ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUỐC TẾ ***************** VÕ THỊ DIỆP ANH COST MANAGEMENT IN BAMBOO AIRWAYS STATUS AND SOLUTION FOR THE DEVELOPMENT QUẢN TRỊ CHI PHÍ TẠI CÔNG TY CỔ PHẦN HÀNG KHÔNG TRE VIỆT, THỰC TRẠNG VÀ GIẢI PHÁP HOÀN THIỆN LUẬN VĂN THẠC SĨ Hà Nội - 2020 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUỐC TẾ ***************** VÕ THỊ DIỆP ANH COST MANAGEMENT IN BAMBOO AIRWAYS STATUS AND SOLUTION FOR THE DEVELOPMENT QUẢN TRỊ CHI PHÍ TẠI CÔNG TY CỔ PHẦN HÀNG KHÔNG TRE VIỆT, THỰC TRẠNG VÀ GIẢI PHÁP HOÀN THIỆN Chuyên ngành: QUẢN TRỊ TÀI CHÍNH Mã số: 8340202.01QTD LUẬN VĂN THẠC SĨ Người hướng dẫn khoa học: PGS. Nguyễn Văn Định Hà Nội - 2020 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ACKNOWLEDGEMENT I declare that this master’s thesis is my own research and the data and the material used in this thesis have clear sources and references to all the sources. The result of this thesis is honest and derived from the actual situation of the organization. In order to complete this master’s thesis, I owe a lot of people many thanks for their supporting.
First of all, I would like to express my endless thanks and gratefulness to my supervisor Assoc. Nguyen Van Dinh. His kindly support and continuous advices went through the process of completion of my thesis. Without his assistance the thesis would not have been done effectively.
So far, I would like to thank all the lectures and staffs of International school – Vietnam National University Hanoi and International Faculty for their teaching and supporting me to achieve knowledge and experience. My special thanks to all staffs and management’s branch of Bamboo Airways for their kind assistances and support in providing me data and advices to complete the research. Thank you! 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ABSTRACT Under the global trend of economic integration, cost management is playing an extremely important role in business. As a result, cost management has become a matter of special concern for any enterprise.
The dissertation with title: “Cost management in Bamboo Airways, status and solution for the development”, is conducted with a focus on clarifying the following matters: - The dissertation has presented, analyzed, and clarified key contents of cost management at Bamboo Airways Joint Stock Company. - By analyzing facts at Bamboo Airways Joint Stock Company, the dissertation presents an overview picture of actual cost management practices at Bamboo Airways. - By conducting a field survey on actual cost management at Bamboo Airways Joint Stock Company, the dissertation has identified the limitations in the organization of cost management practices. This is an important foundation for developing a complete cost management plan.
- The dissertation discusses the necessity and practical significance of the organization of cost management at Bamboo Airways Joint Stock Company. - It proposes a plan to improve cost management at Bamboo Airways Joint Stock Company from two perspectives: The State and Bamboo Airways Joint Stock Company. In general, cost management and business performance are relatively wide and complex issues and Bamboo Airways Joint Stock Company has experienced certain obstacles in dealing with these issues. Therefore, the author wants to learn more about current state of cost management at Bamboo Airways Joint Stock Company to help remove these obstacles.
2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENTS ACKNOWLEDGEMENT. 2 LIST OF FIGURES. 5 LIST OF TABLES. 6 LIST OF ABBREVIATIONS.
The necessity of the research. Structure of the thesis. 10 CHAPTER 2: THEORETICAL BACKGROUND AND LITERATURE REVIEW OF COST MANAGEMENT .1 Theoretical background of cost and cost management in business .1 Definition of cost management in business .2 Contents of cost management in business .3 Cost management in aviation company. 32 CHAPTER 3: RESEARCH METHODOLOGY .1 Secondary data collection method .2 Data processing method.
34 CHAPTER 4: COST MANAGEMENT AT BAMBOO AIRWAYS JOINT STOCK COMPANY .1 General Introduction to Bamboo Airways Joint Stock Company.1 Overview of Bamboo Airways Joint Stock Company .2 Characteristics of organizational management structure.3 Business performance of Bamboo Airways from 2017-2019 .2 Cost management at Bamboo Airways Joint Stock Company .1 Cost management Organization. 38 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Cost management at Bamboo Airways Joint Stock Company .3 Evaluation of cost management at Bamboo Airways Joint Stock Company .2 Limitations and reasons .4 Solutions for development of cost management at Bamboo Airways Joint Stock Company .1 Complete the classification method of costs .2 Development of cost estimation .3 Implementation of cost management information .4 Improvement of analysis and provision of cost information .5 Improvement of cost control .6 Other improvement solutions. 68 LIST OF REFERENCES.
69 4 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURES Figure 1.1 Workflow of collect cost management information. 1 Company Organization chart. 2 Organization chart of Financial and Accounting Division. 3 Cost structure of Bamboo Airways.
4 Chart of fuel prices in 2018-2019. 5 Chart of Maintenance repair and overhaul expense in 2019. 6 Chart of Ground handling Expense in 2019. 7 Chart of Aircraft rental expense in 2019.
8 Integration flow of information.50 5 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLES Table 1. 1 Structure of operating cost. 2 Daily flight schedule. 3 Cost estimation method for flight.
