The different types and purpose of asphalt bussiness company (ASP ICT)

The different types and purpose of Asphalt Bussiness Company ASP - ICT...3 3.. The different types and purpose of Asphalt Bussiness Company ASP - ICT 2.1 Types and Activities 2.1.1 Leve

Table of Contents

EXECUTIVE SUMMARY 1

I INTRODUCTION 2

II MAIN BODY 3

1 The different types and purpose of ICT 3

1.1 Legal form and Size 3

1.2 Purpose 3

2 The different types and purpose of Asphalt Bussiness Company (ASP - ICT) 3

3 Stakeholders of ASP-ICT 7

4 The structure and interrelationship of functions of ICT 10

III CONCLUSION 13

IV APPEDIX 14

V REFERENCE 15

Table of Figures Figure 1 Key role of Mission and Vision (University of Minnesota, n.d) 4

Figure 2 Output value and revenue by the plan for 2018-2020 6

Figure 3: Stakeholder Mapping of ASP – ICT 7

Figure 4: The organizational structure diagram of ICT 10

Figure 5: The organizational structure of the market management department 11

Figure 6: The organizational structure of the market management department 12

EXECUTIVE SUMMARY

After a period of research on ICT, I wrote a report describing how the organization operates First of all, I explained about some aspects related to types and purposes of ICT such as legal form, size, vision, mission, goals and objectives in the first part of the report Moreover, I also analyzed the objectives due to the SMART standard and the stakeholder mapping to indicate the interest and importance of ASP-ICT’s stakeholders, then, I explained how the organization meet their expectation Last but not least, this report provided the analysis about the structure of ICT, benefits and drawbacks of this kind of structure In the last part, I also gave readers the overall function of each divisions and the relationship between them

I INTRODUCTION

International Investment Construction and Trading Corporation (ICT) is private joint-stock

company which was constituted in 1999

There are five main business activities at ICT:

 Asphalt business

 Invest in hydropower plants

 Civil engineering

 Trading in real estate

 Production and trading of healthy food

Charter capital in 2015 is over 350 billion VND (initial 2 billion VND) (Cơ sở dữ liệu thông tin doanh nghiệp, 2015)

This assignment will concentrate on Asphalt business – a subsidiary of ICT corporation because these five areas of business operate completely independent and asphalt business is the main activity of the organization as well from the beginning ICT Asphalt Bussiness Company (ASP - ICT) is a unit of asphalt production and trading under the International Investment Construction and Trading Corporation

(Vnr500, n.d.)

II MAIN BODY

1 The different types and purpose of ICT

1.1 Legal form and Size

International Investment Construction and Trading Corporation (ICT) is private joint-stock enterprise At the company, there are many shareholders such as: Director General (accounting for the highest proportion), two Vice managing directors and many other small shareholders (all

of them working at the company)

According to Thomas (2016), A business entity in which shares of the company's stock can

be bought and sold by shareholders is called a joint-stock company Each shareholder accounts for company stock in own proportion which is proofed by their shares

Until May 2018, there are more than 320 people working at ICT According to Worthington and Britton (2006), one of the ways to measure the size of company is the number of employees Therefore, ICT is a large organization because the company has over 250 people The larger organization is, the more complex it gets Whatever, this may exist both advantages and disadvantage for ICT With the substantial resources, the company may specialize the work and enable effective division of labor On the contrary, it also leads to some problems in planning, control and combining

1.2 Purpose

ICT's mission is to create "sustainable foundations" so that all members have the opportunity to improve their human duties (Ta, 2018)

The image that ICT want to focus on is: Professionalism, humanity, sustainability and class Those are 4 core value which help ICT to develop more in the future (ICT, 2018)

2 The different types and purpose of Asphalt Bussiness Company (ASP - ICT)

2.1 Types and Activities

2.1.1 Level of economic activity

The activities of ASP comprise secondary sector and tertiary sector which will include the manufacture and the provision of services to customers and businesses (Worthington and Britton, 2006) After the liquid asphalt was bought from Singapore or Taiwan, in order to form an asphalt concrete block, ICT must put it into the asphalt station to mix with stones, sand and other additives to combine stones and asphalt Finally, it is delivered to customers and other companies by specialized tank trucks (Ta, 2018)

