Assignment 1 5032 Bussiness Environment

ASSIGNMENT 1 FRONT SHEET Qualification BTEC Level 4 HND Diploma in Business Unit number and title Unit 1 Business and Business Environment Submission date Date Received 1st submission Re submission Da.

ASSIGNMENT 1 FRONT SHEET

Unit number and title Unit 1: Business and Business Environment

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Contents

INTRODUCTION 4

COMPANY PROFILE 5

TYPES AND PURPOSES OF ORGANIZATIONS 5

1 Public Sector: 5

1.1 Public sector: 5

1.2 Purpose: 5

1.3 Example: VIETNAM AIRLINES 6

2 Voluntary sector: 6

2.1 Voluntary sector: 6

2.2 Purpose: 6

2.3 Example: WORLD VISION INTERNATIONAL 7

7

3 Private Sector 7

3.1 Private sector: 7

3.2 Purpose: 7

3.3 Example: 7

SIZE AND SCOPE OF PNJ 8

1 Introduction to PNJ: 8

2 Size and scope: 10

2.1 Size: 10

2.2 Scope: 11

Economic objectives and Social Objectives: 11

Stake Holder: 12

How do the vision, mission, and goals meet the needs and interests of stakeholders? 13

3 How size and scope to help PNJ to achieve PNJ’s objectives/goals and products/services: 14

FUNCTION OF PNJ 15

1 The structure chart of PNJ: 15

2 The main functions of various key departments of PNJ 15

THE RELATIONSHIP BETWEEN THESE DEPARTMENTS 16

IF THERE IS ONE DEPARTMENT CHANGE, IT WILL AFFECT TO ORGANIZATIONAL STRUCTURE AND OBJECTIVE? 17

COMPLEXITIES OF DIFFERENT ORGANIZATIONS AND STRUCTURE 17

CONCLUSION 17

INTRODUCTION

With the growth of human civilization, there is a larger need for a variety of things across a wide range of disciplines, notably in the realm of beauty, such as fashion or jewellery PNJ has developed to become one of the major organizations in the field of production in Vietnam, starting with the Phu Nhuan Jewelry store in 1988 and now in 2022

Currently, the company’s main areas are manufacturing and trading gold, silver, gemstone, business gifts, fashion accessories, … and real easted business The company has nearly 6500 employees with a wholesale network, and more than 400 retail stores spread across the country

I chose this company for analysis not only because of its celebrity but also because, based on PNJ's 34 years of expertise in this industry in Vietnam, I am confident that PNJ is a successful corporation and a bastion in the Vietnamese economy This article will discuss the organization's type and purpose, the size and scope of its activities, as well as the function and complexity of PNJ's various organizations and structures

COMPANY PROFILE

❖ Company name: Phu Nhuan Jewelry Joint Stock Company (PNJ)

❖ Ownership: 346 stores converting 52/63 provinces and cities

❖ The headquarters: 170E Phan Dang Luu, Ward 3, Phu Nhuan District, Ho Chi Minh City, VN

❖ Phone: (+84) (028)3995 1703

❖ Fax: (+84) (028)3995 1702

❖ Charter capital: 2.276.123.620.000VND

❖ Website: https://www.pnj.com.vn/

❖ Ticker symbol: PNJ

❖ The structure of shareholders:

TYPES AND PURPOSES OF ORGANIZATIONS

Almost every country separates businesses into three categories: public sector, private sector, and volunteer sector The structure, type, and purpose of each sector are distinct

1 Public Sector:

1.1 Public sector:

The part of the national economy providing basic goods or services that are either not, or cannot be, provided by the private sector It consists of national and local governments, their agencies, and their chartered bodies The public sector is one of the largest sectors of any economy. (Filegi, 2020)

1.2 Purpose:

Public sectors include public goods and government services such as the military, law enforcement, and

infrastructure (public roads, bridges, tunnels, water supply, sewers, power grids, telecommunications), public transport, public education, health care for people working for the government such as elected officials The public sector provides services such as street lighting, services that benefit all of society instead of just individual

users Public enterprises or state-owned enterprises are self-funded commercial enterprises that are publicly owned and provide a variety of private goods and services for sale (Filegi, 2020)

