Luận Văn Management Capability In Van Hung Xuan Company. As the writer can see that there are many reasons leading to increasing number of employees who want to leave their job. The interviews are performed to taking over the most importance of business operation to investigate the symptoms and incisive judgement to the problem occurring in company. The content of interviews is shown in Appendix.
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Luận Văn Management Capability In Van Hung Xuan Company.doc
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UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------
Nguyen Thi Duyen Anh
MANAGEMENT CAPABILITY
IN VAN HUNG XUAN COMPANY
MASTER OF BUSINESS ADMINISTRATION
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UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
---------------------
Nguyen Thi Duyen Anh
POOR MANAGEMENT CAPABILITY
IN VAN HUNG XUAN COMPANY
MASTER OF BUSINESS ADMINISTRATION
SUPERVISOR: Dr. Tran Phuong Thao
Ho Chi Minh City – Year of 2019
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Table of Content
Order Page
Executive summary 4
CHAPTER 1. PROBLEM IDENTIFICATION 5
1.1 Problem context 5
1.1.1 Introduction the company 5
1.1.2 Symptoms 6
1.2. Problem analysist 8
1.2.1 Situation analysis 8
12.2 Initial Cause – Effect Map 17
1.2.3 Updated Cause – Effect Map 19
1.3. Problem identification 22
1.3.1 Main problem validation 22
1.3.1.1 Lacking of human resource team 22
1.3.1.2 Poor management capability 23
1.3.1.3 Lack of sales and marketing team 24
1.3.2 Main problem validation 25
1.4. Potential causes 27
1.4. Consequence of Problem 27
1.4.1 The low job performance 27
1.4.2 Low productivity of employees 27
1.4.3 Reduce business growth 28
1.4.4 Final Cause – Effect Map 30
CHAPTER 2. ALTERNATIVE SOLUTIONS 30
2.1. Cause Validation 30
2.1.1 Possible causes 30
2.1.1.1 Poor management skill 31
2.1.1.2 Lacking of business strategy 32
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Define business component 33
2.2 Main cause 35
2.2.1 The Fish bone diagram 38
2.2.2 Define business strategy component 39
2.3 Alternative solution 39
2.3.1 Online Business Marketing 39
2.3.2 Services Diversification 41
2.3.3 Market Development 41
2.4 Solution selection 44
2.5 Action plan 45
CHAPTER 3. SUPPORTING INFORMATION 45
Appendix 45
Reference 64
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Executive summary
Vietnam is a country that has gradually been drawing to foreign investors as one of
prospective destinations in Asian region. It is attracted for the young people who want to
start-up the company in the integrated phase. Van Hung Xuan company is established in
following towards the growth of industrialized and modernized country and it has been
improving to reach the achievement of the high performance. However, the most difficult
for young company as Van Hung Xuan has been facing in the case of employees leave the
job. High leavers in company is considered as the initial problem in the company. In order
to follow that, company will find some causes to understand what factors with regard to
employees want to stay or leave their jobs.
The analyzed methodology used to find out the causes and effects leading to
recognize the potential problem in the thesis that is qualitative data collection method
through in-depth interviews as primary data. Additional, the secondary data is collected
materials of leavers from office department to have diagnosis of potential problem at Van
Hung Xuan Company. Moreover, problem scope can work with office department,
teaching and translating departments in company in which it is typically analyzed data on
translating function to find out the potential reasons are come from the diagnosis of
highest turnover rate and the issues are supported to understand what roost causes leading
to difficulties that has been happened in company.
From the finding out diagnosis of potential problems exist in Van Hung Xuan
Company, findings provide the existence of poor management capability plays a main
problem. The scope of problems is argued with evidences for providing through
interviews from qualitative method. Poor management capability is analyzed in terms of
its existence, consequences and solution are suggested to resolve such a problem.
Finally, this thesis will indicate the action plan in the time and budget that are proposed
to settle the problem aiming to reduce the obstacles in Translating function in Van Hung
Xuan Company.
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CHAPTER 1. PROBLEM IDENTIFICATION
1.1 Problem context
1.1.1 Introduction the company
Company Van Hung Xuan has established in 2011 with tax code: 0310832022, its
head office is located at 274 Le Co, An Lac Ward, Binh Tan District, HCM, Vietnam and
it owns 01 branch in Binh Tan District as well. It is represented by Mr. Nguyen Van Duc
by law with two billion for charter capital. It started up with 04 employees and peak of
2015 and 2016 with 16 employees who was working in Van Hung Xuan company
including in head office and 01 branch in HCMC, Vietnam.
The company provides the teaching languages and translating services for
companies, there are two main segments: corporate customers and individual customers.
With the strategy to expand the market, Van Hung Xuan will have a plan to promote the
network of clients for translating and teaching languages functions from 2019, it creates
of a huge human source to run this business plan.
Director
Head Office
Office Teaching languages
Translating
Department Department Department
Branch
Teaching languages
Department
Figure 1. Van Hung Xuan Company organizational structure
In Van Hung Xuan Company, there are Head office and Branch with core
functions: there are 01 office department including in Accounting department, 01
translating department and teaching department. In teaching languages functions, they
are divided into 2 small divisions: teaching Vietnamese for foreigners and teaching
English for children in head office and in branch in which the translating business is
playing the key role in company.
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1.2.2 Symptoms
The translating function is born in 2011 and it has been playing the via role in
business operation in Van Hung Xuan Company. It was difficult to recruit and keep the
talent employees who could follow the high requirements from clients in the first phase.
There were only 04 employees including in 01 managers cum translator, 01 Chief
Accountant cum translator who has managed the general affairs, 02 translators.
From the phases of 2011 to 2013, the internal materials are reported that the
number of employees has not changed and the revenues of translating function has gained
from 180.000.000 vnd to 225.000.000 vnd for each year. The two main languages of
English and Chinese has been serviced to target of individual customers and corporate
ones. The beginning of 2014, manager has planned to recruit the 04 additional new
employees to service for the number of clients and they have kept the job until the end of
2016. The peak of 2017, the translating business operation has been downturn leading to
lacking to source job to assign among employees means that translating function has
faced the employees who want to leave the job with many reasons in relating to salary
and benefits, weak source of clients, and weak management.
On the basis of internal materials are shown from Office department, the number
of employees who left the company has been increasing in 2017. The below table is
shown the number of employees who quitted their jobs are more significant in 2017:
Number of employees in Translating Function
2014 2015 2016 2017
06 first months of
Year/ 2018
Ord.
Position Total of
Left
Total of
Left
Total of
Left
Total of
Left
Total of
Left
employees employees employe employees employees
Manager
1 cum 1 0 1 0 1 0 1 0 1 0
translator
Chief
2
accountant
1 0 1 0 1 0 1 0 1 0
cum
translator
3
Translator
2 0 6 0 6 0 6 5 1 0
Total 4 0 8 0 8 0 8 5 3 0
Table 1: Number of employees in Translating Function in Van Hung Xuan company
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As above table of employees at company from 2011-2018, the number of
employees leaving continued toward increasing from 2017. However, the other
positions still keep their jobs and unchanged. The turnover rate is shown in below:
Graph 1: Turnover rate of employees in Van Hung Xuan Company from 2011-2018
As above mentioned, Van Hung Xuan company has faced the problems in relating
to high turnover rate of staffs in which translating functions reached to 63% in 2017 and it
seems difficult for company to seek the potential clients as well as the talent employees
who will be dedicate their competences into the growth of business. In this function, high
turnover rate of leavers has significantly affected to the negative attitude of current
employees and their job performance. Moreover, the high of leavers are also affected too
much to revenue of company as reported materials from human resource department.
Especially, the revenue of company has fallen sharply in 2017 that has started from losses
of potential clients leading to poor source of assigned job among employees. In a result, it
is said that the correlation between turnover rate and low revenue are affecting to sharply
growth of business operation in company.
From the internal documents are provided to present the revenues in translating
Function from 2014 – 2018 in below:
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Revenue in Translating Function from 2014-2018
Unit: 1.000 vnd
450,000
400,000
350,000
300,000 306,000 313,200
250,000
200,000
219,600
150,000
100,000
118,800
79,200
50,000
73,800 68,400
37,800 34,200
- 5,700
2014 2015 2016 2017 6 first months
of 2018
Coporate Customers Individual Customers Total
Graph 2. Revenues in Translating functions in Van Hung Xuan Company
In summary, the symptoms are found in Van Hung Xuan Company including
in Decrease Revenues and High turn overate of leavers.
1.2 Problem analysis
1.2.1 Situation analysis
According to the data is collected from in-depth interviews from 02 groups:
Managers and the persons who left the job in company.