1 Business performance of Bamboo Airways from 2017-2019. 1 Cost estimation for flight- Financial Department. 2 Budget implementation report. 3 Monthly Cost management report.
4 Cost management report by routing .60 6 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF ABBREVIATIONS AIMS Airplane Information Management Systems AMOS Airline Maintenance and Operating Systems Company/BAMBOO Bamboo Airways Joint Stock Company (BAMBOO AIRWAYS AIRWAYS) FIN & ACC Financial and Accounting Department FO Flight Operation Division GO Ground handling service Division HR Human resource Department IT Information and Technology Department JSC Joint Stock company MAR Marketing Department MEDIA Internal and Social media Department OFFIC Office Department PLANNING Planning Department PROC Procurement Division SAP Accounting system SQA Safety Quality Assurance Department TECH Technical and Maintenance Division TRC Training Center VND Vietnam Dong 7 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 1 INTRODUCTION 1. The necessity of the research In order to survive and grow in today’s increasingly competitive market economy, each enterprise must take its best efforts to find its own effective cost management way to not only maximize operating costs, enhance the quality of services and products, but also help the managers make the best and appropriate decisions in a sound and informed manner to increase their competitiveness in the market. Cost is always one of crucial concerns to corporate managers in the governance of their business operations. Effective cost management is one of key elements that decides the success of any enterprise.
To perform their cost planning and management functions well, it is essential that the managers should have the knowledge of cost information from administration division. As a result, cost information is an essential input to the managers. The topic of cost management has received an increasing interest among Vietnamese enterprises. Having the knowledge of cost information in a timely and accurate manner is one of decisive factors to the success of the enterprise.
Having such a knowledge and understanding the nature of each cost will enable the managers easily derive useful information and help make informed and sound business decisions. Thus, timely developing a complete and effective cost management system is an urgent and essential task of today’s enterprises. Profit maximization is the top goal of any business in the economy. In addition to finding the markets, boosting production capacity, and improving product quality, cost and cost management are also very important to business managers.
Today, in addition to the tasks of collecting, processing, reflecting, and recording economic transactions, administration department is also required to analyze financial situation and business costs so that it may promptly give advice to the board of management. This need seems to be indispensable for management purpose. In the world, cost management has evolved over a long period consisting of four stages, including costing and financial control, information planning and management, and reduction of waste resources in business 8 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com processes and until creation of value through efficient use of resources. In Vietnam, cost management has only received attention for the last 30 years, but still that attention is still inadequate.
Although cost management is not required for all types of companies, the insights derived from cost management will provide corporate managers valuable and meaningful foundation for making short, medium, and long-term decisions. Such information is helpful to corporate administrators as they will have a comprehensive, specific, and detailed perspective to meet the requirements and objectives of their companies. Bamboo Airways operates as an independent enterprise and its main business is transporting passengers and commodities by air. Like many other service businesses, cost management and analysis are a very important factor for the company to increase its competitiveness in the market.
In the meanwhile, the departments entrusted with the task of cost management have not provided necessary information to meet the requirements of the Board of Directors yet. Recognizing those limitations, the author chooses the topic” Cost management in Bamboo Airways, status and solution for the development” as the subject matter of this study. Research objectives + In term of theory: The study is conducted to investigate the theories and theoretical issues on cost management in service enterprises. + In term of practice: The study is conducted as an actual survey on cost management at Bamboo Airways Joint Stock Company and from which solutions will be proposed to improve the cost management of Bamboo Airways.
Research Scope + Scope of content: The topic focuses on cost management practices at Bamboo Airways Joint Stock Company. + Scope of time: The study is conducted to investigate current state of cost management at Bamboo Airways Joint Stock Company in 2019. + Scope of place: Bamboo Airways Joint Stock Company. 9 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.
Research methodology The topic uses a variety of research methods to take advantage of each methodology as well as analyze the data more effectively, including Statistical method, analysis method, comparative methods, and summarization method. Moreover, the data collected in the topic is mainly secondary data from various sources, such as financial statements, business operation result statements, documents and policies of Bamboo Airways, research works, reference books, journals and legal policies of the Government related to cost management. Structure of the thesis In addition to the Introduction, Conclusion, List of References, Tables and Figures, and Appendixes, this thesis is structured of 5 chapters as follow: Chapter 1: Introduction Chapter 2: Theoretical background and literature review of cost and cost management Chapter 3: Research methodology Chapter 4: Cost management at Bamboo Airways Joint Stock Company Chapter 5: Conclusion 10 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 2 THEORETICAL BACKGROUND AND LITERATURE REVIEW OF COST MANAGEMENT 2.1 Theoretical background of cost and cost management in business 2.1 Definition of cost management in business 2.1 Definition cost management in business Cost management is a new entrant in the terminology of management and is widely used these days in business world. In the word of Horngren, cost management is used “to described the approaches and activities of managers in the short-term and long-term planning and control decision that increase values for customers and lowers cost of products and services”.
According to Hansen and Moven, “Cost management identifies, collects, measures, classified, and reports information that is useful to manager in costing, planning, controlling and decision making”. According to Kumar and Sreekantha, “Cost management is the system of allocating costs to production/ service, thereby enabling and achieving cost control and cost reduction”.