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Unit 1: Business and Business Environment Solved Assignment

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ASSIGNMENT 1 FRONT SHEET
Qualification BTEC Level 4 HND Diploma in Business
Unit number and title Unit 1: Business and Business Environment
Submission date 18 August 2020 DateReceived1stsubmission
Re-submission Date DateReceived2ndsubmission
Student Name Hoang Thi Thuy Hien Student ID GBD19955
Class GBD0805A Assessor name Alelie C. Zaragoza
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences
of plagiarism. I understand that making a false declaration is a form of malpractice.
Student’s signature HIEN
Grading grid
P1 P2 P3 M1 M2 D1
1

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Summative Feedback: Resubmission Feedback:
Grade: Assessor Signature: Date:
Internal Verifier’s Comments:
Signature & Date:
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Assignment Brief 1 (RQF)
Higher National Certificate/Diploma in Business
Student Name/ID
Number: HOANG THI THUY HIEN / GBD19955
Unit Number and Title: Unit 1: Business and Business Environment (485)
Academic Year: 2020
Unit Assessor: Alelie C. Zaragoza
Assignment Title: ASSIGNMENT 1- Internal Environment of Business
Issue Date:
Submission Date: 18 August 2020
Internal Verifier Name:
Date:
Submission Format:
Format:
This assignment is an Individual report and specifically. You must use font Calibri size 12, set number of the pages and use multiple line spacing at 1.5. Margins must
be: left: 1.25 cm; right: 1 cm; top: 1 cm and bottom: 1 cm. You should use in text references and a list of all cited sources at the end of the essay by applying Harvard
referencing style. The recommended word limit is 2000-2500 words (+/-10%), excluding the tables, graphs, diagrams,
appendixes and references. You will not be penalized for exceeding the total word limit. The cover page of the report has to be the Assignment front sheet 1 (to be attached with this assignment
brief).
Submission
Students are strictly mandated to submit the assignment in the due date (slot 18) and in a way requested by
the Tutor.
The form of submission will be a soft copy posted on http://cms.greenwich.edu.vn/.
Remember to convert the word file into PDF file before the submission on CMS.
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Note:
The individual Assignment must be your own work, and not copied by or from another student. If you use ideas, quotes or data (such as diagrams) from books, journals or other sources, you must
reference your sources, using the Harvard style. Make sure that you understand and follow the guidelines to avoid plagiarism. Failure to comply this
requirement will result in a failed assignment.
Unit Learning Outcomes:
LO1 Explain the different types, size and scope of organizations
LO2 Demonstrate the interrelationship of the various functions within an organization and how they link to
organizational structure.
Assignment Brief and Guidance:
Assignment scenario.
You are working as an analyst for JP Morgan, a famous investment bank which aims to find out dynamic companies
around the world to make investment in. You are tasked with finding new investment opportunities for your
organization.
You are free to choose:
1. A local company that you can see a lot of potential for growth.
2. The geographic market where the company provides its products or services.
This will be presented as a company profile and should follow the recommended structure and satisfy all the
requirements. You are encouraged to present a professional company profile complete with logo and other
necessary images or slogans.
Structure of the Report (Company profile):
1. General introduction of the chosen company: the name, the head office, the address, the website address
and the structure of the ownerships/ shareholders.
2. An explanation of the type and purposes of the chosen company
Specifically, for the type of the chosen company, you must clear down to extent of non-profit or profit
organization; public or unpublicized company; private or state- owned enterprise; and give evidences to

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justify your statements.
For the purpose of the chosen company, you must identify the vision, mission, corporate values and
objectives; and identify some specific activities of the company to prove the company is following its set
purposes.
3. An explanation of size and scope of the chosen company
For the size of the chosen company, you must demonstrate the capital with number of total assets, owner
equity and the total liabilities and the number of labor with the latest information.
For the scope of the chosen company, you must present the geographic locations/ markets and the target
customers.
In addition to identifying the size and scope of the chosen company, you should analyze whether the size
and the scope are compatible with the matter of achieving the set objectives and products or services of the
chosen company.
4. An explanation of the functions of the chosen company (using the chosen company’s structure chart) to
show the relationship between these functions and how these functions link to the chosen company’s
structure and objectives.
In detail, first, you must present the structure map of the chosen company. After that, you have to explain
the main functions of various key departments in this map and the relationships between these departments
as well. Lastly, you have to point out the type of the structure (functional structure; divisional structure;
matrix structure or project-based structure, and multinational or transnational structure) and explain
whether the structure serves for achieving the set objectives.
Furthermore, you should analyze the advantages and disadvantages of the chosen company’s specific
structure. This analysis should be accompanied by credible evidences.
5. A conclusion to summarize all the key findings and analysis must be presented. Plus, it should address
whether the chosen company is a suitable investment choice.
6. Recommendation - Why are you recommending that this company has a good potential for investment?
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Learning Outcomes and Assessment Criteria (Assignment 1):
Learning Outcome Pass Merit Distinction
LO1 Explain the
different types, size and
scope of organizations
P1 Explain different
types and purposes of
organizations; public,
private and voluntary
sectors and legal
structures.
M1 Analyze how the
structure, size and
scope of different
organizations link to the
business objectives and
product and services
offered by the
organization.
LO1
LO1 & 2
D1 Provide a
critical analysis of
the complexities of
different types of
business structures
and the
interrelationships of
the different
organizational
functions.
P2 Explain the size and
scope of a range of
different types of
organizations.
LO2 Demonstrate the
interrelationship of the
various functions within
an organization and
how they link to
organizational structure
P3 Explain the
relationship between
different organizational
functions and how they
link to organizational
objectives and
structure.
M2 Analyze the
advantages and
disadvantages of
interrelationships
between organizational
functions and the
impact that can have
upon organizational
structure.
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Student’s Name: Hoang Thi Thuy Hien
Assessor’s Name: Alelie C. Zaragora
Submission date: 18 August 2020

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Table of Contents
I. INTRODUCTION:.............................................................................................................................1
II. METHODOLOGY:............................................................................................................................2
III. FINDINGS:...................................................................................................................................2
1. Company profile:........................................................................................................................................2
2. Types of the company:...............................................................................................................................2
3. Purpose of company: (Công ty sữa sạch TH True Milk, n.d.).......................................................................5
a. Vision:..............................................................................................................................................................................5
b. Mission:...........................................................................................................................................................................5
c. Core values: (TH True book, p. 4)....................................................................................................................................5
d. Target:.............................................................................................................................................................................6
4. Size of the company:..................................................................................................................................8
5. Scope of the company:.............................................................................................................................11
6. Functions of the company:.......................................................................................................................13
IV. CONCLUSION:............................................................................................................................15
V. RECOMMENDATION:................................................................................................................16
VI. REFERENCES:.............................................................................................................................17
Table of figures
Figure 1 - TH's Profit from 2014 to 2018( by me at Excel Office based on the information of (Lan, 14/1/2019)).........4
Figure 2 - TH's Shareholders Structure( by me at Excel Office)....................................................................................4
Figure 3 – Farm of TH true Milk in Quang Ninh...........................................................................................................6
Figure 4 - Starting a livestock projecct in Moscow, Russia (TH True Milk kicks off dairy project in Russia, 19/5/2016)
..................................................................................................................................................................................... 7
Figure 5 – A store of the TH true Milk in Son La, Vietnam...........................................................................................8
Figure 6 - Financial Statement of TH in 2015, 2016 and 2017. (Về những “góc khuất” trong đầu tư của Tập đoàn TH
Truemilk, n.d.).............................................................................................................................................................8
Figure 7 - TH True Milk Debt and Equity. Source: vietinbanksc.com (Linh, n.d.).........................................................9
Figure 8 – TH true Milk’s procduct set (TH True book, 2019)...................................................................................12
Table of table
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I. INTRODUCTION:
This is the first researcher report on the topic of Business and the Business Environment. It is the analysis
of the internal environment of business and investment in the company chosen by TH Group for the
Business Environment course. Researchers need to analyze a business to invest in. Currently, the demand
for products that keep the essence of nature intact in each product is increasing so TH Group is suitable.
TH Group was established with financial advice of Bac A Commercial Joint Stock Bank and focused on
investing in the dairy and food processing industry. Besides, TH Group is gradually developing to become
the leading manufacturer in Vietnam providing clean food products originating from nature, including
fresh milk, clean fruits, and vegetables, ... reaching international quality. All are aimed at serving
consumers with the cleanest, safest, most delicious, and nutritious products. Today, TH Group has 3
compannies and TH true MILK is one of the companies of the TH Group. Currently, TH Group is famous
for its dairy products including TH true MILK, TH true YOGURT, TH true YOGURT TOP TEEN, and so on. TH
Group is also developing a retail chain of TH true M
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II. METHODOLOGY:
To collect data TH, the researcher used the internet to learn basic information about the company.
The researcher is also using some TH services, so some of the data is based on personal experience.
III. FINDINGS:
Full name TH MILK FOOD JOINT STOCK COMPANY
Short name TH MILK FOOD
The head office 166 Nguyen Thai Hoc Street, Quang Trung Ward,
Vinh City, Nghe An Province, Vietnam
Chairman of the board: Thái Thị Hương
Established date: September 8, 2008
The website address: http://www.thmilk.vn//
Hotline: 1800 54 54 40
Fields of Business: beverages – food
including the production and processing of fresh
milk, seed milk, growing vegetables, medicinal
plants, producing purified water, and so on
Charter capital: 3,8 billion VND
1. Company profile:
Table 1 - General information of TH Group (Trẻ, 22/4/2011)
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2. Types of the company:
a. Kinds of business and general information:
The business organization has 6 kinds of organization, they include:
1. Sole trader: is a business owned by one individual who is self-employed and who may,in
some cases,employ other people on either a fulltime or a part-time basis.
2. Partnership: is an arrangements between individuals to carry on business in common with a
view to profit. Partnership is governed by a partnetship agreement.
3. Private limited company: is a business association with legal identity according to its own
rights. There are effective advantages on separate entity tax or professional status, so on.
4. Public limited company: is a public company under the laws of the United Kingdom and a
number of Commonwealth countries, and the Republic of Ireland. The limited liability
company whose shares are free to sell and sell to the public.
5. Non-profit organization is legal or social entities created for the purpose of producing goods
and services whose status does not permit them to be a source of income, profit or other
financial gain.
6. Franchising: is a commercial activity. In addition, the franchising allows the franchisee to
conduct the purchase and sale of goods and services on its own terms under certain
conditions.
b. Types of the company:
Firstly, TH Group is a profit organization. Because, they always set annual profit targets. TH
returns have an unmistakable growth over annual cycles. Especially, since 2017, the Group
has made great progress in business. In 2018, TH Group has reached the revenue milestone of
more than 7,000 billion VND, surpassing the leading figure that Thai Huong, the founder of TH
Group has achieved. This achievement is due to the extraordinary development of new dairy
products. This also shows that growth is a huge international step towards TH True Milk.
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Figure 1 - TH's Profit from 2014 to 2018( by me at Excel Office based on the information of (Lan,
14/1/2019))
Secondly, TH Group is a private owned enterprise. Because most of the group's shareholder
members that contribute is individuals.
Figure 2 - TH's Shareholders Structure( by me at Excel Office)
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2014 2015 2016 2017 2018
0
50
100
150
200
250
300
350
400
450
500
27 54
130
319
450
TH's Profit
Year
Profit (billion VND)
2% 2%
2%
94%
Mrs. Thai Huong Mr. Dang Thai Nguyen
Mrs. Truong Thi Kim Thu Other economic entities
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Shareholder Structure of TH, Althought Mrs. Thai Huong is known as the owner of TH true Milk
JSC but in fact, she owns only 2% of TH Group. Besides, Mr. Dang Thai Nguyen and Mrs. Truong
Thi Kim Thu each also co-owns 2% of the corporation. The rest (94%) is owned by other economic
organizations.
3. Purpose of company: (Công ty s a s ch TH True Milk, n.d.)
Through many years of construction and development, and everything that company brings is a great
results, because TH corporation has identified its vision, mission, and core values.
a. Vision:
TH Group wishes to turn into the main producer in Vietnam in the spotless food industry beginning
from nature. With serious and long-term investment combined with the world's most modern
technology, they are determined to become a world-class food brand that is utilized by each
adherent, by everybody, and by the nation is glad.
b. Mission:
TH always has a lofty mission to create products based on the spirit of being close to nature.
