485 Business and Business EnvironmentIntroduction I will work on the criteria of the article in this assigment, such as clarifying the various forms, sizes and scopes of organizations and explaining the interrelationship of various roles in an organization. And how the organizational structure is connected to them. I will clarify each issue of the post request and at the s me time apply to Suntory PepsiCo, the company I choose, to explain the request and clarify the content needed by the subject. 2. Theories 2.1 Type of legal structures •Limited liability to a single member: owned by an entity or person, the owner is responsible for all the products in the business (Lawkey, 2020). More money can be contributed through diversified ways of capital raising, such as issuing bonds, borrowing from domestic and international organizations or individuals or shareholders. It is not permissible to issue shares through this model. •Multimember limited liability : are established from members can be individuals or organizations (not more than 50 members), members are responsible for all matters in the company (Lawkey, 2020). Ways to increase capital such as admitting more members, raising capital from members in the organization, borrowing credit from individuals or organizations and issuing bonds. This model is not allowed to issue shares.....
Type of legal structures
A single-member limited liability entity allows an individual or organization to own the business while being solely responsible for its products (Lawkey, 2020) This model enables the owner to raise capital through various means, including issuing bonds and borrowing from both domestic and international sources, but does not permit the issuance of shares.
• Multi-member limited liability : are established from members can be individuals or organizations (not more than 50 members), members are responsible for all matters in the company (Lawkey,
To enhance capital, organizations can consider several strategies, including inviting new members, seeking additional contributions from existing members, obtaining loans from individuals or institutions, and issuing bonds However, it is important to note that this model does not permit the issuance of shares.
A partnership is a business entity owned by two or more individuals, governed by a deed of partnership that outlines the partnership's structure and scope This legal document details the responsibilities of each partner, profit distribution, investment obligations, and loss sharing Notably, partnerships do not allow for the issuance of shares.
A joint stock company is an enterprise where the charter capital is divided into equal shares, allowing both organizations and individuals to become shareholders (Lawkey, 2020) Shareholders are responsible for the company's obligations only to the extent of their contributions They have the flexibility to transfer their shares to others freely Additionally, joint stock companies can raise capital through loans, and by issuing stocks or bonds to both domestic and international investors This model permits the issuance of shares as a means of capital generation.
A sole trader or private company is a business structure owned by a single individual who bears full responsibility for all operations and assets (Lawkey, 2020) Each person is allowed to establish only one private company, and individuals who are heads of business households or members of partnerships cannot concurrently own a private company This model allows for capital mobilization from personal property development but prohibits the issuance of shares.
A joint venture is a significant form of economic collaboration where all parties voluntarily invest capital to establish a company that collectively creates, manages, and shares profits based on agreed-upon methodologies In this model, funding is sourced from the investments of the involved parties, and the issuance of shares is not permitted.
Franchising is a contractual arrangement that allows a franchisee to independently buy and sell products or offer services under the franchisor's brand This model does not involve any funding sources or share distribution.
When comparing the business organization models in Vietnam and the UK, similarities emerge in the establishment methods, ownership structures, and capital raising techniques, including the issuance of shares and bonds However, notable differences exist, particularly in the variety of business models available in the UK, which are not present in Vietnam Additionally, Vietnam's organizational management and operational practices reveal certain limitations that distinguish them from their UK counterparts.
Economic sectors
The economic market is divided into three key industries: primary, secondary, and tertiary The primary sector focuses on resource extraction and production, including mining, agriculture, and fishing, which provide essential raw materials like wool and electronics The secondary sector is responsible for manufacturing finished goods, such as automobiles and construction of houses and factories, as well as supplying utilities like gas and electricity Lastly, the tertiary sector encompasses a wide range of services, including retail, hospitality, insurance, IT, and transportation, emphasizing the intangible nature of services offered to consumers and businesses, such as tourism and dining experiences.
Size of organization .6 2.4 Vision ,
Companies can vary significantly in size and scope, which is essential for understanding market dynamics There are four primary types of organizations based on scale: micro-enterprises, small and medium-sized enterprises, transnational enterprises, and global enterprises, each with different industrial influences (Mullins, 2014) Microenterprises represent the smallest category, characterized by having the fewest employees and lowest sales figures For instance, a single trader with fewer than 10 employees and a limited sales range qualifies as a micro-business.
