Business Environment Assignment 1 BTEC Nguyen Huu Phong 2017

Business Environment Assignment 1 BTEC Nguyen Huu Phong 2017 Bài Assignment 1 trong môn Business Environment tại University of Greenwich Viet Nam, đây là một trong những môn rất quan trọng và cần thiết cho những người muốn theo nghành businness cụ thể là human resource management như mình. Bài assignment này được mình làm tại trường. Các bạn có thể xem và tham khảo nhưng lưu ý đừng copy vì nó đã được check turnitin, mình xin nhắc là chỉ dùng để tham khảo.

ASSIGNMENT FRONT SHEET <No 1.>  Retake Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Business Environment

Learner declaration:

I certify that the work submitted for this assignment is my own and research sources are fully acknowledged

Grading grid

Assignment title

In this assignment, you will have opportunities to provide evidence against the following criteria

Indicate the page numbers where the evidence can be found

□ Mission and vision

□ Goals and objectives

□ Measuring objectives

1.1  Achieved

Not achieved

Criteria No.1.2

1.2 Describe the extent to

which an organization meets

the objectives of different

stakeholders

Your organization should satisfy Key performance indicators (KPIs) regarding to environmental, industry and competitor analysis, predict future success of the business

+ KPI should also be Derived form, predictive of stakeholder requirement Exhaustive

Reliable and repeatable Timely

1.2

 Achieved

Not achieved

Criteria No1.3

1.3 Explain the

responsibilities of an

organization and strategies

employed to meet them

Responsibilities

□ Social responsibilities

□ Environmental responsibilities

Resources depletion Genetic diversity Pollution concerns Acid rain

Ozone depletion Waste

Climatic change Energy resources

□ Ethics and Business

□Management responsibilities: R&D, technology advance, staff welfare

2.1 Explain how economic

systems attempt to allocate

Criteria No.2.2

2.2 Assess the impact of

fiscal and monetary policy

on business organizations

and their activities

Fiscal policy

Fiscal policy involves:

Taxation and other sources of income Government spending

Borrowing whenever spending exceeds income Repaying debt when income exceeds expenditure

Monetary policy

Monetary policy involves attempts to influence economic activity through:

• Interest rates

• Exchange rate

• Control of the money supply

• Controls over bank lending and credit Analyze the above factors to business organizations

2.2

 Achieved

Not achieved

Criteria No 2.3

2.3 Evaluate the impact of

competition policy and other

regulatory mechanisms on

the activities of a selected

organization

□Analyze Porter’s Five Force Model of Competition

+ Threat of new entrants + Threat of substitutes + Supplier power + Buyer power + Degree of rivalry Regulatory includes:

Legislation Competition policy Competition commission Office of Fair Trading (OFT) Regulation of former nationalised industries Self-regulation

2.3

 Achieved

Not achieved

Summative feedback

(note on Merit/Distinction

if applicable)

Merit descriptor No (M1) □Provide the company SWOT analysis with the data supported  Achieved

Not achieved

Merit descriptor No (M2) □Good evaluate the impact of competitive policy and other mechanism with data

supported in a business context

Distinction descriptor No (D2) □Relevant theories concerning the business environment have been applied

□Sources of information are correctly cited and Good sources of references

 Achieved

Not achieved

Distinction descriptor No (D3) □ Smart recommendation for improving the business environment  Achieved

Not achieved

Assessor’s Signature NhanNTT Date

<ATTACHED EVIDENCE>

Introduction 9

1 Understand the organizational purposes of businesses 12

1.1 Identify the purposes of different types of organization 12 1.2 Describe the extent to which an organization meets the

objectives of different stakeholders 18

1.3 Explain the responsibilities of an organization and strategies employed to meet them 22

2 Understand the nature of the national environment in which businesses operate 24

2.1 Explain how economic systems attempt to allocate resources effectively 24

2.2 Assess the impact of fiscal and monetary policy on business organizations and their activities 32

2.3 Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organization 35

Conclusion 36

References 37

The world in general is growing constantly every day, every hour, and Vietnam in particular is also caught up in the whirlpool of the development In that context, change is the only way to survive in an era when people often say: "Change or die", that has prompted the local firms required to constantly innovate business if it wants to stand in a market full of fierce competition

As a leading enterprise in the production of footwear of Viet Nam, in the very difficult period of the economy, the limited liability company manufacturing consumer goods Binh Tien - Biti's has changed itself and has new steps beyond the core areas and achieved proud success For more than 33 years of business activity with the ups and downs and challenges, now, Biti’s has great power and development go up along the country, become a reputable brand, trusted and familiar to consumers and is the pride of the people of Vietnam on a "National brand" in the field of footwear about quality and reputation

