Development of corporate culture at thaco group phát triển văn hóa doanh nghiệp tại THACO group

Characteristics of corporate culture...14 Table 2.1: Summary of questionnaire structure for official study...27 Table 3.1: Statistics of THACO employee gender and age updated on October

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

-ĐỖ THỊ LAN ANH

DEVELOPMENT OF CORPORATE CULTURE AT THACO GROUP

PHÁT TRIỂN VĂN HÓA DOANH NGHIỆP TẠI THACO GROUP

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2020

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

-ĐỖ THỊ LAN ANH

DEVELOPMENT OF CORPORATE

CULTURE AT THACO GROUP

PHÁT TRIỂN VĂN HÓA DOANH NGHIỆP TẠI THACO GROUP

Chuyên ngành: Quản trị kinh doanh

Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS TS NGUYỄN NGỌC THẮNG

HÀ NỘI - 2020

The author confirms that the research outcome in the thesis is the result ofauthor’s independent work during study and research period and it is not yetpublished in other’s research and article

The other’s research result and documentation (extraction, table, figure,formula, and other document) used in the thesis are cited properly and thepermission (if required) is given

The author is responsible in front of the Thesis Assessment Committee,Hanoi School of Business and Management, and the laws for above-mentioneddeclaration

Date………

TABLE OF CONTENTS

DECLARATION i

LIST OF TABLES v

LIST OF CHARTS AND FIGURES vi

BACKGROUND 1

CHAPTER 1: THEORETICAL FRAMEWORK ON CORPORATE CULTURE DEVELOPMENT 5

1.1 Overview about the study on corporate culture development 5

1.1.1 Situation of foreign study 5

1.1.2 Situation of domestic study 8

1.2 General concept on corporate culture 9

1.2.1 General concept on culture and business culture 9

1.2.2 Concept on corporate culture 10

1.2.3 Identity of corporate culture 11

1.2.4 Brandname 12

1.3 Necessity to design and develop corporate culture 13

1.3.1 For enterprise: 13

1.3.2 For the society 14

1.4 Characteristics of corporate culture 14

1.4.1 Visual characteristics of corporate culture 15

1.4.2 Non - visual characteristics of corporate culture 17

1.5 Constituents of corporate culture 19

1.5.1 Management and business philosophy 19

1.5.2 Personal and organization motives 19

1.5.3 Procedures and regulations 19

1.5.4 Information exchange system 20

1.5.5 Movement, rituals, etiquettes 20

1.6 Benefits of corporate culture development 20

1.6.1 For enterprise 20

1.6.2 For non-enterprise: 21

1.6.3 For branding of products and services 22

1.7 Steps of corporate culture development 22

CHAPTER 2: RESEARCH METHODOLOGY 24

2.1 Methodology 24

2.2 Research procedure 24

2.3 Data collection sources 25

2.3.1 Primary data source 25

2.3.2 Secondary data source 25

2.4 Data collection method and tools 25

2.4.1 Data collection method 25

2.4.2 Data collection tools 25

2.5 Data analysis and processing method 27

2.5.1 Primary data processing method 27

2.5.2 Statistics and comparison methodology 28

2.5.3 Descriptive statistics methodology 28

2.5.4 Analysis and synthesis method 28

CHAPTER 3: EXISTING STATUS OF CORPORATE CULTURE DEVELOPMENT IN THACO GROUP 30

3.1 Overview about Truong Hai Automobile Joint Stock Company (THACO) 30

3.1.1 History of development of Truong Hai Automobile Joint Stock Company .31

3.1.2 Organizational structure in Truong Hai Automobile Joint Stock Company (THACO) 33

3.1.3 THACO's value chain 35

3.1.4 Evaluate human resources characteristics in THACO 36

3.1.5 Evaluate the operation performance in the period of 2015 - 2018 39

3.2 Existing status of corporate culture in THACO through visual characteristics.40 3.2.1 Available cultural values of THACO 40

“3.2.2 Corporate culture development through 8 T principles in THACO 41

3.2.4 Cultural development through Code of Conduct in THACO 42

3.2.5 Corporate culture development through THACO HR evaluation culture 43

3.2.6 Corporate culture development through THACO typical publication magazine 47

3.2.7 Corporate culture development in other charity activities 47

3.3 Existing status of corporate culture in THACO through non-visual characteristics 48 3.3.1 Corporate culture development through converting THACO culture into action by each member 48

3.3.2 Corporate culture development through emphasis level in THACO 51

3.3.3 Corporate culture development through working environment in THACO .52

3.3.4 Corporate culture development through cultural rituals and expression in THACO 52

3.3.5 Corporate culture development through Culture - leadership style in THACO 55 3.4 Evaluation of corporate culture development in THACO group 56

3.4.1 Achievements 57

3.4.2 Shortcomings 57

CHAPTER 4: SOLUTIONS FOR CORPORATE CULTURE DEVELOPMENT IN THACO 60

4.1 ThACO’s development and operation orientation to 2020 60

4.2 Corporate culture development solution in THACO 64

4.2.1 Improve working capacity of the Culture - Communications Board 64

4.2.2 Improve and raise the awareness on corporate culture for the employees 66 4.2.3 Perfect the annual HR evaluation procedure 67

4.2.4 Design the behavior culture manual, governance regulation and rule system in THACO 69

4.2.5 Design and develop THACO brand 69

4.2.6 Set up corporate culture development procedure in THACO 70

4.3 Some recommendations 70

CONCLUSIONS 74

LIST OF TABLES

Table 1.1 Characteristics of corporate culture 14

Table 2.1: Summary of questionnaire structure for official study 27

Table 3.1: Statistics of THACO employee gender and age updated on October 2018 .36

Table 3.2: Statistics of THACO employee qualification, updated on October 2018 .37