Therefore, TH Group always tries its best, and offers clear, sharp strategies to nourish the body and
soul of Vietnam by providing food products originating from nature - clean. Safe, no preservatives or
additives to keep the product fresh and nutritious.
c. Core values: (TH True book, p. 4)
TH Group always have 5 values, including:
For true happiness.
For public health.
Completely from nature.
Environmental friendliness.
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Outstanding thinking and harmonious benefits.
d. Target:
TH Group always sets certain goals for themselves, but 2 goals are considered the most important
they set, and want to achieve it in the coming years. Firstly, to develop the number of packaged
milk in a closed chain by 2025 to 200,000; bringing the total number of dairy groups that the
group oversees and owns to 400,000. To achieve that, the Group is constantly building and
expanding the scale of breeding across farms across the country. Second, invest in the Russian
market. TH is constantly changing to call for investment capital and proceed with building
livestock projects, opening shops to display and selling TH Group's products in Russia.
Figure 3 – Farm of TH true Milk in Quang Ninh
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Figure 4 - Starting a livestock projecct in Moscow, Russia (TH True Milk kicks off dairy project in
Russia, 19/5/2016)
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Figure 5 A store of the TH true Milk in Son La, Vietnam.
4. Size of the company:
- Nowadays, assets of TH true milk exist in two forms: short-term assets and long-term assets.
But short-term assets account for a higher percentage to make it easier to turn around for
unexpected situations. According to the statistics of the business in 2013, short-term assets
accounted for 49.03%. The company’s assets in this year increased by 16.13% (3,177 billion
VND) compared to 2012.
- The total assets that TH has today are based on the sum of funds from the owners,
shareholders and profit after tax. In addition, also in the facilities, and equipment for
production as well as human workers.
- Financial statements of 2015, 2016 and 2017, the equity of TH milk is as follows:
Figure 6 - Financial Statement of TH in 2015, 2016 and 2017. (Về những “góc khuất” trong đầu tư của
Tập đoàn TH Truemilk, n.d.)
9
No Content / Years 2015 2016 2017
1 Owner's equity 2.255.106.338.165 2.385.406.350.871 2.704.883.275.702
2 Equity 3.800.000.000.000 3.800.000.000.000 3.800.000.000.000
Shareholders are individuals 3.256.200.000.000 3.256.200.000.000 3.256.200.000.000
Stock is an enterprise 543.800.000.000 543.800.000.000 543.800.000.000
3 Accumulated losses 1.544.893.661.835 1.414.593.946.129 1.095.118.724.298
AL to the end of the previous period 1.602.575.445.869 1.544.893.661.835 1.414.593.649.120
4 Profit after tax 57.681.784.034 130.300.012.706 319.476.924.831

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In summary, the equity’s TH Group is constant with 3.8 billion VND for each year and most of this
capital comes from the shareholders are individuals, while stock is the businesses are only small
amounts.
- From the above statistics table we have a diagram of TH's debts and capital sources in recent
years as follows:
Figure 7 - TH True Milk Debt and Equity. Source: vietinbanksc.com (Linh, n.d.)
From 2011 to 2017, The debt equity ratio of TH is spike and reaches an average of 42.3% but lucklily, this
debt is just short-term debt. Although it is a bit difficult for corporations, but they do not use too many
loans and always have a very solid debt structure, safe payment, creating confidence for creditors.
Therefore, TH has continuously received the help and investment from major investors to revive their
finance and business direction.
In general, from the above statistics and diagrams, it shows that, from 2013 to 2017, TH's capital
resources were still weak compared to debt, capital increased, debt decreased but not significantly, so is
also a concern for investors. However, starting in 2018, a major turning point for TH has demonstrated to
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developers that they can recover and grow stronger with increased equity approximately approaching
50,000. billion and profit after tax from revenue 450 billion. Since then until this year, TH's investment
capital has increased significantly to nearly 70,000 billion VND in 2020 and short-term debt has
decreased by nearly 10%.
Currently, TH Group's most expensive source of capital is from Russia to help TH access the Russian
market in the $ 2.5 billion project of dairy farming and processing dairy products. This project is expected
and thrive in 2025 and is divided into 3 phases.
Phase 1: (from 2015 to 2016) the Group will construct 3 bunches ranches and milk preparing
plants with a limit of 1,800 tons/day, on the complete region of 20,000 hectares is normal, with
the dairy crowd 20,000.
