Management capability in van hung suan company

The peak of 2017, the translating business operation has been downturn leading to lacking to source job to assign among employees means that translating function has faced the employees

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-

Nguyen Thi Duyen Anh

MANAGEMENT CAPABILITY

IN VAN HUNG XUAN COMPANY

MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City – Year 2019

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-

Nguyen Thi Duyen Anh

POOR MANAGEMENT CAPABILITY

IN VAN HUNG XUAN COMPANY

MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: Dr Tran Phuong Thao

Ho Chi Minh City – Year of 2019

1.3.1.3

1.3.2

Lack of sales and marketing team

Main problem validation

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Executive summary

Vietnam is a country that has gradually been drawing to foreign investors as one of prospective destinations in Asian region It is attracted for the young people who want to start-up the company in the integrated phase Van Hung Xuan company is established in following towards the growth of industrialized and modernized country and it has been improving to reach the achievement of the high performance However, the most difficult for young company as Van Hung Xuan has been facing in the case of employees leave the job High leavers in company is considered as the initial problem in the company In order

to follow that, company will find some causes to understand what factors with regard to employees want to stay or leave their jobs

The analyzed methodology used to find out the causes and effects leading to

recognize the potential problem in the thesis that is qualitative data collection method through in-depth interviews as primary data Additional, the secondary data is collected materials of leavers from office department to have diagnosis of potential problem at Van Hung Xuan Company Moreover, problem scope can work with office department,

teaching and translating departments in company in which it is typically analyzed data on

translating function to find out the potential reasons are come from the diagnosis of

highest turnover rate and the issues are supported to understand what roost causes leading

to difficulties that has been happened in company

From the finding out diagnosis of potential problems exist in Van Hung Xuan Company, findings provide the existence of poor management capability plays a main problem The scope of problems is argued with evidences for providing through

interviews from qualitative method Poor management capability is analyzed in terms of its existence, consequences and solution are suggested to resolve such a problem Finally, this thesis will indicate the action plan in the time and budget that are proposed to settle the problem aiming to reduce the obstacles in Translating function in Van Hung Xuan Company

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CHAPTER 1 PROBLEM IDENTIFICATION 1.1 Problem context

1.1.1 Introduction the company

Company Van Hung Xuan has established in 2011 with tax code: 0310832022, its

head office is located at 274 Le Co, An Lac Ward, Binh Tan District, HCM, Vietnam and

it owns 01 branch in Binh Tan District as well It is represented by Mr Nguyen Van Duc

by law with two billion for charter capital It started up with 04 employees and peak of

2015 and 2016 with 16 employees who was working in Van Hung Xuan company

including in head office and 01 branch in HCMC, Vietnam

The company provides the teaching languages and translating services for

companies, there are two main segments: corporate customers and individual customers

With the strategy to expand the market, Van Hung Xuan will have a plan to promote the

network of clients for translating and teaching languages functions from 2019, it creates

of a huge human source to run this business plan

Figure 1 Van Hung Xuan Company organizational structure

In Van Hung Xuan Company, there are Head office and Branch with core

functions: there are 01 office department including in Accounting department, 01

translating department and teaching department In teaching languages functions, they are

divided into 2 small divisions: teaching Vietnamese for foreigners and teaching English

for children in head office and in branch in which the translating business is playing the

key role in company

Teaching languages Department

Teaching languages Department Department

1.2.2 Symptoms

The translating function is born in 2011 and it has been playing the via role in business operation in Van Hung Xuan Company It was difficult to recruit and keep the talent employees who could follow the high requirements from clients in the first phase There were only 04 employees including in 01 managers cum translator, 01 Chief

Accountant cum translator who has managed the general affairs, 02 translators

From the phases of 2011 to 2013, the internal materials are reported that the

number of employees has not changed and the revenues of translating function has gained from 180.000.000 vnd to 225.000.000 vnd for each year The two main languages of English and Chinese has been serviced to target of individual customers and corporate ones The beginning of 2014, manager has planned to recruit the 04 additional new

employees to service for the number of clients and they have kept the job until the end of

2016 The peak of 2017, the translating business operation has been downturn leading to lacking to source job to assign among employees means that translating function has faced the employees who want to leave the job with many reasons in relating to salary and benefits, weak source of clients, and weak management

On the basis of internal materials are shown from Office department, the number

of employees who left the company has been increasing in 2017 The below table is

shown the number of employees who quitted their jobs are more significant in 2017:

Table 1: Number of employees in Translating Function in Van Hung Xuan company

Total of employees Left

Total of employees Left

Total of employe Left

Total of employees Left

Total of employees Left

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As above table of employees at company from 2011-2018, the number of

employees leaving continued toward increasing from 2017 However, the other positions still keep their jobs and unchanged The turnover rate is shown in below:

Graph 1: Turnover rate of employees in Van Hung Xuan Company from 2011-2018

As above mentioned, Van Hung Xuan company has faced the problems in relating

to high turnover rate of staffs in which translating functions reached to 63% in 2017 and it seems difficult for company to seek the potential clients as well as the talent employees who will be dedicate their competences into the growth of business In this function, high turnover rate of leavers has significantly affected to the negative attitude of current

employees and their job performance Moreover, the high of leavers are also affected too much to revenue of company as reported materials from human resource department Especially, the revenue of company has fallen sharply in 2017 that has started from losses

of potential clients leading to poor source of assigned job among employees In a result, it

is said that the correlation between turnover rate and low revenue are affecting to sharply growth of business operation in company

