The impacts of big data analysis on the business management of binh minh plastics jsc

The impacts of big data analysis on the business management of binh minh plastics jsc The impacts of big data analysis on the business management of binh minh plastics jsc

Rationale of the Graduate Project

The ability to access, analyze, and manage this century's huge volume of data while rapidly changing technology is increasingly critical to the successful operation of leading manufacturers In today's technological age, all actions, gestures, and behaviors involving internet usage are recorded and transformed into data If this large volume of data can be effectively analyzed and processed, companies can adjust their target customer files, improve their products, and thereby directly benefit the company Manufacturing companies like Binh Minh Plastic Company are no exception Despite being a manufacturing company, Binh Minh can utilize data collected during production or customer transaction data to make informed decisions and better manage their business operations

To fulfill the requirements of the International School at Vietnam National University, I would like to propose "The Impact of Big Data Analysis on Business Management of Binh Minh Plastic JSC" as the topic for my graduation project But after analyzing the data and also reading the literature, I would like to change the topic is: “The Likely Impacts of Big Data Analysis on the Business Management of Binh Minh Plastics JSC”, the reason for that because the data I use just based on the financial data not the overall data of BMP like the data from customers or the data from production so I decided to change the topic of this thesis With this topic, I aim to introduce data analysis technology into the business performance management practices of Binh Minh Plastic JSC, in order to demonstrate the significant effects of Big Data Analysis (BDA) on business management Specifically, I intend to show how analyzing big data can assist the

The opportunities associated with data and analysis in different organizations have helped generate significant interest in BDA, which is often referred to as the techniques, technologies, systems, practices, methodologies, and applications that analyze great variety of critical financial data compare with the peer and the plastic industry to help a firm better understand its business and market, and make timely business decisions (Gandomi and Haider, 2015, McAfee and Brynjolfsson, 2012) However, this data will be derived from key management activities that we need to analyze, such as production management, performance management, and supply chain management But in this field of study, I just focus on use Financial Ratios Data based on the “Essential Ratios for Financial Analysis” of Corporate Financial Institution, (Powell, McKeen, & Schmidt, 2023) to support Decision-maker to control the Business Performance Management This enables us to generate a report of results on a dashboard for the board of directors such as operational support, decision-making processes, and overall performance And to have an observation of the effect of BDA, the comparison between the Binh Minh Plastic JSC and other plastic manufacturing companies in Vietnam will give specific insight into the BDA in the plastic industry in Vietnam

This is the reason that I chose “The Impacts of Big Data Analysis on the Business Management of Binh Minh Plastics JSC” as a topic of my thesis study.

Objectives

Applying the BDA to establish a comparative performance benchmarking system for BMP’s performance management operations, so that its managers can detect the performance weaknesses to enhance Using the financial data to evaluate on the dashboard that can reflect the financial situation and the company's position.

Research Questions

The thesis will address the following question:

• Which indicators or benchmarking model reflect the Business Performance of the firm?

• What are the solutions for integrating BDA into Performance management operations to enhance efficiency and improve businesses?

Scopes of Thesis

Business Performance Management (BPM) focuses on the processes, methodologies, metrics, and systems used to monitor and manage the business performance of an organization Here are the key contents typically covered in BPM:

Business Management includes 9 tasks based on the management structure of Binh Minh Plastic JSC (BMP, 2023): (i) Strategic Management; (ii) Financial Management; (iii) Marketing Management; (iv) Operations Management; (v) HR Management; (vi) Performance Management; (vii) Risk Management; (viii) Information Technology Management; (ix) Supplychain Management in BPM

However, within the scope of this thesis study, I focused only on the use of the Financial Ratios Data to see how it can be measured, analyzed, presented, and reported in Business Performance Management to support the decision—maker to manage and improve their organization.