Table 3.3: Some business performance in the period of 2015 – 2018 39

Table 3.4: HR evaluation table in THACO 43

Table 3.5: Applicable standard criteria table of THACO 44

Table 3.6: General evaluation on corporate culture of THACO members 50

Table 3.7: Survey table on members’ awareness on corporate culture 53

Table 3.8: Influence of leadership style on THACO members 55

v

LIST OF CHARTS AND FIGURES

Figure 3.1 THACO market share revenue in 2018 32

Figure 3.2: Standard logo of THACO 36

Figure 3.3: Evaluation of labor age percent in THACO updated on October 2018.37 Figure 3.4: Available qualification of THACO staff, updated on October 2018 38

Figure 3.5: HR evaluation procedure in THACO 44

Figure 3.6: Sequence of approving the annual HR evaluation results 46

Figure 4.1: THACO's operation and development orientation to 2020 60

Figure 4.2: THACO development mission to 2020 62

1 Necessity of the study

With response to the international and regional economic integrationdevelopment trends, Vietnamese enterprises and organizations are put underincreasingly high pressure not only from the foreign counter-partners but also cut-throat competition even in each agency and organization The Vietnamese andinternational practice proved that a positive cultural environment is a reliablebackground to successfully compete and create the sustainable development for theorganization and enterprise However, in such globalization trend, the culturalassimilation is tended to increase In order to prevent from becoming a culturalconsistency, each organization is required to maintain and uphold its own culture.Culture decides the survival of an organization and helps it further develops out

of the starting point of founders Culture is also recorded as an intangible asset ofsuch organization Culture helps the organization to reduce the conflict, coordinateand control, motivate the employees and enhance the competitive advantages Byreducing the conflict, culture cements the organization’s members who may beunified in terms of understanding, evaluation, and selection and action orientation.When the organization is faced with conflict tends, members are unified by theculture When a complicated decision is required, culture helps the organization tonarrow down the options to be considered, motivate the employees so that they maymaster their job objectives and orientation, creating the good relationship betweenthe employees and a convenient and healthy working environment

Organization culture plays an important role not only for improvement ofcomprehensive work performance but also an important solution to successfullyimprove the competitiveness Culture creates the differences and distinguishesamong organizations

Corporate culture may be regarded as one of valuable intangible asset of eachenterprise Corporate culture may create trust for each person working in suchenvironment, a link among the members of the enterprise, creating the voicebetween the members and improving the enterprise’s competitiveness Therefore,

corporate culture may be regarded as an important mechanism in managing humanresources Meanwhile corporate culture is really merged into the objectives of eachmember, then, they may consider the enterprise’s objectives as their personalobjectives That is why culture-based management may drive the enterprise’s long-term development.

To become the universal industrial Group and Vietnamese Brandname to berecognized as the regional leading position in ASEAN, THACO is required to makeceaseless efforts to develop its internal force, renovate the thinking and action, andimprove the quality and scale of the staff In order to do these, one of importanttools to manage and govern the Company is THACO culture

By always submerging the idea that the staff is the important resources to createthe success and sustainable development, THACO culture is oriented towarddeveloping a qualified staff with strong will, positive working attitude, highcreativeness and high sense of qualification improvement to be able to work in adiscipline and contribute to the Company's development As a result, they becomethe person useful for the society and the Country

With awareness of significance of corporate culture on enterprise’s success andthe sustainable future of the Group, creating a reliable premise to extend to the

region and the world, “Development of corporate culture in Thaco Group”

(THACO) topic is selected as the author’s graduation thesis

2 Objectives

The thesis's research objectives include systematizing some basic theoreticalissues on corporate culture and development of corporate culture; evaluating theresults of developing Thaco Group to be cemented with the Group's developmentand growth, proposing some possible solutions to successfully develop ThacoGroup's corporate culture

By analyzing and comparing the theories with the practice by constituents oforganization culture; Analyzing the concerned concepts, phenomenon of objectiveand non-objective corporate culture; viewpoints and development of corporateculture; evaluating the existing conditions of maintaining and developing the

corporate culture at Thaco Group, awareness of achievements and obtained values;Analyzing the shortcomings and its root causes; Analyzing the availablecharacteristics of the unit; accordingly, suggesting the development orientations forthe corporate culture, giving out the proper development method and progress,convincing and feasible solutions and recommendations on corporate culturedevelopment for the local unit

3 Subjects of research

Subjects of the research are the corporate culture, including: Factors affectingthe corporate culture, characteristics and forms of corporate culture, levels ofcorporate culture The respondents include officials and employees of THACO

4 Scope of research:

4.1 Scope of space:

Thaco Group’s branches extend nationwide, including 3 Branches, namely: TheNorth, the Central and the South, general office in Ho Chi Minh City and Hanoioffice Questionnaire is launched in Showrooms, branches and subsidiaries of ThacoGroup

4.2 Scope of time:

The scope of space is launched at Thaco Group

Regarding the scope of time, secondary data collected from key period of 2013

- 2018 is used herein The secondary data is used to forecast Thaco Group’sdevelopment up to 2022 Primary data was collected in 2018 via questionnaires.The solutions on perfecting the corporate culture to 2022 are proposed by the study

5 Research methodology

A series of methodologies are applied by the thesis:

Statistics methodology: Thaco Group’s data summary is related to corporate

culture development

Analytic method: The reports on Thaco Group's culture development and

implemented solutions are analyzed

Method of listing, comparing and evaluating the sociology survey

method:

Questionnaire uses 3 question types, including closed questions (Yes or No, not go

in-depth into the feelings of the respondent as predetermined below that therespondent only marks the questions that he/she agrees), opening questions (thequestion enables the respondent to specify his specific viewpoints into thequestionnaire) and combined questions.

