Vietnam National University – HCMC International University

SCHOOL OF BUSINESS ADMINISTRATION

INTRODUCTION TO
BUSINESS ADMINISTRATION
FINAL EXAM

Lecturer : Dr. Ngô Hoài Sơn

Student Name : Ngô Minh Tuyết Ngọc
Student ID : BABAIU19066
Class : Thursday 789

Tiền Giang, ngày 20 tháng 1, năm 2022

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QUESTION 2
Summary the given information
- Objective: Gourmet Pet – a pet food industry company
- Product name:
• Kitty Sirloin
• McDog T – bone
• Prime Cuts
- Data
• The fixed costs of adding Prime Cuts: FC = $20,000
• The variable costs to produce one package of Prime Cuts: VC = $2 (per unit)
• Prime Cuts’s price: P = $6 (per unit)
a)
• Denote the total revenue, total cost, fixed cost, variable cost, price, and
quantity by TR, TC, FC, VC, P and Q.
• The total cost is composed by fixed and variable costs:
Total cost = Fixed cost + Total variable cost, in which total variable cost =
variable cost per unit x number of units
Hence,
TC = FC + TVC
 TC = FC + VC(Q) (1)
The total revenue is calculated by multiplying the number of unit product be
sold with its price:
TR = P*Q (2)
…
The break – even point is defined as the business’s status in which there is no
net loss or net gain. In other word, it is the analysis used to find out the
number of units (or dollars of revenue) needed to be produced (or gained) to
cover the business’s total costs.

As the definition pointed out, in the break – even point, the total revenue will
equal to total cost:
TR = TC
Substituting the equation (1) and (2) to the break - even formula:
TR = TC
 P*Q = FC + VC(Q)
 6Q = 20,000 + 2Q
 4Q = 20,000
 Q = 5,000

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 Therefore, break – even is the point in which Gourmet Pets produce 5,000
units of Prime Cuts. In other word, the company should produce 5,000 to
cover the total costs.

b)
Skimming price is a pricing strategy in which by which the firm charges
initial price as high as possible for the new product. This is because at the
time of new products entering in the market, the firm is monopoly producing
it. Charging the high price for its new and unit product, the firm is able to
cover the cost of research and development as well as seize the chance to
earn profit since the market share of its is one hundred percent. However,
the potential profit gained by selling the new products eventually attract new
competitors. Therefore, when there is competition in the market, and the
needs of the first group of customers are satisfied, the company will lower
prices to attract a more price-sensitive customer segment. The skimming
strategy, because of the stated reason, gets its name from "skimming"
successive different levels of customer segments, as prices are lowered over
time.

According to the explanation above, the pricing strategy of Gourmet Pets is

Skimming price as it charges high price for its new and unit product when
having the market leader in producing new pet food: Prime Cuts.

Since Gourmet Pets currently faces no direct competitors, who have the
ability of producing the same featured products as Prime Cuts, market price
of this product is totally defined by it. Also, after the product was sold for a
while, Gourmet had to lower the cost of the product when the market was no
longer potential and other competitors appeared. It can be said that the price
of Prime Cuts skim through the price levels, in order from high to low.

In additional, understanding the target market, which is more concerned

with perceived quality than actual product cost, it is reasonable to sell Prime
Cuts with the high price. Choosing selling with high price instead of
minimizing the producing cost, Gourmet can make sure the product quality.
Moreover, with the high value paying for the pet food, customer will feel that
it is a high – quality product. Hence, besides the skimming pricing strategy,
Gourmet Pets use the value – based pricing strategy, which is setting prices
primarily, but not exclusively, according to the perceived or evaluated value

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 of a product to the customer rather than according to the cost of the product
or historical prices.

QUESTION 4

The term "marketing mix" refers to a company's fundamental model, which

has typically centered on product, pricing, location, and promotion. A
company's marketing mix is a collection of marketing tactics it employs to
fulfill its marketing objectives in a target market. It encompasses all aspects
of a company's marketing and commercial initiatives.