For its core areas, Biti's is one of the private enterprises have the longest history in Vietnam Established in 1982 with two production teams are only with 20 workers specialized in producing kinds of simple rubber shoes Biti’s has gone through the phase of the subsidized economies with much difficulty However, more than 33 years, as a "fatigue footsteps", Ltd Manufacturing Consumer Binh Tien (Biti's) has gradually built himself a strategic manufacturing and exporting, create a footwear brand - Biti's tied to the needs and

tastes of consumers Currently, Biti's become a strong unit, represent a breakthrough in the field of footwear production; sufficient human, material and financial resources for career development and ensuring greater achievements

With a product distribution system stretching from the South into the North, Biti's has 07 branch Centre, 68 marketing Shop and more than 1,500 retail distribution intermediaries, have created stable jobs for the more than 9,000 workers in the Corporation and Dona Biti's with annual production of over 20 million pairs Brand Biti's whereby also increasingly the popular domestic market and exported to more than 40 countries, there is a majority of revenue from capital markets that Vietnamese enterprises unanswered - China Biti's is also international clients with well-known brands such as Decathlon, Clarks, Speedo, Skechers, Lotto, etc, believed to be a partner selection process more orders with great value

Besides strong growth, breakthrough Biti’s also suffered a lot of pressure from a lot

of competitors in the field of footwear not only within the country but also to the countries that have the technological boom Of course we can't not mention the giant - Addidas

Adolf Dassler returned from World War I in 1920, started the business start-up by the passion with his sports shoes In July 1924, together with his brother Rudoft Dassler, they founded Gebruder Dassler Schuhfabrik In 1947, Rudolf founded the new company and become a competitor of his brother, now known as the famous brand Puma As for Adolf, since June 1948 is converted into a formal company name Addas, but by having a few problems with copyright, it was continued to renamed by Adolf, until July 1949, then the Addidas official name is used After many ups and downs, overcome difficulties and develop properly, Addidas now is a large corporation is no longer limited to the field of sports shoes production although it is still their core fixed array

For the Asian market in general and Southeast Asia in particular, the value of the Adidas brand in the Southeast Asian market is highly valued and trusted more than the other competitors In 2009, Adidas officially established Adidas Vietnam and now Adidas

is one of the first choice and popular in Vietnam Addidas currently has 50 outlets across the S-shaped country and bring more than 80,000 jobs for Vietnam

Overall the two enterprises, for my opinion, although the two companies go two goals and another own way, but in some specific areas that produce shoes, they are rivals

As if Biti’s is trying to improve themselves and reaching the continent as well as the world, the Addidas must also constantly improve and change themselves to not be caught up or fall down before the other rivals, especially here is Biti's

1 Understand the organizational purposes of businesses

1.1 Identify the purposes of different types of organization

Biti’s is a limited liability company manufaturing consumer goods is run by Mr Vuong Khai Thanh and Mrs Lai Khiem The couple had taken Biti’s became Vietnam's proud brand with the right steps and the powerful transformation Because as a business has family tradition deep in the culture of Biti's, so many investment funds have wanted access but was rejected and was not listed on the stock market makes more prominent role

in the current the couple's power in Biti's

Mrs Lai Khiem – Source: Internet

Mr Vuong Khai Thanh – Souce: Internet

About Adidas, a brand that was too familiar to customers worldwide with the management apparatus fully effective at the present time with the leadership of Herbert Hainer during 15 years since 2001, the great leader was to take the Adidas's ship in the right direction and Adidas has always maintained its position

Herbert Hainer – CEO of Adidas

Structure organization of adidas – Souce: Creately.com

In a market full of fierce competition today, a company or organization that wants to survive, maintaining our position in the market or more is to become the market leader, it must develop a long-term strategy and correctness The business must correctly identify the vision, mission, goals and objectives for activities that are directed to As Biti's, throughout more than 33 years of establishment and development, they always build for themselves a long term strategy and the right steps The result, up to the present time, Biti's was a proud brand of Vietnam Even Giant -Adidas, they also have a proper strategy in nearly a century

to now they are one of the most successful brands in the world in the field of the production of sporting goods Any business, in a market full of fierce competition, enterprises must have own vision, its own goals and build a plan to improve and change if

it wants to survive

Vision

By a definition of vnheadhunter blog, vision is an image, standard, unique image and ideals in the future, is what businesses want to achieve or become The leader must ask questions such as 5 years from now, 10 years from now "What do we want" and "Which purpose will we lead our organization to?"