Medium-sized enterprises, characterized by average sales and consumer ratios, typically employ between 200 to 300 staff members to drive demand and enhance profits In various countries, the transnational sector engages in multinational activities, reflecting a commitment to expanding overseas operations and often requiring a larger workforce Multinational organizations, known for their significant personnel and sales figures, operate extensively across the globe while prioritizing sustainability and maintaining a robust client base.
A vision statement is essential for any organization aiming for recognition in the long term, typically spanning 5 to 10 years It doesn't need to be an extensive document; rather, it should be a concise declaration that clearly articulates the desired future A single line can effectively convey this vision, and if further clarification is needed, a brief paragraph can be included However, it's crucial to keep it succinct to ensure that it remains engaging and accessible for readers.
An effective mission statement succinctly outlines the daily efforts required to transform an organization's vision into reality, ensuring clarity and focus It should be brief, akin to a vision statement, and convey the company's core benefits in one or two easily communicable sentences (Jackson, 1956) Additionally, a concise paragraph may further elaborate on the mission, highlighting key priorities that support its objectives.
To achieve a larger goal, it is essential to break it down into smaller, manageable tasks and milestones These smaller objectives act as vital components that support the overall mission The SMART criteria can be applied to these targets, ensuring they are Specific, Measurable, Achievable, Relevant, and Time-bound, thus enhancing the likelihood of success (Jackson, 1956).
To achieve its mission, a company must focus on key goals that guide its efforts These goals provide a clear summary of the organization's programs, products, and initiatives One effective method for defining these goals is the SMART acronym, which highlights essential aspects of a broader purpose.
1 Be specific: The purpose must be explicitly defined in a manner that can be conveyed and interpreted by all in the organisation in the same manner
2 Measurable: The aim has been accomplished and efforts can be observed and quantified in a way for the accomplishment of the goal
3 Activity: The corporation will take action and accomplish its objectives
4 Relevant: Goals have a significant effect on the attainment of the mission of the organization 5 Time Limit: There is a given duration within which it is necessary to accomplish the objective
When requesting a list of priorities from agencies, I receive a comprehensive overview of the programs, activities, and resources they offer This reflects a commitment to fulfill intentions that are essential for achieving organizational goals.
Stakeholders and their interests
A shareholder is an individual who owns shares in a company, making them an owner, while stakeholders encompass a broader group that includes lenders, employees, clients, and suppliers Shareholders focus primarily on financial returns from their investments, whereas stakeholders are more concerned with the overall success and sustainability of the company This distinction highlights that while all shareholders are stakeholders, not all stakeholders are shareholders, as the latter group prioritizes profit over other interests.
Effective stakeholder management relies on providing timely and relevant input while implementing reform efforts based on stakeholder management principles The project manager plays a crucial role in balancing stakeholder needs, resolving conflicts, and addressing challenges that arise throughout the project Key components of stakeholder management typically include clear communication, active engagement, and ongoing assessment of stakeholder interests and concerns.
Effectively managing stakeholder expectations is crucial for the success of any initiative By actively engaging with stakeholders and addressing their needs, project managers can align project priorities and objectives, ensuring smoother project management activities and fostering a collaborative environment.
Effective knowledge management for stakeholders is vital for timely engagement and awareness of project progress Keeping high-level stakeholders informed significantly increases their support, thereby enhancing the likelihood of the project meeting its objectives as planned.
Effective stakeholder activity logging is essential for project managers, who are responsible for documenting all interactions and communications with stakeholders By formally tracking these communications and logging the resulting outcomes, project managers can secure project approval and ensure alignment with the project's contact strategy This systematic approach fosters transparency and accountability among partners throughout the project lifecycle.
Identifying stakeholders and understanding their relevance is crucial for organizations to develop effective strategies that align with their needs and desires Each stakeholder has specific requirements that the company must address, as the influence of customer expectations on the organization is both significant and systemic To generate profit for owners and satisfy customers, organizations must focus on fulfilling the needs of key stakeholders while also considering the interests and rights of other customers to engage with their operations.
Economics, Microeconomics, Macroeconomics
Economics is the study of how individuals and societies utilize limited resources to produce essential goods and services, and how these are allocated among members of the community.
Microeconomics, a key branch of economics, focuses on analyzing the economic behaviors of individual actors and their interactions within the economy.