From the internal documents are provided to present the revenues in translating Function from 2014 – 2018 in below:

Graph 2 Revenues in Translating functions in Van Hung Xuan Company

In summary, the symptoms are found in Van Hung Xuan Company including in Decrease Revenues and High turn overate of leavers

1.2 Problem analysis

1.2.1 Situation analysis

According to the data is collected from in-depth interviews from 02 groups:

Managers and the persons who left the job in company

Assigned Multitasks

As the writer can see that there are many reasons leading to increasing number of employees who want to leave their job The interviews are performed to taking over the most importance of business operation to investigate the symptoms and incisive

judgement to the problem occurring in company The content of interviews is shown in Appendix

To get information from employees’ interviews to know that translating function has to fulfill business core requirement from clients and prioritize some of requests while taking over all Facing to high turnover rate as a symptom is found priority in company The leavers left some tasks and current employees who are trying to be in charge of

306,000 313,200

219,600

118,800

68,400 37,800

73,800 79,200

34,200

5,700

50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000

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recruit new ones in this time because of downturn business significantly means that

company does not have much budget to recruiting plan in last recent years The taking of multitasks in company causes of stressful workload for them in the peak of translating season Before the situation of business operation has been declining sharply, Van Hung Xuan company’s managers has had the plan to get back its business operation in

promoting the network of translating from 2019 Ho Chi Minh City – Year of 2018r

Stressful workload

Moreover, the employees who take charge of translating service insisted that dealing with their clients ‘awareness is not easy They always answer all of questions from clients while completing the assignments to summit to Justice Department or Notary Public’s office to screen the documents and go back handing in the clients in time when being request about the time and date, they do not have enough time for preparation for documents perfectly They are always in stressful state with time pressure and these causes may be known as a passive involvement in translating function This is one of reasons employees tended to reject new tasks are taken over from the leavers because they feel the negative impact on their assignments

Mr Tuan Dung – employee at HR department of translator function – who left the job approximately 1 years, 28 years old He shared some views the reason leading to quit

working in company that “the salary plays the most important role in decision to work or leave the job I feel unpaying in salary and high pressure of time and working.”

Mr Dung continuously shared the point of views: “the job was repeating and repeating day by day leading to me tend to undeveloped in my personal career I always felt bored when completing a repeated list of assignments in my daily work”

As above details mentioned, company does not have the HR plan leading to weak compensation in relating to unsatisfied job among employees More views are shared

from Ms Thanh Hong that “Van Hung Xuan company is very young means that it has faced to lacking of clients in developing and growth of company The company does not have much potential clients leading to lacking of sources of jobs that allocate among employees that makes to low income I think the root cause for weak potential clients that

is lacking of marketing and advertisment strategy and weak management skill in keep and have more new clients as well as keep the talent persons”

On the basis of Manager in translating functions shared the ideas that recently the company faced the biggest problem of very high turnover rate of 63% in 2017 From 2017 and the 06 first months of 2018, company has been faced forwardly the difficulties since the experienced employees decided to leave while company still cannot recruit the new ones to replace in time to catch the working pace As above noted, Van Hung Xuan

company is a small and young one that always requires all of employees to satisfy all customers’ requirement perfectly Especially for translating function, once people left the company, it means that knowledge with them would leave the company as well As a result, the experienced employees who still keep the job, will handle a lot of tasks in case the company is hard to find out the suitable candidate for the translating vacancy

Ms Thanh Hong also shared point of view: “The big problems it is assigned many mulittasks with unclear desciption I fell boring with repeating tasks Somtime, I should work with overload but sometime I do not have job to do and always feel boring about the job I feel lacking of motivation to dedicate in assigned job and have a poor

performances Even if, I have weak management of time to complete to multitasks leading

to job stress under work overload in the peak of translating season as well That is why I wanted to quit the job” Additionally, the current business operation of Van Hung Xuan

company, it currently does not have the plan for hiring more employees because of

downturn business This is one of reasons that has negatively impacted to the quality of work leading to poor performance from the lacking of employees because the unstable workload and the company sometime does not have enough human resources for

completing the tasks in the peak of translating business season that makes managers assign multitasks to employees As a result, it has created the lacking of motivation

among employees and the boring and repeating job that make them feeling no promotion

in their job career from the stressful workload

Moreover, company has been suffering from downturn of business operation

means that it is so difficult in running the overall of company and to meet the satisfy the

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requirements from employees, that is why managers’ line let them to leave when they make the decision wan to quitting the job In conjunction to high turnover rate of leavers, the loss profit has happened sharply in 2017 and 06 first months of 2018 and it could have been existed forward in the coming months if the managers do not have some solutions for this function

