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 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 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 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Table of Content Order Page Executive summary 4 CHAPTER 1.1 Introduction the company 5 1.2 Initial Cause – Effect Map 17 1.3 Updated Cause – Effect Map 19 1.1 Main problem validation 22 1.1 Lacking of human resource team 22 1.2 Poor management capability 23 1.3 Lack of sales and marketing team 24 1.2 Main problem validation 25 1. Consequence of Problem 27 1.1 The low job performance 27 1.2 Low productivity of employees 27 1.3 Reduce business growth 28 1.4 Final Cause – Effect Map 30 CHAPTER 2.1 Poor management skill 31 2.2 Lacking of business strategy 32 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Define business component 33 2.1 The Fish bone diagram 38 2.2 Define business strategy component 39 2.1 Online Business Marketing 39 2.5 Action plan 45 CHAPTER 3. SUPPORTING INFORMATION 45 Appendix 45 Reference 64 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 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.
4 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.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. Director Head Office Branch Office Teaching languages Teaching languages Translating Department Department Department Department Department 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. 5 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.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 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: Number of employees in Translating Function 06 first months of 2014 2015 2016 2017 Year/ 2018 Ord. Position Total of Total of Total of Total of Total of Left Left Left Left Left employees employees employe employees employees Manager 1 cum 1 0 1 0 1 0 1 0 1 0 translator Chief accountant 2 1 0 1 0 1 0 1 0 1 0 cum translator 3 2 0 6 0 6 0 6 5 1 0 Translator Total 4 0 8 0 8 0 8 5 3 0 Table 1: Number of employees in Translating Function in Van Hung Xuan company 6 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 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: 7 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Revenue in Translating Function from 2014-2018 Unit: 1.000 vnd 450,000 400,000 350,000 300,000 306,000 313,200 250,000 219,600 200,000 150,000 118,800 100,000 73,800 79,200 68,400 50,000 37,800 34,200 - 5,700 2014 2015 2016 2017 6 first months of 2018 Coporate Customers Individual Customers Total 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 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 multitask while waiting for take over the new vacancies. It seems difficult for company to 8 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 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.
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. 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.