Business and Business Environment: SABECO Company Report Analysis

This report provides a detailed analysis of the Saigon Alcohol Beer and Beverage Joint Stock Corporation (SABECO), a leading beer company in Vietnam. The report begins with an introduction to the business environment and then delves into the different types and purposes of organizations, including for-profit, non-profit, and public limited companies, along with their legal structures and functional departments. The core of the report focuses on SABECO, examining its company profile, type as a for-profit and public limited company, vision, mission, core values, and objectives. It explores SABECO's size and scope, including its profitability and employee numbers, both domestically and internationally. The report also investigates SABECO's organizational structure, key departments, and their functions, as well as the advantages and disadvantages of its structure. The report includes financial highlights, shareholder structures, and organizational charts, providing a comprehensive overview of SABECO's operations and business environment. The report concludes with a summary of the findings and a list of 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 6 December 2020 DateReceived1stsubmission
Re-submissionDate DateReceived2ndsubmission
Student Name Nguyen Tuan Anh Student ID GBD201490
Class GBD0902 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 Anh
Grading grid
P1 P2 P3 M1 M2 D1

 Summative Feedback: Resubmission Feedback:
Grade: AssessorSignature: Date:
InternalVerifier’sComments:

TABLE OF CONTENT
A. INTRODUCTION ...................................................................................................... 6
B. DIFFERENT TYPE AND PURPOSE OF ORGANIZATIONS ........... 7
I. ORGANIZATIONS ..................................................................................................... 7
1. For Profit Organization ...................................................................................... 7
2. Non-Profit Organization .................................................................................... 7
3. Non-Government organizations ........................................................................ 7
4. A Public Limited Company ................................................................................. 7
5. Private Owned ................................................................................................... 7
6. State-Owned Enterprise .................................................................................... 7
II. LEGAL STRUCTURE .................................................................................................. 7
1. A sole trader ...................................................................................................... 7
2. A partnership ..................................................................................................... 8
3. A private limited company ................................................................................ 8
III. FUNCTIONAL DEPARTMENTS ................................................................................. 8
1. Marketing department ...................................................................................... 8
2. Human resource department (HR) .................................................................... 8
3. Finance Department .......................................................................................... 8
C. SABECO’S INFORMATION .............................................................................. 8
I. TYPE, PURPOSE, AND INTERNAL ENVIRONMENT OF COMPANY .......................... 8
1. Company profile ................................................................................................ 8
2. Type and purpose of SABECO ............................................................................ 9
2.1. For-profit organization ................................................................................ 9
2.2. Public limited company ............................................................................... 11
3. Vision-Mission-Core Values-Objective .............................................................. 12
3.1. Vision .................................................................................................................... 12
3.2. Mission .................................................................................................................. 13
3.3. Core Values ........................................................................................................... 13
3.4. Objective ............................................................................................................... 14
a) Profit and product goals ........................................................................ 14

2. The Scope of SABECO ................................................................................................ 21
2.1. In Domestic .......................................................................................................... 21
2.2. In Foreign.............................................................................................................. 23
III. THE FUNCTIONS OF COMPANY .............................................................................. 25
1. The structure of SABECO ................................................................................... 25
2. The main functions of various key department ................................................ 25
2.1. General Meeting of Shareholders ..................................................................... 26
2.2. Board of Directors (BOD) ................................................................................... 26
2.3. Board of Management (BOM) ........................................................................... 26
3. Analyze the advantages and disadvantages of company structure .................. 26
3.1. Advantage ............................................................................................................ 26
a) The flexibility of SABECO's departmental structure .............................. 26
b) An example of efficiency in a divisional structure ................................ 26
3.2. Disadvantage ....................................................................................................... 27
D. THE CONCLUSION ................................................................................................. 27
REFERENCES .................................................................................................................... 28
LIST OF PICTURES
Picture 1: Core Values of SABECO (Annual report 2019, p.13) ................................................... 13
Picture 2: Participation in “Action for Food Safety in Industry and Trade 2019 of SABECO" ..... 15
(Annual report 2019) ................................................................................................................... 15
Picture 3: The business location of SABECO (Annual report, 2019, p.30) ................................... 22
Picture 4: Scope of SABECO in foreign (Annual report, 2019, p.31) ........................................... 24
Picture 5: The organization structure of SABECO (Annual report, 2019, p.33) ........................... 25