Number of questionnaires: 300

Respondents: Leaders, official and employees of Thaco Group Respondentsshall be collected, selected and named in the list (300 respondents) before officiallaunch is initiated Secondary data is collected from the previous studies Datacollection is initiated within Thaco Group by accessing and collecting the 5-recent-year data and information from Thaco Group's Board of Culture Communicationsand Board of Planning and Finance

Data processing and analysis method: statistics methodology, analytic method,

comparison methodology are applied to clarify the theories The theoretical review

is combined with the general practice to clarify the basic contents hereof Moreover,the thesis is also inherited and developed from the related studies’ findings to clarifythe main topics of the thesis

CHAPTER 1: THEORETICAL FRAMEWORK ON

CORPORATE CULTURE DEVELOPMENT

1.1 Overview about the study on corporate culture development

Corporate culture or company culture has been widely studied and announced inthe world and in Vietnam by many researchers Approaches to the corporate cultureare varied by each researcher

1.1.1 Situation of foreign study

Corporate culture in the world is generally characterized by 2 different researchorientations The first orientation is to approach under the perspective of ongoingbusiness administrators (micro-approach), focusing on searching and looking for themanagement nature of the cultural factors in business administration The secondone is to approach from the perspective of the cultural factors’ impact on businessadministration (macro approach), focusing on the cultural factors’ impact onbusinesses, especially for businesses with a multicultural or organizationalenvironment

a Three-tier corporate culture model of Schein

Three-criteria-based evaluation method of corporate culture is applied bySchein's research model, concretely: Tangible structure, announced value andgeneral concepts, implications The evaluation method of corporate culture isconsidered to be more practical than the theoretical value of that of the competitivevalue framework That is the three-tier corporate culture model (Schien 1999).Schein’s model is focused on three levels of culture that are the three evaluationcriteria of culture, from practice, implications to invisibility:

- Level 1 (Practice): Provide specific evidence such as folk stories, protocols, stories and symbols

- Level 2 (Standard value): Explain the strategy, purpose and philosophy to guide the thinking and behavior in the enterprise

- Level 3 (General implication assumption): Including the basic assumptions,awareness, value, trust and especially from the founder or the leaders of the Company.

Advantages: Evaluation method under E Schein model is relatively simple andeasy to perform, suitable with the enterprise with restricted time and budget forunderstanding its own culture By using this model, the leader is facilitated toeffectively identify, in particular, the cultural elements of the business, and analyzethe relationships between tangible and cultural values which are deeply originatedfrom the business initiated by the company Similarly, the leaders find the cultural elements to be changed to be well matched with the Company’s ever-changing

environment in accordance with new competitive conditions and new regulations b Studies launched by Recardo and Jolly

Recardo and Jolly (Recardo & Jolly, 1997) unveiled that, when the corporateculture is mentioned, it often covers the system of values and beliefs that areunderstood and shared by members of an organization A culture helps to shape anddefine members' behaviors and organizational policies Corporate culture ismeasured by 8 aspects, concretely:

- Communication: Quantity and forms of communication, what information is

communicated and by which way, open communicative system must be provided

- Training and development: The administrators’ commitment to offer the

great development and organizational opportunities that new skills are enabled to beapplied for the practice Moreover, training programs are provided to successfullysatisfy the employee's current or future development needs

- Bonus and recognition: The rewarded behaviors and the applicable bonuses,

employees to be rewarded individually or collectively, promotion criteria, and the degree

to which the organization provides feedback on the job satisfaction level

- Decision making: Decision making is related to the questions such as how

the decision is made and how the conflicts are handled Decisions are quick or slow Theorganization is high ranking Decision making is characterized by concentrating ordecentralizing

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- Risk acceptance: Creativeness and renovation are highly appreciated and

rewarded Risk acceptance is encouraged and welcome with the new ideas Employeesare punished or motivated to test the new ideas

- Plan orientation: Planning is short term or long term, and future planning is

applied, which visions, strategies and objectives are shared with the employees To

which extent, the employees make commitment to fulfill the enterprise’s strategy and other organization objectives

- Group work: This aspect relates to the issues, including significance, form

and effectiveness of group work in the organization It includes the significance ofcooperation among various departments, trust between the functions or units, and mutualsupport for work performance

- Governance policies: This aspect measures fairness and consistency with the

implemented policies, the impact of member governance styles and the governance levelthat provides a safe work environment

c The Denison model (1990)

The Denison model is based on 200 years of research on how corporateculture affects the performance of businesses Denison's research has found a linkbetween the organizational culture evaluation score and the key performance results

of the business such as profitability (ROE, ROA, ROI), growth (sales growth rate) ,market share), quality, innovation, employee and customer satisfaction

This model aims to analyze and evaluate the constituent factors and influence

on corporate culture including 4 main feature frames, each characteristic frame isassessed through 3 scales, each scale consists of 5 similar variables corresponding

to 60 questions in the Denison questionnaire

Based on the model, we can see the correlation between the cultural factors

of the model and important data about the organization's activities For example, ahigh score in a Stable region tends to show the strongest relationship withprofitability, while a Flexible area has a strong relationship with performance such

as innovation and customer satisfaction Hay cultural factors that exhibit Focusing tend to have strong relationships with the overall development of

Outward-the organization while factors related to Introverted are related to performancemeasures such as performance, quality and employee satisfaction.

1.1.2 Situation of domestic study

a According to the study released by Asso.Prof.Dr Do Minh Cuong

Presented in the course books “Business culture and philosophy” of theNational Political Publishing House, published in 2001, the definition on corporateculture is released by focusing on in-depth research of business philosophy issues.(Do Minh Cuong, 2011)

b According to the study of Nguyen Anh Tuan, M.A and Nguyen Phuong Mai, M.A

Research objectives and contents: Analyze the mutual interaction between theenterprise's cultural environment and the selection and implementation of strategiesinitiated by Vietnamese enterprises in the ever-changing economic period Offer thepossible recommendations for Vietnamese enterprises to successfully develop acorporate culture in accordance with the strategic orientation and good match withthe changing environments Main findings: Specify the impact of economic andsocial characteristics in the transition period to the issue of awareness and how todevelop the corporate culture and business strategy Determine the existingconditions of corporate culture that is compatible with the strategy of Vietnamesecorporate culture Put forward some recommendations and set up the corporateculture that is compatible with the business strategy Training results of the study:References for Strategy Management and Corporate Culture (Nguyen Anh Tuanand Nguyen Phuong Mai, 2011)

c According to the study of Nguyen Viet Loc, M.A

Entrepreneurship is recognized as the core values categorized as the qualities,capabilities and moral qualities that must be obtained and pursued by theentrepreneurs By inheriting the studies on entrepreneurship and entrepreneurshipculture, a cultural value system of Vietnamese entrepreneurs has been designed anddeveloped in accordance with the core factors of entrepreneurship, including: Greatbusiness aspiration; Capacity to search, create, master business opportunities;

