Unit 1 Business and Business Environment : Assignment (Doc)
Added on 2021-06-10
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ASSIGNMENT 2FRONT SHEET Qualification BTEC Level 4 HND Diploma in Business Unit number and title Unit 1: Business and Business Environment Submission date 28/04/2021 Date Received 1stsubmissionRe-submission DateDate Received 2ndsubmissionStudent Name Trương Hoàng Ngọc Student ID GBD201771 Class GBD0903 Assessor name Phan Tran Phuong Trang 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 Grading grid P4 P5 P6 M3 M4
Summative Feedback: ResubmissionFeedback:Grade:Assessor Signature:Date:Internal Verifier’s Comments:Signature & Date:Table of Contents 1. Introduction.....................................................................................................................
2. Micro and Macro Environment ................................................................................................................................ 2.1. Porter’s Five Forces: ................................................................................................................................. 2.2. PESTLE Analysis: ............................................................................................................................................... 3. Internal Analysis: ..................................................................................................................................................... 3.1. Mission, Vision and Core Value: ...................................................................................................................... 3.2. Organizational Structure: ................................................................................................................................. 3.3. Human resources: ........................................................................................................................................ 3.4. Brand name and Equity:............................................................................................................................... 3.5. Market Resources: ....................................................................................................................................... 4. Business Decision: ................................................................................................................................................... SWOT Model: ................................................................................................................................................... Conclusion: .................................................................................................................................................................. References ...............................................................................................................................
Hoa Phat is Vietnam's largest industrial engineering conglomerate. Hoa Phat began as a building machine and machinery trade firm in August 1992, and has since grown into furniture, steel pipe, steel, refrigeration, real estate, and agriculture trading and manufacturing. Hoa Phat has been publicly listed on the Stock Exchange since November 15, 2007, under the ticker symbol ‘HPG.'Hoa Phat Group currently has 11 member firms and 25,424 employees working throughout the country and one office in Singapore. Steel manufacturing is the Group's main source of sales and benefit, accounting for more than 80% of total revenue and profit. Construction steel, hot rolled coil (HRC), prestressed concrete steel, drawn steel cable, steel pipe, and color-coated corrugated iron are the major items in Hoa Phat's steel supply chain. Hoa Phat Group is the largest producer of construction steel and steel pipes in Vietnam, with market shares of 32.5 percent and 31.7 percent, respectively, due to a combined capacity of over 8 million tons of steel. The macro environment has a significant effect on the business, and this report will demonstrate the opportunities and challenges of micro-environmental influences. Furthermore, the review process reveals the benefits and disadvantages of the company's internal causes, as well as the impact of all of the above on the company's policies and decisions.(HPG,2021)
2.1. . Porter’s 5 Forces Analysis 2.1.1. . Bargaining power of suppliers (Medium) Hoa Phat Group is a multi-business conglomerate that produces and operates a wide range of industrial and household goods in Vietnam. In addition, the commodity serves as a source of raw materials for the production of other goods. Hoa Phat Group can be secure in competing with steel producers both within and outside of Vietnam by ensuring a reliable raw material supply at the Hoa Phat Integrated Steel Complex, which has a potential of 1 million tons per year. Heavy industry, such as iron and steel manufacturing, has recently been unable to self-supply 100% of alloy steel and iron in Vietnam. China, Japan, and Russia continue to manufacture massive amounts of steel and iron, as well as semi-finished materials (alloys), the majority of which are of low and mediocre quality. As a result, any shift in the global economy will have a significant impact on the steel manufacturing industry in Vietnam. Hoa Phat has many benefits as a leading company in the industry and in Vietnam, allowing it to diminish the negotiating power of international suppliers. Undifferentiated products: A large percentage of imported materials and steel products are of poor or average quality, especially low-cost steel.( Course Hero, 2019) Close cycle: With a total asset valuation of over 10,000 billion VND, HPG is a market leader in the near cycle model, which includes ore extraction, steel forging, refining, and the production of alloy and finished steel products. Hoa Phat has successfully received 60-70 percent of the alloy input. Hoa Phat also has two subsidiaries as a result of its backward integration strategy: An Thong Mining Investment JSC and Hoa Phat Mining JSC, both of which are responsible for drilling, exploiting, manufacturing, crushing, and selling iron ore in Ha Giang and Yen Bai provinces. Per year, they will supply 700,000-900,000 tons of iron ore.
Furthermore, the Hoa Phat Steel Integrated Complex model has expanded the corporation's freedom from its suppliers. The Hoa Phat Steel Integrated Complex model has expanded the company's freedom from its suppliers. The complex's production potential is: . The iron ore manufacturing plant can handle 300,000 tons of ore per year. . The cast iron mill can produce 850,000 tons per year. . The steel billet mill can produce 850,000 tons per year - The steel rolling mill can produce 850,000 tons per year Despite the fact that productivity has recently fallen short of consumer demand, Hoa Phat has signed long-term iron ore contracts with Anglo America Plc in England for 300,000 tons of iron; this would not impact Hoa Phat's negotiating power with its suppliers because steel prices are falling. Customers: Since the bulk of Hoa Phat's customers are members, the company faces no consumer scrutiny. As a result, it is not too reliant on commodity supply; in other words, HPG is not “squeezed” by its manufacturers and consumers. Last but not least, HPG's reputation and long-term relationships with overseas vendors ensure that the firm pays a fair price for its inputs. In conclusion, the suppliers have some bargaining power with Hoa Phat.(Course Hero,2019) 2.1.2. Bargaining power of buyers (Low) In terms of price, quality, design, and service, customers have a wide range of options. Customers continue to be interested in the group's products with extensive and regular coverage. Customers who value a product will pay more for it, boosting buyer power. As a result, the bargaining power of the parties is diminished. HPG's main line of operation is steel manufacturing, which includes steel products, steel sheets, and rolling steel... This sector has undergone many challenges in recent years, both on the domestic and international markets. Buyers of HPG, on the other hand, have fewer negotiating power than buyers in other sectors since HPG's key clients are construction firms who need to install high-end infrastructures, large homes, or civil works (Course Hero,2019). The Central and Southern regions are the primary markets for steel production; however, the group is also strengthening its presence in the international market. From 2010 to 2019, the sale value and consumption market share of construction steel increased, indicating that steel supply demand is increasing. Furthermore, HPG's offerings are distinct from others. To manufacture high-quality goods that met consumers' demands, the standard ISO 9001:2000 was used in production management, as well as strict adherence to food safety regulations.
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