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Asm be1: Mission,vision,value of Marriotts group hotels. SOE hotels in VietNam

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  • 1. NATIONALECONOMICSUNIVERSITY BTEC HND IN BUSINESS (MANAGEMENT) Assignment Cover Sheet NAME OF STUDENT REGISTRATION NO. UNIT TITLE ASSIGNMENT TITLE DURATION ASSIGNMENT NO ASSESSOR NAME SUBMISSION DEADLINE Nguyễn Hùng Chiến 10120115 Business Environment Individual Assignment 1 of 2 Daniel Vanhoutte Tuesday, 16 October 2012 I, __________________________ hereby confirm that this assignment is my own work and not copied or plagiarized from any source. I have referenced the sources from which information is obtained by me for this assignment. ________________________________ _________________________ Signature Date ---------------------------------------------------------------------------------------------------------------FOR OFFICIAL USE ASSIGNMENT GRADE 1
  • 2. Unit outcomes Outcome Evidence for criteria Identify purposes different types organisation Assessor’s decision the Feedback the of of Internal Verification a Describe the extent which an Understand the to organisation meets organisational purposes of the objectives of different businesses (1) stakeholders b Explain the responsibilities of an organisation and strategies employed to meet them c Merit grades awarded M1 M2 M3 Distinction grades awarded D1 D2 D3 Professor’s additional feedback and comments 2
  • 3. Overall Comments by Assessor Assignment ( ) Well-structured Reference is done properly/ should be done (if any) Overall, you’ve Areas for improvement: ASSESSOR SIGNATURE DATE / / NAME: ................................................................................ (Oral feedback was also provided) STUDENT SIGNATURE DATE / / DATE / NAME : ............................................................................... FOR INTERNAL USE ONLY VERIFIED YES / NO VERIFIED BY : ................................................................ NAME : ................................................................. 3
  • 4. Table of Contents NATIONAL ECONOMICS UNIVERSITY ............................................................. 1 BTEC HND IN BUSINESS (MANAGEMENT).................................................... 1 Evidence for the criteria ............................................................................................. 2 1a. Identify the purposes of different types of organization: ...................................... 5 A. Private Hotel: Marriott hotels ........................................................................... 5  Marriott’s objectives have followed SMART structure: ................................... 6  Marriott’s BSC .................................................................................................. 7 B. State owned hotel: REX hotel of Saigon tourist ............................................... 7  REX’s hotel Balance scorecard: ........................................................................ 8  The difference between the private and public sector:...................................... 8 1b. Describe the extent to which an organization meets the objectives of different stakeholders ................................................................................................................... 9 1c. Explain the responsibilities of an organization and strategies employed to meet them.............................................................................................................................. 10 Reference..................................................................................................................... 14 4
  • 5. ASSIGNMENT 1a. Identify the purposes of different types of organization: Describe one private and one state owned enterprise belonging to the hotel industry in the respect of size, legal status and economic level of activity. Describe their mission, vision, core value, goals and objectives. Are their objectives SMART? Discuss. More specifically, apply the BSC model to assess the performance for both organizations. Based on your analysis, explain the difference between the private and public sector. A. Private Hotel: Marriott hotels 1. Size:  Marriott Hotels group has more than 2600 hotels and resorts in the world, totaling approximately 425,900 rooms and 6,300 vacation ownership villas worldwide.  With different Marriott hotels brands (15 brands: The Ritz-Carlton, Bulgari Hotels & Resorts, EDITION, JW Marriott, Autograph Collection Hotels, Renaissance Hotels, AC Hotels, Marriott Hotels & Resorts, Fairfield Inn & Suites by Marriott, Courtyard by Marriott, Spring Hill Suites by Marriott, Residence Inn by Marriott, The Ritz-Carlton Destination Club, Marriott Executive Apartments, Marriott Vacation Club, Grand Residences by Marriott.  Has hotels in 73 countries in the world  It is ranked as the lodging industry’s most admired company and one of the best places to work for by Fortune® magazine. Overall, Marriott Hotels can be known as Mutilnational (Istanbul Marriott Asia Hotel has 290 number of employees. Marriott International has 129,000 employees.) 