Independence, determination, confidence; Dare to do, dare to take responsibility;Flexibility, activeness; Always application of new ideas, methods and solutions tosolve new problems; Business ethics and corporate social responsibility It is alsogiven out hereof to measure and simulate such factors to facilitate the evaluationand orientation of Vietnamese enterprises’ cultural values in the context ofinternational economic integration nowadays (Nguyen Viet Loc, 2011)

1.2 General concept on corporate culture

1.2.1 General concept on culture and business culture

The history of development has proved that culture is the most important factor

to distinguish the nations, regions or groups of persons, including individuals, etc

"Culture affirms the development, demonstrates the power of society and the people

it represents.” Rabin Dranath Tagore, the Indian famous writer (1861-1941) affirmsthat: “responsibilities of each nation are to clearly show the world its uniqueidentity He thought that if a people does not bring anything to the world, it shall be

so bad, it shall be worse than perdition and not be forgiven by the history”

Terms “culture” is originated from Latin language, i.e., “Cultus” refers tocultivation, care of trees Then, “cultus” is extended to the social fields, implicatedfor spiritual care, education and human training towards a better orientation

To the widest scope of research: “Culture is the master of spiritual and physicalvalues created by the persons during survival and development” “Physical valuesmay refer to: beauty spots, pagodas, temples, historical relics as well as thetraditional cultural products For example, Vietnam is recorded with: Bat Trangceramic village, Dong Ho picture or historical relics such as: Hoang Thanh ThangLong, Temple of Literature The spiritual values are demonstrated in the livinghabits, folk songs, “hat xam”, adoration, and especially Vietnamese Xoan singingrecognized by UNESCO as an intangible cultural heritage representing thehumanity.”

To the narrower scope of research: “Culture refers to the activities and spiritualvalue of the human beings” To this extent, Scientific culture such as mathematics,physics, chemistry, culture and concerned industries, etc., and art culture such as

movies, literature, music, etc., to be considered as two main subsystems of thecultural system.

When Culture is referred, it surely covers the very famous brief and cohesivedefinitions of the famous French politician Édouard Herriot (1872 – 1957), that is

“Culture is the remaining when everything is forgotten, the insufficiency when we have learn everything” Therefore, culture is the identity of every individual, every

nation, every nation which cannot be easily forgotten However, this definition onlyshows the importance and extent of the culture, rather than the specificcharacteristics.”

Another famous cultural researcher, Federic Mayor, UNESCO's Chief

Executive Officer (1987 -1999), gave out a specific definition, concretely: "Culture reflects and demonstrates generally and vividly all aspects of life (of each individual and community) that took place in the past as well as happen in the present, over the centuries It constitutes a system of traditional values, aesthetics and lifestyle which each ethnic group asserts its own identity.” Through the

aforesaid investigations, a concept on culture may be drawn out as follows:

“Culture refers to all spiritual and physical values created by the human beings during survival and development”.

“1990s witnessed the appearance of term of business culture and corporateculture Business culture appeared before the corporate culture Such two conceptsare simultaneously used and mutually supported to each other.”

Therefore, corporate culture is the expression of business culture at corporatelevel hence, it is concluded that corporate culture is a phenomenon and part of thebusiness culture

1.2.2 Concept on corporate culture

Each organization is supported by certain standards of moral values, typicalimages, anecdotes, idiosyncrasies and typical styles that are recognized,implemented, complied and communicated by all members by time It is acted asthe reliable basis for the organization members to follow and create the importantinfluence on routine behaviors of every member

Corporate culture is construed as: “a system of meanings, values, key trusts,awareness and thinking method to be agreed by the organization members, widelyaffecting the member’s action manners”.

The question is that: What is corporate culture? Corporate culture ischaracterized by various definitions and understandings The scholar Georges de

Saite Marie – a French expert on SMEs defined that: “Corporate culture refers to collection of values, symbols, legend, protocols, prohibitions, physiology and moral viewpoints to create the reliable background of the enterprise” It is possible to see

that the concept only summaries the constituents of corporate culture, rather thanmutual relation inside the enterprise

A relatively popular definition on “Corporate Culture” of the scholar Edgar H.Schein, an US expert, recorded with many years in studying the culture is shown as

follows: “Corporate culture is the collection of rules and procedures acquired by the enterprise members during problem solving, adapted from outside and internally consisted in the enterprise.” “Such rules and procedures are the triggers

for the members to select the action method, analyze and make proper decisionswithout hesitating about the meanings of such rules and procedures It is considered

to be correct from the beginning.”

In short, even it is defined differently from time to time, it is possible to reach

an agreement on corporate culture definition, concretely: “Corporate culture refers

to a system of value, concepts and behavior rules to be internally shared by the enterprise, governing the feeling, thinking and how to act of members during pursuing and fulfilling the general objectives, creating an unique identity of each enterprise.”

1.2.3 Identity of corporate culture

Identity is characterized by corporate culture philosophy, unique phenomenon

of style, action, behavior of organization, reflecting the selected values andphilosophy Organization's cultural identify is clearly demonstrated by organizationmembers’ behavior It is also the sign to show the consistency in terms ofawareness, key philosophy values of the company.”