Analysis of Coca cola’s marketing mix

1. Product
Coca-Cola has substantially expanded its product line throughout time. The
company's portfolio includes 500 sparkling and still beverage brands. In
total, there are roughly 3,900 beverage possibilities in the product mix.

The company's flagship product, Coca-Cola, is one of the most well-known

and valuable brands in the world.

Product line decision

Mainly choosing line stretching decisions, Coca Cola lengthens its product
line beyond its current range, Coca Cola successfully provide customer the
wide range of products with different type of features. It can be said that all
the coca cola products launched on the market are enough to cover the entire
demand for all kinds of drinks of consumers. Coca cola has four main
business line, which are
• Carbonated soft drinks
• Water & tea
• Juices & Fruit-Flavored Milk
• Sport & Energy Drinks
Product mix decision
Coca cola’s product mix consists of all the products and items that a
particular seller offers for sale in three dimensions: width, length, depth
• Coca cola decision to mix the product in width by offering many
different types of drinks in its product line: soft drink, water, tea, juice,
etc.
• In length, they add more different product for customer’s decision. In

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 detail, they provide drinks in different size and packaging, such as
200ml, 500ml, 1ltr, 1.5ltt and 2ltr bottles in cans, glass and plastic
bottles.

2. Price Strategy
Price discrimination
Coca-marketing Cola's mix includes a price discrimination approach. This
implies that various prices are charged for products in different segments.
With a small number of sellers and a high number of buyers, the beverage
market is termed an oligopoly. Coca-Cola and Pepsi are the two most
powerful brands in the country. As a result, Coke products in similar niches
are priced similarly to Pepsi products.

Consumers in developing countries such as India are price sensitive, and if

Coca-Cola prices their products excessively high in comparison to Pepsi in a
certain segment, they may switch. As a result, both sides have agreed to keep
each segment's pricing parity. Coca-Cola also offers bulk purchase savings by
bundling items.

Competitive pricing strategy

Coca-Cola's pricing strategy they call "competitive responsive pricing": The
price of Coca-Cola's products is set at par with their picture, because Coca-
Cola must be seen as the other but also must have. Coca-Cola uses lower
scores to tap into new markets that are particularly price-sensitive. They
meet or beat competitors on price to increase brand awareness. Once the
brand was established in the market, Coca-Cola positioned itself as a
“premium” brand compared to many competitors (eg Pepsi). One way they
do this commercial is by advertising effective image ads that bring intangible
benefits in life line, group bonding, joy and happiness. . . but the marketing
strategy still focuses on a premium product that has a price to pay.

3. Place
Coca-Cola, which has been in business for over 130 years and operates in
over 200 countries throughout the world, has accumulated a vast
distribution network as a result. Their wide distribution network
highlights their place strategy. Coca-Cola manufactures the beverage and
distributes it to bottlers all over the world using its patented formula.

Marketing channel

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Coca coca successfully use the strong system of marketing channel, which
plays the vital role in making its product available for consumption by the
consumer and business user.

In terms of determining what works best for them, global marketing

channels might be unique to each company. The following are some
examples of how organizations attain distribution and marketing channels to
their customers:
- Direct sales:
Coca cola designs automatic water vending counters, where Coca cola
products are stored that consumers can easily buy to serve their needs
for quick drink consumption while on the go.
- Agent intermediates who do not claim title to products
- Merchant intermediaries who operate as independent enterprises
In an ideal world, a company that chooses to work with a foreign
intermediary would be able to supply the following:
- Intermediary not only has the good contacts with Coca cola, but also help
this brand develop the markets and increase their percentage in the
market share.
- Treat Intermediaries as the long-term strategic partners
- MNC seeks the intermediary
- Support your partner with necessary resources

Intermediaries
Coca-bottlers Cola's make up the majority of their intermediaries. Coca-Cola
has built a global bottling network that includes both privately owned and
jointly operated bottling operations. Banks and insurance companies play an
important role as middlemen. These connections must be took into account
in the new market strategy.

