Improvement the business strategic efficiency of saigon mart supermarket chain

Selection the theme Improvement business strategic efficiency of Saigon Mart supermarket chain” aims to: 1.Analyze the impacts of business environment over the operation of supermarket business. 2.Be aware of opportunities and challenges, the strength and weakness of the company. From these findings, necessary business methods will be proposed to increase the efficiency of business strategies of the Company

THESIS

"Improvement the business strategic efficiency of

Saigon Mart supermarket chain"

TABLE OF CONTENTS

FINAL ASSIGNMENT 1

EXERCISES OF STRATEGIC MANAGEMENT 1

PREFACE 4

I REASONS FOR TOPIC SELECTION 4

II Research objectives 5

III Research methodology 5

IV Research scope 7

CHAPTER 1 : THEORETICAL BASIS 8

1.1 What is strategic business management? 8

1.1.1 Overview about management 8

1.1.2 Definition of strategy 9

1.1.3 Definition of business 10

1.1.4 Strategic business management 10

1.1.5 Pros and cons of strategic business management 11

1.2 Influential factors to strategic business management 12

1.2.1 Company’s business environment 12

1.2.1.1 Macro environment of a business 12

1.2.1.2 Macro economic environment 13

1.2.1.3 Operating environment 14

1.2.1.4 Internal situation of a business 17

1.2.2 Identifying functions, mission and objectives of strategy 18

1.2.2.1 Identifying functions 18

1.2.2.2 Identifying mission 19

1.2.2.3 Identifying objectives 19

CHAPTER 2 : FACTORS INFLUENCING ON THE BUSINESS OPERATONE OF SAIGON MAR 21

2.1 Overview about system of Saigon Mart supermarket ……….……21

2.1.1 History of establishment and development 21

2.2 Organizational structure 21

2.2 Factors influencing on the business operation of Saigon Mart 36

2.2.1 General Development objectives and orientation of the company 36

2.2.2 Overview about socio-economic situation of Vinh Yen city - Vinh Phuc province 36

2.2.3 Competitiveness assessment 44

2.2.4 Study on characteristics and demands of customers 52

2.2.5 Analysis of internal operation of the company 53

2.2.5.1 Analysis of prestige and infrastructure 55

2.2.5.2 Financial factors 56

2.2.5.3 Marketing activities 56

2.2.5.3.1 Assessment of product factor 57

2.2.5.3.2 Assessment of distribution network 59

2.2.5.4 Assessment of human resources 60

2.2.5.5 Assessment on information and technology 63

CHAPTER 3 : STRATEGIC SOLUTION TO IMPROVE EFFECTIVENESS OF BUSINESS ACTIVITIES OF SAIGON MART SYSTEM IV 66

3.1 Optional measures 66

3.1.1 SWOT analysis 66

3.1.2 SPACE Matrix analysis method - Matrix of strategic position and activity evaluation 69

3.1.3 Main strategic matrix analysis technique 70

3.2 QSPM Matrix- Choosing feasible strategies 71

RECOMMENDATIONS AND CONCLUSION 73

I Conclusion 73

II Recommendations 76

PREFACE

I REASONS FOR TOPIC SELECTION:

Vietnamese supermarket chains have been developed and diversified for recent years with the participation of many enterprises State-owned-Enterprises include supermarkets such as: Hapro, Fivimart, Joint Stock Enterprises include: Citimart, Saigoncoop mart, Vinatexmart, Joint Venture and 100% foreign capital enterprises include BicC, Mertro … Besides, many supermarket chains such as Wallmart…are putting their eyes on Vietnamese market, which create favorable environments for supermarket business development in the international integration tendency

In such integration tendency, the business strategies have been playing a more and more important role for the existence and development of any enterprise, including supermarket business enterprises Firstly, the business strategy fosters enterprises to identify their own purposes and guidance; those are the foundation and guideline for all enterprises’ activities Successively, in the variable and rapidly developing business environment, the business strategies will facilitate to catch up and optimize the business opportunities simultaneously, find the solution actively and come over the dangers and perils in competitive markets Furthermore, the business strategies also contribute to advance the resource utilization efficiency and enforce competitive position ensuring the continuous and sustainable development of enterprises Finally, the construction and execution of the business strategy also create sustainable bases to propose policy and rational decisions in line with the ups and downs of the market The actual operation of retail industry shown that, if the enterprises adopt the right business strategy, with broad vision, action thought creation, towards the specific strategic objectives, those enterprises are able to exist and succeed in competition today, on the contrary, those will strand a hard stage, non-efficient operations or go to bankruptcy

Therefore, the core issues of enterprises are to give orientation of long-term development through sound business strategies which is set up suitably with current context and adapted

to capacity, position of each enterprise in such variable market with more and more server

and exciting completion Those are the reasons to select the theme “Improvement business strategic efficiency of Saigon Mart supermarket chain”

II Research objectives:

Selection the theme Improvement business strategic efficiency of Saigon Mart supermarket chain” aims to:

1 Analyze the impacts of business environment over the operation of supermarket business

2 Be aware of opportunities and challenges, the strength and weakness of the company From these findings, necessary business methods will be proposed to increase the efficiency of business strategies of the Company

III Research methodology:

The research of this theme is conducted with following methods:

Step 1: Collect the data through:

 Documents of the researched location (Saigon Mart supermarket)

 Reference to the relating documents

 Actual observation at the researched location

 Or interview directly managers of the researched location

Step 2: Analyze the collected data with some of following methods:

- Comparative and synthetic methods: compare among different periods of the year then come to conclusions

- Inductive method: method that goes from small details to the general conclusion

- SWOT analysis method: is the technique to analyze and process the

research results on business environment, basing on which a scientific and suitable strategy will be proposed to the enterprise

SWOT can show a connection for each couple of factors perfectly or the connection

among 4 factors Those connections will help the Enterprise to form the strategies efficiently in order to make full use of outside opportunities, reduce or avoid threats,

on the base to optimize the strengths and overcome the weaknesses The connection between SWOT expressed as the below chart:

W: Weaknesses

O : Opportunities

T : Threats

 Analysis method by SPACE Matrix (strategic position matrix and activity

evaluation): This method shows whether the strategy of attack, discretion, deference or competition is the most adaptable to one organization Accordingly,

FS is Financial Strength, CA is Comparative Advantages, ES is Environment

Stability and IS is Industry Strength Official strategic matrix method: is also a

popular tool to form optional strategies Official strategic matrix is based on 2 aspects to evaluate: competitive position and the market growth Matrix consists of

4 quadrants: The Quadrant I indicates the best strategic position, Quadrant II indicates the necessity to evaluate carefully the current measures for the market, the Quadrant III indicates competition among the low-growth-industries and weak competitive position, and Quadrant IV indicates that Enterprises is at the strong competitive position but lying in the low-growth level industries

+6 +5 +4 +3 Careful +2 Attack

+1

CA -6 -5 -4 -3 -2 -1 0 +1 +2 +3 +4 +5 +6 IS

-1 -2 Defense -3 Competitive

-4 -5

ES

Chart 1.1

 Analysis method by QSPM Matrix (Strategic planning Matrix can quantify):

This analysis technique will express objectively which the best alternative

strategies are QSPM Matrix adopts the input data owing to analysis from EFE matrix, competitive image matrix, IFE matrix Then, receiving the necessary information to set up QSPM matrix from SWOT matrix, SPACE matrix,…

IV Research scope:

This theme is only studied Sai Gon Supermarket Mart chain Specifically, the research

is conducted basing on the figure base, practical situation of the Saigon Mart supermarket, because, currently each Saigon Mart supermarket is under management

of a separate company Researches and current figures are only the general data of researched location When this report is accomplished, this chain can be merged into Sai Gon Supermarket Mart Joint Stock Company to complete Southwest Saigon supermarket chain The given solutions in this theme only mentions to current Saigon Supermarket Mart system

CHAPTER 1 : THEORETICAL BASIS

1.1 What is strategic business management?

1.1.1 Overview about management:

Management is a process to attain desired objectives by cooperating resources of an enterprise effectively From this concept, it can be referred that management is necessary and continuous activity for existence and development of every organization

An objective of management is to produce surplus value, i.e to find suitable method to perform tasks the most effectively at the best cost Therefore, the reason for the existence of management is the desire for effectiveness and only when people concern about effectiveness, do they concern about management

In other word, management in business is a process of planning, organizing cooperation and controlling activities of members, departments and functions of business to mobilize maximum resources in order to achieve preset objectives of organization Hence, management includes four basic functions: planning, organizing, leading (directing), and controlling business process The tight relationship of these functions is shown in the following diagram:

Chart 1.2

PLANNING

Set-up objectives and define the best way to carry out these objectives

LEADERSHIP

Influence on other people, work together towards the targets of the organizations

SUPERVISION

Inspect and evaluate the

activities to obtain the

targets

ORGANIZATION

Allocate determine, and arrange of human resources

Besides, decision making process contain the following steps:

Step 1: Analyzing problem specifically, finding the nature of that problem Step 2: Set up possible approaches

Step 3: Compare and select the most feasible approach

Step 4: Select the most optimal approach

Step 5: Implement selected approach

Step 6: Evaluate the implementation of that approach

1.1.2 Definition of strategy:

Strategy consists of objectives and policies which are set up in long term on the basis

of exploring maximum resources of an organization to obtain development objectives Therefore, a strategy should be in form of a plan or general action diagram directing a company to expected objectives

A strategy should include the following factors simultaneously:

- A strategy has to be drafted in relatively long term

- A strategy has to create development for an organization

- A strategy has to explore maximum resources and use current resources effectively After drafting appropriate strategy, it is a must to transfer it into policies, action plans

to reach preset objectives via an effective organizational structure Features of strategy implementation are:

o All managers are participants of strategy implementation within their scope

of power and responsibilities, executors are participants who work under managers’ direction

o Strategy execution is considered to be successful when a business achieves its objectives and makes progress in striving for advantages and power in comparison with competitors and predetermined mission

o Strategy execution is a combining process between scientific and artistic features of management

1.1.3 Definition of business:

According to Article 9, Company Law of Vietnam, issued on February 2nd 2009, “Business is

to implement all steps of process of investment into production, product consumption or deliver services on market to gain benefit” As a result, it is possible to understand that: Business includes activities to gain benefits of enterprises on market

1.1.4 Strategic business management:

Strategic business management is a process in which managers define long- term objectives and directive approaches to attain objectives on the basis of using the maximum of current resources and resources which are possible to mobilize

Specifically, strategic management is a process researching current as well as future environment, planning objectives of a company, drafting, implementing and controlling decision implementation to achieve those objectives in current as well as future environment

The aim of one strategy is to search opportunities, in other words, to increase opportunities and grow up to a competitive position Hence, strategic management is a process including three main stages:

- Stage of planning and setting strategy

- Stage of executing strategy

- Stage of controlling strategy

To set up a suitable and effective strategy, it is essential to take into accounts

influential factors such as: strengths, weaknesses of business, opportunities and threats from external environment, mission and objectives of business

Chart 1.3: The components of strategic management process

1.1.5 Pros and cons of strategic business management:

If strategic management is effective, a business will get some advantages as follow:

- Define clearly direction of a company in the future

- Understand opportunities and threats in business at current and future point of time, then take advantage of opportunities, reduce threats, stimulate a company to

overcome competition and achieve goals

- Make right and suitable decisions to changing environment, enhance business productivity and growth

- Set up better strategy of business development, motivate employees to unify and cooperate

Function, tasks and objectives of Enterprise

The most practical function of a strategy is to help company increasing sales revenue, working productivity, managerial effectiveness, avoiding financial risks, rising capabilities of protecting and avoiding company’s difficulties

Although, strategic business management is crucial to existence and development

of a business, it brings about specific difficulties to a company such as:

- High cost of time, money and efforts in initial time

- Ease of creating toughness in organizational operation

- If predictions are too different from practice, organizational activities will have difficulties

- Suspicion of helpfulness to organizational strategic management if strategy execution is not concerned enough

For above reasons, a company should have appropriate approaches of strategic management to avoid losses It is critical to analyze thoroughly, exactly factors affecting strategic business management

1.2 Influential factors to strategic business management

According to “Components of strategic management process”, there are two main factors affecting a company’s strategic management They are: company’s business environment including external and internal factors, functions, mission and objectives

of company Firstly we will take a look at business environment

1.2.1 Company’s business environment:

It is said that: business environment include factors, conditions which have direct or indirect effects to business activities of an enterprise In terms of level of effect to business management, operating environment of a company has three main levels as the following diagram:

1.2.1.1 Macro environment of a business

MACRO ECONOMIC ENVIRONMENT

1 Legal- political factors 2 Economic factors

3 Technological factors 4 Cultural- societal factors

5 Natural factors

OPERATING ENVIRONMENT

2 Bargaining power and needs of customers

3 Current and potential competitors

4 Substitute products of business’ products

1.2.1.2 Macro economic environment:

Macro environment analysis helps business to answer a part of the question: What is a company facing?

Economic factors:

Economic factors such as: bank interest rate, stages of economic period, financial- monetary regulations, exchange rate policies, inflation rate… have crucial effects on businesses’ operations

Legal- political factors:

Legal and political factors have an increasing impact on activities of businesses, they include: system of regulations, current legislations, tendency of government’s diplomatic relationship, domestic, region and international political movements Businesses must act in accordance with regulations on tax, lending, safety, costs, advertising, factory location and environmental protection…

Cultural- societal factors:

Cultural- societal environment contains standards and values which are accepted and respected by one society or specific culture Cultural- societal factors often have long term and more sensitive impacts than other factors, in many cases, these impacts are difficult to recognize

However, cultural- societal environment have strong impacts on business activities, is often defined by such factors as: moral, aesthetic concept, lifestyle, occupation, customs, traditions, social concerns, education level,…

Natural factors:

Natural conditions include: geographic position, climate, landscape, soil, sea, underground mineral resources, marine and forest resources, cleanliness of water and air environment…

Influences of above factors on business decisions have been acknowledged by enterprises In many cases, natural conditions become important factor to establish competitive advantages of products and services

Environmental pollution, low quality products, wastes of resources, greater demands and limited resources require businesses to change their decisions and related approaches to their business operation

Technological factors:

This is one of the most active factors, containing many opportunities and threats to companies Therefore, companies have to be watchful with new technologies because they may make their products obsolete directly or indirectly, besides profits deriving from technological developments

1.2.1.3 Operating environment:

Operating environment includes industrial factors and external factors to business It decides nature and competition of that sector This environment is a composite of five basic factors: competitors, buyers, suppliers, potential new entrants, substitute products This relationship is shown in the following diagram:

Chart 1.4: Operating background in industry

The way to capture a successful strategy is to analyze strengths, weaknesses of a company and threats, opportunities that a sector is facing

 Identify and set up company’s objectives

SUPPLIERS

SUBSTITUTION GOODS

CONSUMER

S

RIVAL

S IN INDUSTRY

COMPETITIONS OF EXISTING ENTERPRISES IN INDUSTRY

NEW IMPLICIT RIVALS

Threats arises new rivals

Threats owing to potential products and services substitute

Price squeeze capacity of consumers

Price squeeze capacity of suppliers

 Verify essential potential, advantages and disadvantages in distribution, sales, marketing…

 Consider unity of objectives and strategies of rivals

 Find out adaptability and tolerability (ability to cope with a long competition), ability to react (offensive ability) and capability of growth of competitors

+ Customer:

Customer is an irremovable pattern of a competitive battlefield If a company can meet customers’ demands and tastes, it will capture customers’ reliance- the most valuable asset of a company

Customer may reduce firms’ profitability if the have sufficient bargaining leverage to obtain price concessions or demand better quality and other favorable terms and conditions of sale In case a firm can not capture targeted objectives, it has to negotiate with customers or find less bargaining power customers

As a result, a firm should classify current and future customers, define targeted ones to have accurate business strategy

- Regarding capital suppliers, at any given point of time, most of enterprises, even profitable ones, have to borrow temporarily from sponsors by using short- term, long-term borrowings or issuing shares