“Corporate culture identity is not long-lasting; it may be varied by following characteristics:

values and identities are founders Since its inception, the organization’s missions and individual's cultural identity values are specified

 “Cultural identity may be formed by strengthening: In such cases, leaders

find the way to protect and preserve the prevailing moral and cultural values They may

be very successful outstanding characters in some fields, or they may undertake theposition and responsibilities for preserving and enhancing the created cultural identity.Therefore, operating philosophy culture is deeply submerged in the consistent culture

 “Cultural identity may be formed by integration: Leaders often apply the

leading and integrating style, attentively listen and find the best way to successfully integrate, act

as a bridge to connect, regulate, motivate and share with other persons Thence, leadershipphilosophy and style are deeply characterized by integration culture.”

 “Cultural identity may be changed: Changes in culture may be required when the

fundamental changes are recorded in the organization such as industrialization or technology,foreign culture integration (cross-culture), changes in senior managers Pressure of such changesrequires to take the great and fundamental changes in terms of leadership style, philosophy andaction guidelines When the culture is changed, leadership philosophy and style are deeplycharacterized by adapt culture.”

1.2.4 Brandname

Brandname is a very popular concept widely concerned since long time Thisconcept is also interpreted by various manners such as: “Brandname is the dignity ofthe organization and enterprise and known as a well-respected principles, values andaction philosophy of such organization and enterprise which are easily recognized orlooked back through the corporate culture’s phenomenon”

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Brandname “is a collection of customer’s feelings on a company, a product orservice in all material aspects: Description of identification, values, properties andidentities Brandname binds the consumers through brandname -consumer relation.

In terms of identification, Brandname is a name or signal to identify a product

A successful brandname is the milestone for a product with sustainable competitiveadvantages BMW, Coca Cola, etc., are the typical examples on corporatebrandname, while Louis Vuiton, GUCCI, Dove, etc., are typical examples ofproduct brandname Hence, it is possible to understand that: “Brandname is a non-physical component but essential to an enterprise Once the products are qualifiedwith the levels that are almost indistinguishable by nature, characteristics andbenefits, brandname is the only factor that makes the difference between theproducts and the brands, demonstrating the great trust and safety ”

1.3 Necessity to design and develop corporate culture

Such style for the enterprise is as important as “water and air” for the people It iseasy to realize a style of a successful enterprise Such style is often foot printed with anextremely strong impression to the outsiders and great pride of the enterprise members.Corporate culture creates the behavior patterns, widely accepted and complied

by the members, demonstrating the good harmony within the business in general, aswell as making decisions in specific cases Such patterns are general standards andvalues to commend the good behaviors and criticize the bad behaviors, thence, thepersons may know what should to do and what should not to do

Corporate culture enhances the work motivation, facilitating the loyalty,engagement, creativeness and devotion of the staff.

1.3.2 For the society

Entrepreneurs in particular and interested persons concerning the economicgrowth in general acknowledge the special role of corporate culture in economydevelopment Culture itself is always implicitly submerged with humanism values;therefore, corporate culture always requires businesses to closely cement to businessefficiency with humanity in business: Efficiency cannot be obtained at any cost thathumanism values are ignored Simultaneously, production and business activities ofeach enterprise are oriented towards improvement of the community, ethnicityspirit, and businesses are encouraged to join the social activities such as povertyreduction, relief for natural disaster victims, charitable activities, etc If culturalelements are unavailable, the society will have to bear the extremely seriousconsequences, especially exhaustion of natural resources, discharge problems, andenvironmental pollution caused by production

1.4 Characteristics of corporate culture

Corporate culture is demonstrated through typical signs, phenomenon andcharacteristics Characteristics refer to anything which may be used to demonstratethe contents of corporate culture, key philosophy, value and trusts, how to awareand critical thinking to help the members during their awareness to correctly reflectthe awareness of the members and entire organizations

Characteristics are used to represent the contents of corporate culture, so-called

as visual symbols Such symbols facilitate the easy seeing and hearing Non-visualcharacteristics are specific signs to be demonstrated in the members’ awarenesslevel on corporate culture

Table 1.1 Characteristics of corporate culture

CHARACTERISTICS

- Interior and exterior architecture - History of development and tradition

- Logo, slogan of the enterprise

- Typical publication - Vision, mission and core values

- Behaviors and communication

Source: Collection by the author in the 2018 study

1.4.1 Visual characteristics of corporate culture

a Architecture characteristics

Particular architecture includes office’s exterior and interior architecture used asthe company’s logo and images to create the familiar and good will impression ofthe Company

Architecture design is widely interested by the organizations because:

- Exterior architecture may significantly affect the human behaviors in terms ofhow to communicate, react and perform the works For example: church architecture gives

a strong, powerful impression; The pagoda creates an impression of transparency andcontinuity; The library impresses highly and intellectually

- Architectural works may be considered as a “mascot” denoting a certainmeaning or value of an organization or society For example, France's Eiffel Tower,China's Great Wall, Temple of Literature, One Pillar Pagoda, etc., has become animage and symbol of a national and local spiritual value

- Structural design may be regarded as a symbol of the organization's strategic motto

- Architectural works become an organic part of the company's products

- Each architecture is submerged with historical values associated with the availability and growth of the organization

b Rituals, etiquettes

One of characteristics of corporate culture is rituals and etiquettes These arecarefully planned and prepared activities in the form of activities, official socio-cultural events, serious and emotional activities that are carried out periodically or

irregularly to tighten the organizational relations and often held for the benefit ofattendees.

