Management capability in Van Hung Suan Company.pdf

1. 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

3. 1
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

4. 2
Table of Content
Order Page
Executive summary 4
CHAPTER 1. PROBLEM IDENTIFICATION 5
1.1 Problem context 5
1.1.1 Introduction the company 5
1.1.2 Symptoms 6
1.2. Problem analysist 8
1.2.1 Situation analysis 8
12.2 Initial Cause – Effect Map 17
1.2.3 Updated Cause – Effect Map 19
1.3. Problem identification 22
1.3.1 Main problem validation 22
1.3.1.1 Lacking of human resource team 22
1.3.1.2 Poor management capability 23
1.3.1.3
1.3.2
Lack of sales and marketing team
Main problem validation
24
25
1.4. Potential causes 27
1.4. Consequence of Problem 27
1.4.1 The low job performance 27
1.4.2 Low productivity of employees 27
1.4.3
1.4.4
Reduce business growth
Final Cause – Effect Map
28
30
CHAPTER 2. ALTERNATIVE SOLUTIONS 30
2.1. Cause Validation 30
2.1.1 Possible causes 30
2.1.1.1 Poor management skill 31
2.1.1.2 Lacking of business strategy 32

5. 3
Define business component 33
2.2 Main cause 35
2.2.1 The Fish bone diagram 38
2.2.2 Define business strategy component 39
2.3 Alternative solution 39
2.3.1 Online Business Marketing 39
2.3.2 Services Diversification 41
2.3.3 Market Development 41
2.4 Solution selection 44
2.5 Action plan 45
CHAPTER 3. SUPPORTING INFORMATION 45
Appendix 45
Reference 64

6. 4
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.

7. 5
CHAPTER 1. PROBLEM IDENTIFICATION
1.1 Problem context
1.1.1 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.
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.
Director
Head Office Branch
Office
Department
Translating
Department
Teaching languages
Department
Teaching languages
Department
Department

8. 6
1.2.2 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 180.000.000 vnd to 225.000.000 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:
Table 1: Number of employees in Translating Function in Van Hung Xuan company
Total of
employees
Left
Total of
employees
Left
Total of
employe
Left
Total of
employees
Left
Total of
employees
Left
1
Manager
cum
translator
1 0 1 0 1 0 1 0 1 0
2
Chief
accountant
cum
translator
1 0 1 0 1 0 1 0 1 0
3
Translator
2 0 6 0 6 0 6 5 1 0
4 0 8 0 8 0 8 5 3 0
Total
Number of employees in Translating Function
Ord.
Year/
Position
2014 2015 2016 2017
06 first months of
2018

9. 7
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:

10. 8
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.
1.2 Problem analysis
1.2.1 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
306,000 313,200
219,600
118,800
68,400
37,800
73,800 79,200
34,200
5,700
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
2014 2015 2016 2017 6 first months
of 2018
Revenue in Translating Function from 2014-2018
Unit: 1.000 vnd
Coporate Customers Individual Customers Total

11. 9
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.
Mr. 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.”
Mr. 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. I always
felt bored when completing a repeated list of assignments in my daily work”
As above details mentioned, company does not have the HR plan leading to weak
compensation in relating to unsatisfied job among employees. More views are shared
from Ms. Thanh Hong that “Van Hung Xuan company is very young means that it has
faced to lacking of clients in developing and growth of company. The company does not
have much potential clients leading to lacking of sources of jobs that allocate among
employees that makes to low income. I think the root cause for weak potential clients that

12. 10
is lacking of marketing and advertisment strategy and weak management skill in keep and
have more new clients as well as keep the talent persons”.
On the basis of Manager in translating functions shared the ideas that recently the
company faced the biggest problem of very high turnover rate of 63% in 2017. From 2017
and the 06 first months of 2018, company has been faced forwardly the difficulties since
the experienced employees decided to leave while company still cannot recruit the new
ones to replace in time to catch the working pace. As above noted, Van Hung Xuan
company is a small and young one that always requires all of employees to satisfy all
customers’ requirement perfectly. Especially for translating function, once people left the
company, it means that knowledge with them would leave the company as well. As a
result, the experienced employees who still keep the job, will handle a lot of tasks in case
the company is hard to find out the suitable candidate for the translating vacancy.
Ms. Thanh Hong also shared point of view: “The big problems it is assigned many
mulittasks with unclear desciption. I fell boring with repeating tasks. Somtime, I should
work with overload but sometime I do not have job to do and always feel boring about the
job. I feel lacking of motivation to dedicate in assigned job and have a poor
performances. Even if, I have weak management of time to complete to multitasks leading
to job stress under work overload in the peak of translating season as well. That is why I
wanted to quit the job”. Additionally, the current business operation of Van Hung Xuan
company, it currently does not have the plan for hiring more employees because of
downturn business. This is one of reasons that has negatively impacted to the quality of
work leading to poor performance from the lacking of employees because the unstable
workload and the company sometime does not have enough human resources for
completing the tasks in the peak of translating business season that makes managers
assign multitasks to employees. As a result, it has created the lacking of motivation
among employees and the boring and repeating job that make them feeling no promotion
in their job career from the stressful workload.
Moreover, company has been suffering from downturn of business operation
means that it is so difficult in running the overall of company and to meet the satisfy the

13. 11
requirements from employees, that is why managers’ line let them to leave when they
make the decision wan to quitting the job. In conjunction to high turnover rate of leavers,
the loss profit has happened sharply in 2017 and 06 first months of 2018 and it could have
been existed forward in the coming months if the managers do not have some solutions
for this function.
Unstable workload
The dialogue with Ms. Xuan Anh who is manager of translating team, the
information is provided that Van Hung Xuan Company is a small and minimum one. It
has carried out the start-up of business progress from the phase of 2011 - 2018, it has met
lots of obstacles in building the typical industry of translating from the clients to services
and it has been planning to promote the growth of business. “Our company is very small,
there is less employees who are currently working here. We do not have much source of
job and company met lots of obstacles in seeking clients. We have had the plan to re-build
the company”. Ms. Phuong Anh – Chief Accountant cum Translator, 33 years old, shared
that “from my view, I think the first reason that leads to employees want to leave the job is
Time pressure. Because they must manage the time to do over from the high pressure of
times and assigned multitasks.” Another causes come from lacking for promotion in job.
They feel boring to work day by day, however, they cannot see the opportunities for their
personal career in relating to stress in job as Ms. Phuong Anh continuously said that they
do not see the promotion in their career development path, the assigned job is not clear
description leading they take much tasks to complete within a day. They need a big time
to resolve these and sometime they are free and nothing to do. This causes for the stress
in job.
In the urgent times, the employees were assigned to work with the high pressure of
times to hand in clients in due date. She also provided further information in case she
should transfer the translated documents to external agency and paid the high fees for
external agency because of lacking employees or she has not had many employees who
can translate Multilanguage as requirement of clients. Excepting for English and Chinese
as main languages to use in translated business operation, the other languages such as