Franchise organization
Manufacturer-sponsored wholesaler

4. Promotion Strategy

Sponsorship promotion
In terms of advertising and branding, Coca-Cola is the gold standard. Coca-
marketing Cola's strategy centers on aggressive advertising through media
channels such as television, online commercials, print media, sponsorships,

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and so on. Coca-Cola sponsors a variety of events, including American Idol,
BET Network, NASCAR, NBA, NCAA, Olympic Games, and FIFA World Cup.

Coca-Cola also broadcasts commercials in a number of other national

languages around the world. In March 2016, Coca-Cola launched the "Taste
the Feeling" campaign in India, with the goal of reminding people of the joy
and happiness that Coke brings to their lives. Coca-Cola has grown into a
mass-market beverage that can be found at any time and in any location.

Advertising
Coca-Cola asserts its position in the view of consumers and accounts for
nearly half of the beverage market share, largely thanks to marketing
campaigns. Thanks to these mass communication campaigns, coca cola
reaches out and leaves a deep impression on consumers. Six outstanding
campaigns of coca cola are
(1) “I'd Like to Teach the World to Sing” (1971)
(2) “Holidays are coming” (1995)
(3) “Happiness Factory” (2006)
(4) “Share a Coke” (2011)
(5) “The Polar Bowl” (2012)
(6) “Uplifted Alex” (2017)

In Vietnam
Coca-Cola is one of the rare firms that invests an equal percentage of
production expenditures in polishing the brand name from the beginning.
Coca-Cola Vietnam has launched a statewide marketing for energetic young
people called "Turn on the cover of Double - Winning Life" in order to attract
youthful target customers. This program differs from promotions in that it
focuses on the "spirit of joy" for the group rather than an individual. In key
cities like as Hanoi, Ho Chi Minh City, and Can Tho, the "Happiness
Factory:Campaign" motivates hopeful consumers, spending approximately
one million samples of consumer products. Alternatively, the "Sing with
Coca-Cola" campaign was created to inspire young people to always present
and experience new things so that life is exciting. - "It's all about Coca-Cola."

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QUESTION 5
1. OVERVIEW
Theory X Theory Y Theory Z
Inventor Douglas McGregor Douglas McGregor William Ouchi,
(following the X
and Y theory)
Short - description Premise that Companies that Theory Z focuses
employees must follow theory Y on increasing
be frightened or use a more employee loyalty
pushed to work decentralized to the company by
for the approach, with creating peace of
organization's authority spread mind and
objectives. Since among staff. This satisfaction for
they are assumed maintains their employees both
to always avoid motivation. inside and outside
working, of work.
managers take the Theory Y is
responsibilities to predicated on a The core of this
monitor them at few basic theory is to satisfy
all times. assumptions. One and increase the
of them is that morale of
In an organization employees take employees to
that follows responsibility for achieve quality
theory X, their actions and productivity at
management work work.
adopts an independently to
authoritarian style achieve the
as well. From the organization's
management's goals.
perspective, there
is very little
delegation of
authority.

2. DESCRIPTION

Theory X

Definition

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 Theory X is theories of human work motivation and management designed
based on assumptions regarding to the typical employees, who has little
ambition, avoids responsibility and individual – goal oriented.

The theory X managements have four primary assumption, which are

- The average person dislikes work and will avoid it if possible.
- Because of this dislike, workers must be forced, controlled, directed, or
threatened with punishment to make them put forth the effort to achieve the
organization’s goals.
- The average worker prefers to be directed, wishes to avoid responsibility, has
relatively little ambition, and wants security.
- Primary motivators are fear and punishment
Features of theory X
- Managements who is very busy and watches people closely, telling them what
to do and how to do it.
- Motivation is more likely to take the form of punishment for bad work than
reward for good work.
- Theory X managers give workers little responsibility, authority, or flexibility.
- This theory X is suitable for managers and entrepreneurs who suspect that
employees cannot be fully trusted and need to be closely super viewed.