For Biti's, they always want to be forever a reputable brand and quality not only in the hearts of Vietnamese consumers but also in the hearts of consumers around the world

For Adidas, they want to become part of the life of every person, the influence of Adidas products for life, environment and society

Mission

Mission is the reason for existence The organization often expresses its mission with a "mission statement" pithy, briefly, explains that organizations exist to do and will do anything to survive Replied to the question: "what would we exist to do?"

With Biti's, the tasks they set out is to meet the increasing needs of customers with products of prestige and quality, constantly improving product improvement to bring the best quality products to the consumer

And for adidas, they wanted to bring the best products surpass customer expectations especially sports athletes, providing the best experience and have a responsibility to the environment and society

Goals and objectives

This is simply short targets in the near future that a business needs to achieve in

As for Biti’s, their current target is standing out of Vietnam with the new step into the market to the countries in the region and Asia, specially as the foothold in the Chinese market - tough market for companies from abroad and Biti's goal is to bring the Vietnamese brand expansion outside

Also for the own Adidas, they was a giant in the field of sports products industry so their goal is to expand the market share growth, as well as becoming a leader in this area, increasing competition advantages with others "giant" such as Nike, Puma, etc

For Adidas, the value of the organization is in the product, the quality surpasses the expectations of customers, contributing to building and good influence to environment, social They offer the best product and from the future

With a distribution system that stretches across the country from North to South with over 7000 employees, Biti's are really developing very rapidly and achieved much proud achievement According to statistics, Biti's is one of the leader of the footwear enterprises

in Vietnam accounted for 15 percent of the domestic market with domestic sales of 1,000 billion in 2012 The growth of the domestic market, Biti's share gain around 20 percent per year With relentless thirst for development and innovation, product innovation, the 2016, Biti's has launched the product line Biti's Hunter direct competition with rivals such as Adidas, Nike, Puma, when they spent approximately 5 million dollars investment in production processes and research Biti's Hunter would also promise strong growth Has a very long time, Biti's always focused on the segment of high school students with these products bring durability and fit when going to school, as well as of 2012, there were up to

70 percent of students in the country to use the product of Biti's It's time for Biti's to do something, and the answer is Biti's Hunter

Source: Statista

And giants Adidas, the scale of Biti's a lot smaller than Adidas Specifically with more than 55000 employees worldwide and 14 percent market share in the world of athletic footwear in 2012 Sales of Adidas in 2015 was approximately 9 billion dollars - a very large number, Adidas has always been one of the most powerful companies in this field

Starting late is better than never starting, Biti's after more than three decades has transformed itself and change themselves Not fair to compare Biti's with Adidas, there is not only Adidas, but also the other large success companies of the world in this field are the rivals that Biti's headed Scaling, reached out in the region and the world, to confront the leading brands, Biti's will have long-term strategy and the right ways to achieve success

SWOT analysis of Biti’s – Source: Author

Strengths

Weaknesses

Opportunities

Threats

 Biti's is a brand renowned for reliability and quality in Vietnam

 Products Varied, plentiful and of high quality

 Promotion of investment and joint venture development In particular, the investment to other sectors such as real estate investment, construction works and services bring abundant financial resources

 Extensive distribution system across the country, exports more than 40 countries and including the Chinese market

 Have varied marketing strategies: sustainable human resources strategy, a policy, etc

 Great customer service

 Raw materials and ancillary industrial underdevelopment In particular, there is up to 80% of the raw materials used to produce footwear is imported but is still not in control of the quality

 Designing and search the output for the product lacks

 Is the business going after will easily learn more experience

 Reception more science and technology development to improve the product

 High tax rates in the country of export That is the difficulty not only Biti's but also other businesses in the negotiation and receiving orders

 Many problems persist are not yet overcome while the opponent has made gigantic strides

 The pressure on prices The price is always the stiff competition between domestic products and exports

1.2 Describe the extent to which an organization meets the objectives of different stakeholders

According to Business dictionary, it is stated that: "Stakeholder is a person, group or organization that has interest or concern in an organization Stakeholders can affect or be affected by the organization's actions, objectives and policies."

There are three broad types of stakeholder in an organization:

First, Internal stakeholders such as employees, management Second, Connected stakeholders such as shareholders, suppliers, customers, financers Finally, External stakeholders such as the government, community, pressure groups

Each stakeholder will have some impact on the organization To determine the effects of the stakeholders for the organization or company, we use a stakeholder mapping

Power Interest Low High

Power / Interest Grid (Mendelow, 1991) – Source: 12manage

Based on Stakeholder mapping above, we have a table about the influence of the stakeholders on Biti's: