This document is an assignment cover sheet and submission for a student named Nguyễn Hùng Chiến at the National Economics University in Vietnam. The assignment is for the unit titled "Business Environment" and covers identifying the purposes and objectives of different types of organizations, both private and state-owned. The summary analyzes and compares Marriott hotels as a private organization and REX hotel in Saigon as a state-owned organization. It also discusses potential conflicts of interest between various stakeholders of organizations.
1. 1
NAME OF STUDENT Nguyễn Hùng Chiến
REGISTRATION NO. 10120115
UNIT TITLE Business Environment
ASSIGNMENT TITLE Individual Assignment
DURATION
ASSIGNMENT NO 1 of 2
ASSESSOR NAME Daniel Vanhoutte
SUBMISSION DEADLINE 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
NATIONAL ECONOMICS UNIVERSITY
BTEC HND IN BUSINESS (MANAGEMENT)
Assignment Cover Sheet
2. 2
Unit outcomes
Outcome Evidence for the
criteria
Feedback
Assessor’s
decision
Internal
Verificatio
n
Understand the
organisational
purposes of
businesses (1)
Identify the
purposes of
different types of
organisation
a
Describe the extent
to which an
organisation meets
the objectives of
different
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
3. 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 / /
NAME :...............................................................................
FOR INTERNAL USE ONLY DATE / /
VERIFIED YES NO
VERIFIED BY : ................................................................
NAME : .................................................................
4. 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 meetsthe objectives of different
stakeholders...........................................................................................................9
1c. Explainthe responsibilitiesof an organizationand strategiesemployed to meet
them.....................................................................................................................10
Reference ............................................................................................................14
5. 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 lives of Marriott’s customers by 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.
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. 6
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.
7. 7
Marriott’s BSC
Perspective Objectives Target
Financial
-Revenue per room growth 15% annual revenue growth
-Flow through index, Return on investment and
make profit maximization
Outperform brand average
profitability
$300 million in revenues by
2003
Sales skyrocketed in just 4
years recently.
Customer
-Guest satisfaction score, relationship customer
management
Consolidate top 20% of brand
average with no property below
average
20% increase in guest scores
Many people, specially
business know satisfy with
Marriott hotels in the world.
Internal
Process
-Internal process audit index, innovation process
Adherence to the best practices,
human resource, hotel
improvement, maintenance.
Learning and
Growth
-Associate turnover, innovation
% Annual hourly associate
turnover below 60% and %
Management turnover below
20%
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.
4. Missions:
8. 8
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
Marketing strategy and service planning
Recently, more and more tourism
come to Vietnam, and they book the
room in REX Saigon.
Learning and
Growth
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 their profit or their
financial. They will make bigger their company’s value, and stop there, not innovation, not improve
9. 9
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.
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
10. 10
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.
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.
11. 11
Statutory:
In UK In Vietnam( lastest01/5/2013)
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.
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
- Adult Rate (for workers aged 21+): 10.08$
- Development Rate (for workers aged 18-20):
8.04$
- 16-17 Year Olds Rate: 5.92$
- Apprentice Rate: 4.28$
- On the minimum wage (in VN: 2.350.000
VND), the law stipulates that the lowest paid
when workers do the simplest tasks, in normal
working conditions and to ensure minimum
living needs of workers and their families . The
law stipulates the minimum wage will be
divided into four regions, assigned to
government regulations in urban, rural,
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.
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 ...
- 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.
- Mostly female workers will have 1 year
maternity leave until healthy enough to be able
to go back to work and their children have good
healthy. during which time, the female workers
still receive the normal wage
- 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
onwards, every child, mothers are entitled to 01
months. Prenatal stay not exceeding 02 months
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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
Equal Pay Act of 1970
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
In Vietnam, gay and lesbian do not accepted
like a third gender, so government do not have
labor laws to protect homosexuals
From The Race Relations Act, 1976
Makes discrimination on grounds of race illegal
in the same way as the Sex Discrimination Act.
people from different race and nationality have
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.
In Vietnam, a foreigner can receive higher
wages than those of Vietnam in the same
position in the same job. Because wages of
foreigners are mixed by market, Vietnamese
workers is still mixed by a certain ministry
The Disability Discrimination Act, 1995 The
Act defines discrimination in relation to
disability as when a disabled person is treated
less favourably and organization must warrant
for them to do their best
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
disabilities as they
Religion: Manager cannot eliminate employees
because of their religion such as Muslim (The
Equality Act 2010).
Vietnamese are no religion and a minority is
christianism so this discrimination is rather rare
in Vietnam.
13. 13
(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
14. 14
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