Theory Y

Definition
Theory X is theories of human work motivation and management designed
based on assumptions that employees are internally motivated, enjoy their job,
and work to better themselves without a direct reward in return. The theory Y
managements have four primary assumption, which are
- Most people like work; it is as natural as play or rest.
- Most people naturally work toward goals to which they are committed.
- The depth of a person’s commitment to goals depends on the perceived
rewards for achieving them.
- Under certain conditions, most people not only accept but also seek
responsibility.
- People are capable of using a relatively high degree of imagination, creativity,
and cleverness to solve problems.
- In industry, the average person’s intellectual potential is only partially realized.
People are motivated by a variety of rewards. Each worker is stimulated by a
reward unique to him or her (time off, money, recognition, and so on).

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 Features of theory Y
Rather than authority, direction, and close supervision, Theory Y managers
emphasize a relaxed managerial atmosphere in which workers are free to set
objectives, be creative, be flexible, and go beyond the goals set by management.

A key technique here is empowerment, giving employees authority to make

decisions and tools to implement the decisions they make.

For empowerment to be a real motivator, management should follow these three

steps:
(1) Find out what people think the problems in the organization are.
(2) Let them design the solutions.
(3) Get out of the way and let them put those solutions into action.
Often employees complain that although they’re asked to engage in company
decision making, their managers fail to actually empower them to make
decisions.

Theory Z

Definition
Humanistic psychologist Abraham Maslow, with whom McGregor drew up
Theories X and Y, goes on to propose his own model of workplace performance,
Theory Z. Unlike Theories X and Y, Theory Z assumes a transcendence to
employee motivation and engagement. According to this theory, an optimal way
of management is able to help cultivate the creativity, insight, meaning and
moral excellence of employees.

Theory Z includes long-term employment, collective decision making, individual

responsibility for the outcomes of decisions, slow evaluation and promotion,
moderately specialized career paths, and holistic concern for employees
(including family). Theory Z views the organization as a family that fosters
cooperation and organizational values

Features of theory Z
- Mutual Trust:
The occurrence of truthful, openness and willing to share between employees,
work groups, union and management can help minimum the conflict. As a result,
employees are motivated to dedicate for achieving the organization’s objectives.
- Employee engagement

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 Employees may be granted lifetime employment which leads to loyalty towards
the enterprise. During adverse business conditions shareholders may forgo
dividends to avoid retrenchment of workers. Promotions may be designed
slowly in long term
- Employee involvement
Employee involvement in connected problems, according to Theory Z, promotes
dedication and performance. Employee involvement refers to their active
participation in the decision-making process, particularly in matters that directly
affect them. Top managers serve as facilitators rather than decision-makers as a
result of this participation, which instills a sense of responsibility and passion in
the implementation of decisions.
- Integrated Organization
The focus of Theory Z is on information and resource exchange rather than
charts, divisions, or any other formal organization. Job rotation is emphasized in
an integrated organization, which enhances comprehension of task
interdependence. This type of knowledge fosters a sense of belonging in a group.
- Human Resource development
Employees should be taught new skills by their managers. Every person's
potential is acknowledged under Theory Z, and efforts are made to develop and
utilize it through employment expansion, career planning, training, and other
means.

As a result, Theory Z is a hybrid management system that combines the

strengths of American (individual freedom, risk taking, swift decision-making,
etc.) and Japanese (job security, group decision-making, social cohesiveness,
holistic concern for employees, and so on) management systems.

Theory Z has been employed successfully by Japanese corporations operating in

the United States. Following a partnership between Japanese and Indian
enterprises, several experts have advised that this theory be applied in India. An
attempt has been made to apply Theory Z at Maruti Udyog, which has a
collaboration with Suzuki Motors of Japan.