Unstable workload

The dialogue with Ms Xuan Anh who is manager of translating team, the

information is provided that Van Hung Xuan Company is a small and minimum one It has carried out the start-up of business progress from the phase of 2011 - 2018, it has met lots of obstacles in building the typical industry of translating from the clients to services

and it has been planning to promote the growth of business “Our company is very small, there is less employees who are currently working here We do not have much source of job and company met lots of obstacles in seeking clients We have had the plan to re-build the company” Ms Phuong Anh – Chief Accountant cum Translator, 33 years old, shared that “from my view, I think the first reason that leads to employees want to leave the job is Time pressure Because they must manage the time to do over from the high pressure of times and assigned multitasks.” Another causes come from lacking for promotion in job

They feel boring to work day by day, however, they cannot see the opportunities for their

personal career in relating to stress in job as Ms Phuong Anh continuously said that they

do not see the promotion in their career development path, the assigned job is not clear description leading they take much tasks to complete within a day They need a big time

to resolve these and sometime they are free and nothing to do This causes for the stress

in job

In the urgent times, the employees were assigned to work with the high pressure of times to hand in clients in due date She also provided further information in case she should transfer the translated documents to external agency and paid the high fees for external agency because of lacking employees or she has not had many employees who can translate Multilanguage as requirement of clients Excepting for English and Chinese

as main languages to use in translated business operation, the other languages such as

Thailand, Korean, Spanish, Italian, etc…have been supported from collaborators with high fees Beside the competitive prices among translating agencies making the lack of clients as well This has been leading to lack of capacity and low income for her

translating function In peak season of translating, there were a stressful work load among employees

Poor attractive new customers and weak customers’ relation

Yet, it seems difficult for them from the phase of recruiting and training employees

as well as how to keep the talents who will be dedicated working in company to the phase

of building the strategy of marketing and sale that can find new clients and how to keep the enlarge number of existed clients However, managers cannot have target market to win customers in the strictly competed market nowadays that make decreasing revenue sharply Moreover, up to small company as Van Hung Xuan, marketing and sale

campaign are bigger challenges than ever This is one of possible problem findings can affect to the strategy of expanding to company’s growth in the coming years As speaking

to Ms Xuan Anh: “the company does not have a marketing and sale team This is an obstacle for us to find the new potential clients” Lacking of marketing and sale

campaign, especially for getting and keeping the clients are considered the most difficult problem in Van Hung Xuan Company The biggest challenges are faced to increase the volume of customers purchase the services while trying to keep the existed clients,

however, Van Hung Xuan Company does not have the social networking as building websites or online social networks such as Linkedin, Facebook, Twister, Intergram or newspapers, etc…Managers only focus on their close relationships to get customers through word mouth or zalo….in relating to weak source of customers and it is difficult for them in catching up the working pace and satisfy all of requirements from clients because they lack of human resources leading to employees who are assigned multitask in peak of translating season Moreover, they do not have enough for budge to hire many employees because of irregular job source and lacking of employees means that they hire part-time job or outsources in peak of translating season cause to high costs and decrease revenue They sometime get lots of job and they do not usually have many jobs to

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assigned tasks among employees Ms Xuan Anh who handles the tasks and manage

employees in translating function shared some views that: “We do not have website or any advertisment online The customers are introduced from relationships or from Justice Department and Notary Public Office as well.”

As a result of this that has belonged to the management skills from the managers and how to have a good strategic management for their company toward the good results

of business or bad ones that will be leading to become also threats to company’s mission Decrease Revenue sharply is caused from weak management skill of managers because Van Hung Xuan company is a young and start-up one, it is lacking of many skills in management They do not know how to keep the existed customers and get the new ones

to have many sources of job Additional, the big barrier of high competitors in translating industry strictly in relating to have competed prices and quality services Competitors has many good advantages in Multilanguage to meet the customers’ need all the times with the best prices and services Moreover, they also have best strategy of marketing and sale

to draw and draw the mass of customers to them means that Van Hung Xuan’s employees become tired in management skill of time when they have tried to complete the multitasks from managers leading to low performances among them, it perhaps creates the poor services as clients’ feedback Ms Xuan Anh continually shared that there were also many causes that employees quit job or move to other organizations, these employees wanted to increase the salary and be promoted faster and faster They were always blamed

unsatisfied in their assigned jobs “The requirement from clients, they are always in the tired state and not positive to cooperate or deal with clients in negotiating the time and date They have weak communication leading to run out of the energy to deadline with clients I always get complaint feedbacks from clients about the small mistakes in

translating documents leading to clients to return and correct the ones That is why we cannot offer more salary and provide more attractive benefit for them They have the job poor performance” In summary, Van Hung Xuan company is not only lacking of

marketing and sale campaign effectively, but it is also weak in management skill to get and keep clients as well as keep talent and right employees that are one of sources to get

profitable for company The number of clients is shown to see that decrease in volume of customers leading to low revenues in past years

Low benefit & salary

As details mentioned in qualitative method, the salary and benefits policy that keep the key importance in relating to high turnover rate of leavers Based on the report and analysis from Office department, Ms Phuong Anh who is in charge of accounting affairs

in company, she gave a general view as she got the results from Van Hung Xuan

Company that there is not existing the performance appraisal and human resource plan Employees are received salary through the scale of fixed salary in comparison with the average income of labor market The payroll of individual is sent to his/ her in

confidentially that it has described the details of basis salary and benefits, however, it seems happening the compare the salary among them leading to unsatisfied income

From the internal data of the company that will provide the basic evidence to investigate the topic of salary in company The salary statement is shown in below:

Graph 4 Average salary of employees in Translating Function in Van Hung Xuan

Company from 2014-2018 Based on the above result of table, it is mentioned that the scale of salary still is considered as factor of low salary among employees leading to them made decision to leave company

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Ms Xuan Anh supported this issue that “they always complain about salary; they feel unfair in receiving salary They have compared the current salary to the other companies.”