Phase 2: (from 2017 to 2019) the Group will construct 6 bunches with all out crowd of 100,000
youngsters, and building milk handling plants with a limit of 1,700 02 tons/day.
Phase 3: (from 2020 to 2015) the Group will construct 12 bunches and finish ranch milk
handling manufacturing plant Mega with absolute of around 200,000 bovines. (Linh, n.d.)
-About the number of labor of the company:
TH Group is a large corporation with a large scale, so the number of employees is also quite large,
currently there are more than 6,500 employees working at TH Group's companies including
farms, chain management. storage chain as well as sales chain. This number is expected to
constantly increase as they are gradually expanding their future operations nationwide as well as
internationally.
5. Scope of the company:
a. Geographic locations/ market:
*Geographic locations:
About the farm currently, In Vietnam now, TH's farm system is
Asia's leading farm in Nghe An and is being developed in the
northern border provinces (such as Lang Son, Ha Giang, and so on).
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Moreover, today the group is expanding to other localities in Vietnam to develop the livestock
system as well as to replace inefficient agricultural lands to build raw production areas feed raw
materials, etc.
TH Dairy Group has also entered into major international markets such as China, Russia, Australia,
and TH which continue to continuously develop and expand to a number of countries in the region.
Secondly, about a chain of stores’s TH true Milk. Up to now, the Group has owned the largest chain
of distribution stores in Vietnam with more than 250 TH true Mart stores in 56 provinces and cities
nationwide.
(Con đường sữa tươi sach TH, 2019)
*Market:
TH choose on the closer market such as ASIAN, because ASIAN will have some countries such as
Singapore where could be export products with free tax, and here TH True Milk can be received
advantages from establishing AEC to easier enter new market. However, ACE is also allowed “5 free”:
Free flow of goods.
Free flow of services.
Free flow of investment.
Free flow capital.
Free flow of skilled labor.
b. Target customers:
The customer target that TH is implementing over the years is to target customers with moderate
and good income, TH's products are usually aimed at those aged 15 to 35. Furthermore, A special
object of TH's customer target is women whose families have young children who are concerned
about their own health and those who want to use products safe for their health.
Currently, TH is constantly expanding its customer goals, creating products that are more suitable for
everyone, including children and adults, through a wider range of products.
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c. Products that TH Group is in production:
Nowadays,TH owns 10 types of products, which are: Beverages, Cleaning water, Seedmal, Cream,
Butter, Phomat, Fresh milk, A set of products containing Topkid, Natural Yougurt, and so on.
Among TH products, the latest product model is also an unexpected breakthrough for Vietnam Dairy
industry in general and TH in particular, which is TH true Nut product.
Especially, all products’s TH Group are from nature and produced on the most modern production
line in Asia and ensure the safety of consumers.
Figure 8 – TH true Milk’s procduct set (TH True book, 2019)
To sum up, from the results that TH has achieved over the years, it shows that the scope of
distribution, customer goals as well as the set of products that TH currently has are really suitable
with the needs of consumers. In particular, in the market, the countries that TH chooses to expand
on are countries with large populations and the milk consumption of these countries is also at the
top of the world. Therefore, these are the right steps to help TH easily enter the international
market, and this is also a stepping stone for TH to become the No. 1, clean milk company in the
international arena.
6. Functions of the company:
a. Types of organizational structures: 3 kinds of structure.
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1. Functional structure: In this type of structure that activities are clustered together by
common purpose or function. Most organizational structures reflect a degree of functional
specialization, with individuals occupying roles in departments, such as Finance, Marketing,
Production, R&D, etc.
2. Divisional structure: is built up of separate divisions on the basis of products, services, or
geographical areas. Each division operates as a profit center. Divisionalization often comes
about as an attempt to overcome the problems that functional structures have in dealing with
the diversity mentioned above
3. Matrix structure: is a structure that combines different structural dimensions
simultaneously, for example, product divisions and geographical territories or product
divisions and functional specialisms. Staff typically report to two managers rather than one
b. Structure map:
TH Group is formed with 3 member companies that guarantee 3 different functions
Company 1: TH joint stock company (farm): serves the management of dairy farms to ensure
the supply of high quality raw materials.
14
TH
Group
(Mr.