The characteristics of the ritual’s form and content not only show the values andphilosophy of the corporate culture that the organization wants to emphasize, butalso specific views and approaches of the managers

c Symbol, logo

Another tool of corporate culture characteristics is the symbol The architecturalworks, rituals, anecdotes and logo contain the logo’s characteristics throughphysical and tangible values Such characteristics aims to convey a potential valueand meaning to the receiver in various manners The most important thing ofbranding is to select the name, logo, package design and various attributes toidentify a product and distinguish it with others

Another symbol is the logo or creative masterpiece to be designed todemonstrate the image of an organization or a business in the popular artisticlanguage Although logo is a very simple demonstration, it is assigned with a greatsignificance Hence, it is remarkably focused by organizations and businesses.Nowadays, logos of the world's leading brands such as Coca-Cola, Microsoft,Toyota, etc., have been received with the worldwide special attention and influence

A brand's logo must be developed with specific cultural meaning andsubmerged with the culture identity Brand logo must be well matched with thevarious culture or languages

d Short stories, anecdotes, typical samples

Short stories are stories which are often developed from typical events in terms

of values and philosophy of corporate culture reminded and disseminated to newmembers by the organization In the stories, the typical samples are oftenmentioned They are ideal pattern in terms of behavior suitable with the standardsand corporate culture values Typical samples may be personified into myths withthe qualities and characteristics of many good examples or expectations of valuesand beliefs in the organization Stories aim to maintain the vitality of theorganization's original values and help to unify the awareness of all members

Model characters embody the values and lasting power of the business Theseare the enterprise’s core figures, facilitating to create a distinctive image of thebusiness, making the outstanding results simpler, promoting many classes ofemployees to follow, strengthen and promote the cultural environment in theenterprise.

a company's business and operational philosophy Therefore, it must be closelylinked with the mission statement of the organization or company to thoroughlyunderstand their implicit meaning For example the slogan of Vietjet Airway:

“Enjoy Flying”; Heineken: “It could only be Heineken”; Trung Nguyen Coffee:

“Explore creative inspiration”

f Typical publication

Typical publications are the official data which may help the stakeholders tothoroughly understand the cultural structure of an organization It may be themission statement, annual report, advertisement booklet, brochure about theorganization, company, traditional yellow book, periodic or special publications,advertisement documents on products and company, user’s manual, warrantyinstructions, etc

Strength of corporate culture is characterized by consent of organizationmembers regarding the significance of specific values In case of consent, corporateculture cements the members and generates the powerful strength to develop astrong culture for the organization

1.4.2 Non - visual characteristics of corporate culture

a Ideal/mission

Ideal means applying the theories into practice Corporate culture is interpretedtowards this orientation to emphasize the motive, meanings, lofty, basic andprofound values to help people to sympathize, feel and be touched by things andphenomena Ideal is formed from people trust, values and feelings.

b Value, trust and attitude

In nature, value is the concept related to moral standard and unveiled whatshould be done Honesty, consistency and opening are highly appreciated by theindividuals and organizations, assuming that they should act persistently andfrankly

Trust refers to a concept covering the matter how it should be correctlyconducted In practice, it is difficult to separate this concept because trust alwayscontains values Values are considered as the reliable trust in how to perform orcertain status Leader trust is gradually transformed into collective trust through thevalues However, it is possible to appear the difficulties due to information barriers.Attitude is the bonder of trust and value through feelings Attitude is defined as

a empirical thinking habit to react in a consistent or unwanted way to things andphenomena

In short, trust and attitudes are the enterprise's spiritual values, a system ofvalues and principles shared and spread among employees Such values are formedfrom characters and expectation of the leaders, facilitating the staff's contributionduring business, often accumulated, amended and adjusted by time with history ofdevelopment of enterprise

c History of development and cultural tradition

The history of development and tradition of an organization are symbols of thevalues and philosophies that are selected during the operation respected andpreserved by many generations of the organization; they are used by theorganization to demonstrate the key values and the action motto to be persisted.The practice unveiled that organizations with a long history of development and

a traditional tradition are often more difficult to change in organization than new,young organizations, not clearly defining the style or cultural characteristics The

traditions, customs and cultural factors that have shaped and appeared in the historyare both a support and valuable lessons for the next generation of staff to follow.However, it may also become "psychology barrier" which is not easy to overcome

in building and developing new cultural characteristics Because these values arerigid, the fear of change restricts the creation and expansion of the business’sproduction perspectives

In short, these are very close phenomenon which is perceived and ceaselesslydeveloped with valuable and meaningful traditions of each business

1.5 Constituents of corporate culture

1.5.1 Management and business philosophy

This is the utmost and most important layer of corporate culture, including themost fundamental management and business philosophies The prerequisite for thesuccessful corporate culture development is the commitment of the enterprise'shighest leaders Because the most important part, the heart and the mind of thebusiness is in the innermost layer of culture, it is the business philosophy, theenterprise's management motto and only the highest leaders of the enterprise may beable to influence such core cultural class Therefore, business leaders play a key role

in building and developing corporate culture Leadership is the one who creates thefoundation of the enterprise, forming and nurturing the environment andstandardizing, selecting people who are suitable for the cultural value system and anexample and motivation for employees

1.5.2 Personal and organization motives

The second important factor layer of corporate culture is the motives toaccelerate the actions of individuals and general motivation environment of theorganization Such motivation factors shall be demonstrated by daily behaviors ofthe enterprise’s members

1.5.3 Procedures and regulations

Procedures, regulations and policies help the enterprise to operate stable inaccordance with the standard This component facilitates the enterprises tosuccessfully satisfy the increasingly high requirements on quality, products and

services of enterprises, contributing to creating stability and improving theefficiency of businesses with efforts to the highest satisfaction of customers and thesociety

1.5.4 Information exchange system

This is the fourth constituting layer of the corporate culture to satisfy thediversified, multi-dimensional, accurate and timely management informationdemand This system must ensure that any required information necessary for theenterprises is collected, conveyed, stored and processed Any members of theenterprises may easily access and use the required information for the dailyactivities as well as the planning and orienting the strategies

1.5.5 Movement, rituals, etiquettes

This is the floating culture constituent, reflecting the life and livings of theenterprise Although it does not directly affect the business performance, itsinfluence on every activity of the enterprise is relatively high It effectivelydisseminates the company’s policies and guidelines, creating the company’sdifference against its rivals, a good image prior to the community, facilitating thebranding Therefore, in order to successfully create the enterprise’s identity andgood competitiveness, the entrepreneurs, senior managers, leaders and otheradministrators must involve into the organization's culture development

