This article will study on ICT (international investment construction and trading corporation), which in the top 2 in vietnam about the supplying asphalt

Chapter I will explainthe different types, size, and the scope of ICT through the evaluation objectives, mission,core values of this company.. CHAPTER I:ICT: DIFFERENT TYPES, SIZE AND SC

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 The structure of ICT 11

II Flat or Tall Organization? 14

III The interrelationship of functions of the organisation 14

CONCLUSION 17

REFERENCES LIST 18

EXCUTIVE SUMMARY

This assignment paper was divided into two large sections Chapter I will explainthe 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 thevarious function of ICT of the company, the strengths, the weaknesses of that structure Atthe same time find out the links between the functions and the organization structure

This article will study on ICT (International Investment Construction and TradingCorporation), which in the top 2 in Vietnam about the supplying asphalt The ICT wasfounded in 1999, since then they work in four areas, asphalt business, real estatebusiness and building hydropower plants

The assignment was split into two different parts In Chapter I, this report willexplain 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 theinterrelationship 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 scale asphalt, asphalt storage building first

small-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

2009 is the time for the introduction of ICT first depot - ICT Asphalt 04, marking anew era of asphalt economy Along with the process of building ChiemHoa hydroelectricplants within 30 months After the success of ChiemHoa, ICT continue to build hydropowerplants in Lao Cai (2012).

In the year 2014, ICT has ranked 272th among 500 largest private companies in Vietnam by VNR500 of Vietnamnet

CHAPTER I:

ICT: DIFFERENT TYPES, SIZE AND SCOPE

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

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

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

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

- Limited Liability Partnership (LLP): “An LLP Partnership is a hybrid of a partnership andlimited company, each partners liability is limited to the money that they have put into the businessand 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 onlybeen in existence for a few years This is a company whose objectives are primarily social ratherthan 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

Ian Worthington in 1994, “the private limited company must have a minimum of twoshareholders, but its shares cannot be offered to the public at large, although it can offerthem 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 insociety, 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 oftransport 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 manydifferent audiences This value is called “You are us”, “We are a family” Secondly, in businessand manufacturing, the value they have is “Serve community interests, applying ethicalstandards in business” In addition, they have extremely humanistic values for humans:

“People are the most valuable assets of ICT”, and “Every decision, strategy,

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 ofmind that drives individuals or collective of individuals called organizations to do what theydo” And the long-term goal of ICT is “Create a habit of using high quality bitumen forasphalt users in Vietnam” This is a really clever long-term goal This goal has just givereputation to customers, retaining the old clients reliably, and also creating a huge namebrand for new customers

- Objectives of ICT:

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

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

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

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 Italso 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 revenuefrom 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 asthe assessment tool S.M.A.R.T stands for Specific, Measurable, Attainable, Results-oriented and Time-bounded

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

ICT create targets total production for the year 2020 to double the yield of the year 2018 (from100000T 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 manydifferent providers, while ICT is just entered the liquid asphalt from Shell and ExxonMobilSingapore, from which ICT ensures the quality of their products is always best.

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 givereasonable pricing for this market Since then, ICT has more money to complete theNorth-South Expressway Project in the year 2020

Vietnam sea very long to economic development Cambodia and Laos did not have thatadvantages, but both of these have achieved GDP growth rate is extremely good, about7.7 percent and 7.8 percent in 2017 (The Word Bank in Cambodia and Laos) Sources ofICT previous asphalt derived from Tipco Thailand, causing dust and polluting theenvironment This is an opportunity for ICT products with higher quality to foreign markets

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 thecompany

+ 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 estimateddata, however this goal was not too specific, and also not too feasible According to apresentation 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 theICT in action, but does not mean that the target is feasible to achieve

According to SearchCIO (2017), “A stakeholder is a person or group who has aninterest vested or otherwise in an enterprise and whose support is required in orderfor an enterprise to be successful”

There are three types of stakeholders: Internal stakeholders, External stakeholdersand Connected stakeholders Internal Stakeholder are the people in the company, workingdirectly in the company, with ownership or investments in companies Insiders include thestaff, management, board members, directors, sponsors and investors ExternalStakeholders are outside the company, indirectly affected by the company Thesestakeholders include customers, suppliers, government agencies, creditors, labor unionsand community

The most important External Stakeholders of ICT mainly the clients and partners ofICT In particular, with the asphalt business company, our partner is the agent of plastic andblock the Bank links; the customers are businesses This relationship was maintained to ICT

mutually beneficial Customer is the object contribute extremely important part in thesuccess or failure of the ICT So, creating sustainable relationships with customers, andcreating 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 hadtaken the company to success They guide the company, discovered the method toachieve the goals fastest They also have the responsibility to care about shareholders inthe companies and people who want to join ICT

Shareholders are the owners of the company They invested the money to thecompany activities They are also vital elements of ICT, so they should join most ofmeeting of the company, listen and give the solution brings high profits They also are theones 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 largecompany ICT need quality items, so they required to build sustainable relationships withall of suppliers

Sales consultant doesn't have too much power, but they still have to manage thework 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 smallamount 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 importantfor the company They must seal the lid of the container of the container, make sure thevolume of the goods to be moved Asphalt cement is very expensive and has great valuebecause this product Vietnam can't produce that are imported, so there will be manydrivers hired for ICT wants to steal, do leak out products for the purpose of retail salefraud for profit Therefore, Security must constantly monitor 24/7 to ensure the safety ofthe company's product quality

International trading department manager who has an enormous power, plays animportant 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 createrelationships, sales and negotiate with customers about the price First, create a goodrelationship with the suppliers is essential, because ICT need a supply of products of goodquality and big quantity Second, ICT need to sell products with reasonable price, and buysupplies not too expensive This is why ICT need International trading departmentmanager, 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 tradingHigh

CHAPTER II ICT: THE INTERRELATIONSHIP OF DIFFERENT FUNCTION

There are 4 main type of the company structure (According to Daniel Karrel, 2018),Functional structure, Divisional structure, Matrix structure and Flatarchy structure ICTcompany structure is related to two most basic structures: Functional and Divisional

The ICT (International Investment Construction and Trading Corporation) use theMixed Structure, which is a combination between both structure, Functional and Divisionalstructure The combination of the two structures was somewhat mitigate the mainweaknesses of the two structures above Companies now have better links, and relatedintimacy between departments has also increased At the same time, each Division of thecompany has taken the decision faster, more efficient and bring greater resources to thecompany

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 haveconflict between all department Also, each division will be demanded by the Directors, sothat they cannot make a decision

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