Macroeconomics is a sub-discipline of economics that focuses on the overall features, functions, and behaviors of an economy It stands alongside microeconomics as one of the two main branches of economics While microeconomics analyzes the behavior of individuals and firms, macroeconomics examines broader economic indicators such as GDP and unemployment rates, as well as industry and price indices, to gain insights into the functioning of the economy.
Scarcity , opportunity cost , and choices
Scarcity in economics refers to the imbalance between limited resources and unlimited desires for goods and services It highlights the connection between finite economic capital and the vast demand for products When the demand for goods and services exceeds their availability, particularly at a price of zero, scarcity becomes evident This phenomenon occurs because the resources required for production, such as labor skills and technology, are insufficient to meet overall demand, resulting in a shortage of economic goods.
Opportunity cost in economics refers to the value of the best alternative that is forgone when making a choice It represents the benefits that are missed when one option is selected over another Essentially, opportunity cost is the potential loss associated with not pursuing the next best alternative, highlighting the trade-offs involved in decision-making Understanding opportunity cost is crucial for evaluating the true cost of choices in both personal and professional contexts.
Every day involves making choices, and our actions stem from these decisions, whether intentional or not There isn't a straightforward method for ensuring the right choice, regardless of its significance To navigate decision-making effectively, it's essential to consider various perspectives and select a reasonable, healthy action plan For significant decisions, it's natural to feel anxious, but you can alleviate this pressure by outlining worst-case scenarios, utilizing spreadsheets for organization, and trusting your instincts.
Demand and supply theory
Needs are fundamental essentials for survival, such as air, water, food, and shelter (Abbey, 1984) In contrast, wants are non-essential items that enhance life quality and provide greater economic utility than basic needs Price, in economic terms, reflects a willingness to spend, representing the total amount one is prepared to pay for goods or services (Abbey, 1984) It is important to note that price considerations often operate within a predetermined budget Additionally, the concept of need can vary, as seen in certain regions of India where distinct state requirements exist Demand remains inherently limited, as human desires are infinite, despite a defined utility level Ultimately, needs are closely tied to budget constraints, influencing the quantity of additional items one can afford based on available financial resources.
The market serves as a dynamic platform for the buying, selling, and trading of goods and services, as well as money and labor, within the economy It encompasses various locations, not limited to physical spaces, where transactions occur For instance, the global telecommunications network exemplifies a modern market, facilitating the exchange of goods and services without the need for a tangible presence.
Maslow's hierarchy of needs is often depicted as a pyramid, with basic needs at the base and the need for self-expression and transcendence at the top This model suggests that individuals must satisfy their fundamental needs before they can aspire to higher-level goals However, it is important to note that the pyramid representation was not part of Maslow's original work; he focused more on the concept of "lack of need" rather than a structured visual model.
Maslow's hierarchy of needs emphasizes that the most essential levels—self-esteem, friendship and affection, stability, and physical needs—must be satisfied before an individual can focus on higher-level desires When these fundamental needs are unmet, individuals may not exhibit obvious symptoms, aside from specific physiological needs, yet they often experience underlying distress and tension Understanding this framework highlights the importance of addressing basic needs to facilitate personal growth and fulfillment.
Supply refers to the availability of a commodity in the market at any given time, influencing its value An increase in the supply of a currency typically leads to a decrease in its value, while a decrease in supply makes the currency rarer and thus increases its value This principle can be illustrated by comparing diamonds and common stones; diamonds hold high value due to their scarcity, while stones are abundant and therefore have little value This contrast exemplifies basic market logic, where rarity enhances value.
The equilibrium market price is the point where the quantity demanded by consumers equals the quantity supplied by producers, resulting in no scarcity or surplus This balance is represented by the demand curve, which shows how much buyers are willing to purchase at various prices, and the supply curve, which indicates how much sellers are prepared to sell In a competitive equilibrium, supply meets demand, leading to a stable price that satisfies both parties A surplus occurs when the quantity of goods exceeds what is sold, often resulting in unsold inventory, while a shortage arises when demand surpasses production capability, creating an imbalance in the economy Unlike scarcity, which is a chronic issue, shortages are typically temporary and can be resolved as the market adjusts.
Roles of departments
In a thriving company, it's essential to have distinct departments, each with unique functions and responsibilities Key departments include finance, human resources, marketing, and production, among others Each of these departments plays a crucial role in the overall operation and success of the business, and we will briefly explore the significance of each.
