HCMC Uni. Tech & Edu: Global Business Environment Report - Unit 18

This report provides a comprehensive overview of the global business environment, focusing on various organizational types, including for-profit, not-for-profit, and non-governmental organizations (NGOs), as well as micro, small, and medium-sized enterprises (SMEs). It delves into the differences between these organizations, their legal structures (sole traders, partnerships, and private limited companies), and their size and scope. The report further explores the functions within an organization, such as marketing, finance, human resource management, and operations, and their interrelationships, using MM Mega Market Vietnam as a case study. Additionally, it examines organizational structures, including franchising, joint ventures, and licensing, and their impact on business operations and objectives.

RECORDING AND FEEDING BACK ON LEARNER ACHIEVEMENT
Course / Award Pearson BTEC HND Level 5 in Business Management
Unit 18 Global Business Environment – A1
Student Name Nguyen Bao Phuong
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HCMC UNIVERSITY OF TECHNOLOGY
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Table of Contents
1) Different types of organisations..................................................................................................2
The difference between for-profit and not-for-profit and non-governmental organisations
(NGOs)..............................................................................................................................................2
Micro, small, medium-sized enterprises (SMEs). Different business purposes, objectives, and
supply of goods and services...........................................................................................................2
The range of legal structures associated with different forms of business: sole traders,
partnerships, and private limited companies.................................................................................3
2) Size and scope of organizations...................................................................................................3
Differences between large, medium-sized, and small organizations including objectives and
goals, market share, profit share, growth, and sustainability......................................................3
Differences between franchising, joint ventures, and licensing....................................................4
3) The various functions within an organization:..........................................................................4
Introduction:....................................................................................................................................4
The role of marketing, finance, human resource management, and operations within an
organizational context and the interrelationships.........................................................................5
How functions relate to overall organization mission and objectives..........................................5
a. Corporate functions.............................................................................................................5
b. The mission of the company................................................................................................5
4) Organisational structure.............................................................................................................6
References............................................................................................................................................7
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1) Different types of organizations
The difference between for-profit and not-for-profit and non-governmental
organizations (NGOs)
Organizations can be described as groups or structures established to achieve individual
objectives or objectives. The most common way to differentiate between organizations is by
looking at their goals and their goals. Some organizations work for a profit, while others may
promote a social activity or improve society’s well-being.
For-profit organizations
Any business, company, or organization incorporated with the primary purpose of making a
profit can be described as a for-profit organization. The revenue generated by these
organizations is often reinvested in the business to secure business. Their activities can be
based on various sectors, including fashion, technology, food, and retail.
Not-for-profit organization
Non-profit organizations are organizations established for purposes other than financial gain.
Non-profit organizations may include charities and social enterprises. Non-profits are often
tax-exempt and generate their capital through donations, sponsorships, and other similar
investments. They are usually active in religion, science, or education.
Non-governmental organizations
NGOs are non-profit organizations that operate independently from the state or the
government. Although they can still receive funding from the state, NGOs operate without
government representatives. The most popular types of NGOs include INGO (international
NGOs), BINGO (business-friendly international NGOs), ENGO (environmental NGOs), and
QUANGOs (quasi-autonomous NGOs). Like most non-profits, NGOs also depend on
external funding through contributions, membership fees, and subsidies.
Micro, small, medium-sized enterprises (SMEs). Different business purposes,
objectives, and supply of goods and services
Size Micro Small Medium
Definition
A microenterprise typically
operates with fewer than
ten people and is started
with a small amount of
capital in advance from a
bank or other institution.
Businesses employing less
than 50 people and whose
combined annual turnover
or balance sheet does not
exceed € 10 million.
Businesses employing less
than 250 people and whose
annual revenues do not
exceed € 50 million or have
an annual balance sheet not
exceeding € 43 million
Purpose
Providing goods or services
to local areas
These companies play a
vital role in the country’s
prosperity, both in job
creation and tax collection.
These companies play a vital
role in the country’s
prosperity, both in job
creation and tax collection.
Objective
These businesses help
improve people’s quality of
life in developing countries
and often provide goods or
services in their
communities.