Assigned Multitasks
As the writer can see that there are many reasons leading to increasing number
of employees who want to leave their job. The interviews are performed to taking over
the most importance of business operation to investigate the symptoms and incisive
judgement to the problem occurring in company. The content of interviews is shown in
Appendix.
To get information from employees’ interviews to know that translating function has
to fulfill business core requirement from clients and prioritize some of requests while taking
over all. Facing to high turnover rate as a symptom is found priority in company. The leavers
left some tasks and current employees who are trying to be in charge of multitask while
waiting for take over the new vacancies. It seems difficult for company to
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recruit new ones in this time because of downturn business significantly means that
company does not have much budget to recruiting plan in last recent years. The taking of
multitasks in company causes of stressful workload for them in the peak of translating
season. Before the situation of business operation has been declining sharply, Van Hung
Xuan company’s managers has had the plan to get back its business operation in
promoting the network of translating from 2019. Ho Chi Minh City – Year of 2018r
Stressful workload
Moreover, the employees who take charge of translating service insisted that
dealing with their clients ‘awareness is not easy. They always answer all of questions
from clients while completing the assignments to summit to Justice Department or Notary
Public’s office to screen the documents and go back handing in the clients in time when
being request about the time and date, they do not have enough time for preparation for
documents perfectly. They are always in stressful state with time pressure and these
causes may be known as a passive involvement in translating function. This is one of
reasons employees tended to reject new tasks are taken over from the leavers because they
feel the negative impact on their assignments.
Mr. Tuan Dung – employee at HR department of translator function – who left the
job approximately 1 years, 28 years old. He shared some views the reason leading to quit
working in company that “the salary plays the most important role in decision to work
or leave the job. I feel unpaying in salary and high pressure of time and working.”
Mr. Dung continuously shared the point of views: “the job was repeating and
repeating day by day leading to me tend to undeveloped in my personal career. I
always felt bored when completing a repeated list of assignments in my daily work”
As above details mentioned, company does not have the HR plan leading to weak
compensation in relating to unsatisfied job among employees. More views are shared
from Ms. Thanh Hong that “Van Hung Xuan company is very young means that it has
faced to lacking of clients in developing and growth of company. The company does not
have much potential clients leading to lacking of sources of jobs that allocate among
employees that makes to low income. I think the root cause for weak potential clients that
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is lacking of marketing and advertisment strategy and weak management skill in keep
and have more new clients as well as keep the talent persons”.
On the basis of Manager in translating functions shared the ideas that recently the
company faced the biggest problem of very high turnover rate of 63% in 2017. From
2017 and the 06 first months of 2018, company has been faced forwardly the difficulties
since the experienced employees decided to leave while company still cannot recruit the
new ones to replace in time to catch the working pace. As above noted, Van Hung Xuan
company is a small and young one that always requires all of employees to satisfy all
customers’ requirement perfectly. Especially for translating function, once people left the
company, it means that knowledge with them would leave the company as well. As a
result, the experienced employees who still keep the job, will handle a lot of tasks in case
the company is hard to find out the suitable candidate for the translating vacancy.
Ms. Thanh Hong also shared point of view: “The big problems it is assigned many
mulittasks with unclear desciption. I fell boring with repeating tasks. Somtime, I should
work with overload but sometime I do not have job to do and always feel boring about
the job. I feel lacking of motivation to dedicate in assigned job and have a poor
performances. Even if, I have weak management of time to complete to multitasks leading
to job stress under work overload in the peak of translating season as well. That is why I
wanted to quit the job”. Additionally, the current business operation of Van Hung Xuan
company, it currently does not have the plan for hiring more employees because of
downturn business. This is one of reasons that has negatively impacted to the quality of
work leading to poor performance from the lacking of employees because the unstable
workload and the company sometime does not have enough human resources for
completing the tasks in the peak of translating business season that makes managers
assign multitasks to employees. As a result, it has created the lacking of motivation
among employees and the boring and repeating job that make them feeling no promotion
in their job career from the stressful workload.
Moreover, company has been suffering from downturn of business operation means
that it is so difficult in running the overall of company and to meet the satisfy the
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requirements from employees, that is why managers’ line let them to leave when they
make the decision wan to quitting the job. In conjunction to high turnover rate of leavers,
the loss profit has happened sharply in 2017 and 06 first months of 2018 and it could
have been existed forward in the coming months if the managers do not have some
solutions for this function.
Unstable workload
The dialogue with Ms. Xuan Anh who is manager of translating team, the
information is provided that Van Hung Xuan Company is a small and minimum one. It
has carried out the start-up of business progress from the phase of 2011 - 2018, it has met
lots of obstacles in building the typical industry of translating from the clients to services
and it has been planning to promote the growth of business. “Our company is very small,
there is less employees who are currently working here. We do not have much source of
job and company met lots of obstacles in seeking clients. We have had the plan to re-build
the company”. Ms. Phuong Anh – Chief Accountant cum Translator, 33 years old, shared
that “from my view, I think the first reason that leads to employees want to leave the job is
Time pressure. Because they must manage the time to do over from the high pressure of
times and assigned multitasks.” Another causes come from lacking for promotion in job.
They feel boring to work day by day, however, they cannot see the opportunities for their
personal career in relating to stress in job as Ms. Phuong Anh continuously said that they
do not see the promotion in their career development path, the assigned job is not clear
description leading they take much tasks to complete within a day. They need a big time
to resolve these and sometime they are free and nothing to do. This causes for the stress
in job.
In the urgent times, the employees were assigned to work with the high pressure
of times to hand in clients in due date. She also provided further information in case she
should transfer the translated documents to external agency and paid the high fees for
external agency because of lacking employees or she has not had many employees who
can translate Multilanguage as requirement of clients. Excepting for English and Chinese
as main languages to use in translated business operation, the other languages such as
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Thailand, Korean, Spanish, Italian, etc…have been supported from collaborators with
high fees. Beside the competitive prices among translating agencies making the lack of
clients as well. This has been leading to lack of capacity and low income for her
translating function. In peak season of translating, there were a stressful work load
among employees.
Poor attractive new customers and weak customers’ relation
Yet, it seems difficult for them from the phase of recruiting and training
employees as well as how to keep the talents who will be dedicated working in company
to the phase of building the strategy of marketing and sale that can find new clients and
how to keep the enlarge number of existed clients. However, managers cannot have target
market to win customers in the strictly competed market nowadays that make decreasing
revenue sharply. Moreover, up to small company as Van Hung Xuan, marketing and sale
campaign are bigger challenges than ever. This is one of possible problem findings can
affect to the strategy of expanding to company’s growth in the coming years. As speaking
to Ms. Xuan Anh: “the company does not have a marketing and sale team. This is an
obstacle for us to find the new potential clients”. Lacking of marketing and sale
campaign, especially for getting and keeping the clients are considered the most difficult
problem in Van Hung Xuan Company. The biggest challenges are faced to increase the
volume of customers purchase the services while trying to keep the existed clients,
however, Van Hung Xuan Company does not have the social networking as building
websites or online social networks such as Linkedin, Facebook, Twister, Intergram or
newspapers, etc…Managers only focus on their close relationships to get customers
through word mouth or zalo….in relating to weak source of customers and it is difficult
for them in catching up the working pace and satisfy all of requirements from clients
because they lack of human resources leading to employees who are assigned multitask
in peak of translating season. Moreover, they do not have enough for budge to hire many
employees because of irregular job source and lacking of employees means that they hire
part-time job or outsources in peak of translating season cause to high costs and decrease
revenue. They sometime get lots of job and they do not usually have many jobs to
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assigned tasks among employees. Ms. Xuan Anh who handles the tasks and manage
employees in translating function shared some views that: “We do not have website or
any advertisment online. The customers are introduced from relationships or from Justice
Department and Notary Public Office as well.”
As a result of this that has belonged to the management skills from the managers
and how to have a good strategic management for their company toward the good results
of business or bad ones that will be leading to become also threats to company’s mission.
Decrease Revenue sharply is caused from weak management skill of managers because
Van Hung Xuan company is a young and start-up one, it is lacking of many skills in
management. They do not know how to keep the existed customers and get the new ones
to have many sources of job. Additional, the big barrier of high competitors in translating
industry strictly in relating to have competed prices and quality services. Competitors has
many good advantages in Multilanguage to meet the customers’ need all the times with
the best prices and services. Moreover, they also have best strategy of marketing and sale
to draw and draw the mass of customers to them means that Van Hung Xuan’s employees
become tired in management skill of time when they have tried to complete the multitasks
from managers leading to low performances among them, it perhaps creates the poor
services as clients’ feedback. Ms. Xuan Anh continually shared that there were also many
causes that employees quit job or move to other organizations, these employees wanted to
increase the salary and be promoted faster and faster. They were always blamed
unsatisfied in their assigned jobs. “The requirement from clients, they are always in the
tired state and not positive to cooperate or deal with clients in negotiating the time and
date. They have weak communication leading to run out of the energy to deadline with
clients. I always get complaint feedbacks from clients about the small mistakes in
translating documents leading to clients to return and correct the ones. That is why we
cannot offer more salary and provide more attractive benefit for them. They have the job
poor performance” In summary, Van Hung Xuan company is not only lacking of
marketing and sale campaign effectively, but it is also weak in management skill to get
and keep clients as well as keep talent and right employees that are one of sources to get
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profitable for company. The number of clients is shown to see that decrease in volume
of customers leading to low revenues in past years.
Low benefit & salary
As details mentioned in qualitative method, the salary and benefits policy that keep
the key importance in relating to high turnover rate of leavers. Based on the report and
analysis from Office department, Ms. Phuong Anh who is in charge of accounting affairs
in company, she gave a general view as she got the results from Van Hung Xuan
Company that there is not existing the performance appraisal and human resource plan.
Employees are received salary through the scale of fixed salary in comparison with the
average income of labor market. The payroll of individual is sent to his/ her in
confidentially that it has described the details of basis salary and benefits, however, it
seems happening the compare the salary among them leading to unsatisfied income.
From the internal data of the company that will provide the basic evidence to
investigate the topic of salary in company. The salary statement is shown in below:
Graph 4. Average salary of employees in Translating Function in Van
Hung Xuan Company from 2014-2018
Based on the above result of table, it is mentioned that the scale of salary still
is considered as factor of low salary among employees leading to them made decision
to leave company.
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Ms. Xuan Anh supported this issue that “they always complain about salary;
they feel unfair in receiving salary. They have compared the current salary to the other
companies.”
Graph 3. Number of customers in Translating functions in Van Hung Xuan Company
Decrease in work quality
Ms. Phuong Anh continually talked to the leavers in translating function. The
causes come from high pressure of time and tasks, weak management of time leading
to high time pressure Some employees were lack of experiences in translating
documents from reading comprehensive to translated technique leading to get more
mistakes in documents. It was also wasting of much times for resolving the problems in
urgent time when satisfy the requirements from clients. Once the manager gets the
passive feedback from clients means that there is a poorly performance of job.
Regarding to the experiences of employees in company, the graph is shown in
below:
Experiences in Translating Function
06 first
Ord. Year/ Position 2016 2017 months of
2018
1 Translators 0-4 1-5 2-6
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Table 2: Experiences of employees in Translating Function from 2016-2018 From
the above table, the experiences have existed from 0 to 4 years to happen in
company with the only one employee who was 23 years old and young, he has started his
career path with zero experiences, that was why almost lacking of experiences. However,
He supported to settle the paper work and translating documents in company. He had
lack of experiences in paper and translating tasks, however, he tried very much to fulfill
the assignment in time. On the basis of young age and experiences leads to the mistakes
and delaying in assigned tasks that can exist to contribute the poor performance job. This
is one of causes for high pressure of time and working. Ms. Phuong Anh, chief
accountant, said that: “he does not have experiences in assigned job and normal happen
the mistakes in assigned tasks, but, he works hard and try to learn”.
In conversation with Ms. Xuan Anh continuously has been analyzed to get further
information for leavers in translating field. She mentioned that we do not have human
resource plan leading to weak recruitment and selection and the performance appraisal
do not exist in company. It is hard for her to evaluate the achievement of employees. The
benefits sometime evaluated on the volume of jobs that gets from clients. Beside the
salary of translating was quietly low in comparison salary of other jobs that used foreign
languages, the employee decided to quit the job after only several years working because
of unfair performance appraisals leading to unsatisfied salary and benefits. Moreover, the
factor of weak management making employees who always feel lacking of supports from
managers and colleagues.
In summary, potential causes such as weak management skills, lacking of clients,
unsatisfied salary and benefits, etc…are identified and some evidences to support the
analysis has to be gathered. Moreover, turnover rate of leavers affects negatively to
company with a typical factor finding that is low performance in business operation and
decrease revenue comes from the weak management skill and lacking of marketing and
sale team leading to business result of company has been decreased sharply over years.
1.2.2 Initial Cause – Effect Map:
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Firstly, it is understood the Cause and effects Map are used in many industries for
many purposes. The basic thoery of a Cause and Effects Map aims providing the ways for
adjusting the business operation and effecting a chain in the system if specified incidents
causes (1). The forming of problem definition typically is a problem mess, it is noticed
that by selecting a potential problem and setting tasks with respect to this comes from
symptoms, cuases and solution in relating to potential prolem will gather during the initial
and orientation phases. The diagram presents a causes and effect one in which shows a
symtopms that has origined from mess of causes (2).
From interview of group 1, the problem finding is focus on the factor of decrease
revenues are focusing on lacking of marketing and sale campaign, weak management
and high turnoverate. The factors of No opportunities for career path, do not have the
marketing and sale team and do not human resource department come from the interview
of group 2. It is merged two diagrams to understand the issues regarding to the potential
problems increase. Further information, it is understood that potential problem is selected
to comply with initial cause – effect diagram.
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A decrease in
Revenue
Low service price
Poor attractive new
customers
Losing the existing customers
Big barrier of high
competitors
Poor customers
targeting
Weak customers’ relation
External
industrial
factor
Lack of Sale
and
Marketing
Team
Poor
High turnover
rate of
employees
Stressful workload
Unstable workload
Low benefit
& salary
Assigned multitasks
Reduce work quality
Not reward
evaluation
Management
Capability
Lack of
Human
ResourceTeam
Figure 2. Initial Cause – Effect Map
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1.2.3 Updated Cause – Effect Map
According to Eden et al (3), the analysis relationship between causes and effets
mapping are shown the collected views. It is shown the arguments can be related to
topic’s relevant from its causes and effects. It also seeems examines the optential causes
into the smaller and smaller items. It is useful for showing relationship between
contributed factors in analyzied topic.
Job dissatisfaction
On the basis of the thoery about Human Resource Management, it is defined that
one of the ways to draw the keep talened people who desires maintaining their jobs that is
good human resources management in organization (4). One organization can keep the
competenced workforces who are dedicated working leading to supporting the mission,
goal and strategies of business growth. If the employees can see the benefits on their
dedicaiton, they will feel motivation and try their best to complete assigned tasks.
However, the vison of career path isnot seen from boring job, they are always in mood of
dissatisfaction. Job dissatisfaction causes for poor job performance and leading to quit the
job from employees quickly.
High industry competirors
The smarter and more talented sale persons with regard to their interaction to clients.
The more customers will tell about their need and they are willing to your orgainzation to buy
the services or products from yours (5). High competitors are conerned in managers’ lines
because of clients. The consumers or customers who have the priorty rights to choose the best
services or products but the reasonable price is attractted to them. The relationship between
prices and markets has evaluated through market makers have a sury through markets and
prices. They expected profit maximizing tending to supply and demand chain and get
feedback their competitors’ same way of supply-demand one as well (6). The translating
industry was a special field that liked with government department such as Nortary Public,
Committee People Department or Justice Department of Ho Chi Minh City, to be a
coollaborators who can have a legal character to sign the legal valued translated documents,
however, the integrated economy with transmistion of circulars from Minister
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of Justice from 2013, to encourage for small and midium enterprises to start-up business,
translating industry to become the attracted fields for young and dynamic people who
would like to do busiess with it, and it gradually become competed severly amongs
companies togethers and appearing the low service prices to draw the customers.
Unattractive salary
The employees are not recognized for their dedication or accomplishments that are
considered only criticized for their shortcomings, they do not feel valued and work in the
mood of fear of making a mistake. A company should encourage the creativity through
the fair reward and constructive judgment or recognition for creative, dedication in their
work (7) The topic of salary and benefit issues has always argued in almost companies.
There exits the comprising paying among employees when they often get the salary and
benefits to compare with other companies paying.
It is defined that many different of factors that can impact to an individual
employee’s level of satisfaction with his/ her job. These factors come from the level of
paying and benefits (8). The writer can discuss that salary is still an important factor
throughout the life of an employee’s career, but it is not the sole motivator to attract
and keep the employees. More and more people are considering companies that offer
incredible benefits, aside from salary. If the employers do not know how invest in their
employees, it is surely their top performers will go out of the door. Based on the
interviews to find the causes related to high turnover rate of leavers from unattractive
salary policy in Van Hung Xuan company
The update cause and effects map is presented as folows:
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A decrease in
Revenue
Low service price
Poor attractive new customers
Losing the existing
customers
High industry
competitors
Poor customers
targeting
Weak customers’ relation
External
industrial factors
Lack of sale and
marketing team
Poor
management
capability
High turnover rate
of employees
Stressful workload
Unstable workload
Assigned
multitasks
Reduce work
quality
Job
dissatisfaction
Lack of
human
Unattractive salary No reward evaluation resource
team
Figure 3. Updated Cause – Effect Map
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1.3. Problem identification
1.3.1 Possible problem
To identifying problem, the thesis mainly focusses on internal factors of Van
Hung Xuan Company. As such, external factor on high industrial competitors will be
eliminate removed. The remaking of this such will discuss and analysis by using
theoretical and empirical exploration to identify the main problem. In addition, some
evidences supporting for the analysis has gathered to strengthen the identification.
1.3.1.1 Lacking of human resource team
Human Resource (HR) keeps they key role in management of employees. If the
company has lacked of human resource means that it lacks of ability making employees have
motivation in job such as lacking of skills in complete the tasks (9), for example: lacking of
time, profession personnel that may have obstacles outside the employees’ control in relating
to poor management from managers. Moreover, human resource team is not only impacted to
company’s performance through how to attract talents to retaining the best tasks to
completing or manage the employees’ morale, happiness a cooperating among employees to
reach the good results of tasks, but human resource manager should understand how to attract
the right talents with constantly upskilling employees to meet the changing needs of the
business operation. As concerned this, human resource management can impact on
performance and leading to poor services means that human resource has a directly influence
on employees’ skills, motivation, opportunities for career path. Additional, appraisal
performance is very important in human resource activities, because it relevant to attractive
salary and compensation with regard to employees’ attitudes. It is very terrible for low
motivation among employees associated in appraisal performance leading to the poor
performance and then affects to result of business. If human resource activities exist in
company in relating to valid performance management system to evaluate the competence of
employees and know how to keep the talents and recruit the new ones to provide the skills
and experiences required to keep the productivity levels up and create the advantages
competitive to push up the better ladder career (10). As a result, the importance of
management skills in human resource activities keep as a core role in
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company. As indicate in the previous section, the interview shows that Van Hung Xuan
company is lacking of human resource team leading to ability to communicate
ineffectively to assign and allocate the tasks properly, the policy of salary is satisfying or
how to create the source of creative and interesting to employees dedicate into their job to
develop the opportunities for career path. In addition, the lacking of human resource team
may result in insufficient training or poor appraisal performance leading to unsatisfied job
among employees means that it causes for time pressure. As such, lacking of human
resource activities has been considered as a negative factor in motivation of the staffs and
strong management is lacking with regard to negative affecting to workload, poor services
and the employees feel the big burdened by the volume of job dissatisfying (11). In
addition, lacking of human resource team makes the poor performance in Van Hung Xuan
Company. This is also one of reasons for low performance of job in company.
1.3.1.2 Poor Management Capability
According to Leonard et al (12), management capability helps managers in thinking
about knowledge to build consequences of their technology – related decision and provide
the knowledge for them the useful sources in successful adapting as an incremental re-
direction of skills and knowledge in management including the technology innovation. Core
capability should be managed to foster, not only critical knowledge but competitive industry
changes. Firstly, it should refer to lacking innovation of technology in Van Hung Xuan
Company leading to out updated information to meet the needs of tasks in time or unexpected
happens in management tasks (13). Next, the lacking of business model innovation is one of
essential factors make Van Hung Xuan company cannot catch the modern business trend.
According to Baden et al (14), business model is linked basically to technology innovation
and company performance. Update timely and developing the right technology is a matter of
a business model decision regarding openness and user engagement. Furthermore,
management role is very importance to run all business operation and employees as well. It
refers to poor management time in dealing the assigned tasks in deadlines and how to keep
and balance the time for urgent time and work. In Van Hung Xuan company, the job is
irregular assigned leading to stress
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and heavy workload in the peak time of translating. Stress happens when the employees
has been full of demands, deadlines, etc… that cannot meet the requirement under the
pressure in relating to low performance. The assigned dissatisfied work with multitasks in
Van Hung Xuan has come from the weak management skills in relating to low quality of
work. Moreover, low performance of job leads to poor quality of services that cause the
weak business activities. If the poor management happens means that cannot keep the
existed customers. In other words, poor management capability affects to passive attitude
to work of current employees and negative impact to business growth of company.
1.3.1.3 Lack of Sales and Marketing Team
It cannot deny that Marketing and Sale Team keep the heart role in business
success of company. It reflects the company’s business depending on the successful
marketing and selling strategies. Marketing keeps the role to transfer as a process by
bring out the services that are introduced to potential customers. Without marketing, the
business only offers the best services within the translated industry but none of potential
customers would know about them. That is why marketing management is the most
important in keep and seek the clients to promote the services to them (15). Beside, sale is
the soul of company, sale team will bring the image of services to customers through
selling services to customers. Sale team know how to get closer with customers, and
playing a bridge the gap between the potential customers and services that company
offers and fulfil the customers’ needs. Sale persons have an existing awareness of the
company through marketing and advertisement efforts, sale team will introduce the
information and help consumers to make the connection to company’s services.
Moreover, the sale team also play a key role in building of loyalty and trust between
customers and business products. Trust and loyalty are main reasons in relating to
customers choose company’s services means that excellent sale persons are those that not
only make the sale, but create a long-lasting impact on the consumers. If the company has
a lots of long-term customer’s relationship with regard to increasing the brand’s
reputation by word of mouths. It is more cost effective to retain consumers than to win
new ones, so looking after the existed customers should be well (16). Taking advantages
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of impact sale on not only revenue but on brand reputation, the customers relationship
management role keeps the most important in marketing and sale team as considering key
account management or strategic account management or a strategic sale activity (17). As
a result, lacking of marketing and sale team in Van Hung Xuan Company relates to keep
and develop potential customers as the factors belong to management capability. If poor
management in marketing and sale leads to customer’s dissatisfaction with regard to low
performance of job and affecting to Van Hung Xuan Company’s business growth and
consider a poor management capability. In addition, lacking of marketing and sale team
can lead to lacking of creativity to promote the brand of company or drawing the potential
source of clients means that lacking of marketing and sale can cause the weak
performance. It can cause of poor quality, increasing the brand of potential benefits of
services from Van Hung Xuan Company and manage the source of customers as well in
relating to management skill in company. and cannot seek the potential source of clients
through the marketing and sale campaign. The weak source of clients as a potential cause
of poor management capability.
1.3.2 Main problem validation
Poor management capability has increased the low performance of job among
employees as above analysis because employees with assigned multitasks creating the stress
from time pressure and irregular job at the peak of translating season. The work of stress in a
common sense to define overloading of employees stated in the influences of work overload
impacting to turnover rate in company or stress at work is almost concerning in the pushing
of times (18). Unsuitable assigned tasks are not only the key but also taking the
effectiveness the leading reasons why employees want to work or quit the job in company.
Poor management capability is becoming to the big problem in Van Hung Xuan Company
because of low job performance and income in organization. It means that new persons
cannot meet the requirement for work’s effectiveness ability. That is why existing
employees need to encourage to cover for the work overload in each function. Regarding to
this issues, poor management capability plays the most important in training and keep
talents in company. Talents are one of invalid assets of company and
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if company do not have the good management skill leading to lack of development
opportunities in both of employees and company. It is easy to understand the employees’
enthusiasm was decreased and they did not feel interested in their job because of low
opportunity development. They should have found another chance to get promoted or
better job in other organization. Lacking of employees in company causes the
unsatisfied work allocation in relation to time pressure. Mr. Mach Tuan Dung, an
employee who supported to settle the paper works and translating documents in
company, 25 years old now and he has left the company one and a half year ago. He
shared some information: The works still repeat and repeat that making boring and
cannot create the initiative in the work and lacking of attention as well. Especially for
work-life balance, the mass of tasks was not difficult, however, it took lots of times to
complete them in time. I was tired of working and wanted to quit the job.
Moreover, on the basis of branding research has largely focused on markets and only
recently has attention been given to business markets that is why the role of marketing
importantly in promote the brand of company leading to attract the customers to know the
services from company (19). The lacking of marketing team can cause less corporate clients
or individual clients pay attention to company’s brand. One of the weak factors leading to
less clients is not the promotion of marketing strategy from company or it cannot deny that
company does not have the strategic management to keep the clients. Furthermore,
salesperson satisfaction has transmission to crucial consequences for the sales team and
company’s dedication, company satisfaction, company word of mouth, and share of total
purchases of services or products that will attract to more clients (20). As the views from Ms.
Xuan Anh that I think the root cause for weak potential clients that is lacking of marketing
and advertisment strategy, it aims decreasing the costs for company, we have not ever the
strategy for posting the business activities from company on social networking such as
newspapers, magazines, or establishing the company’s own website, we just take advantage
of word mouths, zalo, or Facebook to promote the business activities, the competition of
prices among translating agencies leading to the networking of clients is weak make
unsatisfied job for employees cause the poor performance job.
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Poor management capability in skill development to keep and find the potential
clients leading to low performance and a decrease in revenue of company.
Finally, the above analysis can affirm that factor of poor management capability is
the most important more than factors of lacking of human resource team and lacking of
marketing and sale team. As Ms. Xuan Anh said that “we do not have any skills in
management from human to find new clients, excepting for source of old clients, however,
we are facing to old clients who are going to leave us because of competitive prices
strictly and low performance from the passive attitude to work of current employees.
Everything is very terrible for us at now, lacking of knowledge and skills in management
capability make us to break business”. As a result, poor management capacity is a main
problem of Van Hung Xuan Company. Its consequence has resulted from factors such as
low performance of job, passive attitude to work of current employees and negative
impact on Van Hung Xuan business growth.
1.4. Consequence of Problem
1.4.1 The low job performance
According to Greenley et al (21), the low performance is likely to have lower
levels of achievement than high performing companies and thus they are likely to have
less potential for achieving flexibility to impact on performance. It can be said that the
low performance of job is results of unsatisfactory job among employees leading to
failure to perform their dedication into the assigned tasks. It comes from poor
management capability in company. As Ms. Xuan shared that The requirement from
clients, they are always in the tired state and not positive to cooperate or deal with
clients in negotiating the time and date. They have weak communication leading to run
out of the energy to deadline with clients. I always get complaint feedbacks from clients
about the small mistakes in translating documents leading to clients to return and correct
the ones. That is why we cannot offer more salary and provide more attractive benefit for
them. They have the job poor performance.
1.4.2 Low employee productivity
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In Van Hung Xuan company, high turnover rate of employees happens in
functions of translating that occupied high ratio with 63%. This function plays the core
role in evaluation performance in company. The employees who quit the job leading to
the negative impact to company because of reducing in performance efficiently and
negative attitude to current employees who are in charge of assigned multitask presently.
Additionally, it is taken much times for finding out the competence candidate for the
vacancy. It means the all of employees who are unchanged their jobs, they have to try
fulling the tasks to meet the business requirement while waiting for new employees to
take over. As a result, it has not affected significantly to revenue of company and it may
be leading to late the deadline for working progress causing for poor job performance and
business result is decreased sharply. The investigate link to negative attitudes of
employees impact on business outcomes significantly. A poor management skill can
cause the negative attitudes of employees not only on their performance but on business
result of company (22). Employees with negative moods and attitude cannot have a good
performance and affect to business activities sharply. Ms. Xuan continuously shared that
We have faced to the negative impact to current employees and to job performance as
well when employees leave working in job.
1.4.3 Business Growth Decrease
It is affirmed that there are lacking of clients leading to unsuitable work allocation
make people wants to quit their job. The decreased revenues come from the low service
prices that have been happened among high competitors on the industry market.
The role of marketing and sale team play important in seeking clients and promote
the brand of company. How to have and keep the source of potential customers that is argues
that have studied in marketing and customer relationship management. Sales and marketing
has been benefits to the company through improved business performance. However, it does
not exist this section in company in relating to negative impact of weak source of clients as
important factor affects actively on company business growth (23).
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In summary, the overview from managers’ line shared that the lacking of
marketing and sale team leading to low revenue and it causes quitting the job from
employees affecting the negative to current employees and poor job performance.
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Decrease Revenue High Turnover rate of employees
Lacking of human
resource team
Poor customer relationship
management
Lacking of business
strategy
Weak Management
Capability
Low performance of job
Negative attitude to work in
current employees
Reduce Business Growth
External factor
Figure 4. Final Cause – Effect Map
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CHAPTER 2. ALTERNATIVE SOLUTIONS
2.1 Cause Validation
2.1.1 Possible Causes
It is difficult to compare the strengths of the impact of different causes on the main
problem, and it is harder to compare the effects on the causes to management tasks and
business result in Van Hung Xuan Company. The following findings of real causes will
be argued to have made decision about main cause and proposal for the best solution for
this problem.
2.1.1.1 Poor management skills
Lacking of management capability in Van Hung Xuan company is, firstly,
regarding to poor management skills to assign the suitable work allocation among
employees and keep them to be dedicated with their job. It makes employees to feel
lacking of recognition, unfair treatment. According to Stogdill (24), poor management
skills keep the sole in company means that it is important to build the loyalty and
commitment employees in company. The interviews from company concerning to human
resources management to keep talent employee. Ms. Xuan Anh took note that we are very
poor management capability we do not have human resource team in company. It is
obvious that above analyzed factors as lacking of suitable work allocation skill, high
workload, lacking of people or lacking of leadership role make high leavers leading to
poor performance that come from lacking of human resource team in Van Hung Xuan
Company. In a result, it is understood that lacking of human resource team is not main
cause in company because the root of cause starts from lacking of potential customers
relating to poor diversified services in value proposition in translating market.
2.1.1.2 Lacking of business strategy
Factor of lacking of business strategy affects to business performance significantly.
It is argued that poor diversified services cannot help company has a value proposition to
set of benefits to the client. That is true that Van Hung Xuan company is limited services
because of two main languages Chinese and English to meet the amount of great clients in
translating market. It is also discussed that some elements affect to customer’s satisfaction
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with regard market development to create the cycles of customers and company in
seeking to fulfill the services and employment’s needs everywhere. As mentioned from
Stanley et al (25), market development is good form of contact with customers, so, it does
not deny that market development and update information technology application
contribute into the business operation significantly and diversified services keep the role
of critical factors from business strategy to coordinating and delivery of customers
services. Moreover, especially for the streamline of today’s business, online business
marketing is playing the vital role as a bridge between customers with company’s
services. Online business marketing contributes in advertising the services and it makes
business operation moving forward successfully. Unfortunately, Van Hung Xuan
company has been failed in lacking of these factors in the stage of growth business
activities. As Ms. Xuan Anh said that we do not have marketing and sale team in
company, we do not have any activities to develop the market.
2.1.1.3 Poor customer relationship management
Factor of poor customer relationship management is referring to how to keep
existed clients in Van Hung Xuan company. Moreover, the source of clients come from
the close relationship, word of mouth or zalo net working and it seems poor efficient
communication pschychology in keeping the existed clients in weak customers database.
Ms. Xuan Anh took note that We just focus on two main English and Chinese and the
existed customers, from 2017 to now, we do not have any new customers. And the existed
customers have decreased sharply from that year to now. It is understood that lacking of
business strategy involves in seeking the new customers and management skills in
keeping the existed customers are very important. However, it is definitely proved poor
customer relationship management is not main cause in Van Hung Xuan company.
Lastly, the external factor is noticed to identify the potential causes, Yet, it also
claimed that Van Hung Xuan company is lacking of competitive advantage means that it is
difficult for it to compete the service’s prices in comparison with high competitors on the
translating market with some reasons such as quality of service, costs, location, low prices
et al. Mr. Duc – Director of Company is participated in the dialogue: “we only
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focus on existed clients and two languages of Chinese and English. The big translating
market with low prices and high competitors made our business break down”. As a result,
the limited services of translating of Van Hung Xuan company make taking much times
for building a value proposition in the translating market because it has been poor
diversified services since the start-up stage. A weak competitive advantages to position in
marketplace in comparison with competitors concerning to quality of services or skills in
customer’s management in Van Hung Xuan. However, the thesis mainly focuses on
internal factors of Van Hung Xuan Company. Therefore, factor of external industry will
be removed completely.
From above stated, factor of lacking of business strategy is chosen as a main cause
that it can be resolved efficiently and effectively because of following reasons.
Van Hung Xuan Company is poor diversified services beacuase it only has two
main languages of Chinese and English from start-up to now. Van Hung Xuan Company
can improve the business innovation implementation for good innovation in business.
However, if solution for applying to update new information technology application in
management tasks, it should be considered between cost and benefit. As a result,
considering the current business operation of Van Hung Xuan Company, the foremost
attention is how to have the good diversified services or market development to draw a lot
of customers and keep the existed ones to have the source of job and revenue as well
means that managers of Van Hung Xuan Company should focus on business strategy well
aims supporting for business innovation implementation urgently.
