Hoa Phat Group: An In-Depth Analysis of Business and Environment

This report provides a comprehensive analysis of the Hoa Phat Group, a prominent Vietnamese company. It begins with a company profile, including its legal name, headquarters, leaders, and establishment details. The report delves into the company's type, purpose, vision, mission, core values, economic and social objectives. It then examines the company's size, including total assets, liabilities, owner's equity, and employee structure. The scope of the company is discussed, including its main market, target customers, and geographic market. The organizational structure and functions are analyzed, including the marketing department's function. The report also explores the suitability between organizational structure and objectives, as well as challenges and measures observed during the company's activities, concluding with references.

ASSIGNMENT 1 FRONT SHEET
Qualification BTEC Level 4 HND Diploma in Business
Unit number and title Unit 1: Business and Business Environment
Submission date 19/10/2021 Date Received 1st submission
Re-submission Date Date Received 2nd submission
Student Name Hà Thị Mỹ Linh Student ID GBS200541
Class GBS0909B Assessor name Vo Minh V
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of plag
making a false declaration is a form of malpractice.
Student’s signature
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1.Company Profile..................................................................................................................... 4
1.1. Hoa Phat Group profile................................................................................................4
1.2. Huge leaders................................................................................................................ 5
2.Introduction............................................................................................................................5
3.Type And Purpose.................................................................................................................. 6
3.1.Type.............................................................................................................................. 6
3.1.1.Profit or non-profit.................................................................................................... 6
3.1.2. Public or unpublic..................................................................................................... 6
3.1.2. Private company....................................................................................................... 7
3.2.Purpose................................................................................................................................8
3.2.1.Vision......................................................................................................................... 8
3.2.2.Mission...................................................................................................................... 8
3.2.3.Core Value................................................................................................................. 8
3.2.4.Objectives for economy............................................................................................ 8
3.2.5.Social Objectives......................................................................................................10
................................................................................................ 11
................................................................... 11
4.Size........................................................................................................................................ 12
4.1 Total Assets.................................................................................................................12
4.1. Total Liabilities........................................................................................................... 13
4.1.Owner’s Equity........................................................................................................... 14
4.2.Employee Structure.................................................................................................... 14
5. Scope....................................................................................................................................15
5.1 Main market............................................................................................................... 16
5.2 Target customers........................................................................................................ 16
5.3 Geographic market..................................................................................................... 17
6. Organizational structure and functions............................................................................. 18
6.1 Organizational structure.............................................................................................18
6.2 Type............................................................................................................................ 18
6.2 Function............................................................................................................................. 19
6.2.1 Function of marketing department......................................................................... 19
6.2.2 Function structure obtain goals.............................................................................. 19
7. The suitability between organizational structure suitable and mentioned objectives... 20
8.Challenges and measures observed during the company's activities................................20
8.1. Disease Risk............................................................................................................... 20
8.2. Human Resources Risk.............................................................................................. 21
9. Conclusion........................................................................................................................... 21
10. References List.................................................................................................................. 23

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1.Company Profile
1.1. Hoa Phat Group profile
Legal Name: Công Ty Cổ Phần Tập Đoàn Hòa Phát
International Name: Hoa Phat Group Joint Stock Company
Abbreviation Name: HPG
Headquarters: Pho Noi A Industrial Park, Giai Pham Commune, Yen My District,
Hung Yen Province
VNR500 Rating: 4(B2/2020)-19(B1/2020)
Tax Code: 0900189284
Tel: [phone]
Fax: [phone]
E-mail: [e-mail]
Website: http://www.hoaphat.com.vn
Date of establishment: 01/08/1992
Domain: Basic Ingredients

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1.2. Huge leaders
2.Introduction
In modern society, there are many companies to allocate money for citizens. Choosing a
brilliant company is take plenty of time for us to research all information about this
company such as fiscal statements, size and scope in Vietnam companies. From my research
on the business market in Vietnam, I believed that Hoa Phat Corporation is one of the
companies that has been and has potential for development. In the conflict of pandemic
Covid-19, nowadays, many enterprises have to delay their work and their budget might be
influenced. However, Hoa Phat is also demonstrating their establishment is not increased by
the way the General Director of Hoa Phat Group donated 50 billion VND to the authority’s
Covid-19 vaccine purchase fund with the hope of being able to contribute a little effort for
people. Besides, Hoa Phat Corporation is recognized as a National Brand, in the top 50
largest and most effective enterprises in Vietnam, in several years. Moreover, the company
is also achieve top 10 largest private companies in Vietnam and top 50 most valuable
brands in Vietnam.
Construction steel, hot-rolled coil (HRC), prestressing steel, wire drawn steel, steel pipes, and color
coated corrugated iron is indeed the major products in Hoa Phat's steel manufacturing chain. Hoa
Phat Group is Vietnam's largest construction steel and steel pipe producer, with a market share of
32.5 percent and 31.7 percent, respectively, and a capacity of over 8 million tons of steel of all sorts.
Full Name Position
Tran Dinh Long Chairman of the board
Tran Tuan Duong CEO and Chairman of directors
Nguyen Manh Tuan Vice Chairman of the board of directors
Doan Gia Cuong Vice Chairman of the board of directors

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3.Type And Purpose
3.1.Type
3.1.1.Profit or non-profit
Hoa Phat Corporation is a profit company. According to the annual report in 2020, Hoa Phat
company had to pay 5,522,085,440,000 VND for dividends to owners. Besides, this annual
report is also proved that the dividends paid in 2019 higher in 2020 and the balance at the
end of 2020 is higher than in 2019.
3.1.2. Public or unpublic
Hoa Phat company is also a public company. According to the method of rating the Global
2000 list (2,000 largest businesses in the world), Hoa Phat was honored to be evaluated by
Forbes Vietnam on company size based on four criteria: revenue, cash, total assets, and
market capitalization (USA). When occupying 5/10 venues, the top 10 registered the
impression of private companies, including Hoa Phat. This is the first time Forbes included
Vietnam on its list. (HPG,2020)
On 15/11/2007, HPG official listed on the stock exchange market on HOUSE, HPG stock was
listed the first time. HPG’s stock code on the stock exchange is HPG.