Graph 3 Number of customers in Translating functions in Van Hung Xuan Company

Decrease in work quality

Ms Phuong Anh continually talked to the leavers in translating function The causes come from high pressure of time and tasks, weak management of time leading to high time pressure Some employees were lack of experiences in translating documents from reading comprehensive to translated technique leading to get more mistakes in documents It was also wasting of much times for resolving the problems in urgent time when satisfy the requirements from clients Once the manager gets the passive feedback from clients means that there is a poorly performance of job

Regarding to the experiences of employees in company, the graph is shown in below:

06 first months of 2018

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Experiences in Translating Function

Table 2: Experiences of employees in Translating Function from 2016-2018

From the above table, the experiences have existed from 0 to 4 years to happen in company with the only one employee who was 23 years old and young, he has started his career path with zero experiences, that was why almost lacking of experiences However,

He supported to settle the paper work and translating documents in company He had lack

of experiences in paper and translating tasks, however, he tried very much to fulfill the assignment in time On the basis of young age and experiences leads to the mistakes and delaying in assigned tasks that can exist to contribute the poor performance job This is one of causes for high pressure of time and working Ms Phuong Anh, chief accountant,

said that: “he does not have experiences in assigned job and normal happen the mistakes

in assigned tasks, but, he works hard and try to learn”

In conversation with Ms Xuan Anh continuously has been analyzed to get further information for leavers in translating field She mentioned that we do not have human resource plan leading to weak recruitment and selection and the performance appraisal do not exist in company It is hard for her to evaluate the achievement of employees The benefits sometime evaluated on the volume of jobs that gets from clients Beside the salary of translating was quietly low in comparison salary of other jobs that used foreign languages, the employee decided to quit the job after only several years working because

of unfair performance appraisals leading to unsatisfied salary and benefits Moreover, the factor of weak management making employees who always feel lacking of supports from managers and colleagues

In summary, potential causes such as weak management skills, lacking of clients, unsatisfied salary and benefits, etc…are identified and some evidences to support the analysis has to be gathered Moreover, turnover rate of leavers affects negatively to

company with a typical factor finding that is low performance in business operation and decrease revenue comes from the weak management skill and lacking of marketing and sale team leading to business result of company has been decreased sharply over years

1.2.2 Initial Cause – Effect Map:

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Firstly, it is understood the Cause and effects Map are used in many industries for many purposes The basic thoery of a Cause and Effects Map aims providing the ways for adjusting the business operation and effecting a chain in the system if specified incidents causes (1) The forming of problem definition typically is a problem mess, it is noticed that by selecting a potential problem and setting tasks with respect to this comes from symptoms, cuases and solution in relating to potential prolem will gather during the initial and orientation phases The diagram presents a causes and effect one in which shows a symtopms that has origined from mess of causes (2)

From interview of group 1, the problem finding is focus on the factor of decrease revenues are focusing on lacking of marketing and sale campaign, weak management and high turnoverate The factors of No opportunities for career path, do not have the

marketing and sale team and do not human resource department come from the interview

of group 2 It is merged two diagrams to understand the issues regarding to the potential problems increase Further information, it is understood that potential problem is selected

to comply with initial cause – effect diagram

A decrease in

Revenue

Lack of Human ResourceTeam

Lack of Sale and Marketing Team

Poor Management Capability

Poor attractive new customers

Big barrier of high competitors

Losing the existing customers Weak customers’ relation

Stressful workload

Unstable workload Reduce work quality

Not reward evaluation

External industrial factor

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1.2.3 Updated Cause – Effect Map

According to Eden et al (3), the analysis relationship between causes and effets mapping are shown the collected views It is shown the arguments can be related to topic’s relevant from its causes and effects It also seeems examines the optential causes into the smaller and smaller items It is useful for showing relationship between contributed factors

in analyzied topic

Job dissatisfaction

On the basis of the thoery about Human Resource Management, it is defined that one of the ways to draw the keep talened people who desires maintaining their jobs that is good human resources management in organization (4) One organization can keep the competenced workforces who are dedicated working leading to supporting the mission, goal and strategies of business growth If the employees can see the benefits on their dedicaiton, they will feel motivation and try their best to complete assigned tasks However, the vison of career path isnot seen from boring job, they are always in mood of dissatisfaction Job dissatisfaction causes for poor job performance and leading to quit the job from employees quickly

High industry competirors

The smarter and more talented sale persons with regard to their interaction to clients The more customers will tell about their need and they are willing to your orgainzation to buy the services or products from yours (5) High competitors are conerned in managers’ lines because of clients The consumers or customers who have the priorty rights to choose the best services or products but the reasonable price is attractted to them The relationship between prices and markets has evaluated through market makers have a sury through markets and prices They expected profit maximizing tending to supply and demand chain and get feedback their competitors’ same way of supply-demand one as well (6) The translating industry was a special field that liked with government department such as Nortary Public, Committee People Department or Justice Department of Ho Chi Minh City,

to be a coollaborators who can have a legal character to sign the legal valued translated documents, however, the integrated economy with transmistion of circulars from Minister

of Justice from 2013, to encourage for small and midium enterprises to start-up business, translating industry to become the attracted fields for young and dynamic people who would like to do busiess with it, and it gradually become competed severly amongs companies togethers and appearing the low service prices to draw the customers