Thai
Huong)
Company 1
Company 2
Company 3
Management
Central
Management
South
Management
Northern
Branches
Branches
Braches
Workers
Workers
Workers
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Company 2: TH Milk Joint Stock Company (factory): performs the role of processing, applying
Europe's leading technology to make fresh, supplemented milk glasses.
Company 3: TH chain food joint stock company (distribution): aims to perform the task of
distributing professional and excellent products to users.
(TH True book, 2019)
TH Group uses matrix structure. Below are the advantages and disadvantages from the matrix
structure.
Advantages:
Make use of financial resources to enhance the appearance of the brand throught
media ( Ads, TV show, poster,…)
Develop distribution system and prepare willing to satisfy customer demand.
Make use of financial resources to develop products with the purpose: health and
friendly environment.
Push up production by using cheap material and modern techniques to complete with
competitors in price.
Disadvantages:
Research customers demand diverse product categories and enhance the competition
in the market.
Update modern technology to satisfy production requirements.
Use effectively fresh material which is beneficial for health.
IV. CONCLUSION:
In summary, TH Group is a large corporation with great potential for growth. TH is known as a profitable
company and a private limited company. The proof is that the corporation always sets certain goals in
terms of profit and that number is increased a lot each year. In addition, most of the company's
shareholders are private houses and they limit buying and selling shares to shareholders in the company.
Matrix structure also brings many advantages but disadvantages for TH. However, with the specific
strategy of the company management and the ambition of Ms. Thai Huong - Chairman of the Board of
Directors in deciding to bring TH to key geographical positions is very practical for TH, as well as
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industries in Vietnam helped TH Group to grow rapidly with a profit exceeding expectations in 2018 (450
billion VND) and reaching the international arena. Therefore, TH will be a suitable choice for investors to
consider.
V. RECOMMENDATION:
TH is an institution worth investing in, because:
First, TH has a clear strategy, vision and goals. Second, it is just a newly established organization with
dubious profits and a lot of new inventions that are different from previous dairy brands. The proof is
that TH has just invented the TH true Nut line, TH true Herbal, and so on has bold natural identity. Third,
TH is the first corporation to have the most modern production system in Asia, keeping the nature in
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each product.Moreover, in recent years, TH has been continuously contributed capital by large investors,
and is being targeted by most consumers because products from nature are good for human health.
In short, TH is a potential company that can grow strongly and reach the international arena.
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VI. REFERENCES:
Con đường sữa tươi sach TH, 2019. TH true book. Hà nội: Tập đoàn TH.
Công ty sữa sạch TH True Milk, n.d. sites. [Online]
Available at: https://sites.google.com/site/congtysuasachthtruemilk/
[Accessed 14 8 2020].
Lan, T., 14/1/2019. The Leader. [Online]
Available at: https://theleader.vn/doanh-thu-cua-tap-doan-th-vuot-7000-ty-dong-1547436694820.htm
[Accessed 14 8 2020].
Linh, Z., n.d. www.academia.edu. [Online]
Available at: https://www.academia.edu/30389788/International_strategy_of_TH_TRUE_MILK
[Accessed 15 8 2020].
Linh, Z., n.d. www.academia.edu. [Online]
Available at: https://www.academia.edu/30389788/International_strategy_of_TH_TRUE_MILK
[Accessed 15 8 2020].
TH True book, 2019. http://www.thmilk.vn/. [Online]
Available at: http://www.thmilk.vn/index.php?route=information/true_book
[Accessed 16 8 2020].
TH True Milk kicks off dairy project in Russia, 19/5/2016. https://en.nhandan.org.vn/. [Online]
Available at: https://en.nhandan.org.vn/business/investment/item/4298202-th-true-milk-kicks-off-dairy-
project-in-russia.html
[Accessed 16 8 2020].
Trẻ, C., 22/4/2011. SCRIBD. [Online]
Available at: https://www.scribd.com/document/53598512/CT-s%E1%BB%AFa-TH
[Accessed 14 8 2020].
Về những “góc khuất” trong đầu tư của Tập đoàn TH Truemilk, n.d. tinnhanhnhadat.vn. [Online]
Available at: https://tinnhanhnhadat.vn/doanh-nghiep/ve-nhung-goc-khuat-trong-dau-tu-cua-tap-doan-
th-truemilk-20190403134348.html
[Accessed 15 8 2020].
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