14. 12
Thailand, Korean, Spanish, Italian, etc…have been supported from collaborators with
high fees. Beside the competitive prices among translating agencies making the lack of
clients as well. This has been leading to lack of capacity and low income for her
translating function. In peak season of translating, there were a stressful work load among
employees.
Poor attractive new customers and weak customers’ relation
Yet, it seems difficult for them from the phase of recruiting and training employees
as well as how to keep the talents who will be dedicated working in company to the phase
of building the strategy of marketing and sale that can find new clients and how to keep
the enlarge number of existed clients. However, managers cannot have target market to
win customers in the strictly competed market nowadays that make decreasing revenue
sharply. Moreover, up to small company as Van Hung Xuan, marketing and sale
campaign are bigger challenges than ever. This is one of possible problem findings can
affect to the strategy of expanding to company’s growth in the coming years. As speaking
to Ms. Xuan Anh: “the company does not have a marketing and sale team. This is an
obstacle for us to find the new potential clients”. Lacking of marketing and sale
campaign, especially for getting and keeping the clients are considered the most difficult
problem in Van Hung Xuan Company. The biggest challenges are faced to increase the
volume of customers purchase the services while trying to keep the existed clients,
however, Van Hung Xuan Company does not have the social networking as building
websites or online social networks such as Linkedin, Facebook, Twister, Intergram or
newspapers, etc…Managers only focus on their close relationships to get customers
through word mouth or zalo….in relating to weak source of customers and it is difficult
for them in catching up the working pace and satisfy all of requirements from clients
because they lack of human resources leading to employees who are assigned multitask in
peak of translating season. Moreover, they do not have enough for budge to hire many
employees because of irregular job source and lacking of employees means that they hire
part-time job or outsources in peak of translating season cause to high costs and decrease
revenue. They sometime get lots of job and they do not usually have many jobs to

15. 13
assigned tasks among employees. Ms. Xuan Anh who handles the tasks and manage
employees in translating function shared some views that: “We do not have website or
any advertisment online. The customers are introduced from relationships or from Justice
Department and Notary Public Office as well.”
As a result of this that has belonged to the management skills from the managers
and how to have a good strategic management for their company toward the good results
of business or bad ones that will be leading to become also threats to company’s mission.
Decrease Revenue sharply is caused from weak management skill of managers because
Van Hung Xuan company is a young and start-up one, it is lacking of many skills in
management. They do not know how to keep the existed customers and get the new ones
to have many sources of job. Additional, the big barrier of high competitors in translating
industry strictly in relating to have competed prices and quality services. Competitors has
many good advantages in Multilanguage to meet the customers’ need all the times with
the best prices and services. Moreover, they also have best strategy of marketing and sale
to draw and draw the mass of customers to them means that Van Hung Xuan’s employees
become tired in management skill of time when they have tried to complete the multitasks
from managers leading to low performances among them, it perhaps creates the poor
services as clients’ feedback. Ms. Xuan Anh continually shared that there were also many
causes that employees quit job or move to other organizations, these employees wanted to
increase the salary and be promoted faster and faster. They were always blamed
unsatisfied in their assigned jobs. “The requirement from clients, they are always in the
tired state and not positive to cooperate or deal with clients in negotiating the time and
date. They have weak communication leading to run out of the energy to deadline with
clients. I always get complaint feedbacks from clients about the small mistakes in
translating documents leading to clients to return and correct the ones. That is why we
cannot offer more salary and provide more attractive benefit for them. They have the job
poor performance” In summary, Van Hung Xuan company is not only lacking of
marketing and sale campaign effectively, but it is also weak in management skill to get
and keep clients as well as keep talent and right employees that are one of sources to get

16. 14
profitable for company. The number of clients is shown to see that decrease in volume of
customers leading to low revenues in past years.
Low benefit & salary
As details mentioned in qualitative method, the salary and benefits policy that keep
the key importance in relating to high turnover rate of leavers. Based on the report and
analysis from Office department, Ms. Phuong Anh who is in charge of accounting affairs
in company, she gave a general view as she got the results from Van Hung Xuan
Company that there is not existing the performance appraisal and human resource plan.
Employees are received salary through the scale of fixed salary in comparison with the
average income of labor market. The payroll of individual is sent to his/ her in
confidentially that it has described the details of basis salary and benefits, however, it
seems happening the compare the salary among them leading to unsatisfied income.
From the internal data of the company that will provide the basic evidence to
investigate the topic of salary in company. The salary statement is shown in below:
Graph 4. Average salary of employees in Translating Function in Van Hung Xuan
Company from 2014-2018
Based on the above result of table, it is mentioned that the scale of salary still is
considered as factor of low salary among employees leading to them made decision to
leave company.

17. 15
Ms. Xuan Anh supported this issue that “they always complain about salary; they
feel unfair in receiving salary. They have compared the current salary to the other
companies.”
Graph 3. Number of customers in Translating functions in Van Hung Xuan Company
Decrease in work quality
Ms. Phuong Anh continually talked to the leavers in translating function. The
causes come from high pressure of time and tasks, weak management of time leading to
high time pressure Some employees were lack of experiences in translating documents
from reading comprehensive to translated technique leading to get more mistakes in
documents. It was also wasting of much times for resolving the problems in urgent time
when satisfy the requirements from clients. Once the manager gets the passive feedback
from clients means that there is a poorly performance of job.
Regarding to the experiences of employees in company, the graph is shown in
below:
Ord. Year/ Position 2016 2017
06 first
months of
2018
1 Translators 0-4 1-5 2-6
Experiences in Translating Function

18. 16
Table 2: Experiences of employees in Translating Function from 2016-2018
From the above table, the experiences have existed from 0 to 4 years to happen in
company with the only one employee who was 23 years old and young, he has started his
career path with zero experiences, that was why almost lacking of experiences. However,
He supported to settle the paper work and translating documents in company. He had lack
of experiences in paper and translating tasks, however, he tried very much to fulfill the
assignment in time. On the basis of young age and experiences leads to the mistakes and
delaying in assigned tasks that can exist to contribute the poor performance job. This is
one of causes for high pressure of time and working. Ms. Phuong Anh, chief accountant,
said that: “he does not have experiences in assigned job and normal happen the mistakes
in assigned tasks, but, he works hard and try to learn”.
In conversation with Ms. Xuan Anh continuously has been analyzed to get further
information for leavers in translating field. She mentioned that we do not have human
resource plan leading to weak recruitment and selection and the performance appraisal do
not exist in company. It is hard for her to evaluate the achievement of employees. The
benefits sometime evaluated on the volume of jobs that gets from clients. Beside the
salary of translating was quietly low in comparison salary of other jobs that used foreign
languages, the employee decided to quit the job after only several years working because
of unfair performance appraisals leading to unsatisfied salary and benefits. Moreover, the
factor of weak management making employees who always feel lacking of supports from
managers and colleagues.
In summary, potential causes such as weak management skills, lacking of clients,
unsatisfied salary and benefits, etc…are identified and some evidences to support the
analysis has to be gathered. Moreover, turnover rate of leavers affects negatively to
company with a typical factor finding that is low performance in business operation and
decrease revenue comes from the weak management skill and lacking of marketing and
sale team leading to business result of company has been decreased sharply over years.
1.2.2 Initial Cause – Effect Map:

19. 17
Firstly, it is understood the Cause and effects Map are used in many industries for
many purposes. The basic thoery of a Cause and Effects Map aims providing the ways for
adjusting the business operation and effecting a chain in the system if specified incidents
causes (1). The forming of problem definition typically is a problem mess, it is noticed
that by selecting a potential problem and setting tasks with respect to this comes from
symptoms, cuases and solution in relating to potential prolem will gather during the initial
and orientation phases. The diagram presents a causes and effect one in which shows a
symtopms that has origined from mess of causes (2).
From interview of group 1, the problem finding is focus on the factor of decrease
revenues are focusing on lacking of marketing and sale campaign, weak management and
high turnoverate. The factors of No opportunities for career path, do not have the
marketing and sale team and do not human resource department come from the interview
of group 2. It is merged two diagrams to understand the issues regarding to the potential
problems increase. Further information, it is understood that potential problem is selected
to comply with initial cause – effect diagram.

20. 18
A decrease in
Revenue
Lack of
Human
ResourceTeam
Lack of Sale
and
Marketing
Team
Poor
Management
Capability
Poor attractive new
customers
Big barrier of high
competitors
Low benefit
& salary
Low service price
Assigned multitasks
Figure 2. Initial Cause – Effect Map
High turnover
rate of
employees
Poor customers
targeting
Losing the existing customers Weak customers’ relation
Stressful workload
Unstable workload Reduce work quality
Not reward
evaluation
External
industrial
factor

21. 19
1.2.3 Updated Cause – Effect Map
According to Eden et al (3), the analysis relationship between causes and effets
mapping are shown the collected views. It is shown the arguments can be related to topic’s
relevant from its causes and effects. It also seeems examines the optential causes into the
smaller and smaller items. It is useful for showing relationship between contributed factors
in analyzied topic.
Job dissatisfaction
On the basis of the thoery about Human Resource Management, it is defined that
one of the ways to draw the keep talened people who desires maintaining their jobs that is
good human resources management in organization (4). One organization can keep the
competenced workforces who are dedicated working leading to supporting the mission,
goal and strategies of business growth. If the employees can see the benefits on their
dedicaiton, they will feel motivation and try their best to complete assigned tasks. However,
the vison of career path isnot seen from boring job, they are always in mood of
dissatisfaction. Job dissatisfaction causes for poor job performance and leading to quit the
job from employees quickly.
High industry competirors
The smarter and more talented sale persons with regard to their interaction to clients.
The more customers will tell about their need and they are willing to your orgainzation to
buy the services or products from yours (5). High competitors are conerned in managers’
lines because of clients. The consumers or customers who have the priorty rights to choose
the best services or products but the reasonable price is attractted to them. The relationship
between prices and markets has evaluated through market makers have a sury through
markets and prices. They expected profit maximizing tending to supply and demand chain
and get feedback their competitors’ same way of supply-demand one as well (6). The
translating industry was a special field that liked with government department such as
Nortary Public, Committee People Department or Justice Department of Ho Chi Minh City,
to be a coollaborators who can have a legal character to sign the legal valued translated
documents, however, the integrated economy with transmistion of circulars from Minister

22. 20
of Justice from 2013, to encourage for small and midium enterprises to start-up business,
translating industry to become the attracted fields for young and dynamic people who would
like to do busiess with it, and it gradually become competed severly amongs companies
togethers and appearing the low service prices to draw the customers.
Unattractive salary
The employees are not recognized for their dedication or accomplishments that are
considered only criticized for their shortcomings, they do not feel valued and work in the
mood of fear of making a mistake. A company should encourage the creativity through
the fair reward and constructive judgment or recognition for creative, dedication in their
work (7) The topic of salary and benefit issues has always argued in almost companies.
There exits the comprising paying among employees when they often get the salary and
benefits to compare with other companies paying.
It is defined that many different of factors that can impact to an individual
employee’s level of satisfaction with his/ her job. These factors come from the level of
paying and benefits (8). The writer can discuss that salary is still an important factor
throughout the life of an employee’s career, but it is not the sole motivator to attract and
keep the employees. More and more people are considering companies that offer
incredible benefits, aside from salary. If the employers do not know how invest in their
employees, it is surely their top performers will go out of the door. Based on the
interviews to find the causes related to high turnover rate of leavers from unattractive
salary policy in Van Hung Xuan company
The update cause and effects map is presented as folows:

23. 21
Figure 3. Updated Cause – Effect Map
A decrease in
Revenue
Low service price High industry
competitors
External
industrial factors
Poor attractive new customers Poor customers
targeting
Lack of sale and
marketing team
Losing the existing
customers
Weak customers’ relation
High turnover rate
of employees
Stressful workload Assigned
multitasks
Job
dissatisfaction
Lack of
human
resource
team
Unstable workload Reduce work
quality
Unattractive salary No reward evaluation
Poor
management
capability

24. 22
1.3. Problem identification
1.3.1 Possible problem
To identifying problem, the thesis mainly focusses on internal factors of Van Hung
Xuan Company. As such, external factor on high industrial competitors will be eliminate
removed. The remaking of this such will discuss and analysis by using theoretical and
empirical exploration to identify the main problem. In addition, some evidences
supporting for the analysis has gathered to strengthen the identification.
1.3.1.1 Lacking of human resource team
Human Resource (HR) keeps they key role in management of employees. If the
company has lacked of human resource means that it lacks of ability making employees
have motivation in job such as lacking of skills in complete the tasks (9), for example:
lacking of time, profession personnel that may have obstacles outside the employees’
control in relating to poor management from managers. Moreover, human resource team is
not only impacted to company’s performance through how to attract talents to retaining the
best tasks to completing or manage the employees’ morale, happiness a cooperating among
employees to reach the good results of tasks, but human resource manager should
understand how to attract the right talents with constantly upskilling employees to meet the
changing needs of the business operation. As concerned this, human resource management
can impact on performance and leading to poor services means that human resource has a
directly influence on employees’ skills, motivation, opportunities for career path.
Additional, appraisal performance is very important in human resource activities, because
it relevant to attractive salary and compensation with regard to employees’ attitudes. It is
very terrible for low motivation among employees associated in appraisal performance
leading to the poor performance and then affects to result of business. If human resource
activities exist in company in relating to valid performance management system to evaluate
the competence of employees and know how to keep the talents and recruit the new ones
to provide the skills and experiences required to keep the productivity levels up and create
the advantages competitive to push up the better ladder career (10). As a result, the
importance of management skills in human resource activities keep as a core role in

25. 23
company. As indicate in the previous section, the interview shows that Van Hung Xuan
company is lacking of human resource team leading to ability to communicate ineffectively
to assign and allocate the tasks properly, the policy of salary is satisfying or how to create
the source of creative and interesting to employees dedicate into their job to develop the
opportunities for career path. In addition, the lacking of human resource team may result in
insufficient training or poor appraisal performance leading to unsatisfied job among
employees means that it causes for time pressure. As such, lacking of human resource
activities has been considered as a negative factor in motivation of the staffs and strong
management is lacking with regard to negative affecting to workload, poor services and the
employees feel the big burdened by the volume of job dissatisfying (11). In addition,
lacking of human resource team makes the poor performance in Van Hung Xuan Company.
This is also one of reasons for low performance of job in company.
1.3.1.2 Poor Management Capability
According to Leonard et al (12), management capability helps managers in
thinking about knowledge to build consequences of their technology – related decision
and provide the knowledge for them the useful sources in successful adapting as an
incremental re-direction of skills and knowledge in management including the technology
innovation. Core capability should be managed to foster, not only critical knowledge but
competitive industry changes. Firstly, it should refer to lacking innovation of technology
in Van Hung Xuan Company leading to out updated information to meet the needs of
tasks in time or unexpected happens in management tasks (13). Next, the lacking of
business model innovation is one of essential factors make Van Hung Xuan company
cannot catch the modern business trend. According to Baden et al (14), business model is
linked basically to technology innovation and company performance. Update timely and
developing the right technology is a matter of a business model decision regarding
openness and user engagement. Furthermore, management role is very importance to run
all business operation and employees as well. It refers to poor management time in
dealing the assigned tasks in deadlines and how to keep and balance the time for urgent
time and work. In Van Hung Xuan company, the job is irregular assigned leading to stress

26. 24
and heavy workload in the peak time of translating. Stress happens when the employees
has been full of demands, deadlines, etc… that cannot meet the requirement under the
pressure in relating to low performance. The assigned dissatisfied work with multitasks in
Van Hung Xuan has come from the weak management skills in relating to low quality of
work. Moreover, low performance of job leads to poor quality of services that cause the
weak business activities. If the poor management happens means that cannot keep the
existed customers. In other words, poor management capability affects to passive attitude
to work of current employees and negative impact to business growth of company.
1.3.1.3 Lack of Sales and Marketing Team
It cannot deny that Marketing and Sale Team keep the heart role in business
success of company. It reflects the company’s business depending on the successful
marketing and selling strategies. Marketing keeps the role to transfer as a process by bring
out the services that are introduced to potential customers. Without marketing, the
business only offers the best services within the translated industry but none of potential
customers would know about them. That is why marketing management is the most
important in keep and seek the clients to promote the services to them (15). Beside, sale is
the soul of company, sale team will bring the image of services to customers through
selling services to customers. Sale team know how to get closer with customers, and
playing a bridge the gap between the potential customers and services that company
offers and fulfil the customers’ needs. Sale persons have an existing awareness of the
company through marketing and advertisement efforts, sale team will introduce the
information and help consumers to make the connection to company’s services.
Moreover, the sale team also play a key role in building of loyalty and trust between
customers and business products. Trust and loyalty are main reasons in relating to
customers choose company’s services means that excellent sale persons are those that not
only make the sale, but create a long-lasting impact on the consumers. If the company has
a lots of long-term customer’s relationship with regard to increasing the brand’s
reputation by word of mouths. It is more cost effective to retain consumers than to win
new ones, so looking after the existed customers should be well (16). Taking advantages

27. 25
of impact sale on not only revenue but on brand reputation, the customers relationship
management role keeps the most important in marketing and sale team as considering key
account management or strategic account management or a strategic sale activity (17). As
a result, lacking of marketing and sale team in Van Hung Xuan Company relates to keep
and develop potential customers as the factors belong to management capability. If poor
management in marketing and sale leads to customer’s dissatisfaction with regard to low
performance of job and affecting to Van Hung Xuan Company’s business growth and
consider a poor management capability. In addition, lacking of marketing and sale team
can lead to lacking of creativity to promote the brand of company or drawing the potential
source of clients means that lacking of marketing and sale can cause the weak
performance. It can cause of poor quality, increasing the brand of potential benefits of
services from Van Hung Xuan Company and manage the source of customers as well in
relating to management skill in company. and cannot seek the potential source of clients
through the marketing and sale campaign. The weak source of clients as a potential cause
of poor management capability.
1.3.2 Main problem validation
Poor management capability has increased the low performance of job among
employees as above analysis because employees with assigned multitasks creating the
stress from time pressure and irregular job at the peak of translating season. The work of
stress in a common sense to define overloading of employees stated in the influences of
work overload impacting to turnover rate in company or stress at work is almost
concerning in the pushing of times (18). Unsuitable assigned tasks are not only the key
but also taking the effectiveness the leading reasons why employees want to work or quit
the job in company. Poor management capability is becoming to the big problem in Van
Hung Xuan Company because of low job performance and income in organization. It
means that new persons cannot meet the requirement for work’s effectiveness ability.
That is why existing employees need to encourage to cover for the work overload in each
function. Regarding to this issues, poor management capability plays the most important
in training and keep talents in company. Talents are one of invalid assets of company and