Unattractive salary

The employees are not recognized for their dedication or accomplishments that are considered only criticized for their shortcomings, they do not feel valued and work in the mood of fear of making a mistake A company should encourage the creativity through the fair reward and constructive judgment or recognition for creative, dedication in their work (7) The topic of salary and benefit issues has always argued in almost companies There exits the comprising paying among employees when they often get the salary and benefits to compare with other companies paying

It is defined that many different of factors that can impact to an individual

employee’s level of satisfaction with his/ her job These factors come from the level of paying and benefits (8) The writer can discuss that salary is still an important factor throughout the life of an employee’s career, but it is not the sole motivator to attract and keep the employees More and more people are considering companies that offer

incredible benefits, aside from salary If the employers do not know how invest in their employees, it is surely their top performers will go out of the door Based on the

interviews to find the causes related to high turnover rate of leavers from unattractive salary policy in Van Hung Xuan company

The update cause and effects map is presented as folows:

Poor attractive new customers Poor customers

Weak customers’ relation

High turnover rate

of employees

Stressful workload Assigned

multitasks

Job dissatisfaction

Lack of human resource team

Unstable workload Reduce work

quality

Poor management capability

1.3 Problem identification

1.3.1 Possible problem

To identifying problem, the thesis mainly focusses on internal factors of Van Hung Xuan Company As such, external factor on high industrial competitors will be eliminate removed The remaking of this such will discuss and analysis by using theoretical and empirical exploration to identify the main problem In addition, some evidences

supporting for the analysis has gathered to strengthen the identification

1.3.1.1 Lacking of human resource team

Human Resource (HR) keeps they key role in management of employees If the company has lacked of human resource means that it lacks of ability making employees have motivation in job such as lacking of skills in complete the tasks (9), for example: lacking of time, profession personnel that may have obstacles outside the employees’ control in relating to poor management from managers Moreover, human resource team is not only impacted to company’s performance through how to attract talents to retaining the best tasks to completing or manage the employees’ morale, happiness a cooperating among employees to reach the good results of tasks, but human resource manager should understand how to attract the right talents with constantly upskilling employees to meet the changing needs of the business operation As concerned this, human resource management can impact on performance and leading to poor services means that human resource has a directly influence on employees’ skills, motivation, opportunities for career path Additional, appraisal performance is very important in human resource activities, because

it relevant to attractive salary and compensation with regard to employees’ attitudes It is very terrible for low motivation among employees associated in appraisal performance leading to the poor performance and then affects to result of business If human resource activities exist in company in relating to valid performance management system to evaluate the competence of employees and know how to keep the talents and recruit the new ones

to provide the skills and experiences required to keep the productivity levels up and create the advantages competitive to push up the better ladder career (10) As a result, the importance of management skills in human resource activities keep as a core role in

1.3.1.2 Poor Management Capability

According to Leonard et al (12), management capability helps managers in

thinking about knowledge to build consequences of their technology – related decision and provide the knowledge for them the useful sources in successful adapting as an

incremental re-direction of skills and knowledge in management including the technology innovation Core capability should be managed to foster, not only critical knowledge but competitive industry changes Firstly, it should refer to lacking innovation of technology

in Van Hung Xuan Company leading to out updated information to meet the needs of tasks in time or unexpected happens in management tasks (13) Next, the lacking of

business model innovation is one of essential factors make Van Hung Xuan company cannot catch the modern business trend According to Baden et al (14), business model is linked basically to technology innovation and company performance Update timely and developing the right technology is a matter of a business model decision regarding

openness and user engagement Furthermore, management role is very importance to run all business operation and employees as well It refers to poor management time in

dealing the assigned tasks in deadlines and how to keep and balance the time for urgent time and work In Van Hung Xuan company, the job is irregular assigned leading to stress

and heavy workload in the peak time of translating Stress happens when the employees has been full of demands, deadlines, etc… that cannot meet the requirement under the pressure in relating to low performance The assigned dissatisfied work with multitasks in Van Hung Xuan has come from the weak management skills in relating to low quality of work Moreover, low performance of job leads to poor quality of services that cause the weak business activities If the poor management happens means that cannot keep the existed customers In other words, poor management capability affects to passive attitude

to work of current employees and negative impact to business growth of company

1.3.1.3 Lack of Sales and Marketing Team

It cannot deny that Marketing and Sale Team keep the heart role in business

success of company It reflects the company’s business depending on the successful marketing and selling strategies Marketing keeps the role to transfer as a process by bring out the services that are introduced to potential customers Without marketing, the

business only offers the best services within the translated industry but none of potential customers would know about them That is why marketing management is the most

important in keep and seek the clients to promote the services to them (15) Beside, sale is the soul of company, sale team will bring the image of services to customers through selling services to customers Sale team know how to get closer with customers, and playing a bridge the gap between the potential customers and services that company offers and fulfil the customers’ needs Sale persons have an existing awareness of the company through marketing and advertisement efforts, sale team will introduce the

information and help consumers to make the connection to company’s services

Moreover, the sale team also play a key role in building of loyalty and trust between customers and business products Trust and loyalty are main reasons in relating to

customers choose company’s services means that excellent sale persons are those that not only make the sale, but create a long-lasting impact on the consumers If the company has

a lots of long-term customer’s relationship with regard to increasing the brand’s

reputation by word of mouths It is more cost effective to retain consumers than to win new ones, so looking after the existed customers should be well (16) Taking advantages

