UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Nguyễn Thùy Linh SOLUTION TO IMPROVE WORKING MOTIVATION AT FRAGRANCE TEAM IN LUXASIA VIETNAM MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2020 TIEU LUAN MOI download : skknchat@gmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Nguyễn Thùy Linh SOLUTION TO IMPROVE WORKING MOTIVATION AT FRAGRANCE TEAM IN LUXASIA VIETNAM MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: LE THI THANH XUAN Ho Chi Minh City – Year 2020 TIEU LUAN MOI download : skknchat@gmail.com Assignment Cover Sheet Master of Business Student Name NGUYEN THUY LINH Student Number 22180017 Subject Name Thesis Facilitator Dr. Le Thi Thanh Xuan Solution to improve working motivation at Fragrance Team in Title of Assignment Luxasia Vietnam Length 64 pages Due Date May 29th, 2020 Date Submitted May 29th, 2020 Declaration: I hold a copy of this assignment if the original is lost or damaged. I hereby certify that no part of this assignment or product has been copied from any other student’s work or from any other source except where due acknowledgement is made in the assignment. No part of the assignment/product has been written for me by any other person except where collaboration has been authorized by the subject lecturer/tutor concerned I am aware that this work may be reproduced and submitted to plagiarism detection software programs for the purpose of detecting possible plagiarism (which may retain a copy on its database for future plagiarism checking) Signature: ……………………………………………………………………….
Note: An examiner or lecturer/tutor has the right not to mark this assignment if the above declaration has not been signed) TIEU LUAN MOI download : skknchat@gmail.com 0 SOLUTION TO IMPROVE WORKING MOTIVATION AT FRAGRANCE TEAM IN LUXASIA VIETNAM May 29th, 2020 Professor: Dr. Le Thi Thanh Xuan TIEU LUAN MOI download : skknchat@gmail.com 1 Contents Chapter 0: Executive Summary. 1 Chapter 1: Introduction/ Company Overview. Vision, Mission and Development Goals in 2020.
Organization of Luxasia Vietnam. Development Goals in 2020. 4 Chapter 2: Problem Context. Structure of Retail & Operations Department.
Business Performance In 2019. 6 Chapter 3: Problem Identification. 7 Sales Revenue Decrease. Competition Between Channels.
Ineffective Marketing Strategy/ Brand Development. High Turnover Rate. Diagram Of Symptom And Potential Problems. 17 Chapter 4: Cause Validation.
High Sales Target. Unsatisfactory Work Performance. End of Contract. No Process/ Manual (Working Process).
27 TIEU LUAN MOI download : skknchat@gmail. Initial Cause & Effect Map. Final Causes & Effect Map. 32 Add more Insurance for Beauty Advisor – Bao Viet Insurance: Healthcare.
33 Develop Training Program. Training Needs Assessment. Objective of application. 41 Chapter 6: Supporting Documents.
List of Figures / Graphs / Tables. 59 TIEU LUAN MOI download : skknchat@gmail.com 1 Chapter 0: Executive Summary Luxasia Vietnam achieved remarkable achievements in 2019 by the contribution of the whole employees. There have been outstanding results of departments like Sales & Marketing Department, Channel Department, Cosmetic team,… However, Fragrance team which contributes nearly 40% of the company's revenue caused a disappointment of a loss of sales revenue and a growth sales decrease within the last 3 years. Due to the importance of the performance and also the business growth of Fragrance team as well as the organization, the aim of this research is to search out what the central factor and reason caused the present issues; then to propose solution to resolve the difficulties of Fragrance team.
The research almost focuses on qualitative approach by in-depth interview with specific employees for analysis. Besides, the primary and secondary data were also collected to illustrate for the thesis. Based on the information and the in-depth interviews with related employees and managers, the analysis is done with the aim to search out the deeper reasons. There are several problems resulting in sales growth decrease at Fragrance team.
It is defined that High turnover rate is the central problem causing the symptom. Moreover, the problem is the result of decrease on work motivation of employees at Fragrance team. In many the studies, work motivation is indicated as one of the most important factors which impact on the efficiency of employee performance. As a result, work motivation features a direct influence in a proportion way on the result of individual performance and organization business as well as the development of business.
Therefore, based on the theory, literature review, interviews with managers and self- experiences, the advice and proposal are proposed with the aim to resolve the present issue and improve the business results of Fragrance team. The proposal is raised to apply on Fragrance team which has significant contribution to the sales revenue of the organization. Because of characteristic of Retail & Operations Department, there may well be an additional consideration for applying on Cosmetic team with the aim to possess a connection, synchronization and fairness for whole Beauty Advisors. TIEU LUAN MOI download : skknchat@gmail.com 2 Chapter 1: Introduction/ Company Overview 1.
General Information Luxasia Group was founded since 1986 and has been the leading omni-channel corporation of luxury product and brands in Asia Pacific market. The object is to provide brands access to the largest retail market and e-commerce network in the beauty industry. Group has made an effort to form a difference to consumers by bringing them the best brands from luxury, prestige to masstige categories. Luxasia’s head quarter is founded in Singapore and the group has line-regional representatives of 15 offices like Singapore, Malaysia, Taiwan, Hong Kong, China, India, Indonesia, Philippines, Thailand, Vietnam and Myanmar, Australia … and a team of quite 2,500 talented staffs.