28. 26
if company do not have the good management skill leading to lack of development
opportunities in both of employees and company. It is easy to understand the employees’
enthusiasm was decreased and they did not feel interested in their job because of low
opportunity development. They should have found another chance to get promoted or
better job in other organization. Lacking of employees in company causes the unsatisfied
work allocation in relation to time pressure. Mr. Mach Tuan Dung, an employee who
supported to settle the paper works and translating documents in company, 25 years old
now and he has left the company one and a half year ago. He shared some information:
The works still repeat and repeat that making boring and cannot create the initiative in
the work and lacking of attention as well. Especially for work-life balance, the mass of
tasks was not difficult, however, it took lots of times to complete them in time. I was tired
of working and wanted to quit the job.
Moreover, on the basis of branding research has largely focused on markets and
only recently has attention been given to business markets that is why the role of
marketing importantly in promote the brand of company leading to attract the customers
to know the services from company (19). The lacking of marketing team can cause less
corporate clients or individual clients pay attention to company’s brand. One of the weak
factors leading to less clients is not the promotion of marketing strategy from company or
it cannot deny that company does not have the strategic management to keep the clients.
Furthermore, salesperson satisfaction has transmission to crucial consequences for the
sales team and company’s dedication, company satisfaction, company word of mouth, and
share of total purchases of services or products that will attract to more clients (20). As
the views from Ms. Xuan Anh that I think the root cause for weak potential clients that is
lacking of marketing and advertisment strategy, it aims decreasing the costs for company,
we have not ever the strategy for posting the business activities from company on social
networking such as newspapers, magazines, or establishing the company’s own website,
we just take advantage of word mouths, zalo, or Facebook to promote the business
activities, the competition of prices among translating agencies leading to the networking
of clients is weak make unsatisfied job for employees cause the poor performance job.

29. 27
Poor management capability in skill development to keep and find the potential clients
leading to low performance and a decrease in revenue of company.
Finally, the above analysis can affirm that factor of poor management capability is
the most important more than factors of lacking of human resource team and lacking of
marketing and sale team. As Ms. Xuan Anh said that “we do not have any skills in
management from human to find new clients, excepting for source of old clients, however,
we are facing to old clients who are going to leave us because of competitive prices
strictly and low performance from the passive attitude to work of current employees.
Everything is very terrible for us at now, lacking of knowledge and skills in management
capability make us to break business”. As a result, poor management capacity is a main
problem of Van Hung Xuan Company. Its consequence has resulted from factors such as
low performance of job, passive attitude to work of current employees and negative
impact on Van Hung Xuan business growth.
1.4. Consequence of Problem
1.4.1 The low job performance
According to Greenley et al (21), the low performance is likely to have lower
levels of achievement than high performing companies and thus they are likely to have
less potential for achieving flexibility to impact on performance. It can be said that the
low performance of job is results of unsatisfactory job among employees leading to
failure to perform their dedication into the assigned tasks. It comes from poor
management capability in company. As Ms. Xuan shared that The requirement from
clients, they are always in the tired state and not positive to cooperate or deal with clients
in negotiating the time and date. They have weak communication leading to run out of the
energy to deadline with clients. I always get complaint feedbacks from clients about the
small mistakes in translating documents leading to clients to return and correct the ones.
That is why we cannot offer more salary and provide more attractive benefit for them.
They have the job poor performance.
1.4.2 Low employee productivity

30. 28
In Van Hung Xuan company, high turnover rate of employees happens in functions
of translating that occupied high ratio with 63%. This function plays the core role in
evaluation performance in company. The employees who quit the job leading to the
negative impact to company because of reducing in performance efficiently and negative
attitude to current employees who are in charge of assigned multitask presently.
Additionally, it is taken much times for finding out the competence candidate for the
vacancy. It means the all of employees who are unchanged their jobs, they have to try
fulling the tasks to meet the business requirement while waiting for new employees to
take over. As a result, it has not affected significantly to revenue of company and it may
be leading to late the deadline for working progress causing for poor job performance and
business result is decreased sharply. The investigate link to negative attitudes of
employees impact on business outcomes significantly. A poor management skill can
cause the negative attitudes of employees not only on their performance but on business
result of company (22). Employees with negative moods and attitude cannot have a good
performance and affect to business activities sharply. Ms. Xuan continuously shared that
We have faced to the negative impact to current employees and to job performance as
well when employees leave working in job.
1.4.3 Business Growth Decrease
It is affirmed that there are lacking of clients leading to unsuitable work allocation
make people wants to quit their job. The decreased revenues come from the low service
prices that have been happened among high competitors on the industry market.
The role of marketing and sale team play important in seeking clients and promote
the brand of company. How to have and keep the source of potential customers that is
argues that have studied in marketing and customer relationship management. Sales and
marketing has been benefits to the company through improved business performance.
However, it does not exist this section in company in relating to negative impact of weak
source of clients as important factor affects actively on company business growth (23).

31. 29
In summary, the overview from managers’ line shared that the lacking of
marketing and sale team leading to low revenue and it causes quitting the job from
employees affecting the negative to current employees and poor job performance.