- Labor resources are also a central part in competitive environment an enterprise Capabilities of attracting and retaining qualified employees are foundations for business success

+ New potential entrants:

New potential entrants may be firms’ future competitors Although a firm may not encounter new potential entrants, threats of likely entry candidates will affect existing business strategy of current sector members Therefore, current enterprises should forecast these new potential competitors to prevent outsiders’ entries and protect current competitive position

1.2.1.4 Internal situation of a business:

Detailed analysis on internal situation of a company to verify strengths, weaknesses can be useful for enhancing strengths, diminishing weaknesses and maximizing competitiveness Managers will be more aware of internal situation by analyzing the main following factors:

Human resources factors:

Human resources play an important role to enterprises’ success Because people collect data, draft objectives, select, implement and control business strategies and to it is impossible to gain good outcomes without efficient labor forces To evaluate a firm’s human resources, there are some issues to take into account: qualification, experience, skillfulness and personality of employees, labor policies, balancing ability between maximum and minimum use of labor, capabilities, consideration and qualification of top management level…

Research and development factors:

Efforts of research and development may help an enterprise to maintain sector leadership On the contrary, it may lag behind others without good R&D Thus, an enterprise has to innovate its technology, develop materials and products frequently

Production factors:

Production is one of the initial activities to create products, and then it has strong effects on business’ success It is beneficial for a firm to produce comparatively good quality product at comparatively low costs Because it leads to better product consumption, financial economization and positive attitude among employees Factors

to consider here are price, availability of materials, inventory turnover, manufacturing tools allocation, productivity and depreciation of equipments, cost and technological capacity compared with the whole sector and with other competitors…

Accounting- financial factors:

Functions of financial department include analyzing, planning and investigating implementation of financial plans and situation of an enterprise Financial department has deep effect on overall a company Managers should pay attention to some financial indicators as following: ability to mobilize capital in short- term and long-term, total capital of a company, flexibility of capital structure, ability to take advantage of financial tactics, price reduction controlling, effective accounting system, financial plans and profitability…

Marketing factors:

Functions of marketing department include analyzing, planning, implementing and controlling implementation of planned programs; maintain relationships and communication with customer on win-win principle Therefore, marketing management is responsible for adjusting level, time and nature of customers’ demand

to obtain targeted objectives

1.2.2 Identifying functions, mission and objectives of strategy

After having specific evaluations on a company’s situation, it is necessary to care about important factors in strategic business management: functions, responsibilities and objectives of strategy

1.2.2.1 Identifying functions:

Identifying functions of strategy helps to select the right objectives, success of an organization and its strategy Simultaneously, it helps to build a good image and

reputation in community, society and attracts related stakeholders (customers, suppliers, governors…)

 Shaping workplace and corporate culture

To identify mission of a strategy, it should be considered some following factors;

 Verification of a firm’s customers

 Current used technology

 Unity: Objectives should be correlated; completion of these objectives will not harm the other ones but be mutually supportive which set up unification in one organization to achieve common objectives

 Reasonability: if there is no acceptance of people, it will be difficult to set and implement objectives Human is a key factor which is both subject but also objecting of objectives Consequently, objectives must be ensured reasonability, flexibility and uniqueness

 Flexibility: Objectives should be flexible enough to adapt to changing environment, avoid and reduce threats of breaking structure

 Objectives should be specific and attached to each functional area The more specific objectives are the easier to set up strategy

When setting objectives, some questions should be taken into consideration such as: who is customer, how is differentiating capability, what is demand

There are many criteria to classify objectives; however, managers are usually interested in development objectives of an enterprise Setting objectives often encounters some challenges stemming from:

 Business owners tend to reach profit maximization

 Employees tend to protect their safety and stableness

 Customers require firms to satisfy their demands efficiently

 Managers manage development by their habits

As a result, when setting objectives of strategy, managers have to combine, harmonize and solve disputes among stakeholders

CONCLUSION

Researching environment is to analyze internal and external environment collectively in order

to make efficient use of strengths, exploiting opportunities and be aware of its own weaknesses, avoiding threats from environment At the same time, analyzing and identifying functions, missions, objectives of strategy also make great contribution to road mapping enterprise, defining influential factors of strategy These are important data for executing functions of strategic management, from the stage of drafting to the stage of organizing, controlling and developing this program

CHAPTER 2 : FACTORS INFLUENCING ON THE BUSINESS

OPERATONE OF SAIGON MART

2.1 Overview about system of Saigon Mart supermarket: 2.1.1 History of establishment and development:

A supermarket system of Saigon Mart was ever a small self-selective shop, first established in Lao Cai city in 1999, a province of North East region The founder was

Ms Doan Le Cat Tien who had been an accountant at the supermarket system of Citimart, one of the first supermarkets in Hanoi In 2002, this self-selective shop was converted into supermarket with an area of 3000m2 in Lao Cai province, at the same time opened the second Saigon Mart in Yen Bai City, Yen Bai province with an area

of 500m2 In 2005, due to strong development of supermarket, increasing demand for goods, pressure on order, goods transportation, goods resources, it was difficult for activities of supermarket because of geographic conditions

In November 2005, supermarket of Saigon Mart in Ha Dong was established to develop business in Ha Dong City, to provide enough goods sufficiently, conveniently for current supermarket system

In December 2008, Saigon Mart in Ha Giang was established with an area of 500m2, located in the centre of Ha Giang town to meet the shopping demand of Ha giang citizens