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of impact sale on not only revenue but on brand reputation, the customers relationship management role keeps the most important in marketing and sale team as considering key account management or strategic account management or a strategic sale activity (17) As

a result, lacking of marketing and sale team in Van Hung Xuan Company relates to keep and develop potential customers as the factors belong to management capability If poor management in marketing and sale leads to customer’s dissatisfaction with regard to low performance of job and affecting to Van Hung Xuan Company’s business growth and consider a poor management capability In addition, lacking of marketing and sale team can lead to lacking of creativity to promote the brand of company or drawing the potential source of clients means that lacking of marketing and sale can cause the weak

performance It can cause of poor quality, increasing the brand of potential benefits of services from Van Hung Xuan Company and manage the source of customers as well in relating to management skill in company and cannot seek the potential source of clients through the marketing and sale campaign The weak source of clients as a potential cause

of poor management capability

1.3.2 Main problem validation

Poor management capability has increased the low performance of job among employees as above analysis because employees with assigned multitasks creating the stress from time pressure and irregular job at the peak of translating season The work of stress in a common sense to define overloading of employees stated in the influences of work overload impacting to turnover rate in company or stress at work is almost

concerning in the pushing of times (18) Unsuitable assigned tasks are not only the key but also taking the effectiveness the leading reasons why employees want to work or quit the job in company Poor management capability is becoming to the big problem in Van Hung Xuan Company because of low job performance and income in organization It means that new persons cannot meet the requirement for work’s effectiveness ability That is why existing employees need to encourage to cover for the work overload in each function Regarding to this issues, poor management capability plays the most important

in training and keep talents in company Talents are one of invalid assets of company and

if company do not have the good management skill leading to lack of development

opportunities in both of employees and company It is easy to understand the employees’ enthusiasm was decreased and they did not feel interested in their job because of low opportunity development They should have found another chance to get promoted or better job in other organization Lacking of employees in company causes the unsatisfied work allocation in relation to time pressure Mr Mach Tuan Dung, an employee who supported to settle the paper works and translating documents in company, 25 years old now and he has left the company one and a half year ago He shared some information:

The works still repeat and repeat that making boring and cannot create the initiative in the work and lacking of attention as well Especially for work-life balance, the mass of tasks was not difficult, however, it took lots of times to complete them in time I was tired

of working and wanted to quit the job

Moreover, on the basis of branding research has largely focused on markets and only recently has attention been given to business markets that is why the role of

marketing importantly in promote the brand of company leading to attract the customers

to know the services from company (19) The lacking of marketing team can cause less corporate clients or individual clients pay attention to company’s brand One of the weak factors leading to less clients is not the promotion of marketing strategy from company or

it cannot deny that company does not have the strategic management to keep the clients Furthermore, salesperson satisfaction has transmission to crucial consequences for the sales team and company’s dedication, company satisfaction, company word of mouth, and share of total purchases of services or products that will attract to more clients (20) As

the views from Ms Xuan Anh that I think the root cause for weak potential clients that is

lacking of marketing and advertisment strategy, it aims decreasing the costs for company,

we have not ever the strategy for posting the business activities from company on social networking such as newspapers, magazines, or establishing the company’s own website,

we just take advantage of word mouths, zalo, or Facebook to promote the business

activities, the competition of prices among translating agencies leading to the networking

of clients is weak make unsatisfied job for employees cause the poor performance job

marketing and sale team As Ms Xuan Anh said that “we do not have any skills in

management from human to find new clients, excepting for source of old clients, however,

we are facing to old clients who are going to leave us because of competitive prices strictly and low performance from the passive attitude to work of current employees Everything is very terrible for us at now, lacking of knowledge and skills in management capability make us to break business” As a result, poor management capacity is a main

problem of Van Hung Xuan Company Its consequence has resulted from factors such as low performance of job, passive attitude to work of current employees and negative impact on Van Hung Xuan business growth

1.4 Consequence of Problem

1.4.1 The low job performance

According to Greenley et al (21), the low performance is likely to have lower levels of achievement than high performing companies and thus they are likely to have less potential for achieving flexibility to impact on performance It can be said that the low performance of job is results of unsatisfactory job among employees leading to

failure to perform their dedication into the assigned tasks It comes from poor

management capability in company As Ms Xuan shared that The requirement from clients, they are always in the tired state and not positive to cooperate or deal with clients

in negotiating the time and date They have weak communication leading to run out of the energy to deadline with clients I always get complaint feedbacks from clients about the small mistakes in translating documents leading to clients to return and correct the ones That is why we cannot offer more salary and provide more attractive benefit for them They have the job poor performance