32. 30
Figure 4. Final Cause – Effect Map
Poor customer relationship
management
Lacking of human
resource team
Lacking of business
strategy
Low performance of job
Negative attitude to work in
current employees
Reduce Business Growth
External factor
Decrease Revenue High Turnover rate of employees
Weak Management
Capability

33. 31
CHAPTER 2. ALTERNATIVE SOLUTIONS
2.1 Cause Validation
2.1.1 Possible Causes
It is difficult to compare the strengths of the impact of different causes on the main
problem, and it is harder to compare the effects on the causes to management tasks and
business result in Van Hung Xuan Company. The following findings of real causes will
be argued to have made decision about main cause and proposal for the best solution for
this problem.
2.1.1.1 Poor management skills
Lacking of management capability in Van Hung Xuan company is, firstly,
regarding to poor management skills to assign the suitable work allocation among
employees and keep them to be dedicated with their job. It makes employees to feel
lacking of recognition, unfair treatment. According to Stogdill (24), poor management
skills keep the sole in company means that it is important to build the loyalty and
commitment employees in company. The interviews from company concerning to human
resources management to keep talent employee. Ms. Xuan Anh took note that we are very
poor management capability we do not have human resource team in company. It is
obvious that above analyzed factors as lacking of suitable work allocation skill, high
workload, lacking of people or lacking of leadership role make high leavers leading to
poor performance that come from lacking of human resource team in Van Hung Xuan
Company. In a result, it is understood that lacking of human resource team is not main
cause in company because the root of cause starts from lacking of potential customers
relating to poor diversified services in value proposition in translating market.
2.1.1.2 Lacking of business strategy
Factor of lacking of business strategy affects to business performance significantly.
It is argued that poor diversified services cannot help company has a value proposition to
set of benefits to the client. That is true that Van Hung Xuan company is limited services
because of two main languages Chinese and English to meet the amount of great clients in
translating market. It is also discussed that some elements affect to customer’s satisfaction

34. 32
with regard market development to create the cycles of customers and company in
seeking to fulfill the services and employment’s needs everywhere. As mentioned from
Stanley et al (25), market development is good form of contact with customers, so, it does
not deny that market development and update information technology application
contribute into the business operation significantly and diversified services keep the role
of critical factors from business strategy to coordinating and delivery of customers
services. Moreover, especially for the streamline of today’s business, online business
marketing is playing the vital role as a bridge between customers with company’s
services. Online business marketing contributes in advertising the services and it makes
business operation moving forward successfully. Unfortunately, Van Hung Xuan
company has been failed in lacking of these factors in the stage of growth business
activities. As Ms. Xuan Anh said that we do not have marketing and sale team in
company, we do not have any activities to develop the market.
2.1.1.3 Poor customer relationship management
Factor of poor customer relationship management is referring to how to keep
existed clients in Van Hung Xuan company. Moreover, the source of clients come from
the close relationship, word of mouth or zalo net working and it seems poor efficient
communication pschychology in keeping the existed clients in weak customers database.
Ms. Xuan Anh took note that We just focus on two main English and Chinese and the
existed customers, from 2017 to now, we do not have any new customers. And the existed
customers have decreased sharply from that year to now. It is understood that lacking of
business strategy involves in seeking the new customers and management skills in
keeping the existed customers are very important. However, it is definitely proved poor
customer relationship management is not main cause in Van Hung Xuan company.
Lastly, the external factor is noticed to identify the potential causes, Yet, it also
claimed that Van Hung Xuan company is lacking of competitive advantage means that it
is difficult for it to compete the service’s prices in comparison with high competitors on
the translating market with some reasons such as quality of service, costs, location, low
prices et al. Mr. Duc – Director of Company is participated in the dialogue: “we only

35. 33
focus on existed clients and two languages of Chinese and English. The big translating
market with low prices and high competitors made our business break down”. As a result,
the limited services of translating of Van Hung Xuan company make taking much times
for building a value proposition in the translating market because it has been poor
diversified services since the start-up stage. A weak competitive advantages to position in
marketplace in comparison with competitors concerning to quality of services or skills in
customer’s management in Van Hung Xuan. However, the thesis mainly focuses on
internal factors of Van Hung Xuan Company. Therefore, factor of external industry will
be removed completely.
From above stated, factor of lacking of business strategy is chosen as a main cause
that it can be resolved efficiently and effectively because of following reasons.
Van Hung Xuan Company is poor diversified services beacuase it only has two
main languages of Chinese and English from start-up to now. Van Hung Xuan Company
can improve the business innovation implementation for good innovation in business.
However, if solution for applying to update new information technology application in
management tasks, it should be considered between cost and benefit. As a result,
considering the current business operation of Van Hung Xuan Company, the foremost
attention is how to have the good diversified services or market development to draw a lot
of customers and keep the existed ones to have the source of job and revenue as well
means that managers of Van Hung Xuan Company should focus on business strategy well
aims supporting for business innovation implementation urgently.
2.2 Main cause
It can be seen that lacking of business strategy is considered as a main factor that
affects to poor management capability according to following analysis:
Firstly, the qualitative data method is collected in relating to the vital reason
affecting to poor management capability. As mentioned in dialogue with Mr. Duc –
Director of company, that: “we do not have any new business ideas to find new clients,
excepting for source of old clients, however, we are facing to old clients who are going to
leave us because of competitive prices strictly and low performance from the passive

36. 34
attitude to work of current employees. Everything is very terrible for us at now, lacking
of skills in management capability make us to break business”.
Next, the current business condition of Van Hung Xuan Company has been
affecting from poor diversified services to have a value proposition in translating market
leading to source of weak clients and decrease sharply revenue in the recent years, it is
more difficult for them to seek the source of potential clients because of lacking of market
development. Ms. Xuan Anh continued: “Even if we also do not update the new
apllications in information technology to have ideas for online business, we are lacking of
completely efficient communication through network bridge from modern technology such
as network social or hi-tech marketing”. Moreover, the above analysis stated that a value
proposition plays a core competence in company and it has been closed to business
strategy to provide the clients benefits from the quality of diversified services to focus on
the drivers of customer engagement.
In conclusion, business strategy is very important for small company as Van Hung
Xuan. That is true if the company takes the value assets of human resource, yet, without
market development, good diversified or online business marketing and information
technology application to sell the services to cusomers aim creating the value propoition
in translating market means that business operation will be broken. It is understood that
the critical success factors in small companies concerning factor of market development
has become ones of the key forces driving toward business successes. Key factors that
company should invest into improvement their efficiency and customer satisfaction (26).
It cannot deny that the success of business strategy asking for many efforts that depending
on many factors. It is understood as follows:
a. Business strategy is a method to have a value proposition for the customers, a
viable structure of revenues and costs for the enterprise delivering that value
(27).
b. It is referred to innovation in business implementation in relation to
management skills because improving the communication efficiently to

37. 35
keeping the existed customers or netting the new ones in striving for develop
the best services (28).
Hence, it is argued that factors of market development in which information
technology application, improved diversified services towrad innovation implementation
in business operation, et al…. are highlighted in business strategy. Therefore, lacking of
business strategy is considered as main cause in Van Hung Xuan Company and from
these analysis, alternative solutions are taken into consideration for this main cause.