On April 19th 2009, supermarket of Saigon Mart completed Saigon Mart Vinh Yen in Vinh Phuc province with an area of 10000m2 It is the largest supermarket of the Saigon Mart system It operated to provide goods to the whole Vinh Phuc province Simultaneously it was a centre distributing goods to the whole system

Supermarket system of Saigon Mart has functions of wholesaling; retailing products of consumption, electronics, food, cosmetics…The main operation field is Hanoi and North East provinces The supermarket system operated in accordance with business law Board of management included directors of other Saigon Mart Supermarket

2.1.2 Organizational structure:

The supermarket system of Saigon Mart has direct management model, each manager

of member supermarket is in charge of that supermarket Strategic policies, decisions are agreed by Board of Management with supporting ideas of individuals That is a

united management mechanics with financial strength, but separate and active financing of each unit

Currently, there are 121 employees, among whom there are 40 business and management officers They are all hard working, excellent officers Additionally, the system also has one company with retailing spots at more than 10 towns, districts of Yen Bai, Lao Cai, Ha Giang provinces and some in Phu Tho province

Organizational management of Saigon Mart applies directly functional model, in which the leader has a complete right to manage, direct and make use of functions of all departments Those departments search their tasks and functions, and then propose their ideas to Board of Management to reach final decisions

The current management model of Saigon Mart system includes the following functional departments:

Board of Management:

Board of Management is the leader of company, representing for all employees of the company in accordance with Business Law of the state and company’s targeted objectives Manager is elected by company’s members, responsible to the State and employees for business activities of the company Manager controls management system by combining administrative and economic, financial management:

Chart 2.1 :ORGANIZATIONAL CHART OF

DR SAIGONMART YEN BAI

DR SAIGONMART HGIANG

Business

Department

Development Dept Project Dept Wholesales Dept.

Accounting Financial Dept.

Retail Dept Sales Department Marketing Dept

He or she manages systematic actives in compliance with directions and plans of Board

Financial Accounting Department:

Functions and responsibilities of financial and accounting department are regulated in Decree of Ministry of Finance regarding financial statements regulations, reservation

of accounting documents and regulations of responsibility, rights and internal accounting of business results of each company as well as of the whole system In addition, the department is also in charge of:

 Building, planning and executing economic contracts according to state laws

 Analyzing, evaluating exactly economic activities of the company according to state regulations to propose solutions and effective business plans

 Managing materials, properties of the company Giving advisory to director in managing and using capital efficiently Organizing statistics and statistical mechanism which is suitable with functions, tasks and development targets of the company

 Investigating, directing professional departments, units to implement accurately statistics, records in financial, accounting, auditing activities

- Cooperates with other departments to create a dynamic, effective management

- Investgates performance of business and production plan, receivables and payables of financial plan, collecting and payment, checks the protection and use of assets, materials, capitals, detects and prevents wasting, violating company’s mechanisms and regulations

- Disseminates state policies, mechanismss of financial management to related departments if necessary

- Provides numbers, documents supporting business management, investigates, analyzes financial and economic activities, serving activities of planning and supervising plan implementation Provides reports to concerned parties according to current policies of financial, accounting reports

- Reports business performance to company’s Board of General Management

Chief Accountant:

Responsibilities:

- Organizes accounting activities, makes statistics and controlls accounting sector which is suitable with organization of business, production in accordance with existing and developing requirements of the Company

- Organizes to record, calculations and reflects accurately, hornestly, apporiately, sufficiently the whole assets and analysis of production, business outcomes of the Company

- Defines and reflects accurately, apporiately the periodical result of asset statistics Proposes solutions on losses, decreases (if any)

- Approves accounting reports, statistics and financial reports of subordinate divisions Makes, genealizes sufficiently and submits apporiately accounting reports, statistics and financial statements of the Company according to defined mechanisms

- Organizes investigating internal accounting activities of the company and subordinate divisions (if any)

- Researches policies of taxation, finance, statistics, business law of the Government related to company activities in order to suggest an appropriate execution

- Disseminates and directs current mechanismss on finance, accounting, statistics

to subodinators and related divisions

- Maintains, archives accounting documents, keeps secret on accounting documents and numbers of the Company

- Takes responsible of numbers in financial and accounting reports of Member Council, Board of General Manager and concerned parties

- Supervises and reflects financial situation of the Company accurately

Deputy Chief Accountant

- Approves accounting, statistics reports, financial statements of subordinate divisions on behalf of Chief Accountant Creates, generalizes sufficiently and submits accounting, statistical reports and financial statements of the company according to defined mechanisms

- On behalf of Chief Accountant, Disseminates and directs current mechanisms

on finance, accounting, statistics to subodinators and related divisions

- On behalf of Chief Accountant, organizes to maintain, archive accounting documents

- On behalf of Chief Accountant, explains some numbers in financial statements

to Board of Management, Member Council of the Company and Concerned parties if necessary

Accountant of Materials:

Responsibilities of Accountant of Materials, finished goods:

- Creates initial accounting vouchers (importing, exporting vouchers) based on regular origin voucher

- Checks issuance and movement of vouchers according to regulations

- Cooperates with Liability Accountant, Payment Accountant to compare numbers of export- import with related voucers (receipt, contract, order )

- Encodes data into the system and deals with import- export numbers

- Scrutinizes use of materials, finished goods according to defined level, issued regulations to discover irregularities, wastes in the process of using