Luxasia Group is holding distribution rights for over 150 brands including Bvlgari, Guerlain, Hermès, La Prairie, Peter Thomas Roth, Prada, Salvatore Ferragamo, SK-II. Additionally, Luxasia Group has successful joint ventures with Elizabeth Arden, LVMH Group, PUIG, and Yves Rocher. Vision, Mission and Development Goals in 2020 During operations years, Luxasia has achieved the success in developing and growing new brands as well as expanding into world markets. Entering a new integration period, the group has taken off general vision and mission forward to the success of business.
“Vision: Making a difference in every woman's life Mission: Asia Pacific’s beauty omni-leader” Source: https://www.com/about/ Luxasia has 15 representatives in all over the world and hold the unique distribution of 150 brands including Perfume and Cosmetic. With the fast development of market and also the trend of lifestyle, the vision and mission are targeted to attain the share market and to be beauty omni-leader, leading in Asia Pacific market. Furthermore, Luxasia Group well knows that Human Resources are the key to drive the organization to the success. So, among the overall development goals in 2020, the target is to focus and invest on talented employees.
The goal shows the board management’s orientation, foresight and attention to key human resources. TIEU LUAN MOI download : skknchat@gmail. Organization of Luxasia Vietnam Phuoc My International (called Luxasia Vietnam) was founded in 2009 and has been one of the leading companies in beauty market in Vietnam. So far, Luxasia Vietnam has been the unique distributor of more than 20 well-known brands including fragrance and cosmetic.
All brands come from masstige to luxury, such as Guerlain, Calvin Klein, Mac Jacobs, Kora, Wet n Wild. Products are arranged and distributed at counters and boutiques in most of the shopping malls: Diamond Plaza, Vincom, Takashimaya, Waston,. Luxasia Vietnam located at Vincom Dong Khoi, 72 Le Thanh Ton, District 1, Ho Chi Minh City. The location is at the center which helps for easily visiting stores and boutiques, controlling and solving problems in a fast way.
Below is an organization chart of Luxasia Vietnam. The chart shows the operations and the scale of business.1: Organization structure of Luxasia Vietnam (Internal report of Luxasia Vietnam, 2019) Luxasia Vietnam is being operated by coordinating seven functional departments with more than 120 talents. All activities and strategies are forward to the development goals of the company and Group. There is a transformation between Luxasia Group and Luxasia Vietnam in running the business.
Head of Departments will directly report to Country Manager and dotted TIEU LUAN MOI download : skknchat@gmail.com 4 report to Regional Head all activities in Vietnam. The operational model brings engagement and connection between local company and regional. Development Goals in 2020 For the development of Luxasia Vietnam in the year 2020, strategy and target are transferred from Luxasia Group and following as general goals of Group. However, there is an adjustment to correspond to Vietnam retail market and business activities of the company.
In 2020, Luxasia Vietnam sets targets for the growing. There is an expansion in beauty market; some new brands belonging to fragrance and cosmetic will be launched. Especially, as one of development goal of Group in 2020, Human Resource is the key objective to focus and develop. It is recognized that human plays an important role for the development of business and common goal and Group also builds strategy for talents development and retention.
To drive the Group target, Luxasia Vietnam also builds the strategy which is suitable for employees and for the development of the company in 2020, especially to retailers. So, in parallel with economic development, talents development and retention are main goals of the company's this year. TIEU LUAN MOI download : skknchat@gmail.com 5 Chapter 2: Problem Context 1. Structure of Retail & Operations Department Retail & Operations Department (R&O Dept) is a department in charge of all activities at counters, boutiques and stores at Shopping Mall and Beauty Advisor management activities.
Retailer (called Beauty Advisor – BA) is a key resource which brings huge sales revenue to the growth of Luxasia Vietnam. There are two teams in R&O Dept including Fragrance Team and Cosmetic Team in which Fragrance Team contributes nearly 40% of the company's revenue. Below is the organization chart of Retail & Operations Department.1: Retail & Operations Department structure of Luxasia Vietnam (Internal report of Luxasia Vietnam, 2019) Retail Operations Manager (Retail Manager) will be responsible for strategy, operations and programs related to Beauty Advisors. Under Retail Manager, there are two Retail Operations Executive positions (Retail Executive) in charge each Team: Retail Executive (Fragrance) and Retail Executive (Cosmetic) and Sales administration (admin).
Each Executive position not only manages Beauty Advisors in Team but also takes the role of coordinator between Beauty TIEU LUAN MOI download : skknchat@gmail.com 6 Advisor and Brand Team. Sales Admin is responsible for collecting all data of Counters and doing reports for Retail & Operations Team and related functional departments. Besides, Sales Admin supports some admin tasks for the whole team. Fragrance Team As initial identify about structure of Retail & Operations Department, Fragrance Team is the key team which contributes around 40% of the company's revenue.
So, the research only focuses on Fragrance retail Team with the aim to identify present issues and find solutions to improve Team performance and build Team stronger. Retail Executive (Fragrance) takes the main role of managing Fragrance team. Retail Executive will ensure all activities at Counters running smoothly and timely update the business also problems of Team to Retail Manager. Main activity of Beauty Advisors is to achieve sales target.
Target is set up for the whole year and divided into twelve months. Specifically, each counter will receive the target which accords with the current business of Counter. Then, counter’s target is divided up for employees. Retail Executive and Counter Manager go hand in managing all activities at Counter and ensure individual performance to achieve the sales target.
This requires careful management and close contact with Beauty Advisors. Business Performance In 2019 Luxasia Vietnam finished the year 2019 with outstanding achievements. The company reached out of the sales target and achieved net profits. This is the achievements deserved by the relentless efforts and great contributions of all employees.