To create more
employment opportunities
To improve the standard of
living of people
To solve the unemployment
problem
To adopt the latest
technology aimed at
producing better quality
products at lower costs
Improve competitive
advantage
Increase efficiency and
productivity
Cut down the cost
Cash flow improvement
Allows for growth and
quality maintenance
Supply of Clothing and shoes or Health, entertainment, and Health, entertainment, and
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goods
and
services
agriculture transport transport
The range of legal structures associated with different forms of business: sole
traders, partnerships, and private limited companies
Sole Proprietorship
Sole ownership (also known as a sole trader) is an established legal status in which the
business is owned and controlled by a single person. The monopolist may hire workers, but in
the end, the responsibility remains with the owner. Monopolies are easy to set up and usually
only require a small inflow of initial investment capital.
Partnership
A partnership is a business enterprise owned by two or more parties. Some small businesses
starting as sole owners may decide to use a partnership structure as they expand. The
advantage of this is the sharing of responsibilities between partners - which is impossible in a
single owner company. This is a partnership for which the general partners have limited
liability in which one member is not responsible for the other’s negligence.
Private Limited Companies
Private limited companies are often small secret businesses with limited share ownership
responsibilities. Because businesses are small and are privately held, regional companies
have a small number of shareholders. Many SMEs operate as private limited companies as it
allows them to seek protection from personal liability and reduce personal risk while
allowing them to raise capital through selling. Share.
2) Size and scope of organizations
Differences between large, medium-sized, and small organizations including objectives
and goals, market share, profit share, growth, and sustainability
Micro enterprises Small enterprises Medium and large enterprises
Size
They include small
businesses industries that
the level of employment
is low investment capital
They are owned by
independent organizations
and include many workers
who want to increase their
sales and business in the
long run.
They include employees who
work as voluntary members,
most of whom have links to
rapidly growing multinational
organizations.
Scope Developing countries
form this type of
enterprise in large
numbers where micro-
entrepreneurs mandate all
necessary needs. This
adds value to their
economies, thereby
expanding the scope for
better income
opportunities and growth
and reducing business
They are private agencies
owned by sole owners,
where they work
collaboratively and have the
opportunity to change the
size and structure of their
revenues accordingly.
They include multinationals that
operate as part of the government
sector, thus earning huge
revenues. Earnings are retained
for future development purposes,
thereby seeking to develop
internal aspects of the company
further.
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costs.
Organizations set their business goals by looking at the scope of their business. If any
organization can serve national customers, then they will develop their business goals
accordingly. On the other hand, if they find that they serve international customers, they will
set their business goals accordingly. According to products and services, an organization
establishes its structure, size, and scope. If any business organization finds that its work does
not require a sizeable organizational structure, it doesn’t put that. On the other hand, if any
product or service’s business scope is only enormous, an organization creates a large
organization and creates content; otherwise, they make a small organization.
Differences between franchising, joint ventures, and licensing
Franchising Joint ventures Licensing
Business model Deals with providing Services Deal with two or more
parties Deals with Products & Goods
Ownership
Ownership of the ultimate
product is with the licensee.
He only buys the right to use
particular patented/ original
work of licensor in exchange
for royalty
Each joint venture party is
to the extent of the capital
responsible contribution of
the company
Business ownership belongs to
the franchisee, who buys the right
to operate the same business on
behalf of the franchisor in
exchange for fees.
Legal regulation
Standard agreements are
governed by contract law
between the parties
Regardless of the legal
structure used for the
partnership, the most
important document will be
the joint venture agreement
that outlines all the
partners’ rights and
obligations.
Stricter compliance requirements
are governed by Corporate law
and other federal laws governing
international business
Advantages
Licensees are vertically
integrated into the market
without investing much
capital & enhancing little
brand value. Licensee access
to markets based on strong
brands & eliminates
competition
In addition to dividing the
interest according to the
capital contribution ratio,
the higher the probability
of success
Franchisors can access
geographically diverse markets
without compromising brand
equity. Franchisors receive
ongoing support from franchisors
to expand their already successful
business
Disadvantages
Licensee does not have
control over the final use of
its intellectual property rights
The language barrier is the
most inconvenient thing.
Joint ventures with foreign
businesses will face many
difficulties for companies
with weak foreign
languages. So running and
managing a business
requires real professionals.