- Reports situatioin of using and invetory, finished goods, products serving for statistics and financial statements

- Achirves, reserves accounting vouchers, keeps secret of accounting numbers

- Executes assignments, guidance of Chief Accountant, Deputy Chief Accountant (within defined obligations)

Accountant of Revenue- Liability:

Responsibilities:

- Writes VAT receipt to export goods

- Scrutinizes revenues of the company, makes sales report based on report form

- Cooperates with Accountant of materials, products, finished goods, Payment Accountant to compare arising liabilities Checks suitability, regularity of these arising issues

- Inspects contract, makes closing contract papers of signed contracts (if necessary)

- Inspects arising liabilities within defined management scope, details due to subject Discovers irregular, unbalanced details, bad debts, low possibility to receive, reports to Chief Accountant and Board of Management to have solutions

- Reports debt periodically or at any given point of time according to current reporting mechanisms or request of Board of Management,

- Prepares report of debt comparision when required (by Board of Management

or Chief Accountant) and at the end of fiscal year

- Provides general or detailed numbers serving financial statements

- Achirves, reserves accounting vouchers, keeps secret of accounting numbers

- Executes assignments, guidance of Chief Accountant, Deputy Chief Accountant (within defined obligations)

Accountant of Banking- Fixed assets:

Responsibilities of accountant of Banking- Fixed assets:

- Makes transactions with banks and inspects numbers according to payment requests

- Inspects and makes vouchers of increase, decrease of fixed assets, maintenance and maintenance costs within required scope Calculates depreciation based on current policies Finds out situation and spoilt degree (if any), recommends to buy or repair if necessary

- Compares and supplies payment vouchers with Accountant of Liability

- Provides general or detailed numbers serving financial statements

- Achirves, reserves accounting vouchers, keeps secret of accounting numbers

- Executes assignments, guidance of Chief Accountant, Deputy Chief Accountant (within defined obligations)

General accountant :

Responsibilities of general accountant:

- Depending on managerial requirements and policies of making reports periodically, monthly, quarterly, yearly, based on encoded numbers on the system, documents of depreciation, compensation, cost distributioin to

computing price, making general reports: balance sheet, balancing arisen numbers, income statements, monthly VAT reports

- Makes tax rebate profile as regulations

- Due to making generalizations, finds out unsuitable remarks in financial statements, management, controlling vouchers, reports or offers suitable solutions

- Helps Chief Accountant organize to analyze economic effectiveness of business activities in the company

- Achirves, reserves accounting vouchers, keeps secret of accounting numbers

- Executes assignments, guidance of Chief Accountant, Deputy Chief Accountant (within defined obligations)

Accountant of taxation- VAT:

Responsibilities:

- Makes payment vouchers based on investigation of regularity, suitability of initial vouchers and other ones according to regulations (including all types of payment- cash, non-cash payment and credit)

- Encodes data into system, deals, scrutinizes, manages and reports all arising issues, movements and availabilities of cashflow within defined scope according to current reporting policies or requirements of Board of Management

- Manages advance payment and payment for provisional sums according to each subject

- Prepares monthly VAT declaration for factory, checks and scrutinizes monthly VAT declaration of subordinate divisions by which prepares monthly VAT declaration of the whole company

- Due to making generalizations, finds out unsuitable remarks in financial statements, management, controlling vouchers, reports or offers suitable solutions

- Achirves, reserves accounting vouchers, keeps secret of accounting numbers

- Executes assignments, guidance of Chief Accountant, Deputy Chief Accountant (within defined obligations)

Accountant of Compensation- security

- Achirves, reserves accounting vouchers, keeps secret of accounting numbers

- Executes assignments, guidance of Chief Accountant, Deputy Chief Accountant (within defined obligations)

Cashier:

Responsibilities:

- Collects and pays out cash according to vouchers issued by Accounting department as regulated

- Manages cash in the safe, ensure secure cash

- Checks cash and makes cash reports periodically

- Delivers monthly salaries according to compensation table to each department

- Withdraws or submits cash via bank if required

- Executes assignments, guidance of Chief Accountant, Deputy Chief Accountant (within defined rights)

Stock keeper :

Responsibilities :

- Receives apporiately, accurately materials which are neccessary for production

- Arranges and reserve materials

- Archives information of use and situation of materials

- Exports materials as requirements of production orders

- Reports nventory importation to Accounting Department

- Reports speed of inventory importation to Business planning department

Personnel Department

Functions:

1 Recruits human resources ensuring requirements, strategies of the company

2 Organizes and cooperates with other departments to manage human resources, train and retrain

3 Organizes human resources management of the whole company

4 Builds up compensation and benefits, motivation policies to motivate labors to work, offers labor’s benefits

5 Executes and organizes to perform policies, regulations, instructions of Board

- Builds promotion policies and staff replacement

- Prepares human resources budget

- Drafts human resources plan to serve requirements of production, business and strategies of the company

- Builds up compensation and benefits, motivation policies to motivate labors to work, offers labor’s benefits

- Executes and organizes to perform administration depending on functions, tasks and requirements of Board of Management

- Builds regulations, plans related to use of assets, equipments of the company

- Prepares plans, organizes, supervises implementation of issues related to security, working safety, sanitary and flame protection in the company

- Researches, drafts, submits regulations applied in the company, builds organizational structures- departmentsa and organization of implementation Proposes organizational structure, managing system of the company Builds system of regulations, process, policies of the company and supervises execution of those regulations