1.3 Example: VIETNAM AIRLINES

A state-owned enterprise is defined as a state economic organization that owns the entire charter capital or has shared or contributed capital that is only distributed and is organized in the form of a water company, shares, or limited liability companies, according to the 2003 Law on State Enterprises State-owned firms (independent water companies, state-owned corporations), state-owned joint-stock companies, single-member limited liability companies, owners' liability companies, and so on are examples of state-owned enterprises State-owned businesses with two or more members, businesses with shares, and capital

contributions distributed solely by the state (shares or contributed capital by the State using more than 50

%of the capital conditions and the State retains the controlling right to State ownership) (LuatMinhKhueVN, 2021)

2 Voluntary sector:

2.1 Voluntary sector:

Non-profit organization can be understood as an organization established to operate in many different fields but not for profit These organizations are often tax-exempt because they are created to operate for the community, not for profit, with contributions to the organization to be used for the community (Master Dung, 2022)

2.2 Purpose:

Voluntary organisations achieve their aims through a wide range of activities, such as providing

services or other forms of direct support and advice to the groups they help; for example, running a

women’s shelter or providing legal advice Some also aim to achieve long-term or systemic change They may work at a local or national level, or globally (reachvolunteering.org.uk,2022)

2.3 Example: WORLD VISION INTERNATIONAL

3 Private Sector

3.1 Private sector:

The private sector is the part of the national economy that is owned, controlled and managed by private individuals or businesses The private sector has the goal of making money and employing more

workers than the public sector A private-sector organization is established by establishing a new

business or privatizing a public sector organization A large private sector company may be privately or publicly traded (Sotaydoanhtri.com, 2022)

3.2 Purpose:

The private sector has a profit motive and employs more people than the government A private-sector organization is formed by starting a new business or privatizing an existing one A huge private company might be privately owned or publicly traded (THE INVESTOPEDIA TEAM, 2020)

3.3 Example:

PNJ Image of the 2020 annual report: List of the shareholder structure of PNJ PNJ is a private joint-stock company because the company's capital is sold in the form of shares on exchanges and the state has no part in the company

SIZE AND SCOPE OF PNJ

1 Introduction to PNJ:

First of all, PNJ is a private joint-stock company with the vision to become an Asian leading jewellery

manufacturer and retailer with products honouring the beauty and reaching a global market As a result, PNJ aim to:

❖ Producing and trading jewellery, gold, silver, gems, fashion accessories, watches, and gold bars

❖ Inspection services of diamonds, gems, precious metals

From the Gross Profit that the company earns from the sale of goods and rendering of services, PNJ has to pay the tax, which is obligatory according to the regulation In 2020, net revenue reached more than

17,510 billion VND and net profit reached more than 1,069 billion VND PNJ Brand has been constantly

increasing in value at 93.1 million USD to Forbes Vietnam With the huge amount of profit, PNJ strongly believed

to have sustainable development

Second, PNJ is a publicly-traded corporation The shares of PNJ can be freely exchanged on the stock exchange People who pay money for shares become shareholders of the company, and no managerial skills are required The most significant advantage of selling equities on the stock market is the ability to quickly raise large sums of money One disadvantage is that if a substantial number of shares are acquired as part of a 'take-over deal,' the original shareholders will lose control of the company As a result, stockholders may easily keep track of stock market fluctuations

Finally, PNJ is a private company headed by Ms Cao Thi Ngoc Dung, who also performs as Chairman and CEO She has been with PNJ for 32 years and has made a significant contribution to the company's current

development and prosperity All earnings, as well as all liabilities, belong to the organization Furthermore, this economic entity has to make choices on its own, without the assistance of the government

2 Size and scope:

2.1 Size:

According to the Annual Report 2020 of PNJ, the total assets are 8,4 billion VND, owner’s equity is 5,2 billion VND and liabilities are 3,2 billion VND.In comparison to the previous year's figures, the

company's total assets and capital resources have declined by 1,4% Furthermore, the company's debt is still less than its overall assets As a consequence, PNJ can afford it, and the residual earnings

are sufficient for a forward-thinking firm These data demonstrate the company's gradual rise to the top

of the local and global brand names

PNJ has more than 6000 employees working in different domains in different regions To be part of this company, workers need to meet a wide range of criteria As the result, all staffs are well-educated, creative, productive, and devoted to the development of the company PNJ also has an incentive

scheme, which encourages employees to be more industrious, for the one who has excellent

performance 2020, the Organization recognized many awards for prestigious use for human resources activities: 7 consecutive years in the ranking of “ Top 100 best workplace in Viet Nam” ( From 2014 to the present) and continues to advance 04 ranks to 23rd and ranked 2 in the Retail sector: Wholesale, Trade; Top 50 Enterprise with attractive Employer Brand; Enterprise award with excellent human

resource responding policy – Vietnam HR award 2020- One of two Vietnamese enterprises in the top 10 enterprises honoured: etc