2.2 Main cause
It can be seen that lacking of business strategy is considered as a main factor that
affects to poor management capability according to following analysis:
Firstly, the qualitative data method is collected in relating to the vital reason
affecting to poor management capability. As mentioned in dialogue with Mr. Duc –
Director of company, that: “we do not have any new business ideas to find new clients,
excepting for source of old clients, however, we are facing to old clients who are going
to leave us because of competitive prices strictly and low performance from the passive
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attitude to work of current employees. Everything is very terrible for us at now, lacking
of skills in management capability make us to break business”.
Next, the current business condition of Van Hung Xuan Company has been
affecting from poor diversified services to have a value proposition in translating market
leading to source of weak clients and decrease sharply revenue in the recent years, it is
more difficult for them to seek the source of potential clients because of lacking of market
development. Ms. Xuan Anh continued: “Even if we also do not update the new
apllications in information technology to have ideas for online business, we are lacking of
completely efficient communication through network bridge from modern technology such
as network social or hi-tech marketing”. Moreover, the above analysis stated that a value
proposition plays a core competence in company and it has been closed to business
strategy to provide the clients benefits from the quality of diversified services to focus on
the drivers of customer engagement.
In conclusion, business strategy is very important for small company as Van Hung
Xuan. That is true if the company takes the value assets of human resource, yet, without
market development, good diversified or online business marketing and information
technology application to sell the services to cusomers aim creating the value propoition
in translating market means that business operation will be broken. It is understood that
the critical success factors in small companies concerning factor of market development
has become ones of the key forces driving toward business successes. Key factors that
company should invest into improvement their efficiency and customer satisfaction (26).
It cannot deny that the success of business strategy asking for many efforts that
depending on many factors. It is understood as follows:
a. Business strategy is a method to have a value proposition for the customers,
a viable structure of revenues and costs for the enterprise delivering that value
(27).
b. It is referred to innovation in business implementation in relation to
management skills because improving the communication efficiently to
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keeping the existed customers or netting the new ones in striving for
develop the best services (28).
Hence, it is argued that factors of market development in which information
technology application, improved diversified services towrad innovation implementation in
business operation, et al…. are highlighted in business strategy. Therefore, lacking of
business strategy is considered as main cause in Van Hung Xuan Company and from
these analysis, alternative solutions are taken into consideration for this main cause.
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2.2.1 The Fish - bone Diagram
The Fish-bone diagram is presented as follow
Lacking of business strategy
Poor customer relationship management
Lacking of online business
Lacking of market Lacking of customer’s
marketing
management skill
development
Poor information technology Lacking of efficient
application communication pschychology
Poor diversified services
Poor
Management capability
High industrial competitors Lacking of suitable
work allocation skill
Lacking of leadership role
Low service prices
Lacking of appraisal
activities
High workload
External industrial
factor
Poor management skill
Figure 5. The Fish - bone Diagram
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According to Forster (29), business strategy is understood as business process
management that is a powerful approach to improve performance aiming to improve
customer’s satisfaction. It also knows how to enhance the motivation and job satisfaction
among employees, and they are concerned with welfare or benefits to focus on goal to
have business model aiming to identify the characteristics of constructive leadership.
Moreover, as Kim et al (30) stated, business strategy has defined that can be used for
commercial purposes. There tools are determined utility, price and business model to
have ideas for business. There are many methods to develop the new business idea such
as online business marketing is one of the ways attract the customers from source of
inbound and outbound via use the products or services from company. Development in
new business ideas are one of ways to improve in verbal and oral communication to have
interact personal effectively both of internal and external environment to understand
aiming to meet the appropriate the needs of working and catch up the developing of social
trend nowadays significantly aiming to have automatically result in improving business
performance.
2.3 Alternative solution
As early noted, it is understood that today’s competitive market that requires
managers to have a look over the typical skills such as improved divrsified services,
updated new information technology application or implemented online business
marketing to keep the business plan effectively to have more and more customers.
According to Uden (31) the business strategy are determined from these vital
factors such as suppliers, buyers, products and services in which e-business gets back
several benefits to the above factors. Online business operation helps companies to reach
the new markets, new clients, improve the brand image, reduce the costs and differentiate
their products and services against competitors. E-business is one of the best ways to
enter the global business and markets. Moreover, the update of new information
technology application helps bridge between customer’s data linking with company’s
services. Therefore, the writer will propose three following solutions in comparison with
the limited costs and financial in current business operations to submit to managers who
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will made the decision to choose the best solution in short-term or long-term to have
the best benefits.
2.3.1 Online Business Marketing
In Van Hung Xuan Company, the current business operation is downturn sharply
concerning to the decreased amount of customers. How to find the new customers who
reach to services from company is the most important element to make decision from
gain the high revenue in business. With the business model as Van Hung Xuan Company,
sale campaign is applied urgently to promote the services and it also takes advantages of
online business marketing to advertise the service to draw the customers to know brand
name. Ms. Xuan Anh – Manager of translating team share that: “we have planned to
follow to update the online business marketing. I think we should have a sale campaign
and online marketing to promote the services to customers. We have invested the costs for
this campaign.” As a result, online business marketing is choosen as one of potential
solutions because of following benefits:
Benefits:
- Reducing order processing costs - customer orders can automatically
come straight into your orders database from the website.
- Identifying the brand name and logo of company
- Saving in operation costs.
- Position the company’s business in the translating market.
- Research the potential customers, not only inbound but outbound aiming
to increase the online sale opportunities.
- Online businesses markeing is being able to open 24 hours a day, seven days a
week through website of company.
- Being able to receive payment more quickly from online transactions.
- Using the online business trading to showcase the services to existing customers.
- Using Facebook advertisement, taking advantage of power of SEO, and pros of e-
mail address to advertising or google tools to advert the company’s business.
- Taking advantage of word of mouth, leaflet, etc.
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Costs:
The cost for this program is VND 34,000,000 including in sale campaign
and online marketing.
Ord. Description Estimated Cost (VND)
1. Webpage construction 15,000,000
2. IT employees to manage the webpage 16,000,000
3. Leaflet for sale campaign (3,000 copies) 1,500,000
4. Linked networking (member) Free
5. Facebook, intergrams, word of mouth, zalo Free
6. Advertising on Newspapers with 03 papers 1,500,000
Total 34,000,000
2.3.2 Service diversification
As De Koning et al (32) mentioned, the entrepreneurs start a business that should
invest into the markets to find the right opportunities in relating to focusing on consumer
services. It is understood the meaning of “value proposition” or market development that
is related to customer focus point and customer oriented. Start-up company should have a
customer value orientation, likewise identified the need to have a focused customer
orientation to provide the best ways of the products and services to them. As concerned,
online business marketing supports company effectively to draw the customers. To draw
the more and more customers to use the services in Van Hung Xuan Company. Firstly,
the services are outstanding and diversify to satisfy the customers’ need. Next, managers
should take advantages of new services of diversified services to introduce to existing
customers to win them and coming back them with many free supports in after services.
It could help to improve the communication skills such as word of mouths or add values
to customers to interact with them as the diversified products to potential customers in the
next years by using social media to interact with the customers and receive the feedback
effectively and efficient communication is a bridge to link to customers and it is
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considered as one of best tools to expand the brand loyalty including in expanding the
services.
The following is presented some benefits and costs for this program.
Benefits:
- Employ the 03 collaborators who will do as part time job and support for
company with Japanese, Korean, French translating.
- Finding the good outsources to translating with Multilanguage include in
fast time and good prices to meet the customers’ diversified needs and helps
company to build the trust from customers and decrease the costs.
- Reducing the cost of services to win existed customers and get them back and
draw the new potential customers through words of mouth aim increasing the
revenues in company.
- Employ one legal consultant to support for company in answering the questions
from customers involing in legal problems in translating.
Cost:
The cost of implementation of this program is estimated 33,000,000 VND with
the following description:
Ord. Description Estimated cost (VND)
1. Paying the 03 collaborators with Japanese, Korean, 15,000,000
French (03 languages)
2. Fees to outsource to translating the other languages 10,000,000
3. Legal consultant (one person) 8,000,000
Total for all 33,000,000
2.3.3 Market development
With the booming of information technology nowadays, it cannot deny that the
significant contribution of Information Technology into the global business successfully.
According to Thomas et al (33), information technology application is considered as
competitive advantage in market development, the role of its impact on business is very
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important in management tasks, business innovation implementation including in
Human resource system or security the data of customers. Building in the good
information technology in company that is avoiding of leaking internal information.