2.1.2 Private organization

At ASP Company, it exists with objectives other than purely profit Hence ASP refers to the voluntary sector They want to create the habit of using high quality asphalt products for asphalt users in Vietnam rather than increasing the profit (Ta, 2018)

The ‘voluntary sector’ related to companies whose primary aim is to create social influence rather than profit It is often called the third sector, the not-for-profit sector or civil society (Reach Volunteering, n.d.)

2.2 Purpose

Organizational purpose is offen juxtaposed alongside terms such as vision and mission (Hauge, and Knudsen, 2017)

Figure 1 Key role of Mission and Vision (University of Minnesota, n.d)

2.2.1 Vision:

A vision will make clear about the company’s direction, providing a whole picture of what the business will look like in the future (5-10 years) (Nagy & Fawcett, n.d.)

Vision of the company is: Become a leading supplier of asphalt and other products in Vietnam It can be said that this is a simple and clear statement On the other hand, in the customer’s view, it may a bit hard to understand what other products are Although this is a big dream for ICT, it is quite realistic, because ASP of ICT is ranked second supplier in the asphalt industry (behind Petrolimex) This vision statement is believed to challenge and inspire They use vivid phrases and powerful words in order to stress the kind of institution trying to become Therefore, according to Millard (2010), ASP’s vision statement is quite “good” (effective statement)

2.2.2 Mission:

Mission is a foundational statement which depicts the aim of the organization’s existence It will answer the questions: 'who do we serve' and ‘why do we do what we do'

ASP develops sustainably for society and the community, respects the law and contributes high quality asphalt products to the development of transport and infrastructure in Vietnam That

is an attractive mission statement of ASP-ICT Perhaps, this also is a good statement because it answered exactly the reason of ASP’s existence

(Millard, 2010)

2.2.3 Core value:

There are 4 core values of ASP-ICT:

 External and internal: With a team of dynamic professionals, professional leaders and prestigious collaborators, all members of ICT-ASP family stick together for the common good of the company under the motto: “You are us”, “We are a family”

 Manufacturing – Business: ASP serves the public interest and applies ethical standards

in business

 Benefit: The benefit of the individual is the benefit of the business

 People: Humans are the most valuable asset of ICT They get people to be root in every decision, strategy, project, action plan

As a result, ASP-ICT completely takes care of people In particular, they usually adapt the employee’s expectations with the motto: giving workers career, not work

2.2.4 Goal:

At present, there are many contractors who give up very low bids They are only interested

in how to buy cheap products to construct Consequently, after a period of time, the road will be degraded and the person paying the price is the user Thus, ASP-ICT set a goal: Create the habit of using high quality asphalt products for asphalt users in Vietnam Since the brand development perspective, the company has imported goods which are high quality from Singapore, and also invited foreign experts to consult and support the construction team in Vietnam so that they can bring the best product to consumers Not only sales, ASP also provides after sales service to the customer such as repairing broken roads to minimize damage

to the customer

2.2.5 Objective:

While missions and visions give an overall sense of the organization’s direction, objectives are narrower purposes that should provide for employees a significant and tangible guidance The most effective way to evaluate the objective is SMART (including specific, measurable, attainable, realistic, and time-bound) Indeed, SMART objectives help to provide accountability, clarity and transparency As detailed below, one SMART objective is ICT-ASP’s aim to: by the end of 2020, total asphalt output is 200 thousand tons, double the amount compared to 2018

(Ta, 2018)

Figure 2 Output value and revenue by the plan for 2018-2020

The table below will analyze the company's objective by the end of 2020 (Objectives assessment):