3. COMPARISON
In term of features
Theory X Theory Y Theory Z
1. Short-term 1. Long-term 1. Lifetime employment
employment employment
2. Individual decision 2. Collective decision 2. Consensual decision
making making making

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 3. Individual 3. Individual 3. Collective
responsibility responsibility responsibility
4. Rapid evaluation and 4. Slow evaluation and 4. Slow evaluation and
promotion promotion promotion
5. Explicit, formalized 5. Implicit, informal 5. Implicit, informal
control control with explicit, control
formalized control
6. Specialized career 6. Moderately specialized 6. Nonspecialized career
paths career paths paths
7. Segmented concern for 7. Holistic concern for 7. Holistic concern for
employees employees (including employees
family)

In term of employee’s assumption

Theory X Theory Y Theory Z
1. Employees dislike 1. Employees view work 1. Employee involvement
work and will try to avoid as a natural part of life is the key to increased
it productivity
2. Employees prefer to be 2. Employees prefer 2. Employee control is
controlled and directed limited control and implied and informal
direction
3. Employees seek 3. Employees will seek 3. Employees prefer to
security, not responsibility under share responsibility and
responsibility. proper work conditions decision making
4. Employees must be 4. Employees perform 4. Employees perform
intimidated by managers better in work better in environments
to perform. environments that are that foster trust and
nonintimidating. cooperation
5. Employees are 5. Employees are 5. Employees need
motivated by financial motivated by many guaranteed employment
rewards. different needs. and will accept slow
evaluations and
promotions

4. PREFERED ENVIRONMENT
From my point of view, my expected environment for my future career is Theory Y
environment. This is because I treat working in the part of my life. I like working,

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making effort to reach the company’s key performance as well as business goal.
Also, I want to be recognized by other people.

The environment, in which manager set the theory Y as the benchmark for their
leadership style will have some advantageous features:
- More appealing management style
In this environment, managers are not the owner of the business and
employees not only being hired for followed – managers task. All of members
in the company is the team who target to achieve the company’s goal.
- Provides employees freedom and responsibility, which allows them to perform
better
Theory Y environment gives me the confidence to generate new ideas. In this
working environment, I can freely come up with bold ideas
- Encourages teamwork, development
Building strong teamwork relationship is important. However, it seems that
many leaders, especially those who follow theory X, have ignored this. It is the
strong solidarity and connection between the members of the company that
makes them see the company as their second family. This motivates them to
dedicate themselves to delivering achievements and accomplishing the overall
goals of the company.

What's more, in a Theory Y management environment, I can comfortably work with

very few examples. The characteristics of the company that do not follow the theory
Y that I know of such as: daily fingerprint scanning for attendance, mandatory
sitting to work 8 hours a day, etc. For my personality, these rules really don't fit. I
love an environment that can bring a sense of comfort. There, employees work
because they love their work and want to bring results to the company, not because
they have to.

A Vietnam Company follows the management style of Theory Y that I love and want
to have the opportunity to work there after graduation is VNG Corporation. The
unique feature is that many famous coffee brands are opened in the company such
as The coffee house, Phuc Long tea, Highlands. And of course, employees can sit in
those cafes, and work in a relaxed and comfortable atmosphere instead of a stuffy
office like the traditional one.

In conclusion, as the reasons I pointed above, Theory Y – environment is my

expectation after I graduate as its

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QUESTION 6

List of two position:

The business area that I like to involve after I graduate
- Business area: Online payment platform (E – wallet)
- Department: Bill payment. Main scope of work of department: provide the
online platform payment, in which users can use this platform for online
paying their utilities bills, such as electricity bills, water bills, internet bills,
television bills, consumer finance bills, education bills, apartment fees,
healthcare fees, etc.
Job 1: Product operations executive
- Scope of work:
• Planning campaigns to acquire new user
• Market research
• User listening
- Job description
• Work together with the marketing team to develop bill payment promotion
campaigns.
• Support setting-up user acquisition campaigns via external sources (both
paid and free sources)
• Support analyzing and reporting results to enhance user acquisition and
retention rate
• Actively listen to users via surveys, interviews, and other means to get
insights
• Carry out rival market research.
Job 2: Business development
- Scope of work
• Includes duties and procedures for identifying and implementing growth
opportunities within and between businesses.
• Contact with new billers to create new segments. For example, working
with EVN company to create the electricity segment, in which user can pay
their electricity bills through the online payment platform.
- Job description
• Create and put into action the goal of this business strategy is to acquire
selected merchants in order to gain new users in the bill payment industry.
• Analyze and analyse the market and rivals in order to produce new product
and business model recommendations.
• Work with the Product team to create a request that will improve business
performance and user experience.