38. 36
2.2.1 The Fish - bone Diagram
The Fish-bone diagram is presented as follow
Poor
Management capability
High workload
Lacking of leadership role
Poor information technology
application
Poor diversified services
Figure 5. The Fish - bone Diagram
Lacking of suitable
work allocation skill
External industrial
factor
Poor management skill
Poor customer relationship management
Lacking of customer’s
management skill
Lacking of business strategy
Lacking of market
development
Lacking of efficient
communication pschychology
Lacking of online business
marketing
High industrial competitors
Low service prices
Lacking of appraisal
activities

39. 37
According to Forster (29), business strategy is understood as business process
management that is a powerful approach to improve performance aiming to improve
customer’s satisfaction. It also knows how to enhance the motivation and job satisfaction
among employees, and they are concerned with welfare or benefits to focus on goal to
have business model aiming to identify the characteristics of constructive leadership.
Moreover, as Kim et al (30) stated, business strategy has defined that can be used for
commercial purposes. There tools are determined utility, price and business model to have
ideas for business. There are many methods to develop the new business idea such as
online business marketing is one of the ways attract the customers from source of inbound
and outbound via use the products or services from company. Development in new
business ideas are one of ways to improve in verbal and oral communication to have
interact personal effectively both of internal and external environment to understand
aiming to meet the appropriate the needs of working and catch up the developing of social
trend nowadays significantly aiming to have automatically result in improving business
performance.
2.3 Alternative solution
As early noted, it is understood that today’s competitive market that requires
managers to have a look over the typical skills such as improved divrsified services,
updated new information technology application or implemented online business
marketing to keep the business plan effectively to have more and more customers.
According to Uden (31) the business strategy are determined from these vital
factors such as suppliers, buyers, products and services in which e-business gets back
several benefits to the above factors. Online business operation helps companies to reach
the new markets, new clients, improve the brand image, reduce the costs and differentiate
their products and services against competitors. E-business is one of the best ways to
enter the global business and markets. Moreover, the update of new information
technology application helps bridge between customer’s data linking with company’s
services. Therefore, the writer will propose three following solutions in comparison with
the limited costs and financial in current business operations to submit to managers who

40. 38
will made the decision to choose the best solution in short-term or long-term to have the
best benefits.
2.3.1 Online Business Marketing
In Van Hung Xuan Company, the current business operation is downturn sharply
concerning to the decreased amount of customers. How to find the new customers who
reach to services from company is the most important element to make decision from gain
the high revenue in business. With the business model as Van Hung Xuan Company, sale
campaign is applied urgently to promote the services and it also takes advantages of
online business marketing to advertise the service to draw the customers to know brand
name. Ms. Xuan Anh – Manager of translating team share that: “we have planned to
follow to update the online business marketing. I think we should have a sale campaign
and online marketing to promote the services to customers. We have invested the costs for
this campaign.” As a result, online business marketing is choosen as one of potential
solutions because of following benefits:
Benefits:
- Reducing order processing costs - customer orders can automatically come
straight into your orders database from the website.
- Identifying the brand name and logo of company
- Saving in operation costs.
- Position the company’s business in the translating market.
- Research the potential customers, not only inbound but outbound aiming to
increase the online sale opportunities.
- Online businesses markeing is being able to open 24 hours a day, seven days a
week through website of company.
- Being able to receive payment more quickly from online transactions.
- Using the online business trading to showcase the services to existing customers.
- Using Facebook advertisement, taking advantage of power of SEO, and pros of e-
mail address to advertising or google tools to advert the company’s business.
- Taking advantage of word of mouth, leaflet, etc.

41. 39
Costs:
The cost for this program is VND 34,000,000 including in sale campaign and
online marketing.
Ord. Description Estimated Cost (VND)
1. Webpage construction 15,000,000
2. IT employees to manage the webpage 16,000,000
3. Leaflet for sale campaign (3,000 copies) 1,500,000
4. Linked networking (member) Free
5. Facebook, intergrams, word of mouth, zalo Free
6. Advertising on Newspapers with 03 papers 1,500,000
Total 34,000,000
2.3.2 Service diversification
As De Koning et al (32) mentioned, the entrepreneurs start a business that should
invest into the markets to find the right opportunities in relating to focusing on consumer
services. It is understood the meaning of “value proposition” or market development that
is related to customer focus point and customer oriented. Start-up company should have a
customer value orientation, likewise identified the need to have a focused customer
orientation to provide the best ways of the products and services to them. As concerned,
online business marketing supports company effectively to draw the customers. To draw
the more and more customers to use the services in Van Hung Xuan Company. Firstly,
the services are outstanding and diversify to satisfy the customers’ need. Next, managers
should take advantages of new services of diversified services to introduce to existing
customers to win them and coming back them with many free supports in after services.
It could help to improve the communication skills such as word of mouths or add values
to customers to interact with them as the diversified products to potential customers in the
next years by using social media to interact with the customers and receive the feedback
effectively and efficient communication is a bridge to link to customers and it is

42. 40
considered as one of best tools to expand the brand loyalty including in expanding the
services.
The following is presented some benefits and costs for this program.
Benefits:
- Employ the 03 collaborators who will do as part time job and support for
company with Japanese, Korean, French translating.
- Finding the good outsources to translating with Multilanguage include in fast
time and good prices to meet the customers’ diversified needs and helps
company to build the trust from customers and decrease the costs.
- Reducing the cost of services to win existed customers and get them back and
draw the new potential customers through words of mouth aim increasing the
revenues in company.
- Employ one legal consultant to support for company in answering the questions
from customers involing in legal problems in translating.
Cost:
The cost of implementation of this program is estimated 33,000,000 VND with
the following description:
Ord. Description Estimated cost (VND)
1. Paying the 03 collaborators with Japanese, Korean,
French (03 languages)
15,000,000
2. Fees to outsource to translating the other languages 10,000,000
3. Legal consultant (one person) 8,000,000
Total for all 33,000,000
2.3.3 Market development
With the booming of information technology nowadays, it cannot deny that the
significant contribution of Information Technology into the global business successfully.
According to Thomas et al (33), information technology application is considered as
competitive advantage in market development, the role of its impact on business is very