2. Legal status: Like companies and corporations, Public limited companies. Because Marriott international appear in stock market, The Marriott was founded by J. Willard Marriott and is now led by president and CEO Arne Sorenson. 3. Economic level of activity:  UK standard industrial classification: Marriott’s hotel, it has a subsection HO- Hotels and Restaurants; Other community, social and personal service activities.  Level of activity: Marriott’s hotels is made up mainly of good distribution and services industries. For the detail, Marriott is in hotel groups and is one of ten the biggest hotels group in hotel services industries. 4. Mission: - To enhance the livesof Marriott’scustomersby creating commodious vacation with the best experience. - Satisfied customers is Marriott’s ultimate goal and they contend to achieve that through customization of quality product and excellance in service. 5. Vision: - To be the world’s leading provider of hospitality services. - Taking care of loyal customers and guest. - Widely and opening operational knowledge. - Development of highly skilled workforce. - Offering best brand portfolio. 5
  • 6. Finally, Marriott’s vision can be said compact is “They want to become the best premiere provider and facilitator of leisure and vacation experiences in the world” 6. Core value: - Leadership Excellence  Open door policy  Balanced Scorecard approach  Mentoring - Personal Growth  Development Programmers-Managerial and Supervisory  Training - Quality of life at work - Teamwork  Marriott Culture and Core Values - Total Rewards - Action planning 7. Goal: Marriott hotel's goal is to create significant value by aggressively building its Marriott’s brands and growing hotels service. The company is Professional in providing exceptional service to customers, growth opportunities for associates, and returns on investment to shareholders and owners and make max profit. 8. Objectives: - Keep customers stay live in long term - Create the Greatest customer satisfaction - Make profit maximization - Increase owner equity  Marriott’s objectives have followed SMART structure:(Marriott’s objectives are SMART) • Specific: Marriott’s objectives have been divided into small pillars (financial target and growth target) with the specific percentage money • Measurable: Those objectives are specific with time and money scales so it could be measured at the recent year • Attainable: Marriott’s reputation has been increasing in hotel service because with the process which Marriott had reached and the trust Marriott made for people, more and more people want to use their service. • Realistic: Those objectives are realistic and could be taken efforts to achieve. • Time-bounded: Marriott is on the way to complete the objectives which has set up in 2013, it will create the premise for the implementation of the hotel's position an business strategy in 2020. It is a long-term plan. 6
  • 7.  Marriott’s BSC Perspective Objectives -Revenue per room growth Target 15% annual revenue growth Outperform profitability Financial brand average -Flow through index, Return on investment and $300 million in revenues by make profit maximization 2003 Sales skyrocketed in just 4 years recently. Consolidate top 20% of brand average with no property below average Customer Internal Process -Guest satisfaction score, relationship customer 20% increase in guest scores management Many people, specially business know satisfy with Marriott hotels in the world. -Internal process audit index, innovation process Adherence to the best practices, human resource, hotel improvement, maintenance. % Annual hourly associate turnover below 60% and % Management turnover below 20% Learning and Growth -Associate turnover, innovation In 2013, Marriott has the third position in the list “10 the biggest hotels in the world” And to the 2020, Marriott want to become the first position in the world B. State owned hotel: REX hotel of Saigon tourist 1. Size: Located in the central of the Ho Chi Minh City, the Rex Hotel was rebuilt to become one of the city’s most incredible place. Coming REX hotel, customer can be served many high-class facilities including 284 individually designed guestrooms, many function & meeting room’s ideal for wedding, business or events, the La Cochinchine spa, and four in-house restaurants, cafe and bar. 2. Legal status: The Rex Hotel was one of the first state-owned five-star hotels built and run by the Vietnamese. 3. Economic level of activity: REX hotels is made up mainly of good distribution and services industries, or tertiary sector. 7