1.6 Benefits of corporate culture development

1.6.1 For enterprise

Corporate culture is an intangible asset of enterprise, recorded with highimportance in the enterprise’s development, the reliable background, objectives,motives and regulating system of the development Corporate culture helps theorganization to reduce the conflict, coordinate and control, motivate the employeesand enhance the competitive advantages

a Reduce conflicts among members, between individuals and collectives

Corporate culture is the good bonder to cement the enterprise’s members It helps the members to unify the understanding, evaluation, selection and orientation

for action When the organization is faced with conflict tends, members are unified

by the culture

b Coordinate and control

Corporate culture coordinates and controls the personal behaviors throughstories, legends, standards, procedures, sequences, rules, etc Corporate culturefacilitates the good orientation for the enterprise in all material aspects such asleadership style, business culture, quality culture and organizational culture When acomplicated decision must be made, the corporate culture shall narrow down thescale of options to be considered

c Motivate the employees

Corporate culture is not rigid regulations, hindering the creativity of members

On the contrary, the general concepts on corporate value and good relationshipsamong employees that corporate culture offers shall create a comfortable andhealthy working environment, promoting the employee’s innovation and creativity.Thanks to corporate culture, the employees clearly understand the objectives,orientations and nature of work, making them feel to undertake a meaningful tasksand proud to be a member of enterprise This is much meaningful when “braindrain” is popular Income salary is just a part of work motivation When incomereaches a certain level, people are willing to trade off a lower income to work in aharmonious, comfortable environment, well respected by colleagues

1.6.2 For non-enterprise:

Corporate culture is the enterprise's identity, attractiveness with customers,partners, creating a brand for businesses to help distinguish them from otherenterprises Corporate culture also enhances the external relations and acts as thefactors to attract the customers and partners for the enterprise Concretely:

- The customers shall feel peace in mind and proud when the enterprise's products and services are used

- The partners shall give more trust when transactions are made with theenterprise and preference prices may be offered They shall support the enterprise toovercome the difficulties and maintain the commitments

- The regulators and the Government shall trust more when enterprises withgood corporate culture are contacted Accordingly, the great support may be receivedfrom the regulators and the Government during business.

1.6.3 For branding of products and services

Corporate culture development is also recorded as to setup the brandname forthe enterprise and its offerings

Product brandname creates the product quality position Enterprise's brandnamehelps the consumers to evaluate the enterprise’s prestige and moral

Therefore, the above roles of corporate culture shall help the enterprise to grow

and obtain sustainable development to ultimately offer profit to the enterprise - thedecisive factor of survival of an enterprise It is possible to say that when everything

is lost, the corporate culture is remained, then the enterprise still has theopportunities to survive and develop Vice versa, if the culture is lost, the enterpriseshall not survive The enterprise’s success or failure is closely cemented with thecorporate culture’s unique identities

1.7 Steps of corporate culture development

The ways of developing company may vary by culture of each country.Generally, the purpose of developing corporate culture is to ensure that theemployees feel happy, speed up and improve the productivity and engagement withthe company In order to develop the corporate culture, four steps may beconducted:

Step 1: Determine values concerned by stakeholders

Such stakeholders include shareholders or owners, senior managers, employees,customers and other related parties Thence, identify the options and changes toform the most suitable cultural model to satisfy the great concern of the subjects

Step 2: Re-evaluate the available corporate culture model or setup new

corporate culture contents, including core values, business philosophy; Code ofConducts, legal document system; characteristics such as brand identifier,organizational structure, rituals, festivals, stories, legends on enterprises;architectural structure, interior, product system, technology, etc

Step 3: Identify the barriers or change requirements Barriers may be ignorance,

local features, fear of changes, etc Demands must be changed such as internaldispute or changes in technology It is required to specify to prepare the properaction plans

Step 4: Prepare implementation and application plan

There is a famous saying: “Sow a thought, and you reap an act Sow an act, andyou reap a habit Sow a habit, and you reap a character Sow a character, and you reap adestiny.” It is similar to corporate culture development Development of values is onlythe first step to create the enterprise’s ideology Action programs must be regularlyrepeated to become a voluntary habit, an action similar to the conditional reaction It isrequired to supervise and follow up to improve such characteristics in accordance withthe enterprise's core values to create the unique identity of the enterprise

Development of corporate culture is a long time process, requiring a great effort

of every one The achievement is the enterprise’s success

Conclusions: According to the contents and structure on corporate culture, the

Research Methodology is moved to analyze and evaluate the corporate culture

CHAPTER 2: RESEARCH METHODOLOGY

2.1 Methodology

Dialectic materialism methodology is applied during the study

This method requires to study the corporate culture development in Thaco toclosely adhere to the practice to setup, maintain and develop the corporate culture inThaco; consider Thaco’s corporate culture structure in the relation with the generalcultural values and specific cultural values, creating the outstanding culturalidentities of Thaco; consider the corporate culture identities of Thaco in the closerelation with the national culture, origin of the enterprise and its businessenvironment

Application of the dialectic materialism method requires to propose thesolutions to develop the corporate culture in Thaco in the integration periodoriginated from the existing condition of the Group’s corporate culture, especiallythe requirements on recovering shortcomings discovered during maintaining andupholding the specific culture straits of Thaco in the new period

2.2 Research procedure

Research procedure is characterized by following steps:

Step 1: Read and analyze the related studies to inherit and specify the gap forfurther study

Step 2: Identify the research issues

Step 3: Collect and systematize the theoretical issues to setup the researchmodel

Step 4: Setup the research methodology

Step 5: Apply the research methodologies to collect the primary and secondarydata, use the proper tools to handle and analyze the data, and evaluate the existingconditions of the enterprise

Step 6: Refer to the corporate analysis and evaluation released by the enterprise

to propose the solutions to successfully develop the enterprise’s culture

2.3 Data collection sources

Data may be classified by various methods, depending on the researcher’smethod and purpose In order to collect the data for Thaco Group’s corporateculture development research, two main data sources are applied, including primaryand secondary data sources