The finance department manages cash flow, seeks new capital sources, and distributes dividends, while the human resources department focuses on recruiting, training, and evaluating employees to foster a professional work environment and handle internal disputes The marketing department is responsible for revenue forecasting for new products, market segmentation, brand targeting, and developing comprehensive marketing plans to effectively promote products Lastly, the production department ensures smooth manufacturing processes by inspecting inventory, maintaining quality standards, and coordinating closely with all teams to meet production schedules and quality requirements.
Each department plays a crucial role in the establishment and growth of a business, functioning as essential components that contribute to the overall success of the organization.
Market structures
Market structure refers to the organization and characteristics of a market, influencing the behavior of sellers and consumers and impacting overall market efficiency Economists categorize market structures based on the level of competition, particularly focusing on the presence of monopoly or oligopoly, which are key factors in understanding economic dynamics.
Perfect competition is characterized by a market with numerous buyers and sellers offering nearly identical products In this environment, individual suppliers contribute only a small fraction to the total market supply, resulting in no single entity having the ability to influence retail prices Consequently, any deviation in pricing by a firm can lead to a highly elastic market, as consumers can easily switch to similar alternatives.
A monopoly is defined as a market structure where a single vendor dominates, offering a unique product or service with no close substitutes In contrast to competitive markets, a monopoly faces a demand curve that reflects the absence of rivalry, allowing it to set prices without competition Unlike strictly competitive businesses, which are price takers and sell at market-determined prices, a monopolist can influence the price based on the overall supply and demand within the industry This demand curve also serves as both the average and total revenue curve for the monopolistic firm.
Monopolistic competition is a dynamic market characterized by numerous sellers offering both similar and distinct products Variations among these goods can be evident through tangible differences such as design, color, and reliability, as well as intangible factors like location, salesperson friendliness, advertising quality, credit availability, and product credibility.
Oligopoly refers to an economic structure where a small number of firms dominate the market for goods and services In this system, these few monopolistic companies collectively influence the overall supply and pricing of products, making them interdependent Each firm must carefully consider the potential reactions of its competitors when making decisions about production levels and pricing strategies (Duong, 1983)
Organizational Structures
An organizational structure outlines the responsibilities, reporting relationships, and control mechanisms necessary for effective operation within an organization It delineates how job activities are divided, coordinated, and organized to achieve the organization's objectives.
Below are five commonly used organizational structures :
The straight-line organizational structure is one of the oldest and simplest systems, where leaders directly make decisions and supervise their subordinates In this model, each subordinate is required to follow orders from higher levels and is accountable to the immediate superior before reporting to the chief.
The functional organizational structure of a corporation involves a systematic arrangement where management roles are clearly defined within each division Each level of the organization has designated supervisors, ensuring effective oversight and streamlined operations.
In large corporations, a straight line and consulting arrangement is commonly observed, where technical professionals, referred to as team members, are integrated into employee roles and organizational systems These individuals often function as workers with limited influence over direct supervisors and decision-makers.
The project organizational structure is a temporary framework established to achieve specific tasks within a defined timeframe Its primary purpose is to enable projects to effectively meet their strategic goals and objectives.
5 Structure of matrix organization: The structure of the matrix does not fit the conventional hierarchical paradigm Instead, both jobs have a dual relationship with news
I think functional structure is the best structure because each individual will do his / her job in the organization correctly
The system offers several advantages, including streamlined administrative functions, the recruitment of experienced management professionals, and the reduction of conflicting departmental activities It enhances consistency and problem-solving abilities, which aids in the specialization of technical skills Additionally, decisions made within this framework carry a lower level of risk compared to standardized online options.
One major disadvantage of a functional system is that it allows subordinates to report to multiple leadership points within the same management organization This can lead to managers becoming overly specialized in narrow areas, which may ultimately weaken the overall leadership structure.