The franchisee’s sizeable initial
investment to meet the
franchisee’s quality standards.
The degree of autonomy is
minimal for the franchisee in all
business activities
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3) The various functions within an organization:
Introduction:
MM Mega Market Vietnam, a part of BJC / TCC Group, opened its first center in 2002 in
Ho Chi Minh City. Ho Chi Minh. After 18 years of operation, it has expanded to 20 centers
nationwide, three transit stations, two warehouses with more than 4,000 employees, and
2000 partners. MM Mega Market Vietnam (MMVN) aims to build a modern supply chain,
directly connecting local farmers and manufacturers through a distribution channel, ensuring
a source of goods with over 90% of goods made in Vietnam.
The role of marketing, finance, human resource management, and operations
within an organizational context and the interrelationships
Marketing:
The Metro has a considerable inventory and inventory control system to control stock, and
the stores are running. Still, there are some areas where improvement can make the system
useful. They are indispensable parts of their business, helping them develop relationships
and interact closely with customers and other companies. They are further responsible for
providing a given organization’s chain brand image, thereby exercising active engagement
concerning various positive and customer interactions by using practical tools and methods
Finance:
Perform the function of accounting, financial management, implement accounting regimes,
monitor revenue and expenditure situation, and provide wholly accurate and timely
information, data, and business results of the director. Other important divisions control the
company’s various expenditures and other legal obligations, thereby managing its entire
investment process to maintain profitability.
Hunan resources management:
Responsible for managing personnel issues at each warehouse, recruiting, arranging the
personnel, solving other personnel problems such as sick leave, and changing positions.
They perform effective management and strategic management of their internal workflows
using all business resources effectively. They focus more on implementing an efficient
hiring process, thereby hiring the best employees to benefit the company and increase
productivity.
Operation:
METRO Cash & Carry Vietnam started to operate its wholesale business in 2002 and is
currently running 19 wholesale stores across the country with more than 3,300 employees.
Over the years, METRO Cash & Carry Vietnam has invested broadly and continuously in
the local trade infrastructure and food hygiene and safety. They seek to oversee the entire
production process to provide smooth and efficient services to meet customer expectations
and needs.
How functions relate to overall organization mission and objectives
a. Corporate functions
The company’s first function is to be responsible for the organization of goods circulation,
distribution of goods of suppliers, and Metro itself to customers through Metro
supermarkets.
Metro must take on the second function: the company is the bridge between manufacturers
and customers by organizing business activities to buy and sell products at Metro
supermarkets. The company holds an essential role in the distribution network of widows in
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the market, communication, and coordination between companies with suppliers and their
partners, thereby promoting goods and the best products.
Besides, the Metro also manages and monitors the source of goods, forms the volume of
stored goods, protects the quality of goods, ensures continuity, business stability, and
ensures customers’ legitimate interests in goods quality.
b. The mission of the company
One of the business criteria as well as the mission of MM Mega Market, is to become a
shopping destination for every Vietnamese family, with a variety of products for life, and at
the same time make MM Mega Market Vietnam become a shopping destination. Everyone’s
branding priority. The companionship and attachment of millions of Vietnamese families are
the most critical business goal of a business.
4) Organizational structure
Currently, MM Mega Market Vietnam system has all 19 warehouses corresponding to 19
small organizational apparatuses but is operated under the general regulations and directly
managed by the general manager. Each warehouse will have its administrative machine,
subject to the warehouse manager’s direct management, according to the company’s general
regulation.
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OrganisationCreationofstructuretypes+Divinework+organiseresources+CoodinateactivitéLeaderLauncheffortCheckGuaranteedresultsPlanningSetyourdirection

References
Anon., 2016. VEN.vn. [Online]
Available at: http://ven.vn/metro-completes-sale-of-metro-cash-carry-vietnam-to-tcc-23720.html
[Accessed 3 11 2020].
HARGRAVE, M., 2020. Investopedia. [Online]
Available at: https://www.investopedia.com/terms/j/jointventure.asp
[Accessed 3 11 2020].
Jahangir, A., 2020. iQualifyuk. [Online]
Available at: https://www.iqualifyuk.com/explain-different-types-size-and-scope-of-organisations/
[Accessed 3 11 2020].
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