  • 8. 4. Missions: Providing customer satisfaction as well as make customer feels like in their home 5. Vision: N/A 6. Core values: Companies put customer satisfaction as its top priority and as the key to make success. 7. Goals: N/A 8. Object: - Increase profit is the top target of hotel - Create Brand, Image REX hotel in customer when they come to Vietnam - Improve customer satisfaction  REX’s hotel Balance scorecard: Object Target Financial Increase revenue and profit per years Total revenue increase from 289 to 310 billion USD Customer Improve customer satisfaction N/A Internal Process Making an environment professional Recently, more and more tourism come to Vietnam, and they book the room in REX Saigon. Marketing strategy and service planning Learning Growth and Service, technology, quality innovation. After 80 years changing, The hotel has been voted in the “Top Ten Hotels” for ten consecutive years because Hotels at the forefront of quality comes good service bring absolute satisfaction to customers.  The difference between the private and public sector: Public Sector = A service provided by government or local government Private Sector= A service provided by private, individual. There is a big difference between public sector and private sector. SOE is very weak in innovation, but private is very strong in innovation. Because the private company need to be strong innovation to service. Thus Process are what factor private want to follow, the process make customer to be satisfy. They always learn and growth day by day, year by year. Because IF their innovations are good (learn and growth good), then it can improve process. If service of private company good and professional, they can increase satisfaction, bring more and more customers or loyal customers. When customer come with satisfaction, financial of private company are not important. And If the private company have more money, they will come back to learn and growth their good. It is a development round. In stark contrast to the private sector, Public just care about 8
  • 9. their profit or their financial. They will make bigger their company’s value, and stop there, not innovation, not improve process. Then Private will have good performance than public sector, because the way of developing of private is innovation, they need to find the effective methods to attract more customers and increase their reputation and they will make more and more than profit. Public sector just stop at creating profits without innovation, It will never make highest profit, and highest performance. 1b. Describe the extent to which an organization meets the objectives of different stakeholders TASKS 1. From your perspective, identify the three most important stakeholders of FPT plc. Explain who they are, their objectives and why they are the most important. Established on 09/13/1988, for almost 25 years development, the company FPT Information Technology and Telecommunications in Vietnam, leading to more than $ 1.2 billion in revenue (fiscal 2012 report), create nearly 15,000 jobs and the value of market capitalization in 2012 was nearly 10,000 billion (equivalent to U.S. $ 480 million), are among the largest private enterprises in Vietnam (as reported by the Vietnam report 500 ). With core business areas in the field of Information Technology and Telecom, FPT provides service to 46/63 provinces and cities in Vietnam, constantly expanding global market. FPT has presence in 14 countries around the world, such as Japan, USA, UK, France, Germany, Singapore, Australia, Thailand, Philippines, Malaysia, Myanmar, Laos, Cambodia, Vietnam. In specific, three important stakeholders of FPT plc are shareholder, employees and customers.  Shareholder (Connected) Shareholders who are important with one company, like FPT. In the equitization process, the selection of the position of who are shareholder is very important for the operation of the business after equitization. Their main interest is a return on their investment whether in the short or long term. Because they earn and lose money from their capital they put it in company. In FPT plc, chairman of the board with 7.15% ownership rate is Mr. Truong Gia Binh; Vice President of the board with 3.71% ownership rate is Mr. Bui Quang Ngoc. A shareholder owns a share of the company in which they have invested or bought share. This means the shareholder can have a say in the running of that company. They may take part in a key making decision of company. Because they are chairman and president of the board, their comment will be very influential in the decisions the FPT plc takes. However, if the majority shareholder (together account for two-thirds of the shares in the company) believes a proposal to be detrimental to the businesses, it may not be carried through even the board president through. They are important because they put money into FPT’s finance, so the company can use that money for their strategy, plan in future and do something for interests of the company. Mr Truong Gia Dinh, Mr Bui Quang Ngoc and all shareholders of company, all toward a goal that improve company’s profit such as Profit maximization. They focus on make bigger and bigger values of company. When a company have big value, they can easy to return on capital (ROI) and have more and more interest from investors when buy shares of the company.  Customer (Connected) Customers are buying direct object and use the company's services. More specifically with FPT, their clients may be individuals or organizations, they are going to buy the services of companies providing market FPT. 9
