICT in action, but does not mean that the target is feasible to achieve.

II.

Stakeholders of ICT According to SearchCIO (2017), “A stakeholder is a person or group who has an

interest -- vested or otherwise -- in an enterprise and whose support is required in order for an enterprise to be successful”. There are three types of stakeholders: Internal stakeholders, External stakeholders and Connected stakeholders. Internal Stakeholder are the people in the company, working directly in the company, with ownership or investments in companies. Insiders include the staff, management,

board members, directors, sponsors and investors. External

Stakeholders are outside the company, indirectly affected by the company. These stakeholders include customers, suppliers, government agencies, creditors, labor unions and community. The most important External Stakeholders of ICT mainly the clients and partners of ICT. In particular, with the asphalt business company, our partner is the agent of plastic and block the Bank links; the customers are businesses. This relationship was maintained to ICT

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mutually beneficial. Customer is the object contribute extremely important part in the success or failure of the ICT. So, creating sustainable relationships with customers, and creating trust for the external stakeholders are extremely necessary. Directors and managers are very interested in investing in the company. They work in the company, they know the strengths and weaknesses of the company, and they had taken the company to success. They guide the company, discovered the method to achieve the goals fastest. They also have the responsibility to care about shareholders in the companies and people who want to join ICT. Shareholders are the owners of the company. They invested the money to the company activities. They are also vital elements of ICT, so they should join most of meeting of the company, listen and give the solution brings high profits. They also are the ones who are giving the right strategy for the company, allowing the program to be active in the company. The provider is what the ICT needs, contribute to promoting ICT become a large company. ICT need quality items, so they required to build sustainable relationships with all of suppliers. Sales consultant doesn't have too much power, but they still have to manage the work and meet the customers every day. ICT's clients are mostly business owners, managers of the project, and they must participate in the process of dealing with no small amount of money. Can say, although they don't have big power, but they have contributed in no small way to the ICT. Security have low power and low interest, however they are extremely important for the company. They must seal the lid of the container of the container, make sure the volume of the goods to be moved. Asphalt cement is very expensive and has great value because this product Vietnam can't produce that are imported, so there will be many drivers hired for ICT wants to steal, do leak out products for the purpose of retail sale fraud for profit. Therefore, Security must constantly monitor 24/7 to ensure the safety of the company's product quality.

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International trading department manager who has an enormous power, plays an important role, participate in all activities on the import or export of the company. The duty of this person is directing, ordering the employees who work for this manager and create relationships, sales and negotiate with customers about the price. First, create a good relationship with the suppliers is essential, because ICT need a supply of products of good quality and big quantity. Second, ICT need to sell products with reasonable price, and buy supplies not too expensive. This is why ICT need International trading department manager, who can bring success and profits for the company.

To assess the key internal stakeholders, stakeholder mapping will be the best tool to perform:

POWE R

International trading

High

Low

department manager

Security

Sales consultant

Low

High

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INTERES T

CHAPTER II ICT: THE INTERRELATIONSHIP OF DIFFERENT FUNCTION

I.

The structure of ICT There are 4 main type of the company structure (According to Daniel Karrel, 2018),

Functional structure, Divisional structure, Matrix structure and Flatarchy structure. ICT company structure is related to two most basic structures: Functional and Divisional. The ICT (International Investment Construction and Trading Corporation) use the Mixed Structure, which is a combination between both structure, Functional and Divisional structure. The combination of the two structures was somewhat mitigate the main weaknesses of the two structures above. Companies now have better links, and related intimacy between departments has also increased. At the same time, each Division of the company has taken the decision faster, more efficient and bring greater resources to the company.

Pros: This structure have a huge flexibility, all the departments are organised and operated separately, so that they can reach every single market targeting. Cons: Really difficult to communicate with others divisions, really easy to have conflict between all department. Also, each division will be demanded by the Directors, so that they cannot make a decision.

This structure can clearly see this through the following chart (according to ICT Guest speaker):

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Board of Directors General Director Deputy technical director

Deputy General Director of Internal Affairs Company office

Director of business

Director of Vinh Ha hydropower plant

Director of Chiem Hoa hydropower plant

Director of ICT Commune

Human Resource Department

General Department

General Department

General Department

General Department

Financial Accounting Department

Business Department

Electrical Engineering Group

Electrical Engineering Group

Technical Department

Administrative Office

Technical and Purchasing Department

Mechanical Engineering Group

Mechanical Engineering Group

Buillding management

ASP Stations

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II.

Flat or Tall Organization? ICT is a flat organization, these are some basic features: extensive executive power,

many inferiors, formal relationship, coordination between departments is not good enough and making decision more quickly. However, there is little chance of promotion.

III.

The interrelationship of functions of the organisation.

Basically, the departments under the office has a close relationship with all the subsidiaries / other remaining departments of ICT. Example with Finance department personnel will have a close relationship with all the subsidiaries / room / department rest for all activities related to the personnel of that department (recruitment, training, transfer, rotation, layoffs, wage regime...) are subjected to censorship / evaluation of Finance and human Resources. The same with Administration department and Accounting department. This Mixed structure helps companies improve human resources, employee experience, brings many advant...