Specific

ICT stressed significantly what they want to achieve in specific period They set an explicit objective for their output (100 and 200 thousand tons

of asphalt respectively in 2018 and 2020) However, it is still quite ambitious In order to reach the target easier, ASP should plan the quantity can be sold by each quarter, especially each month

Measurable

After a period researching the market, ASP calculated the figure and diminished the risk as much as possible The company measured the output approximately 100 thousand tons by the end of 2018 In other words, they target around 130 billion VND It is double in 2020, accounting for 200 thousand tons

Attainable

In 2017, the total amount of asphalt sold by company increased considerably, accounting for 80 thousand tons That means the decreased in revenue compared to the period of 2014 and 2015 It is because the demand was quite low, as a result, the supply also declined Hence, the company just set an objective with 100 thousand tons by

2018 By contrast, the company can believe in the increased demand in the future as well For example, ASP will be involved in the construction

of the North-South Expressway, with the length around 3,000 kilometers

by the period of 2018 - 2020 Moreover, ASP-ICT also plans to develop the market in Laos and Cambodia by 2020

Realistic According Mrs Giang, in 2020, they do not target the total quality is 3

times, 4 times more than 2018 because the objective is related to the company’s goal which is creates the habit of using high quality asphalt products for Vietnamese., Otherwise, until second quarter of 2018, the

total quantity of asphalt was 50,000 tons, reaching a half of intended output Therefore, it is proved that the amount of asphalt decreased compared to the same period last year because of the unexpected change of weather On the other hand, the company also can believe in the plan which they described in advance because of projects in the period of 2018 - 2020

Time-bound They intended to complete this objective by each year: 2018, 2019 and

2020

To sum up, the objective of ASP-ICT may be possible because the unexpected change of weather could lead to interrupt construction

3 Stakeholders of ASP-ICT

Figure 3: Stakeholder Mapping of ASP – ICT

(Power)

How to meet the interest and expectation of stakeholders

Shareholder They want to raise They reach the In the annual general meeting, the

the return on investment as fast

Otherwise, they relate to growth of share price and dividends

(High interest)

highest authority in the company, thus, they can change the board easily by removing the director

or refuse to re-elect them

(High power)

company must meet and fulfill the established sales and profit targets

Managers

and

Directors

responsible for controlling and

company What ICT’s managers

performance and development of the organization in the future

(High interest)

They can make decisions and have detailed information of company On the other hand, they have

a power with every employee as well

(High power)

The directors take care of satisfing both the shareholders and other employees as well Hence, they need

to come up with the strategies that can help to maximize the profit for both satisfy of the employees and the shareholders

Government

What they care is the legal operation, the tax from business and job

(Low interest)

The government's policies and laws will impact the company

(High power)

In order to contribute the overall GDP

of Vietnam, the company makes more profit to raise the tax

Suppliers

They really care

payment, the long-term contract, and growing purchase (High interest)

They just decide the input price, quality and provide product availability

(Low power)

Company should pay attention in payment on time If decisions made

to delay payments to supplier to ease case follow, suppliers may cease supply good for the company

Employees The main interests

are salary, job’s satisfaction and motivation, job

They have a limited

company, as a result, they may not affect

According to Martin, the company should encourage their employees by giving them the opportunities to promote in both position and salary

(High interest)

much the decisions or strategies By contrast, employee turnover will impact the performance of the company

(Low power)

In some situations, it may cause a conflict of interests that the staffs want to raise their salary, as a result,

it will impact significantly in the overall profit of the firm At ICT, the company always makes a win-win negotiation

to create the long-lasting cooperation

To improve the productivity of organization and empower the staffs, the cost pays their employees should

be 40% more than any other warehouse companies (Weisul, 2014)

Customers

The demands of them are the company can supply high quality products, services and value for money

(High interest)

They have no power

to impact the organization directly

(Low power)

To meet the expectation and interests

of customers, the company must prioritize and listen demands of customers They support the company in purchasing and they make it by showing the company what products and services to invest

in further (Martin, n.d.) Thus, in order

to adapt the demand of customer, the company should try to provide the best quality services and products