➢ The evidence shown above demonstrates that PNJ is a huge and profitable company

2.2 Scope:

PNJ's vision is to become Asia's top jewellery maker and retailer, with items that celebrate the beauty and reach a global audience The company's primary source of information is vision It is a vision of how

a company should look in the future, forming a core philosophy and the company's life's purpose, and driving the basic path of the desired firm's growth

Economic objectives and Social Objectives:

a) Sustainable Growth:

The company ensure annual profit growth compared to the general market level, compared to previous periods They use the capital resource effectively, bring the highest benefits to shareholders and investors, help increase brand value, and competitiveness, maximize market share and increase new market share b) Developing talented human resources:

They build a work atmosphere that encourages individuals to enhance their skills and increase productivity,

as well as policies that attract and retain talent They also encourage collaboration, rather than competing,

by forming synergies for execution capacity, and developing HR rules that can adjust quickly and keep up with changing trends

c) Developing a green capital market and establishing a sustainable business ecosystem:

They bring firms together through trade activities, strategic cooperation, and reference implementation of the Sustainable Business Index (CSI) and GRI standards for developing sustainable development reports They also collaborate with stakeholders to create an environment that encourages entrepreneurship, contributes to the development of the green capital market, provides financial support for emissions

reduction activities, develops green financial products and instruments, and contributes to "greening" products They enhance the status of women in high leadership positions, boosting the degree of efforts for gender equality

d) Completing the social security system:

They strengthen study promotion efforts, promote educational development, design a community health action plan and evaluate its success annually, and pioneer and disseminate activities to safeguard, care for, and promote legal strengthening for vulnerable populations They also assist disadvantaged households, particularly in rural areas, in developing their economies and improving their lives

e) Protecting the living environment:

They upgraded technology to reduce waste, use resources efficiently, and save money; they build an advanced waste treatment system, treating the maximum amount of waste before releasing it into the environment and partnering with a third party to handle 100 per cent of emissions; and they launch large-scale campaigns to collect waste, clean up the environment, and increase green areas in the

community, and they call for community participation Activities are maintained, and they are linked to economic and social factors

Stake Holder:

quality and customer service, as well as prestige and brand recognition in the marketplace

challenges in selling products, blocking the company from reaching customers, or businesses that frequently employ market dirty tricks

company's resources Investors' benefits are ensured through information transparency Stock market value and company value are two different things Capacity for corporate management

compensation policies, as well as opportunities for training and growth Occupational health care,

as well as a safe working

environment, equality, and independence

How do the vision, mission, and goals meet the needs and interests of stakeholders?

Based on the data gathered, it can be concluded that PNJ's objectives, vision, and mission can address a significant portion of the needs of stakeholders To begin with, PNJ has declared that the company's principal purpose is to increase earnings and build the company There is also a bare minimum

requirement for stakeholders As a result, achieving social goals entails meeting their requirements Each object has varied obligations and interests when it comes to social objectives Beneficiaries, such as shareholders and investors, get the ability to ensure annual profit growth, effectively utilize capital resources, and provide the most value to shareholders and investors Customers enjoy high-quality products and excellent customer service They may gain more trust and agree to be a customer of that company as a result of such activities

Secondly, the mission of PNJ The statement is extremely specific and focuses on the demands of the key target groups: customers, employees, and shareholders, as a result of those ideas Finally, there is the company's mission statement PNJ's vision, in addition to its major consumer, is extremely broad: to contribute to the nation's riches and strength With such a worldwide perspective, it is apparent that all stakeholders will be satisfied with their needs, particularly in terms of long-term growth and profits, as well as the delivery of high-quality products and services to a global market