Structure of the Thesis

The first Chapter is the Introduction In this chapter, I will provide a short summary of the rationale of this project, the objectives of this project, and the process of doing this study

The second Chapter is the Background of BMP which includes the profile, history, company’s products and services, etc These will lead to the overview of BMP, and their current situation to get an understanding of the Binh Minh Plastic JSC

The third Chapter is a Review of Theogriecal Backgrounds of Business Performance Analytics, their necessity and impacts, etc How to transfer the data to the successful decision for the Board of Directors of the firm

The sixth Chapter is the Recommendation and the Conclusion after the analysis of the data for the company Additionally, I also include the Limitations of this project analysis.

2 BACKGROUND OF BINH MINH PLASTIC JSC

Profiles

Binh Minh Plastics Joint Stock Company (BMP), formerly known as Binh Minh Plastics Public - Private Partnership Plant, was established in 1977 BMP has grown into a leading manufacturer and supplier of plastic pipes and fittings in Vietnam With a history of over four decades, BMP boasts a strong reputation for providing high-quality products and contributing to national infrastructure development projects

Name: Binh Minh Plastics Joint Stock Company

Address: 240 Hau Giang, Ward 9 District 6 Ho Chi Minh

Email:binhminhplas@hcm.fpt.vn

Website:https://www.binhminhplastic.com.vn

Figure 2-1 Binh Minh Plastic JSC Information (Sources: Vietstock.vn)

History of BMP

Below is a summary of the developments of the Binh Minh Plastic JSC from its establishment to now

1977: Binh Minh Plastics Joint Stock Company was established on November

1994: Changed its name to Binh Minh Plastics Company, a state-owned enterprise under the Ministry of Light Industry

1999: Inauguration of Factory 2 - 20,000 m2 in Binh Duong with modern equipment from European countries - marking a development step in the company's scale and production capacity

2004: After equitization, the company officially operated under the name of Binh Minh Plastics Joint Stock Company from January 2, 2004 This is an extremely important milestone marking a fundamental change in the company's operating mechanism, creating a premise for subsequent breakthroughs The company invested in equipment and expanded the area of Factory 2 to 50,000m2

2006: The company's shares were officially listed on the HOSE with the stock code BMP

2007: December 21, 2007: Inauguration of Binh Minh Plastics Northern Joint Stock Company Limited in Hung Yen, Binh Minh Plastics brand officially entered the northern market

2008: The company acquired and held 29% of the shares of Da Nang Plastics Joint Stock Company intending to strongly develop the Binh Minh Plastics brand in the Central and Central Highlands regions

2010: Signed a contract to lease over 155,000 m2 of land in Vinh Loc 2 Industrial

Park - Ben Luc - Long An province for the project of building the Binh Minh Long An Factory

2012: Applied the ISO 14001 Environmental Management System

Implemented the information technology project "Enterprise Resource Planning (ERP) - Oracle E-Business Suite"

2013: Certificate of conformity for products according to the standards of the Ministry of Construction Increased charter capital to VND 454,784,800,000

2014: Started construction of the new factory in Long An Officially applied (Go- live) the ERP system at the Company

2015: November 18, 2015: Inauguration of Binh Minh Long An Factory

Successfully deployed 05 ERP subsystems at the Company, Branches, and Subsidiaries

2016: Started construction of phase II of the Binh Minh Long An Factory 2017:

• Completed the overall planning of the Binh Minh Long An complex and inaugurated phase 2 of the Binh Minh Plastics Long An Factory with a total area of 150,000 m2

• Implemented the ERP - Oracle Business Suite enterprise resource management information technology system

2018: Became a member company of SCG Thailand Group - a leading industrial group in Southeast Asia Achieved the Asia-Pacific Quality Award

2019: Implemented the restructuring of the company's organization and distribution system towards a more dynamic and suitable approach in a competitive environment.