- Counsels the Board of Management on strategic establishment of organization of the company

- Counsels the Board of Management to solve problems of Organization- Administration- Human Resources

- Counsels the Board of Management on building organizational structure and managing company

- Counsels the Board of Management on training and recruitment of the company

- Counsels the Board of Management on building options of salaries, rewarding and benefits for employees

- Counsels the Board of Management on administration of the company

- Supports related departments on human resources management and acts as the linkage between Board of Management and laborers in the company Support related deparments on training staffs, recruiting personnel Supports related departments on administration

Maintenance staff

Responsibilities:

- Receives repairing tickets from various departments, transfers to Head of Personnel- Administrative Department, repairs after receiving tickes again In case he/she has not repaired, he/she has to inform users until he/she can do After finishing, if repaing is outsourced, maintenance staff has to makes repairing and check report After checking and taking over, he/sh referes the report to Head of Personnel- Administrative Department, then makes one copy for Accounting Department to prepare payment

- Regarding installing properties: when maintenance staffs receive request from departments, or information from Heads of departments to install a property or facility, he/ she organizes to install as required In case of buying new property or facility, he/ she has to submit price list of at least 3 suppliers When price list is approved, he/she implements installment Makes a report of taking over property with users After installing, he/ she installs and takes over immediately if the property does not need to take over If the property needs taking over, he/she may take over the property when it is used stably (10-30 days) After taking over, transfer report of taking over to Department Head to consider, , then makes one copy for Accounting Department to prepare payment

- Makes curriculum vitae of machines for new facilities and updates information as required in the curriculum

- Makes a list of properties according to forms of company, updates frequently new properties

- Recommends methods to prevent damages of machines of the company

- Checks all types of properties monthly according to forms of company

- Under authorisation of Head of Personnel- Administrative Department, supervises works of guard and forwarding

- Makes schedule of machine maintenance, cooperates with maintenance division to maintain frequently or accidentally

- Prepares working plans and professional plans as Head’s requirements

- Performs other tasks assigned by Department Head

Guard

Responsibilities:

- Keeps book inspecting properties, materials, goods importing and exporting from company The book includes the following collumns: date, property keeper, name

of property, descriptions, unit, quantity, import/ export, note

- Writes exact number of import, export materials, goods All goods exported from the company must accompany with exporting ticket or agreement paper of Board

of Management, Head of Personnel- Administrative Department In case there is no approved paper (accidentally) exporter has to sign in the Note collumn of inspecting book

- Checks seal and signature of person who has authority to sign confirmation paper and import- export bills

- Every week, the guard makes a report importation and exportation of property in the company, sends to Leader of Guard group to check and then reports to Head of Personnel- Administrative Department

- When a customer comes to work, guard asks about customer’s information then contact to the right office or person If the office agree to meet, the guard asks the customer to register and show identification paper before coming into the company

- The guard is responsible for helping customers, staffs to put their vehicles at the right place, delivers tickets and collects them when they takes out their vehicles; helps them to put their vehicles out of parking place

- The guard receives letters, newspapers, presents and transfers them to administration department to handle

- Helps departments and individuals of the company within permitted time

- In case two shifts are assigned at the same place, the guard has to makes report of shift transferring Report of shift transferring should display the following content:

number of keys transferred, date and time, sender, receiver, arising issues of the shift, issues to resolve

- Keeps book inspeting staff and customers, including colloums: date, name, division/organization, time in/ out, work content, note This book is used to inspect time in, time out customers, staffs who come late, leave early, from other departmetns, come back from business trip, go on business, go on business from home then goes to work late Each case has to be written clearly

- Every Sunday, the guard makes a copy of staff and customer inspecting book, transfers it to Head of Personnel- Administrative Department

- In case the guard is assigned to work by shift or change the shift with another person, he/she has to transfer sufficiently the abover records, keys and means of working

- Manages keys of different departments, main key, writes the specific number of keys transferred in reporting book when he/she is assigned

- Contacts with neighboring or local organizations to cooperate if neccesary (with authorisation of manager)

- Frequently checks properties, discovers staffs who destroys properties and regulations of the company, reports to leader of guard group who is responsible for reports to Head of Personnel- Administrative Department to consider and handle

- Checks flame prevention and treatment facilities (FPPF), including: ability to use FPPF, right placement, using instruction The testing report is transferred to Head

of Personnel- Administrative Department

- Operates skillfully, takes quick action, timely treatment in case of incident Is able

to maintain and repair normal damages of FPPF Protects and discovers in time flame or explosion to handle immediately and informs functional organizations at the same time to solve the problem Actively discover to prevent destruction or threats of destroying material and technical foundation of the company

- Informs Head of production division, Head of Personnel- Administrative Department about illegal vilations of anyone who has behaviors of destroying, stealing, deceiving to occupy properies or cause unsafety in the company so that the company can solve in time

- Does not leave the place without permission, does not sleep, drink alcohol, play gamble in working time, does not smoke and use narcotic elements The guard does not read newspaper in working time, affect to staffs of other divisions in working time

- Warns staffs and customers to obey regulations of safety, flame and explosion prevention

- Does not allow staffs and customers who has alcoholic smell or brings explosive elements into company

- Performs other tasks assigned by group leader

◦ Builds the system of management and business- services

◦ Builds standards of staffs, standards of job titles

◦ Develop and builds up staff who have strength in capabilities, levels, good personalities, meeting new requirements of an organization