2.3.1 Primary data source

Primary data is collected by consulting the officials and employees related toThaco Group's corporate culture

2.3.2 Secondary data source

Secondary data source to be collected and researched is the availableinformation, including the references related to the corporate culture topics;organizational behaviors of the researchers and scholars in the world

2.4 Data collection method and tools

2.4.1 Data collection method

Data is collected by surveying and investigating in accordance with thequestionnaire designed to directly deliver to Thaco Group’s officials and employees

in 3 regions: The North, the Central and the South Total 300 questionnaires weredelivered and collected

2.4.2 Data collection tools

Data collection tools are questionnaire used to consult the subjects, in which:

- Question form is the (close) question with question and answer types to be available for the respondent to select

- Detailed contents of questionnaire (appendix 1) include 2 main sections:

Section 1: Design to collect general information about the respondents

Section 2: Design to include the questions to review the knowledge andawareness on corporate culture of officials and employees, working in ThacoGroup

Contents of the questionnaire focus on the employees’ awareness on corporateculture and existing corporate culture in Thaco Group, thence, unveil ThacoGroup’s corporate culture practice and give out the solutions to perfect the

corporate culture.

Table 2.1: Summary of questionnaire structure for official study

GenderAgeService length in the CompanyCorporate cultur Factors of corporate culture

information Visual characteristics

Management and leaders on corporate culturedevelopment

Solutions for corporate culture development

Source: Collection by the author in the 2018 study

Questionnaire design phases:

Questionnaire is designed and tested through some phases to ensure the requiredinformation to serve for the data analysis Questions on corporate culture aspects arebased on previous studies related to the corporate culture

- Phase 1: Design the crude questionnaire in accordance with the information

to be collected in the theoretical model and related previous theories

- Phase 2: Evaluate the questionnaires by examining the understanding aboutthe questions Evaluation is conducted by directly delivering it to the officials andemployees to verify their understanding and response to the questions

Phase 3: Adjust the contents of questions and complete the questionnaire, then directly deliver to Misa employees to collect information

2.5 Data analysis and processing method

2.5.1 Primary data processing method

According to the documents on corporate culture in Thaco acquired during along-time working years thereof, the author shall understand and draw out thelessons on factors governing the establishment, development and specific features

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maintaining and developing the local corporate culture for the Group’s productionand business, especially the foreign markets; then, propose the solutions to maintainand develop the corporate culture in Thaco in the coming time.

2.5.2 Statistics and comparison methodology

Statistics and comparison methodology is initiated after all data has beencollected via questionnaires and collected documents This method is applied torelease the statistics tables on Thaco Group's business figures, statistics onrespondent viewpoints about evaluating and feeling Thaco Group’s corporateculture; compare with other telecom companies to illustrate the relation between thebusiness efficiency with maintaining and developing Thaco- specific corporateculture; also, analyze the existing conditions of advantages, disadvantages inmaintaining and developing such specific cultural straits, acting as the premise topropose the methods for Thaco corporate culture development in the coming time

2.5.3 Descriptive statistics methodology

This method is applied to describe the panorama of related research in Chapter1; describe the research subjects with specific phenomenon of corporate culture inThaco; describe the survey results via the questionnaire; describe the businessperformance of the enterprise; then, analyze the existing condition on maintainingand developing Thaco-specific corporate culture

2.5.4 Analysis and synthesis method

This method is applied to present the study contents In order to analyze theinformation and data, following methods are applied herein:

+ Descriptive statistics methodology: To be launched in Chapter 1 whenoverview of the study is related to the thesis This method is also applied in Chapter

3 to analyze the existing condition of Thaco’s corporate culture development withgeneral expression and specific straits Furthermore, it also aims to find out theshortcomings of maintaining and developing these specific cultural straits in thecontext that the international integration is increasingly developed

+ Descriptive statistics methodology: This method is applied to compare theGroup’s business performance by years in the relation with the maintenance and

development of Thaco Group’s specific corporate culture; compare the revaluation

of the questionnaire (survey) respondents regarding feeling about corporate culture

in Thaco Group to unveil the strengths and restrictions of maintaining anddeveloping such specific features Accordingly, it is systematized and proposals onfuture corporate culture development in Thaco Group are put forward

Conclusions: The analysis basis in Chapters 3 & 4 is based on the Literature

Review and Research Methodology as follows: Analyze and evaluate Thaco Groupcharacteristics in accordance with the contents and structure of corporate culture,existing corporate culture in Thaco Group Then, work out the steps to perfectThaco Group’s corporate culture

CHAPTER 3: EXISTING STATUS OF CORPORATE CULTURE

DEVELOPMENT IN THACO GROUP

3.1 Overview about Truong Hai Automobile Joint Stock Company (THACO)

Truong Hai Automobile Joint Stock Company was incorporated on 29 April

1007, based its registered office at No 19, Street 2A, Bien Hoa 2 Industrial Park,Dong Nai Province The founder is Mr Tran Ba Duong, currently Chairman ofBoard of Directors of THACO

Thaco’s main business activities cover manufacturing, assembly, distribution,supply of automobile spare part repair and maintenance services: Includingmanufacturing and trading in commercial vehicles (trucks and bus); manufacturingand trading in tourism vehicles from Kia (Korea), Mazda (Japan), Peugeot (Europe)

Currently, Thaco is the unique company in Vietnam involving in completemanufacturing and assembly of 3 models: Tourism vehicles, trucks and bus withlocalization percent of 16% - 50%, offering the diversified and qualified automobileproducts with reasonable price

Thaco aims to maintain its local leading position in automobile manufacturing,assembly and distribution in Vietnam, conduct market expansion to ASEAN,enhance the international cooperation to select the proper technology, increasing thelocalization percent, joining the global value chain, creating the reliable background

to develop to establish the universal industrial group, improving the competitiveness

to obtain the regional leading position Currently, the Company’s transaction officesare described as follows:

o General Office in Ho Chi Minh City

 80 Nguyen Van Troi, Ward 8, Phu Nhuan District, HCMC