Missions and Visions

The BMP’s missions have been defined in the Annual Report in 2023 (BMP, 2023) include:

• To expand the Company's market share in Vietnam by becoming a leader in product quality, product diversification, and expertise in the production of plastic pipes and fittings;

• To ensure a balance of interests for all stakeholders, including customers, employees, shareholders, and society leading to improve the BMP’s image in society

The Visions of BMP have been defined in the Annual Report (BMP, 2023) include:

• Invest in the automation infrastructure and monitor the quality of manufacturing to ensure the satisfies national and international standards thoroughly

• For the long term, BMP enhances green production by applying the circular markets and customer segments Their success can be attributed to their in-depth understanding of customer needs, unwavering commitment to quality, and relentless pursuit of innovation and sustainability Let's delve into the intricate tapestry of BMP's market presence (see details in the Table 2-1)

Target Customers and Target Markets of BMP are diverse Binh Minh Plastic JSC caters to a diversified customer base, strategically segmenting its offerings:

• Construction Companies: The company caters to both civil and industrial construction projects, providing essential piping systems for water supply, drainage, and electrical applications Supplying a comprehensive range of pipes and fittings for various construction projects

• Manufacturing: Offering industry-specific pipe solutions for diverse manufacturing needs in sectors like food & beverage, chemicals, textiles, and more

• Households: BMP’s product range includes irrigation pipes crucial for efficient water management in agricultural practices They provide plumbing pipes for residential water supply and drainage systems

• Distribution Partners: Partnering with distributors who act as intermediaries, facilitating product access to a wider consumer base

Table 2-1: Business and Product lines

Product lines Target customers Target market

Pines PVC-U pipes • Construction/Manufacturing

• Particular focus on the southern region

• International market: US, Australia, and Southeast Asian countries

PEHD pipes As above • The company's domestic market covers all of Vietnam, with a particular focus on the southern region

PP-R pines As above • The company's domestic market covers all of Vietnam, with a particular focus on the southern region

PE pines As above • Nationwide with a particular focus on the

Types Product lines Target customers Target market

PE Ribbed Pipe Fittings and PE Ribbed Pipe Gaskets

Water supply and drainage system design consultation

Water supply and drainage system installation

Providing total solutions for water supply and drainage systems

Following a Board of Directors' decision on February 6th, 2024, Binh Minh Plastics JSC (BMP) implemented a comprehensive organizational restructuring This strategic initiative aims to streamline departmental functionalities and reporting hierarchies, fostering enhanced operational efficiency within the company While specific details of the new structure remain confidential, it signifies BMP's commitment to continuous improvement and achieving optimal performance.

The Chairman of BOD, Mr Sakchai Patiparnpreechavud, is responsible for making major decisions for the Company following the Company's Charter and the law The CEO, led by Mr Chaowait Treejak as General Director, is in charge of the Company's daily operations in line with the BOD's directives Under the EB's leadership are PDB of functional departments such as the Accounting-Finance Department, the Supply Chain Department, the Marketing-Sales Department, the Technical Department, the Human Resources Department, and so on Each department has its specialized function and contributes to the Company's overall operations

This Chapter covers big data with the intention of finding out the concept, its applications, and challenges from literature analysis as well as discussing and reviewing interpretations from these findings along with possible recommendations

Business Performance Management (BPM) focuses on the processes, methodologies, metrics, and systems used to monitor and manage an organization's business performance According to Darudiato (2020), he said there are 4 key steps of the BPM framework as follows (Darudiato, 2020):

(i) Strategize: The executives/leaders determine the main objectives of the business value and determine how to measure it;

(ii) Plan: Groups within the organization develop plans to follow up on business strategies and allocate resources This planning allows the creation of new initiatives, projects, and processes, or improvements to existing ones

(iii) Monitor/ Analyze: This step allows users to take actions that can improve user performance and ultimately improve organizational performance

(iv) Act/ Adjust: This step is a component of the implementation of the strategy Performance dashboard is a tool that has an important role in the act / adjust process This tool sends messages to users about potential problems, and provides detailed information to users, and instructions to help users make quick and quality decisions