However, it requires the high costs to building overall of quality information technology
application from software package for management to ensure the body of business
activities run smoothly. Additional, market development is understood as market
expansion that is applied for Van Hung Xuan company for the current business operation
by cooperating with Law offices to have legal documents in translating services or
linking to publication to become an outsource in translating about foreign language
books in the field of economic, social, science, et al to increase revenues for company.
As early mentioned, Van Hung Xuan has just focused on the amount existed
customers from the close relationship and from word of mouth or zalo networking.
However, the poor diversified services plus the high cost leading to these amount of
customers to leave significantly. According to Johne (34), market development is defined as
improving the target of markets and considering as a powerful tool to help company’s
business model to positon in the market about quality of services and safeguard it from
attacks by competitors. Some benefits and cots are stated by following in:
Benefits
- To become a competitive advantage for company in marketplace.
- Avoiding the leaking of internal information
- Two representative offices that are near Notary offices and People’s committee to
build the brand name of company and draw the customers easily.
- Building the strong bridge between customers and company in business access.
Costs
The cost is estimated about VND 61,000,000 with the details as follows:
Ord. Description Estimated cost (VND)
1. One employees who works in Management software 25,000,000
2. Frees for opening two representative offices 20,000,000
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3. Employ two employees who works in two offices 16,000,000
Total 61,000,000
2.4 Solution selection
From the above analyzed solutions plus with the current business of Van Hung
Xuan Company to give the proposal properly not only improving the turnover rate but get
back the business path with high revenue. It is necessary to have a look at carefully these
solutions to make decision to choose the most effective that can apply for company and
have proposed action plan for it. As above mentioned, Van Hung Xuan company is a
start-up business model that is very young in managerial experiences from human skill to
getting or keeping customers skills as well. As Ms. Xuan Anh said that “we do not have
any new customers in recent years”. From that, it cannot have denied that online business
marketing impact on business operation effectively and customer orientation. Solution for
lacking of business strategy needs to be more carried out immediately. Moreover, after
consideration the benefits and cost, it could be seen this solution is providing the best to
resolve the main cause with some points of views as follows:
Additional, building consumer trust online is one of best method to win back lost
consumer trust in the internets of e-commerce sales (35). As a result, online business
marketing innovation is concerned efficiently to have a best solution, however, it
seems suitable for concerning in the costs and benefits in comparison with current
business in Van Hung Xuan Company
Firstly, update the customer orientation is very important for start-up company and it
is considered as one of best methods to drawing the awareness from managers because
benefits from online marketing and sale campaign to bring back largely, it is not potential
customers but promote the service. With regard to urgent current business activities in Van
Hung Xuan Company, it is necessary for online business marketing that can apply for this
model immediately, the cost is suitable for this program, however, they can get back the
profits with big benefits that is not expensive for them to invest into this program for its
existed long time business path. Moreover, almost B2B purchasers do more than
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half their product and company research online before making any buying decisions and
most of people do some type of online research before finalizing any large purchase.
Next, under the limited costs from the start-up company as Van Hung Xuan, the
solution for new update IT trend is not urgent for them to take because consideration
between the costs and benefits, it seems lacking of practical factor immediately now and
factor of investment into the market development with the cost of VND 61,000,000 that
will make a bigger impact on the burden of current business as Van Hung Xuan is dealing
with revenues, that is why this solution cannot apply for now.
Additional, looking into the costs of 33,000,000 VND for solution for lacking of
poor diversified services is more effective and practical for managers to help them to
have motivation in getting back their business immediately when they take part in this
program. However, this solution for diversified services will meet the requirement for
company in long-time, yet, it takes the times to build the system of human resource to
keep the talent persons and keep the existence customers in company and this is not
priority for Van Hung Xuan company to be implemented into current business operation.
In summary, the best solution is finding the source of customers to increase the
revenue as well as finding the source of job for employees to keep the talent people who
will be dedicated for company as the source of value assets to get back the business and
financial crisis in the last years. Hence, the solution for market development should be
applied immediately and this is the best choice for company because its effectiveness, the
possibility on the execution, and the costing are appropriate solution for company at this
moment. It is considered as a best solution for company in the period of breaking down
business and financial crisis in Van Hung Xuan.
2.5 Action plan
Above analyzed solutions that help Van Hung Xuan Company to improve the
performance in business operation. Yet, basing on the limited financial resources,
costs and after considering the short term and long term benefits, two actions that Van
Hung Xuan company needs to take immediately aims reorganize company.
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Action plan in 03 months (short time plan)
Timeline
Ord. 2019 Tasks Persons in charge
Jul. Aug. Sep.
1. - Deliver leaflet at the corner of intersection, schools, buildings, offices, Employees in
companies, hospitals and supermarket. company
2. - Advertisement on social network: Facebook, zalo, twitter, linked…. Ms. Xuan Anh
3. - Advertising on Newspapers such as: “Tuoi Tre” paper, “Mua & Ban” paper, Ms. Xuan Anh
etc.
Action plan in 02 years (long time plan)
Timeline
Ord. 2019 2010 Tasks Persons in
Oct. Nov. Dec. Jan.
June July
Sep. Oct.
Dec. charge
1. - Following the advertising activities Employees
on social network, Newspapers. in
translating
team
2. - Web construction IT
- Advertising on e-mail addresses, employees
google tools to introduce the
company’s business.
3. - Introducing the business activities IT
on Website of company. employees
- Website is opened 24 hours a day
and 07 days a week to follow the
order processing of customers.
4. - To enhance the effectiveness of Ms. Xuan
order process of customers to build Anh
up the relationship.
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CHAPTER 3. SUPPORTING INFORMATION Appendix
THE FIRST QUALITATIVE RESEARCH
- Time of interview: 17.00pm, 14th
of July, 2018
- Duration of each interviewee: from 10 – 15 minutes
- Address: At company and through phone
In-depth interview 2 (Interview guide)
Group 2: The employees who left working and the employees who are still working
in Van Hung Xuan Company
Research objective: the existence of problem, finding out the potential reason why
employees want to leave or stay in company and some solutions to resolve the problem.
- Interviewer: Ms. Duyen Anh
- Interviewees:
1. Ms. Thanh Hong – translator in translator function – who left the job around
01 years and keep working the as part-time job
2. Mr. Tuan Dung – employee at HR department of translator function – who left
the job arrproximately 1 years
3. Ms. Thanh Van – who is still working in company
- Age: from 28 to 45
- Working experiences: from 2 years to 6 years
Questions 1: According to your views, what is the most important
reason that make you want to leave the job?
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Ms. Thanh Hong: According to me, the most important reason for me to leave
the job is time pressure in working. I cannot arrange the time
for work and my personal life. I feel stress in job because of
high pressure of assigned tasks. Moreover, the income is low
in comparison with my competences leading to me made a
dicison to quit the job.
Mr. Tuan Dung: From my view, the salary plays the most important role in
decision to work or leave the job. I feel unpaing in salary and
high pressure of time and working. I was normal working
hours is 8-10 hours a day, every morning I must be in the bank
or go to Justice Department, sometime go to customer’s house
and come back home every day 9 pm to sit at dinner table. I
thought that is very harmful for his health and I did not have
no time for shopping and going coffee with friends even lack
of time for the family, and friends. The works still repeat and
repeat that making boring and cannot create the initiative in
the work and lacking of attention as well. Sometime, the
multitasks are assigned because of time pressure, however, I
donot have any assignemts to handle and waste of times on
internets.
Question 2 According to you, please share some views to support for
main causes leading to you have a decision to leave job.
Ms. Thanh Hong: I think with my experiences in role of interpreter in Chinese
language, I should receive the higher salary and get the
chance for my career development path. However, I feel
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boring with the unfair salary in company and I want to quit. I
know the company is not good about the business operation
now, so, I think my priority demands that depend on my
family’s demand more than I only know woking so hard but
my salary is not good as I expect. That is one of reasons I
want to leave the job and try to find the other opportunities.
Assigned more tasks in company, but salary and benefit has
been unchanged for many years of working. I always feel
tired and worry for my health because of stress job.
Mr. Dung: I was a youngest employee in company with starting the job
around 23 years old. The main reason for leaving my job
because I cannot see the opportunity development for myself
beside the work overload. I sometime worked overtime, I felt
difficult to balance of work and family. Moreover, the job was
repeating and repeating day by day leading to me tend to
undeveloped in my personal career. I always felt bored when
completing a repeated list of assignments in my daily work
and I was also afraid of coming to work in company every
morning. I feel lacking of supports from managers and
colleages. My skills can be improved and better after 06 years
of experiences to have a strong attachment to company.