1.4.2 Low employee productivity

In Van Hung Xuan company, high turnover rate of employees happens in functions

of translating that occupied high ratio with 63% This function plays the core role in evaluation performance in company The employees who quit the job leading to the

negative impact to company because of reducing in performance efficiently and negative attitude to current employees who are in charge of assigned multitask presently

Additionally, it is taken much times for finding out the competence candidate for the vacancy It means the all of employees who are unchanged their jobs, they have to try fulling the tasks to meet the business requirement while waiting for new employees to take over As a result, it has not affected significantly to revenue of company and it may

be leading to late the deadline for working progress causing for poor job performance and business result is decreased sharply The investigate link to negative attitudes of

employees impact on business outcomes significantly A poor management skill can cause the negative attitudes of employees not only on their performance but on business result of company (22) Employees with negative moods and attitude cannot have a good performance and affect to business activities sharply Ms Xuan continuously shared that

We have faced to the negative impact to current employees and to job performance as well when employees leave working in job

1.4.3 Business Growth Decrease

It is affirmed that there are lacking of clients leading to unsuitable work allocation make people wants to quit their job The decreased revenues come from the low service prices that have been happened among high competitors on the industry market

The role of marketing and sale team play important in seeking clients and promote the brand of company How to have and keep the source of potential customers that is argues that have studied in marketing and customer relationship management Sales and marketing has been benefits to the company through improved business performance However, it does not exist this section in company in relating to negative impact of weak source of clients as important factor affects actively on company business growth (23)

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In summary, the overview from managers’ line shared that the lacking of marketing and sale team leading to low revenue and it causes quitting the job from employees affecting the negative to current employees and poor job performance

Figure 4 Final Cause – Effect Map

Poor customer relationship

management

Lacking of human resource team

Lacking of business strategy

Low performance of job

Negative attitude to work in current employees

Reduce Business Growth

External factor

Decrease Revenue High Turnover rate of employees

Weak Management Capability

be argued to have made decision about main cause and proposal for the best solution for this problem

2.1.1.1 Poor management skills

Lacking of management capability in Van Hung Xuan company is, firstly,

regarding to poor management skills to assign the suitable work allocation among

employees and keep them to be dedicated with their job It makes employees to feel

lacking of recognition, unfair treatment According to Stogdill (24), poor management skills keep the sole in company means that it is important to build the loyalty and

commitment employees in company The interviews from company concerning to human

resources management to keep talent employee Ms Xuan Anh took note that we are very poor management capability we do not have human resource team in company It is

obvious that above analyzed factors as lacking of suitable work allocation skill, high workload, lacking of people or lacking of leadership role make high leavers leading to poor performance that come from lacking of human resource team in Van Hung Xuan Company In a result, it is understood that lacking of human resource team is not main cause in company because the root of cause starts from lacking of potential customers relating to poor diversified services in value proposition in translating market

2.1.1.2 Lacking of business strategy

Factor of lacking of business strategy affects to business performance significantly

It is argued that poor diversified services cannot help company has a value proposition to set of benefits to the client That is true that Van Hung Xuan company is limited services because of two main languages Chinese and English to meet the amount of great clients in translating market It is also discussed that some elements affect to customer’s satisfaction

with regard market development to create the cycles of customers and company in

seeking to fulfill the services and employment’s needs everywhere As mentioned from Stanley et al (25), market development is good form of contact with customers, so, it does not deny that market development and update information technology application

contribute into the business operation significantly and diversified services keep the role

of critical factors from business strategy to coordinating and delivery of customers

services Moreover, especially for the streamline of today’s business, online business marketing is playing the vital role as a bridge between customers with company’s

services Online business marketing contributes in advertising the services and it makes business operation moving forward successfully Unfortunately, Van Hung Xuan

company has been failed in lacking of these factors in the stage of growth business

activities As Ms Xuan Anh said that we do not have marketing and sale team in

company, we do not have any activities to develop the market

2.1.1.3 Poor customer relationship management

Factor of poor customer relationship management is referring to how to keep existed clients in Van Hung Xuan company Moreover, the source of clients come from the close relationship, word of mouth or zalo net working and it seems poor efficient communication pschychology in keeping the existed clients in weak customers database

Ms Xuan Anh took note that We just focus on two main English and Chinese and the existed customers, from 2017 to now, we do not have any new customers And the existed customers have decreased sharply from that year to now It is understood that lacking of

business strategy involves in seeking the new customers and management skills in

keeping the existed customers are very important However, it is definitely proved poor customer relationship management is not main cause in Van Hung Xuan company

Lastly, the external factor is noticed to identify the potential causes, Yet, it also claimed that Van Hung Xuan company is lacking of competitive advantage means that it

is difficult for it to compete the service’s prices in comparison with high competitors on the translating market with some reasons such as quality of service, costs, location, low

prices et al Mr Duc – Director of Company is participated in the dialogue: “we only

internal factors of Van Hung Xuan Company Therefore, factor of external industry will

considering the current business operation of Van Hung Xuan Company, the foremost attention is how to have the good diversified services or market development to draw a lot

of customers and keep the existed ones to have the source of job and revenue as well means that managers of Van Hung Xuan Company should focus on business strategy well aims supporting for business innovation implementation urgently