  • 10. The goal of the customer is what they will be receiving from the company's services provided, as well as the quality of the products they buy. For example, on the test network, there are three main suppliers VNPT, Viettel and FPT. What is the goal of their customers put their trust in FPT have to help them meet demand, prices are not competitive, stable quality and network operators better remaining two With any company, not just the FPT, the target customer is always top of the company. Because customers are someone who will buy and use their services. Without customers, or not to attract customers, the company will soon bankrupt.  Employees (External) Employees are the puzzle pieces to form an overall picture about one company. If the staff is good, new companies can grow. Because they are directly contributing to make product and build the company's image The goal of the staff is more individual's target than company's target. Most employees want to have a stable job with good pay and good status in society. FPT have full ingredients, here is a competitive environment, to facilitate their employees can maximize their potential. Also FPT also focus on issues of wages and holiday for employees to help they to feel comfortable and FPT can retain workers. 2. Using the three stakeholders you have just identified, explain three conflicts of interest that might occur between them.  Conflict between customers and shareholders For example, in a case that may occur in the FPT, If the company want to increase the speed network, they need to install new optical fibre cables to be able to provide super-fast broadband services across the country. This may be welcomed by customers, however some shareholders may object to the company investing in activities that will not contribute directly to profits. Customers want low prices, but shareholders may feel that higher prices would generate greater profits. This is the conflict between customers and shareholders.  Conflict between customer and employees When customers are not served as they expected, the conflict will be happen. This conflict often occurs in society than other conflicts, because the staff unfriendly attitude, it will affect the purchase and use of customer service, then conflict will affect the revenue and the number of sales of the company.  Conflict between shareholders and employees With a lack of flexibility in the way the staff treats sometimes conflicts between management and employees is very likely to occur. For example, to complete a product plan in a short time, the manage want employees start overtime, and no additional salary. It is affecting the personal lives of the employees, such as cooking, caring family of female employees. So employees often feel tense and in many situations can lead to quit. 1c. Explain the responsibilities of an organization and strategies employed to meet them TASKS You have been appointed as Trung Nguyen representative in London where you are looking to open a coffee shop. You have been tasked with writing a short report. 1.You are looking to hire some local British people. You must inform your directors of the possible legal issues that you might face when hiring and paying your staff. You might find it useful to compare or contrast these issues with the situation in Vietnam. 10
  • 11. If you put your coffee shop into UK, and you looking to hire some local British people, you must obey the employees protection legals like the employees have entitlement to the National Minimum Wage, the terms and conditions of work must be set out in writing, etc.  Statutory: In UK Regarding The Equal Pay Act of 1970, males and females are set the same wage of the same type of work or ranked as being of the same value. In Vietnam( lastest01/5/2013) According to the labor law of Vietnam, men and women are equal. But in fact, in the important position, women generally have fewer rights to make decision than men participate and the wage are less than male. From 1 Oct 2013: More clearly than Vietnam - On the minimum wage (in VN: 2.350.000 VND), the law stipulates that the lowest paid - Adult Rate (for workers aged 21+): 10.08$ when workers do the simplest tasks, in normal - Development Rate (for workers aged 18-20): working conditions and to ensure minimum living needs of workers and their families . The 8.04$ law stipulates the minimum wage will be - 16-17 Year Olds Rate: 5.92$ divided into four regions, assigned to government regulations in urban, rural, - Apprentice Rate: 4.28$ mountainous and remote areas and islands. - Apprentice wage of workers in the probation period, at least 85% of the salary level that Regard The Working Time Directive, 1999 Guaranteed all employees a maximum 48 hours working week, and a four week holiday. Employees can choose to opt out of the Working Time requirement and agree to work longer hours if they wish. - According to The Health and Safety at Work Act 1974 and The Workplace (Health, Safety and Welfare) Regulations 1992, Employees must have safety environment to do their jobs, it’s include lighting, equipment, insurance, etc. Regulations to ensure the overtime hours of employees shall not exceed 50 % of the official working hours in 1 day . In that case applicable regulations work week , the total number of normal working hours and overtime hours shall not exceed 12 hours a day and no more than 30 hours / month and no more than 200 