LIST OF TABLES
Table 1: Company profile of SABECO (Annual report,2019) ....................................................... 9
Table 2: Consolidated statement of income the year ended 31 December 2019 ...................... 10
(Annual report, 2019, p. 126) ......................................................................................... 10
Table 3: Shareholders structure at February 14, 2020 (Annual report,2019, p.11) .................... 12
Table 4: Consolidated balance sheet-total assets at 31 December 2019 ................................... 16
(Annual report, 2019, p.123) ......................................................................................... 16
Table 5: Consolidated balance sheet-Liabilities at 31 December 2019 ....................................... 17
(Annual report, 2019, p.125) .......................................................................................... 17
Table 6: Consolidated balance sheet- owners’equity at 31 December 2019 .............................. 18
(Annual report, 2019, p.125) .......................................................................................... 18
Table 7: Profit after tax at 31 December 2019 (Annual report, 2019) ........................................ 19
Table 8: The distribution of SABECO in domestic (Annual report, 2019, p.31) ........................... 23
LIST OF FIGURES
Figure 1: 2019 Financial Highlights (Annual report, 2019, p.18) ................................................. 11
Figure 2: Profit after tax of SABECO (VNEXPRESS,2020) ............................................................. 19
Figure 3: Overview of Labor Force (Annual report, 2019, p.18,19) ............................................ 21

of a business highly depends on the proper use of the environment. The business's performance
largely depends on the business environment where a positive business environment enables the
firm to operate effectively and profitably along with achieving competitive edges. In this assignment,
different types, sizes, and scope of organizations will be discussed, along with the various types and
purposes of organizations and their legal structures.
SABECO, a famous beer brand name, is no stranger to the Vietnamese people. As a leading beer
brand in Vietnam, SABECO has performed well in analyzing the business environment. Thanks to its
strategies, SABECO has become a well-known name. The following report will clarify SABECO
organization.
B. DIFFERENT TYPE AND PURPOSE OF ORGANIZATIONS
1. For Profit Organization: A for-profit organization is an organization that operates with the
main purpose of making money and making profits. Most for-profit businesses will sell a
product or service to serve the customer and profit from their needs. Business owners derive
income from profits and can pay shareholders and investors for profits.
2. Non-Profit Organization: A nonprofit organization is a business that has been granted tax-
exempt status by the Internal Revenue Service (IRS) because it furthers a social cause and
provides a public benefit. The main goal is to focus on one goal: community help, charity,
philanthropy, or welfare. Money is generated from the organization to maintain its operation,
and it is not owned by any individual.
3. Non-Government Organizations: A non-governmental organization (as known as NGO) is a
non-profit group that functions independently of any government. Sometimes called civil
societies, NGOs are organized on the community, national and international levels to serve a
social or political goal such as humanitarian causes or the environment. NGOs, or non-
governmental organizations, play a major role in international development, aid, and
philanthropy. NGOs are non-profit by definition but may run budgets of millions or up to
billions of dollars each year. NGOs rely on various funding sources, from private donations
and membership dues to government contributions.
4. A Public Limited Company (PLC) is a separate legal business entity that offers its shares to be
traded on the general public's stock exchange. According to the corporate law regulations, a
PLC has to compulsorily present its financial stats and position publicly to maintain