2.2 Main cause

It can be seen that lacking of business strategy is considered as a main factor that affects to poor management capability according to following analysis:

Firstly, the qualitative data method is collected in relating to the vital reason

affecting to poor management capability As mentioned in dialogue with Mr Duc –

Director of company, that: “we do not have any new business ideas to find new clients, excepting for source of old clients, however, we are facing to old clients who are going to leave us because of competitive prices strictly and low performance from the passive

attitude to work of current employees Everything is very terrible for us at now, lacking

of skills in management capability make us to break business”

Next, the current business condition of Van Hung Xuan Company has been

affecting from poor diversified services to have a value proposition in translating market leading to source of weak clients and decrease sharply revenue in the recent years, it is more difficult for them to seek the source of potential clients because of lacking of market

development Ms Xuan Anh continued: “Even if we also do not update the new

apllications in information technology to have ideas for online business, we are lacking of completely efficient communication through network bridge from modern technology such

as network social or hi-tech marketing” Moreover, the above analysis stated that a value

proposition plays a core competence in company and it has been closed to business

strategy to provide the clients benefits from the quality of diversified services to focus on the drivers of customer engagement

In conclusion, business strategy is very important for small company as Van Hung Xuan That is true if the company takes the value assets of human resource, yet, without market development, good diversified or online business marketing and information technology application to sell the services to cusomers aim creating the value propoition

in translating market means that business operation will be broken It is understood that the critical success factors in small companies concerning factor of market development has become ones of the key forces driving toward business successes Key factors that company should invest into improvement their efficiency and customer satisfaction (26)

It cannot deny that the success of business strategy asking for many efforts that depending

on many factors It is understood as follows:

a Business strategy is a method to have a value proposition for the customers, a

viable structure of revenues and costs for the enterprise delivering that value (27)

b It is referred to innovation in business implementation in relation to

management skills because improving the communication efficiently to

2.2.1 The Fish - bone Diagram

The Fish-bone diagram is presented as follow

Poor Management capability

High workload

Lacking of leadership role

Poor information technology

application Poor diversified services

Figure 5 The Fish - bone Diagram

Lacking of suitable work allocation skill

External industrial

factor

Poor management skill

Poor customer relationship management

Lacking of customer’s management skill

Lacking of business strategy

Lacking of market

development

Lacking of efficient communication pschychology

Lacking of online business

marketing

High industrial competitors

Low service prices

Lacking of appraisal activities

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According to Forster (29), business strategy is understood as business process management that is a powerful approach to improve performance aiming to improve customer’s satisfaction It also knows how to enhance the motivation and job satisfaction among employees, and they are concerned with welfare or benefits to focus on goal to have business model aiming to identify the characteristics of constructive leadership Moreover, as Kim et al (30) stated, business strategy has defined that can be used for commercial purposes There tools are determined utility, price and business model to have ideas for business There are many methods to develop the new business idea such as online business marketing is one of the ways attract the customers from source of inbound and outbound via use the products or services from company Development in new

business ideas are one of ways to improve in verbal and oral communication to have interact personal effectively both of internal and external environment to understand aiming to meet the appropriate the needs of working and catch up the developing of social trend nowadays significantly aiming to have automatically result in improving business performance

2.3 Alternative solution

As early noted, it is understood that today’s competitive market that requires

managers to have a look over the typical skills such as improved divrsified services, updated new information technology application or implemented online business

marketing to keep the business plan effectively to have more and more customers

According to Uden (31) the business strategy are determined from these vital factors such as suppliers, buyers, products and services in which e-business gets back several benefits to the above factors Online business operation helps companies to reach the new markets, new clients, improve the brand image, reduce the costs and differentiate their products and services against competitors E-business is one of the best ways to enter the global business and markets Moreover, the update of new information

technology application helps bridge between customer’s data linking with company’s services Therefore, the writer will propose three following solutions in comparison with the limited costs and financial in current business operations to submit to managers who

will made the decision to choose the best solution in short-term or long-term to have the best benefits

2.3.1 Online Business Marketing

In Van Hung Xuan Company, the current business operation is downturn sharply concerning to the decreased amount of customers How to find the new customers who reach to services from company is the most important element to make decision from gain the high revenue in business With the business model as Van Hung Xuan Company, sale campaign is applied urgently to promote the services and it also takes advantages of online business marketing to advertise the service to draw the customers to know brand

name Ms Xuan Anh – Manager of translating team share that: “we have planned to follow to update the online business marketing I think we should have a sale campaign and online marketing to promote the services to customers We have invested the costs for this campaign.” As a result, online business marketing is choosen as one of potential

solutions because of following benefits:

Benefits:

- Reducing order processing costs - customer orders can automatically come

straight into your orders database from the website

- Identifying the brand name and logo of company

- Saving in operation costs

- Position the company’s business in the translating market

- Research the potential customers, not only inbound but outbound aiming to increase the online sale opportunities

- Online businesses markeing is being able to open 24 hours a day, seven days a week through website of company

- Being able to receive payment more quickly from online transactions

- Using the online business trading to showcase the services to existing customers

- Using Facebook advertisement, taking advantage of power of SEO, and pros of mail address to advertising or google tools to advert the company’s business

e Taking advantage of word of mouth, leaflet, etc