However, I need to update new knowledge and skills on my
own upper education after working time. I also want to get
more challenges in other organization to take chances to know
where are his strengths and his weaknesses. And I also want
to have a higher salary.
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Question 3 Do you feel satisfaction with your currently job after you
made a decision to leave? Why do you think of this? And
if you are invited to working back in company, what
suggestion you will require to manager to have best
solution about the unsatified job?
Ms. Thanh Hong Yes, I satisfy with my current job about the treating between
manager and employee, environment of working is so nice
and friendly although my salary is not higher than ex-job
much. I think the best solution that is improving the salary for
employees, and they can have the policy for balance work-
life effectively. Besides, there are many sources of clients and
jobs for employees as encouragement for them to contribute
their competences into job. They can see the motivation and
promotion in their career path.
Mr. Tuan Dung I think I have collected many years of experienced in working
in Van Hung Xuan Company. I am satisfying with my current
job. I just suggest that the company should have the policy for
salary and policy and policy for training job to employees that
they feel work-life balance and satisfy job. If they feel fair
paying, workload is good, they can get promotion in their job,
the good performance will appear well.
Ms. Thanh Van I worked as translator and supported some paper work in
company. I feel that salary is not high, however, I can take
advantages of times to have part time job as cooperating in
translating with outsources basing on the time working in
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company less or more. I feel satisfied with my current job
and my manager also creates chances for me to have
additional income beside the stable income in company. My
manager just requires me to complete my tasks in time and
try to satisfy the requirements from clients. Therefore, I am
willing to work hard to get better salary and benefits, and
her efforts are paid well.
The data is summarized as follows:
Question 1: According to your views, what is the most important reason that make
you want to leave the job?
Answer 1:
The factor of imbalance in job and life comes from:
- Cannot arrange the time for work and personal life.
- Stress in job because of high pressure of assigned tasks.
- The income is low in comparison with their competences
- The salary plays the most important role in decision to work or leave the job
- Unfair salary
- High pressure of time and working
- The job is boring and repeating leading to not initiative in working and lacking of
attention as well.
- Cannot create the initiative and lacking of attention in the work
Question 2: According to you, please share some views to support for main causes
leading to you have a decision to leave job.
- Don’t see the promotion and career development path.
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- Boring with the job
- Unfair salary
- The company does not have much clients leading to less source of job.
- Don not see the opportunity development for career path.
- Work overload
- Imbalance work –life
- The job is repeating and boring
- Salary is not high
- Feel lacking of supports from managers and colleagues
Question 3: Do you feel satisfaction with your currently job after you made a decision
to leave? Why do you think of this? And if you are invited to working back in company,
what suggestion you will require to manager to have best solution about the
unsatisfied job?
Answer 1:
- Satisfy the current job.
- Improve the salary and benefit
- Have much source of clients and jobs for employees
- Policy for salary and benefits
- Training courses for employees to improve their skills
- Salary is not high
- Feel satisfy with the current salary and job.
- Work hard.
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THE FIRST QUALITATIVE RESEARCH
- Time of interview: 17.00pm, 08th
of July, 2018
- Duration of each interviewee: from 10 – 15 minutes
- Address: At company
In-depth interview 1 (Interview guide)
Group 1: The managers of teaching function in Van Hung Xuan Company
Research objective: the existence of problem, finding out the potential reasons why
employees want to leave or stay in company and propose some solutions to resolve the
problem.
- Interviewer: Ms. Duyen Anh
- Interviewees: Mr. Duc – Director of company, Ms. Xuan Anh – manager of
translating function and Ms. Phuong Anh – manager of HR department.
- Age: from 31 to 45
- Working experiences: over 7 years
- Status: currently working in Van Hung Xuan Company
Questions 1: According to your views, please share with me the reason
why more and more employees made the decision to leave
the job in company?
Ms. Phuong Anh: From my view, I think the first reason that leads to employees
want to leave the job is high pressure of time. Because they must
manage the time to do overload from the high pressure of times
and assigned tasks cause for imbalance in their life and job.
Sometime, they are required to work at weekend or midnight at
home to complete the tasks in time because of urgent translating
documents. Next, they do not see the promotion in their career
development path, the assigned job is not clear description
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leading they take much tasks to complete within a day. They
need a big time to resolve these and sometime they are free and
nothing to do. This causes for the stress in job. The thirdly, I
think that is low income considering as a big important factor
for them to leave the job. They feel unsatisfied about salary and
benefits that they are received from company leading to
unsatisfied job.
Ms. Xuan Anh: From my point of views, I think the most important factor is high
workload in assigned job leading to imbalanced work-life.
Firstly, I think the company currently deals with difficulties
about lacking of clients leading to lacking of source of jobs to
allocate the assigned tasks among employees properly. This is
one of reasons make the high pressure of time and working for
them, they sometime are required to work overload, yet, they
sometime own much time for free leading to them feel boring
and boring in list of assigned job that repeat and repeat on day
by day. Secondly, they always complain about salary policy,
they feel unfair in receiving salary. They have compared the
current salary to the other companies. Moreover, they feel
lacking of supports from managers, they would like to get more
supports from mangers to being guided them how to deal with
assigned job and how to deal with clients about the time and date
for handing in translating documents.
Question 2: Please share some details lead to main cause for leavers who
do not want to continue working in Van Hung Xuan
company? What do you think of this main cause?
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Ms. Duc: Beside the above views I shared, the reason for high pressure of
working and time. I think the employees who need to understand
how to have the skill of time management when they do not get
the more supports from managers, they feel lacking of skill
mindsets make them taking lot of times to complete the assigned
tasks in due date because they cannot arrange the time leading
to high workload as well. Facing to high workload, I sometime
get the requirements of clients by phone after work even at night
to being required the translate documents urgently. I also ask for
employees to work and transfer the translating documents to me
in the early following day because they are in relating to legal
checking from authority organization and them to hand in them
customers in time. I think this is one of reasons for heavy
workload.
Currently, Van Hung Xuan Company is belonging to kind of
small and minimum one. It has not been developing and growth
now, we do not have performance appraisal and do not have
human resource plan such as recruitment or selection, career
planning and development. The employees are recruited through
the relationships among ex-employees and from managers. We
only have a small training course for employees how to integrate
into the company environment and how to deal with job
assignment in company leading to they feel lacking of supports
from managers.
Ms. Phương Anh: They always complain about low income leading to they make
a decision to leave the job. I have provided payroll to them. They
feel unsatisfied about salary policy in company. I also explain
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and provide some information about the policy of salary and
benefits from company, they feel happy for these explain,
however they always feel unsatisfied about salary leading to
unsatisfied job when they are in comprising with other
company’s salary and their current competences. They think
they should find the more challenges from the others to get more
chances in their career development path.
Question 3: Please share some ideas about what difficulties for company
in dealing with growth of business and dealing with high
leavers?
Ms. Phuong Anh: As some above reasons above mentioned, I think the main factor
cause for employees want to leave the job that is low income. I
think I need to explain more details for them to understand about
full benefit packages and salary policy in company clearly. They
always complain about salary and benefits from company, they
would like to have the higher salary and get higher promotion in
career development path, however, facing the business state is
currently not good and lacking the process of appraisal
compensation in Van Hung Xuan company, we should let them
to leave the job. Beside the low income, lacking of career
development path, they also feel unsatisfied about management
way of managers. They feel unfair in taking charge of assigned
job. They work overload and cannot get the supports to share the
tasks from colleagues or managers. They feel unsatisfied job.
As may you know, the tasks are so much in small company, they
are not heavy or taking too much energy to complete them,
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however they need have a good managing of time to dealing
with them on time.
You know, in Van Hung Xuan company, the working time
starts 8.00 am and finishes at 5.30 pm. However, they
sometime can start working lately or stay working lately
according to their managed time for completing the tasks.
Sometime, they are also required to work from home because
of urgent requirements from clients, this is one of reasons for
them to feel unsatisfied job and want to leave working.
Moreover, it is weak task management and weak time
management leading to they cannot handle it. You may know,
we are a translating service, so we need to follow the
requirement from clients. I can see that employees feel
unsatisfied in job because of their high expectation of salary.
They want to have a promote in career development path. They
would like to take many challenges and chances to develop the
job career path.
They also complain about management skill from managers, they
sometime feel unfair treatment or lacking of supports from
managers. With regard to this, I think good management plays a
key role in keep the employees to stay working in company. The
presence of business operation in company, we do not have
management development. I work as HR executive cum chief
accountant in company, the company is small that make we do
not have the program designed to develop HRs management or
develop the role of managing as well as we do not have the
process of performance appraisal for employees properly.
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