6. State-Owned Enterprise: A State-Owned Enterprise (SOE) is a body formed by the
government through legal means to take part in activities of a commercial nature. A state-
owned enterprise (SOE) can be fully owned or partially owned by the government
(equitization).
1. A Sole Trader is a business operated and owned by a single individual. The sole proprietor is
the sole profit takers of the business. The liability of the owners is very high. A sole trader
business doesn’t have any legal identity separate from its owner, leading many to say that
you are the business as a sole trader. As a sole trader, you have absolute control over your
business, assets, and profits after tax.
2. A Partnership is a type of business in which at least two members are joint owners. Doing
business together under a common name called general partners may have capital
contributors apart from the general partners. Capital contributors are only responsible for the
company's debts to the extent of the capital contributed to the company and personal
property unrelated to the company.
A private Limited Company is the most common form of UK company incorporation. It
operates as a distinct legal entity to its directors and shareholders – the company is an
‘individual’ in its own right. This means that all the business assets, liabilities, and profits
belong to the company itself, and the shareholders are not wholly responsible for debts
incurred by the company.
Marketing is a holistic system of organization activities designed to
plan, procure, promote and distribute products, services and ideas to meet the needs of the
target market and achieve the goals of the organization. Accordingly, Marketing can be
broadly understood as all business activities of an enterprise. Activities ranging from forming
the idea of producing goods, services to developing production and consumption to sell well
in the market.
The Finance Department is a division of the organization responsible for
acquiring funds for the company, managing the funds within the organization and planning
the expenditure of funds for various assets. This is the part of the organization that ensures

C. SABECO’S INFORMATION
1. Company Profile
No. Category Company details
1. Company name Trade name: Saigon Alcohol Beer and Beverage Joint Stock Corporation
Native name: Tổng Công ty Cổ phần Bia – Rượu – Nước giải khát Sài Gòn
Abbreviation: SABECO
2. Established year April, 1875
3. Legal
representatives
Mr. Koh Poh Tiong – Chairman of the Board of Directors
Mr. Neo Gim Siong Bennett – General Director
4. Corporation’s
main operation
officer
5th Floor, Vincom Center Building, 72 Le Thanh Ton, Ben Nghe Ward, District 1, Ho Chi
Minh City, Vietnam
5. Enterprise
Registration
Certificate
0300583659 issued by Ho Chi Minh City Department of Planning and Investment on April
17, 2008. The 9th amendment was made on August 7, 2018
6. Business lines Producing and trading Beer-Wine and Beverage
7. Contact number ([phone] – 3829 4083 – 3829 6342
8. Website https://www.sabeco.com.vn/trang-chu.
Table 1: Company profile of SABECO (Annual report,2019)
2. Type and purpose of SABECO
2.1. For-profit organization

Table 2: Consolidated statement of income the year ended 31 December 2019 (Annual report,
2019, p. 126)

Figure 1: 2019 Financial Highlights (Annual report, 2019, p.18)
According to the consolidated report, it is clear that SABECO is a for-profit organization. Through specific
figures such as "Net operating profit", "Net sales" and "Profit after tax" it is reported that SABECO
makes profit from sales and servicing. Sales activities create a huge profit with approximately 6,700
billion VND (an increase of about 1,300 billion compared to 2018).
2.2. Public limited company

Table 3: Shareholders structure at February 14, 2020 (Annual report,2019, p.11)
Saigon Beer - Alcohol - Beverage Corporation (“the Company”) was established as a State-Owned
General Corporation under Decision No. 74/2003/QD-BCN dated 6 May 2003 of the Ministry of Industry
(The Ministry of Industry and Trade). In 2007, the company was equitized under a government decision.
In the same year, the joint-stock company was newly established and controlled all previous state
corporations' assets and liabilities (Annual report, 2019)
Looking at detailed data through the share structure table, there are 1711 shareholders, including
domestic and foreign. This data proves that SABECO is a public limited company and sells shares on the
stock market.
Vietnam Beverage Company limited has more than 343 million shares, accounting for about 54% of its
ownership. Meanwhile, the Ministry of Industry and Trade only accounts for 36%, with 230 million
shares.
3. Vision – Mission – Value – Objective
3.1. Vision (Annual report, 2019)