43. 41
important in management tasks, business innovation implementation including in Human
resource system or security the data of customers. Building in the good information
technology in company that is avoiding of leaking internal information. However, it
requires the high costs to building overall of quality information technology application
from software package for management to ensure the body of business activities run
smoothly. Additional, market development is understood as market expansion that is
applied for Van Hung Xuan company for the current business operation by cooperating
with Law offices to have legal documents in translating services or linking to publication
to become an outsource in translating about foreign language books in the field of
economic, social, science, et al to increase revenues for company.
As early mentioned, Van Hung Xuan has just focused on the amount existed
customers from the close relationship and from word of mouth or zalo networking.
However, the poor diversified services plus the high cost leading to these amount of
customers to leave significantly. According to Johne (34), market development is defined
as improving the target of markets and considering as a powerful tool to help company’s
business model to positon in the market about quality of services and safeguard it from
attacks by competitors. Some benefits and cots are stated by following in:
Benefits
- To become a competitive advantage for company in marketplace.
- Avoiding the leaking of internal information
- Two representative offices that are near Notary offices and People’s committee to
build the brand name of company and draw the customers easily.
- Building the strong bridge between customers and company in business access.
Costs
The cost is estimated about VND 61,000,000 with the details as follows:
Ord. Description Estimated cost (VND)
1. One employees who works in Management software 25,000,000
2. Frees for opening two representative offices 20,000,000

44. 42
3. Employ two employees who works in two offices 16,000,000
Total 61,000,000
2.4 Solution selection
From the above analyzed solutions plus with the current business of Van Hung
Xuan Company to give the proposal properly not only improving the turnover rate but get
back the business path with high revenue. It is necessary to have a look at carefully these
solutions to make decision to choose the most effective that can apply for company and
have proposed action plan for it. As above mentioned, Van Hung Xuan company is a
start-up business model that is very young in managerial experiences from human skill to
getting or keeping customers skills as well. As Ms. Xuan Anh said that “we do not have
any new customers in recent years”. From that, it cannot have denied that online business
marketing impact on business operation effectively and customer orientation. Solution for
lacking of business strategy needs to be more carried out immediately. Moreover, after
consideration the benefits and cost, it could be seen this solution is providing the best to
resolve the main cause with some points of views as follows:
Additional, building consumer trust online is one of best method to win back lost
consumer trust in the internets of e-commerce sales (35). As a result, online business
marketing innovation is concerned efficiently to have a best solution, however, it seems
suitable for concerning in the costs and benefits in comparison with current business in
Van Hung Xuan Company
Firstly, update the customer orientation is very important for start-up company and
it is considered as one of best methods to drawing the awareness from managers because
benefits from online marketing and sale campaign to bring back largely, it is not potential
customers but promote the service. With regard to urgent current business activities in
Van Hung Xuan Company, it is necessary for online business marketing that can apply
for this model immediately, the cost is suitable for this program, however, they can get
back the profits with big benefits that is not expensive for them to invest into this program
for its existed long time business path. Moreover, almost B2B purchasers do more than

45. 43
half their product and company research online before making any buying decisions and
most of people do some type of online research before finalizing any large purchase.
Next, under the limited costs from the start-up company as Van Hung Xuan, the
solution for new update IT trend is not urgent for them to take because consideration
between the costs and benefits, it seems lacking of practical factor immediately now and
factor of investment into the market development with the cost of VND 61,000,000 that
will make a bigger impact on the burden of current business as Van Hung Xuan is dealing
with revenues, that is why this solution cannot apply for now.
Additional, looking into the costs of 33,000,000 VND for solution for lacking of
poor diversified services is more effective and practical for managers to help them to have
motivation in getting back their business immediately when they take part in this
program. However, this solution for diversified services will meet the requirement for
company in long-time, yet, it takes the times to build the system of human resource to
keep the talent persons and keep the existence customers in company and this is not
priority for Van Hung Xuan company to be implemented into current business operation.
In summary, the best solution is finding the source of customers to increase the
revenue as well as finding the source of job for employees to keep the talent people who
will be dedicated for company as the source of value assets to get back the business and
financial crisis in the last years. Hence, the solution for market development should be
applied immediately and this is the best choice for company because its effectiveness, the
possibility on the execution, and the costing are appropriate solution for company at this
moment. It is considered as a best solution for company in the period of breaking down
business and financial crisis in Van Hung Xuan.
2.5 Action plan
Above analyzed solutions that help Van Hung Xuan Company to improve the
performance in business operation. Yet, basing on the limited financial resources, costs
and after considering the short term and long term benefits, two actions that Van Hung
Xuan company needs to take immediately aims reorganize company.
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46. 44
Action plan in 03 months (short time plan)
Ord.
Timeline
Tasks Persons in charge
2019
Jul. Aug. Sep.
1. - Deliver leaflet at the corner of intersection, schools, buildings, offices,
companies, hospitals and supermarket.
Employees in
company
2. - Advertisement on social network: Facebook, zalo, twitter, linked…. Ms. Xuan Anh
3. - Advertising on Newspapers such as: “Tuoi Tre” paper, “Mua & Ban” paper,
etc.
Ms. Xuan Anh
Action plan in 02 years (long time plan)
Ord.
Timeline
Tasks Persons in
charge
2019 2010
Oct. Nov. Dec. Jan.June JulySep. Oct. Dec.
1. - Following the advertising activities
on social network, Newspapers.
Employees
in
translating
team
2. - Web construction
- Advertising on e-mail addresses,
google tools to introduce the
company’s business.
IT
employees
3. - Introducing the business activities
on Website of company.
- Website is opened 24 hours a day
and 07 days a week to follow the
order processing of customers.
IT
employees
4. - To enhance the effectiveness of
order process of customers to build
up the relationship.
Ms. Xuan
Anh
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47. 45
CHAPTER 3. SUPPORTING INFORMATION Appendix
THE FIRST QUALITATIVE RESEARCH
- Time of interview: 17.00pm, 14th
of July, 2018
- Duration of each interviewee: from 10 – 15 minutes
- Address: At company and through phone
In-depth interview 2 (Interview guide)
Group 2: The employees who left working and the employees who are still working
in Van Hung Xuan Company
Research objective: the existence of problem, finding out the potential reason why
employees want to leave or stay in company and some solutions to resolve the problem.
- Interviewer: Ms. Duyen Anh
- Interviewees:
1. Ms. Thanh Hong – translator in translator function – who left the job around 01
years and keep working the as part-time job
2. Mr. Tuan Dung – employee at HR department of translator function – who left
the job arrproximately 1 years
3. Ms. Thanh Van – who is still working in company
- Age: from 28 to 45
- Working experiences: from 2 years to 6 years
Questions 1: According to your views, what is the most important
reason that make you want to leave the job?
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