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3.1.2. Private company
Hoa Phat Group is a Vietnamese private corporation. The group's forerunner was a firm that dealt in
building supplies and technology. The organization has now evolved into a multi-industry corporate
conglomerate.
According to the annual report 2020, the shareholders structure is dividend into two
groups are group shareholders structure and geographical shareholders structure. Firstly, in
this table of the shareholder structure by group have foreign shareholders is 30 percent.
Board of Directors Supervisory Board, Board of Directors are 36 percent, higher than other
shareholders. Secondly, shareholders structure by geographic area. The domestic
shareholders are 40 percent higher than foreign shareholders. In this structure is shown
that HPG is completely a private enterprise.

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3.2.Purpose
3.2.1.Vision
Hoa Phat has a wide vision to become a world economy manufacturing company, with
steel for its primary business.(HPG,2020)
3.2.2.Mission
Hoa Phat's mission is to provide leading services that improve people's lives while also
earning consumer confidence.(HPG,2020)
3.2.3.Core Value
The idea of Harmony and Development is the basic value of the Hoa Phat Group. This is
reflected in the relationships between officials and workers, the Group and its partners,
agents, shareholders, the majority, and the social community, enabling the alignment of
stakeholders' interests on the same road to sustainable growth. Hoa Phat Group, in
particular, has established a long-term, trustworthy relationship. With sales representatives
that have been with the Group since its inception, it seems like a family.(HPG,2020)
3.2.4.Objectives for economy
According to the annual report, Hoa Phat earned 90,118 billion VND in sales and 13,545
billion VND in profit after tax in 2020, representing increases of 41.5 percent and 80 percent,

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respectively, from over previous year, owing to thriving steel industry and agriculture.
Besides, with the results obtained, the Board of Directors is anticipated to present a
dividend payment plan of 35% consisting of 5% cash and 30% shares. Implementation will
take place in the second and third quarters of 2021. The projected dividend rate for 2021 is
30%. Moreover,also according to this reports, Hoa Phat plans to produce 5 million tons of
completed construction items, iron and steel, and 2.7 million tones of HRC by 2021. Total
output was 7.7 million tons, a 54 percent increase over 2020. Hoa Phat's final construction
products, steel, and HRC reached over 1 million tons during the first two months, extra than
double the same period last year. In which case, consumption of completed construction
materials increased marginally by 26 percent, which was offset by HRC's contribution of
427,000 tons.(HPG,2020)

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3.2.5.Social Objectives
With the slogan "Harmony" growing together, Hoa Phat always executes corporate social
responsibility substantively. That is demonstrated by enhanced donations to the yearly
state budget, the creation of secure jobs for thousands of people, the implementation of
efficient social security work and a range of charitable programs, and the joining of hands
for meaningful community service. Step one is to put the Nhip Dap Yeu Thuong program
into action. From 2015 until the present, the Nhip Dap Yeu Thuong program has been a
dependable address for poor children with congenital heart disease who require assistance.
After 5 years in business, In many situations, surgery is financed promptly, and the initiative
has successfully sponsored 221 pediatric patients. Hoa Phat has confirmed its sponsorship
of 83 patients for 2020, including 62 successful surgeries, at a total cost of 2.8 billion VND.
The next step is Xay Cau Nong Thon process. The project is being implemented to help
improve the standard of living for local residents while also boosting local economic growth.
Hoa Phat recently built three bridges in Ben Tre (Dinh Nhon Hamlet, Dinh Thuy Commune,
Mo Cay Nam District), Hau Giang (Binh Hieu People's Market Bridge, Vinh Tuong Ward, Long
My Town), and Soc Trang in 2020. (Dac Thang Hamlet, Ho Dac Kien Commune, Chau Thanh
District). Finally is Spring of Love process. It is a schedule of activities carried out by the Hoa
Phat Group before the Lunar New Year, in order to deliver a Tet that is warmer and more
complete for families in challenging circumstances. The "Spring of Love" initiative
distributes Tet presents to difficult households in the area. In 2020, Hoa Phat Group
provided about 3,500 VND presents worth 500,000 VND / serving in 14 provinces and cities
above, totaling more than 1.7 billion VND. This activity includes a lot of employees who
engage in the spirit of "good leaves cover torn leaves," sharing with those in poor situations
in order to offer a meaningful Tet to the people (the annual report 2020).

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(HPG,2020)

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4.Size
4.1 Total Assets
According to Hoa Phat Corporation’s 2020 balance sheet, Hoa Phat Group’s total assets as
31 December 2020. The total assets of HPG on Dec 31,2020 1 is 131,511,436,895,020.
Compered with total assets on January 1, 2020, total assets from January to December have
increased. (Annual Report, 2020)