2.2 Factors influencing on the business operation of Saigon Mart:

2.2.1 General Development objectives and orientation of the company:

Supermartket business is one of service industry to meet the basic consumption of people in the society General objectives of Saigon Mart System is to make the sytem become one of leading retail corporation in the North of Vietnam In the general tendency, the orientation of Saigon Mart is that "Growth, effectiveness and stable development” and the current mission is that "Serve clients best to develop" To fulfill this mission, Saigon Mart firstly bears in mind that it is neccesary to have a headquarter to manage the operation of whole system and to advoid direct competitiveness with current modern supermarket systems as well as coming foreign supermarket system in Vietnam Consequently, Saigon Mart system decide to locate its headquarter in Vinh Yen city, Vinh Phuc provice

2.2.2 Overview about socio-economic situation of Vinh Yen city - Vinh Phuc province:

Vinh Phuc is re-established in 01/01/1997, Vinh Phuc is a province of Hong River Delta located at the Northwest of Hanoi Capital area, one of the eight provinces of Northern Key Economic Region with the total area: 1,371km2, population: nearly 1.2 million people

- In the northwest: bordering to Tuyen Quang,

- In the northeast: bordering to Thai Nguyen

- In the southeast: bordering to Hanoi

- In the South: bordering to Ha Tay

- In the west: bordering to the Phu Tho

Vinh Phuc has 7 districts and 2 towns, Vinh Yen town as an economic, political and culture centre of the province, 50km from Hanoi and 30km from Noi Bai International Airport The province is 150 km from Hai Phong port (Haiphong City) and CaiLan deep – water seaport (Quang Ninh Province)

Economic and tourism potentialites

The province is located in tropical monsoon, hot, wet climate area The average annual temperature is 24,20C, Vinh Phuc has three distinct ecological regions: the plain, midland and mountainous regions, which are advantages for development of agriculture, fishery, service and especially tourism One of advantages of Vinh Phuc compared to other Hanoi surrounding provinces is that Vinh Phuc has a large area of hilly land with physico-mechanical characteristics which is suitable for developing industrial zone

Vinh Phuc projected in the national key tourism region with many famous landscapes such as Tam Dao,National Garden, Dai Lai Lake, Lang Ha Lake, Vac Pond, Va Pond…a number of relics of historic, cultural and spiritual values namely Tay Thien Mount, Trung Sisters Temple, Tran Nguyen Han Temple,Binh Son Tower… The province has nearly 250 relics have been assorted Vinh Phuc’s tourism infrastructure

is now being constructed Vinh Phuc is building 03 golf courses met with international standard, of which Tam Dao golf course came into operation in October, 2005

*Traffic system

Inland road: Vinh Phuc has network traffic which is distributed throughout the province There are 04 national road route including Road 2A (Hanoi-Ha Giang), Road 2B (Vinh Yen-Tam Dao), Road 2C (Vinh Tuong-Vinh Yen-Duong Tam Tuyen Quang), Road 23 (Hanoi - new urban area) At present, a highway route from the Noi Bai international airport to Yunnan (China) through Vinh Phuc is invested by the Government, the road leads to Cai Lan deep water port (Quang Ninh) which is very convenient for transporting goods to any country, to airports, and ports in the world Also in Vinh Phuc province is building several provincial roads with surface from 36m and above to the central industrial and urban area

Railway: There is a railway route (Hanoi - Lao Cai) to Yunnan (China) through the districts of length 41km with 06 stations including two main stations Vinh Yen station and Phuc Yen

Waterway: In the province there are two main waterways including Lo River (the segment through province is 35km) and the Red River (the segment through the province 50km) At the

moment, the system has ensured below-30-ton means of transport There are 03 ports Chu Phan, Vinh Thinh (Red River) and Nhu Thuy Port (Lo River)

Airway: Vinh Phuc is adjacent to the Noi Bai international airport, so the transport and travel to the world and other domestic provinces is very convenient

* Electricity supply

With the power transmission system of more than 1000km (22KV, 35KV) spread throughout the province 100% of communes in the province have been covered with national electricity grid In industrial zones, the province is planning to build 2 different sources stations to ensure that continuous electricity supply for industrial zones, industrial parks

* Water supply:

Vinh Phuc has 02 large water factories, built with ODA capital from the Denmark Government and Italian Government: The Vinh Yen water factory with the capacity of 16.000m3/day-night will be expanded as 36.000m3/day-night, to supply water for Northern areas in the province Water supply plan for each period will be as follows:

Period 2010 (the underground water source Q = 16.000m3/day-night, surface water 50.000m3/day-night Lot Song), the period 2015 -2020 (underground water sources Q

= 16.000m3/day-night, surface water of Lo river 100.000m3/day-night - 160.000m3/day-night)

Waterworks in Phuc Yen and Binh Xuyen area: Phuc Yen underground water with capacity of 20.000m3/day and night is completed The combination with factory Thap Mieu underground water factory with the capacity of 3.600m3/day and night will ensure to provide water for Phuc Yen and Xuan Hoa, Dai Lai and industrial zone nearby The province will also invest to build new factory processing underground water in Binh Xuyen with capacity of 10.000m3/ngd Planning for water supply for each period as follows:

Period by 2010, the Yen Phuc underground water has the capacity of Q = 20.000m3/ day-night, Binh Xuyen 10.000m3/ day-night, the period of 2015-2020, Yen Phuc water underground: Q = 35.000m3/ day-night, Binh Xuyen: 10.000m3/ day-night, provide water for the south of the province