hours in one year . Except for some special cases stipulated by the Government shall be made not more than 300 hours / 1 year . Annually, employees are entitled to holiday pay 10 days holidays . During the Lunar New Year holiday 05 days ( current law is 04 days ) , New Year's , Liberation , International Labor , National Day , anniversary of the Hung ( 01 days ) , in addition to enjoy their stay wages in the case of my marriage : 03 days , the marriage : 01 days ; parents , his wife , their son died 03 days ... - In Vietnam, there are many works that cannot meet those needs such as a lack of facilities - Female employees are on maternity leave before and after childbirth is 06 months. In case of twins or more, calculated from the second - Mostly female workers will have 1 year onwards, every child, mothers are entitled to 01 maternity leave until healthy enough to be able months. Prenatal stay not exceeding 02 months to go back to work and their children have good 11
  • 12. healthy. during which time, the female workers still receive the normal wage  Contractual issues: is the contractual agreement between the two parties but must through writing and must be certified clear. This legal document called labor contracts, which protect the interests of workers and managers. If the original coffee Trung Nguyen want to place shop in UK, manager of Trung Nguyen must first adhere to and respect the laws of the United Kingdom about hiring employees, in addition they can break the rules. But breaking the law here to be beneficial to the employee as reduced hours, increased product quality, etc. If Trung Nguyen violated the terms of their labor contracts, workers have the right to sue in courts of the United Kingdom. Besides Trung Nguyen Coffee need to add some mandatory rules in their labor contract (Course book, 2013, p.108) Name employer and employee Date of beginning labor contract Pay (Scare or rate and intervals at which paid) Hour of work Holiday and holiday payment entitlement Sick leave and sick entitlement Pension and pension schemes Title of Job Length of notice of termination Continuous period  Discrimination: If Trung Nguyen has any discrimination in these aspects below, UK will never accept them to invest in their country and use their employees In UK In Vietnam The Sex Discrimination Act, 1975 and The In Vietnam, gay and lesbian do not accepted Equal Pay Act of 1970 like a third gender, so government do not have labor laws to protect homosexuals Protects employees against discrimination on the grounds of gender, for example: in job advertisements, in selection of employees for jobs, in promoting employees, offering training and career development opportunities. And specially, male and female workers must have the same rights and they don't Discrimination against gay and lesbian workers FromThe Race Relations Act, 1976 In Vietnam, a foreigner can receive higher wages than those of Vietnam in the same Makes discrimination on grounds of race illegal position in the same job. Because wages of in the same way as the Sex Discrimination Act. foreigners are mixed by market, Vietnamese people from different race and nationality have workers is still mixed by a certain ministry the same opportunity to start their work. For example, A Korean chefs must not do his/her job in korea restaurants. However, in some place may still remain with the discrimination blacks. The Disability Discrimination Act, 1995The Act defines discrimination in relation to disability as when a disabled person is treated less favourably and organization must warrant for them to do People with disabilities are less likely to be worked in Vietnam like all normal people to work in large companies. they can just only communicate and work with people with 12
  • 13. their best disabilities as they Religion: Manager cannot eliminate employees Vietnamese are no religion and a minority is because of their religion such as Muslim (The christianism so this discrimination is rather rare Equality Act 2010). in Vietnam. (The Equality Act 2010) It is equal for everyone to evaluate by the quality of work not their age, if they have a good performance, old and young are not important. In Vietnam, where some manager want to the recruiting experienced worker and very few young people. Because of their organizations operate under entrepreneuriual, so they need people with experience, so young people have little chance of such organizations. 2.Consumers are protected by many laws in Britain. With regard to your service being sold in Britain, you must inform your directors of the three most important laws that protect consumers buying your services and explain the implications in meeting these obligations. Investment in the UK market, to succeed, Trung Nguyen need to determine "Who are winner / loser when apply market." If to assert their own names in the UK, the customer will be the winner. Trung Nguyen therefore need to comply with consumer protection laws, so that customers have the confidence and peace of mind with products.  “Sale of goods legislation” is governed by the Sale of Goods act 1979 (SGA). “The SGA gives a customer certain rights against a business who is selling them goods” (Course book, 2013, p.92). This regulation allows customers to have “satisfactory quality”. It means that the customers have to claim their right but it is depend on different situations. If the customers purchase one product which the quality is not as described as the business did, they can return the product to the seller. After that, they can have another product at the same level or ask for the refund. This is a normal type of complain. However, if your case is more serious or the shop refuses to co-operate, the customers have to sue in the Country Court Consumer Protection Act (1987): governs both the pricing of products and product safety. Apply for Trung Nguyen coffee, the price stability and confirmed quality products along with safety is also a strategy built entirely reasonable  According to Consumer Protection Act 1987 (CPA), the consumer no longer has to prove negligence (Course book, 2013, p.98). It means that the consumer can bring claim for losses caused by defects in a product and require compensation. The British consumers always set their respect and follow the law exactly. Therefore, Trung Nguyen’s responsibility should change, innovating and developing the service to serve the customer’s demand. If the quality of service of Trung Nguyen please even the discerning guest's, more and more people will know to Trung Nguyen brand as a respected corporate law coffee and quality.  Trade Descriptions Act 1968: this law aims to protect the customer when the manufacture give the wrong information about the quality, tasty for them and, in fact their Product what be received is not the same. So Trung Nguyen coffee’s act giving specific information to consumers about their products is also very full. Like point of view of an investor, coffee Trung Nguyen should abide by three laws above, they should understand the importance of the observance of the laws. In long/short terms consumers will be satisfied with brands Trung Nguyen coffee which offer customers the reliability, safety and quality assurance. Coffee Trung Nguyen will have a lot of loyal customers, who they had just fixed interest investments are long term, because thanks to them, quality coffee brands Trung Nguyen reputation will be broadened more 13
  • 14. Reference • Author(s). (2013) Business Environment Course Book. 2nd ed. United Kingdom: BBP Learning Media Ltd. Author,(n.d) Manager roles and responsibility [online] Available at: http://www.aboutpersonal-growth.com/managers.html [Accessed 15 October 2013] Author, (2012) Bộ luật Lao động 2012 [online] Available at: http://thuvienphapluat.vn/archive/Bo-Luat-lao-dong-2012-vb142187.aspx [Accessed 15 October 2013] Author, (2010) Employment Statutory Code of Pratice [Online] Available at: http://www.equalityhumanrights.com/uploaded_files/EqualityAct/employercode.pdf [Accessed 15 October 2013] Author, (n.d) Trade descriptions act 1968. [Online] Available http://en.wikipedia.org/wiki/Trade_Descriptions_Act_1968 [Accessed 15 October 2013] at: Author, (n.d) What is product liability? [Online] Available at: http://injury.findlaw.com/product-liability/what-is-product-liability.html [Accessed 15 October 2013] FPT. (2013) Clients. [Online] Available at: http://www.fpt.com.vn/en/about_us/clients/ [Accessed on 3rd October 2013] FPT. (2013) General information. [Online] Available at: http://www.fpt.com.vn/en/about_us/general_information/ [Accessed on 3rd October 2013] FPT. (2013) Human resources. [Online] Available at: http://www.fpt.com.vn/en/about_us/general_information/human_resources/ [Accessed on 3rd October 2013] Anon., n.d. Bộ luật mới bảo vệ người lao động ở những khía cạnh nào?. [Online] Available at: http://www.tinmoi.vn/bo-luat-moi-bao-ve-nguoi-lao-dong-o-nhung-khia-canh-nao011263055.html [Accessed 15 october 2014]. Anon., n.d. Chuyển đổi tiền tệ. [Online] Available at: http://vi.coinmill.com/GBP_USD.html [Accessed 15 october 2013]. Anon., n.d. Equality Act 2010. [Online] Available at: http://www.tameside.gov.uk/equalityact2010 [Accessed 15 october 2013]. Anon., n.d. Industry Innovation. [Online] Available at: http://www.marriott.com/hotel-development/hotel-innovation.mi [Accessed 15 october 2013]. Anon., n.d. Marriott - White Lodging Services, United States. [Online] Available at: http://www.balancedscorecardreview.com/pages/bsc-in-practice/case-studies/marriottwhite-lodging-services-united-states-104.html [Accessed 15 october 2013]. 14
  • 15. Anon., n.d. Meeting and exceeding consumer protection laws to drive competitive advantage. [Online] Available at: http://businesscasestudies.co.uk/dsg-international/meeting-and-exceeding-consumerprotection-laws-to-drive-competitive-advantage/introduction.html#axzz2hk59VxNe [Accessed 15 october 2013]. Anon., n.d. REGULATION Sale of Good act. [Online] Available at: http://www.which.co.uk/consumer-rights/regulation/sale-of-goods-act/ [Accessed 15 october 2013]. Anon., n.d. The National Minimum Wage Regulations 1999. [Online] Available at: http://www.legislation.gov.uk/uksi/1999/584/regulation/13/made [Accessed 15 october 2013]. lucia, J., n.d. Marriott hotels. [Online] Available at: http://prezi.com/oyz09ucmjwrk/marriott-hotel/ [Accessed 15 october 2013]. 15