Figure 3-1 Framework of Business Performance Management

These steps above are basic steps of the Business Performance Management framework

3.1.2 The Necessity of managing the business performance of a firm

Performance management is a vital process that enables businesses to develop and maintain a competitive edge By focusing on the performance of individual employees, teams, and the organization as a whole, performance management helps businesses identify areas of improvement, optimize existing resources, and develop new strategies for growth (Vibes, 2023) Here are some ways performance management builds a competitive business:

Identifying and Retaining High Performers: PM empowers businesses to recognize and reward top-performing employees, ensuring a strong and capable team that consistently achieves and exceeds expectations

Enhancing Employee Engagement: PM boosts employee engagement through regular feedback, recognition, and opportunities for development Engaged

AnalyzeAct employees are more productive, loyal, and committed to the organization's success

Aligning Goals and Objectives: The manager can align individual employee goals and objectives with the overall organizational goals and objectives When employees understand how their work contributes to the bigger picture, they become more motivated and focused on achieving results

Data-Driven Decision Making: PM provides businesses with valuable data on employee performance, team performance, and organizational performance This data can be utilized to make informed decisions on resource allocation, process improvement, and strategic planning

Building a Culture of Excellence: By emphasizing PM, businesses can cultivate a culture of excellence where continuous improvement is the norm This fosters a mindset of innovation and agility, creating a competitive advantage

Managing Change Effectively: facilitates effective change management by identifying areas requiring change and developing strategies for successful implementation This enables businesses to adapt to evolving market conditions and stay ahead of the competition

As Amstrong wrote in the Performance Management book (Amstrong, 2000), he believes that the three most important things you need to measure in a business are customer satisfaction, employee satisfaction, and cash flow

More specifically, the different approaches to measuring organizational performance are generally recognized as:

• The European Foundation for Quality Management (EFQM) model; ratios to evaluate the overall financial health of businesses, with the end goal of making better investment decisions Financial managers and C-suite officers rely heavily on corporate finance ratios to get a better understanding of how their businesses are performing

Corporate finance ratios can be broken down into two main categories and four subcategories:

(i) Performance ratios: which provide insights into how well a company is performing These ratios examine the company's returns, profitability, and the efficiency with which it utilizes its assets;

(ii) Financial leverage ratios: which assess solvency and liquidity Solvency ratios focus on evaluating a company's long-term financial health and its ability to meet long-term obligations On the other hand, liquidity ratios analyze the company's immediate cash position and its capacity to handle short-term financial needs and obligations Both solvency and liquidity are crucial factors to consider when assessing a company's overall financial well-being

Table 3-1, in the study Corporate Finance Insitute (CFI) divided into five categories:

• Asset Utilization Ratios/ Efficiency Ratios;

Profitability ROE Net Income / Total

Organizational structure

Following a Board of Directors' decision on February 6th, 2024, Binh Minh Plastics JSC (BMP) implemented a comprehensive organizational restructuring This strategic initiative aims to streamline departmental functionalities and reporting hierarchies, fostering enhanced operational efficiency within the company While specific details of the new structure remain confidential, it signifies BMP's commitment to continuous improvement and achieving optimal performance.

The Chairman of BOD, Mr Sakchai Patiparnpreechavud, is responsible for making major decisions for the Company following the Company's Charter and the law The CEO, led by Mr Chaowait Treejak as General Director, is in charge of the Company's daily operations in line with the BOD's directives Under the EB's leadership are PDB of functional departments such as the Accounting-Finance Department, the Supply Chain Department, the Marketing-Sales Department, the Technical Department, the Human Resources Department, and so on Each department has its specialized function and contributes to the Company's overall operations

This Chapter covers big data with the intention of finding out the concept, its applications, and challenges from literature analysis as well as discussing and reviewing interpretations from these findings along with possible recommendations.

Business Management

Business Management Concepts