General information
Company Suntory PepsiCo Vietnam Beverage Company
Head Office 5th Floor, Sheraton Hotel, 88 Dong Khoi, District
Address 5th Floor, Sheraton Hotel, 88 Dong Khoi, District
Website https://www.suntorypepsico.vn/
Size and scope of the organization
Suntory PepsiCo Vietnam was established in April 2013, with 100% foreign capital, a joint venture between PepsiCo Vietnam and Japanese-based beverage group Suntory Holdings Limited
Officially entered the Vietnamese market in 1991, through the form of a strategic alliance between Suntory (Japan) and Pepsico (USA) and officially known as Suntory Pepsico, having spent nearly 22 years
Pepsi has established itself as a leading brand in Vietnam's beverage industry, backed by Suntory Pepsico, which operates six manufacturing plants and five sales offices, employing around 2,800 people, as reported by Neuvoo The brand's commitment to quality is reflected in its 15 accolades for High Quality Vietnamese Goods Pepsi Vietnam has diversified its product offerings, including bottled water, fruit juices, energy drinks, and teas, with popular products such as Sting, Twister, Lipton Ice Tea, Aquafina, Oolong Tea Plus, and Mountain Dew.
PepsiCo invests significantly in high-profile advertising campaigns featuring popular celebrities like My Tam, Dong Nhi, and Issac in Vietnam to enhance product visibility Additionally, the company strategically partners with fast food chains such as KFC and Lotteria, effectively bringing its products closer to consumers.
Vision, mission and objectives
Since the 1950s, PepsiCo's marketing strategy has focused on attracting the youth demographic, famously referred to as the "Pepsi generation." The company has prioritized this market over others, crafting campaigns that resonate with younger consumers.
Pepsi's groundbreaking campaign, "Let's be sociable - drink Pepsi," marked its initial focus on the youth demographic, establishing the brand's enduring popularity This strategic approach has allowed Pepsi to consistently target young and dynamic consumers across various regions, solidifying its reputation for decades.
PepsiCo, a prominent global "Comprehensive Beverage Company," excels in delivering a diverse range of carbonated soft drinks that evoke feelings of freshness, joy, and youthfulness The brand prioritizes product quality and innovative marketing strategies to effectively penetrate its target market Pepsi's mission emphasizes its commitment to becoming a leader in consumer goods, particularly in convenience foods and soft drinks, while fostering growth opportunities and generating economic benefits for business partners and local communities With a foundation built on honesty, fairness, and integrity, Pepsi continuously aims to differentiate itself from competitors by embodying a youthful and vibrant identity, while maintaining simplicity in its offerings.
Diversifying the market and diversifying products
PepsiCo's marketing strategy centers on engaging young consumers who are enthusiastic about fun, sports, and music The company focuses on brand affirmation programs and leverages innovative advertising technologies to create compelling campaigns Additionally, PepsiCo prioritizes the continuous innovation of existing products while investing in research and development to effectively meet evolving consumer needs.
Market structure
Suntory PepsiCo faces intense competition in the Vietnamese beverage market from major players like Coca Cola and Tan Hiep Phat However, the unique taste and quality of its products make it challenging for customers to find suitable substitutes The company's strong market presence is bolstered by partnerships with other prominent brands such as Tribico, KFC, Kinh Do, and Subway Suntory PepsiCo strategically sets its prices to align with market trends while ensuring profitability from its product sales and manufacturing Operating within an exclusive market structure, the company's offerings remain distinct and irreplaceable in the Vietnamese market.
Numbers of competitors (Producers, Sellers) 150.000 members Fierce competition with Coca
Cola and Tan Hiep Phat
Product // service’s characteristics (differentiation or homogeneous) Differentiation : Pepsi, 7up, aquafina,mirinda,
Market Power affiliated with Tribico, KFC, Kinh Do, Subway,etc and joint venture with Japanese beverage company Suntory Pepsi is currently number 1 in the Vietnamese beverage market
Price taker or Price maker Price maker
Which market structure does the organization operate? Oligopoly
Organization structure
Suntory PepsiCo Vietnam operates under a leadership structure where a decisive leader takes full responsibility for decisions while consulting with experts to navigate complex issues This approach leverages the expertise of specialists, streamlining the organizational structure However, it necessitates the recruitment of highly skilled professionals across various fields, which can be a costly endeavor.
Self-evaluations
Organizational structure enables leaders to leverage the talents of experts, simplifying complexity; however, it necessitates significant investment in recruiting qualified professionals Suntory PepsiCo Vietnam benefits from a strong market presence, high-quality products, attractive packaging, and a diverse range of offerings that appeal to a youthful demographic Despite these strengths, the brand's market influence is limited, and substantial advertising costs are required to maintain market share, which primarily targets a young audience.