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 • To maintain business quality and problem solving, keep track of all
associated business operation procedures
• Business reports and assessments, as well as analysis and answers to
problems, are all used to promote business.
a) Qualifications
Job 1
- Education: Last year/ Fresh graduate with bachelor degree in
marketing/economics/finance
- Knowledge: Basic understanding of the e-wallet, online payment ecosystem.
Basic knowledge and observation of user acquisition campaigns
- Skills:
• Possesses a blend of creativity and analytical skills
• Good oral and written communication skills.
• Data driven and result oriented
• High responsibility & good problem – solving skills
Job 2
- Education: Bachelor degree of Economics, Marketing, Finance.
- Knowledge: Basic understanding of the e-wallet, online payment ecosystem.
Understanding about Vietnamese billers (EVN company, Water company,
Consumer finance company (FE Credit, Home Credit, MCredit, etc.), Internet
(K+, VTVCab, SCTV, Viettel telecome), etc.)
- Experience: Minimum of three years of experience in Business Development.
- Skills and qualifications
• Good teamwork abilities, as well as a progressive and dedicated attitude
• Negotiating, problem-solving, and taking the initiative to improve business
are all examples of proactive behavior. Demonstrated success in reaching
agreements with commercial partners.
• Accepts change and adjusts to new organizational ideas and directions
with ease.
Some methods the companies might use to determine how well applicants
meet them.
1. Obtaining complete application forms.
Although equal employment laws limit the kinds of questions that can
appear, applications help reveal the applicant’s educational background,
work experience, career objectives, and other qualifications directly related
to the job. The completer and more detailed an application form is, the
clearer the interviewer can feel the applicant’s enthusiasm and profession.
2. Conducting initial and follow-up interviews.
A staff member from the human resource department often screens

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 applicants in a first interview. If the interviewer considers the applicant a
potential hire, the manager who will supervise the new employee may
interview the applicant as well. It’s important that managers prepare
adequately for the interview to avoid selection decisions they may regret. No
matter how innocent the intention is, missteps such as asking about
pregnancy or childcare could later be evidence if the applicant files
discrimination charges.
3. Giving employment tests.
Organizations often use tests to measure basic competency in specific job
skills like welding or firefighting, and to help evaluate applicants’
personalities and interests. The tests should always be directly related to the
job. Employment tests have been legally challenged as potential means of
discrimination. Many companies test potential employees in assessment
centers where they perform actual job tasks. Such testing can make the
selection process more efficient and will generally satisfy legal requirements.
4. Conducting background investigations. Most organizations now investigate a
candidate’s work record, school record, credit history, and references more
carefully than in the past. It is simply too costly to hire, train, and motivate
people only to lose them and have to start the process over. Services such as
LexisNexis allows prospective employers not only to conduct speedy
background checks of criminal records, driving records, and credit histories
but also to verify work experience and professional and educational
credentials. 20 The Adapting to Change box discusses how companies use
Facebook and other social media to screen job applicants and weed out those
with undesirable traits.
5. Establishing trial (probationary) periods. Often an organization will hire an
employee conditionally to let the person prove his or her value on the job.
After a specified probationary period (perhaps six months or a year), the firm
can either permanently hire or discharge that employee on the basis of
supervisors’ evaluations. Although such systems make it easier to fire
inefficient or problem employees, they do not eliminate the high cost of
turnover.

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