Ch01: Management

Q1: Compare effectiveness and efficiency

Q2: The order of the process of management? P - O - L - C
 What is a manager?
Manager is someone who works with and through other people by coordinating and
integrating their work activities in order to accomplish organizational goals.
 What is an organization?
Organization is a deliberate arrangement of people brought together to accomplish a specific
purpose.
 Distinct, common goal/purpose
 More than 2 people working together
 A deliberate systematic structure
 What is management?
 Management is the process of working with people and resources to accomplish
organizational goals.
 Management is the achievement of organizational goals by engaging in the four major
functions of planning, organizing, leading and controlling.
 Planning: the process of setting goals and deciding how best to achieve them
→ Delivering strategic values
 Organizing: the process of allocating and coordinating human and non-human
resources so that plans can be carried out successfully
→ Building a dynamic organization
 Leading: the process of influencing others to engage in the work behaviors
necessary to reach organizational goals
→ Mobilizing people
 Controlling: the process of regulating organizational activities so that actual
performance conforms to expected organizational standards and goals
→ Learning and changing
 Management is the process of coordinating and overseeing the work activities of others
so that their activities are completed efficiently and effectively
 Effectiveness (hiệu quả): Doing the right things - Ends - High goal attainment
 Efficiency (hiệu suất): Doing things right - Means - Low Resource Waste (Get the
most outputs for the least inputs)
 Classification of managers: 
 First - line manager: supervisors, shift managers, district managers, department
managers, or office managers.
 Middle manager: regional manager, project leader, store manager, or division manager.
 Top manager: executive vice president, president, managing director, chief operating
officer, or chief executive officer.
 Managerial roles: refers to specific actions or behaviors expected of and exhibited by
a manager.
 At higher levels of the organization, the roles of disseminator, figurehead, negotiator,
liaison, and spokesperson are more important
 At lower-level management, the leader role is more important
Planning: 4, 5, 9
 Set up new strategies 
 Analyze business environment
 Define which actions need to be done
Organizing: 1, 6
 Recruit new employees
 Design organizational structure
Leading: 2, 8, 10
 Motivate employees
 Support/train employees
 Punish employees
Controlling: 3, 7
 Observe employees working
 Evaluate performance of employees

1. Recruit employees -> Resource allocator

2. Motivate employees -> Leader 
3. Attend a conference -> Monitor
4. Hold a meeting with employees -> Disseminator (nguoi pho bien thong tin)
5. Sign a contract -> Figurehead (nguoi dai dien)
6. Appear on TV to answer questions -> Spokesperson
7. Deal with a loss -> Disturbance handler
8. Discuss with labor union on salary -> Negotiator
9. Send and receive emails and letters of partners -> Liaison 
10. Set up goals and strategies -> Entrepreneur (pioneer) 
Ch02: External environment
Q1: Effect of high inflation rates on business (revenue, cost, profit)
Q2: If the USD/VND exchange rate increases, will the company increase its import or
export activities? Why?
⇒ Increase its export activities
- opportunity for exporting firms (price of goods in foreign country increases)
- challenges for importing firms (higher cost to import)
Q3: What opportunities and challenges does the development of technology bring to
businesses?                                                                                   
- Opportunities: 
+) Product efficiency → reduce the cost
+) Expand the market → International trade
+) Shorten product and technology life cycles → Promote innovation 
- Threats: 
+) Shorten product and technology life cycles → Don’t catch up modern technology (Nokia)
→ Fail → Exit the market
+) Machines, AI → Higher efficiency → Unemployment rates → Improve technical skills
=> Solutions: Organizations update their machinery and hire new employees with new skills
or to train existing employees to use new technology

A PESTLE/PESTEL analysis is a __tool___ that can provide prompts to the governors,

management and staff involved in the analysis of the changes in the __environment__ that
could impact future management __decisions__. 
A PESTLE is usually as a part of the strategic development of a business ___plan___,
however a PESTLE analysis can be used as part of identifying the __opportunities___ and
__threats___ for operational planning within environments.
The PESTLE provides a simple framework within which to consider __external__ factors.

Q4: Environmental segment on the activities of Grab/Be?

Heavy rain → Costs higher than normal (demand is higher) → Opportunity for Grabcar
Q5: What opportunities and challenges does globalization bring to businesses?
Opportunities: 
- Lower or remove barriers to international trade and investment.
- Learn management experience, modern technology.
Challenges: 
- Managers are challenged by an increasing number of global competitors and markets as part
of the external environment
- Unqualified imports → Affect the health of domestic buyers

Macro factors: External environment

Micro factors: Porter’s 5 forces → Industry: 
Customer/Buyer Consumer

Meaning The purchase of goods or services The end users of goods

or services

Resell A customer can be a business entity, who can No

purchase for the purpose of resale

Purchase of Yes Not necessary

goods

Purpose Resale or consumption Consumption

Price Paid Not necessary

High power of buyers High power of suppliers

a person who is buying smt or A supplier is a person, organization, or other entity that
intends to buy it (potential provides something that another person, organization,
customer) or entity needs

Buy in bulk The supplier's products are an important input for the
business's operations

VIP Customer is not the supplier’s key customer

Supply > Demand Supply < Demand

Customer's supplier switching cost The cost of switching suppliers of enterprises is high
is not high

Have full information about needs, Enterprises cannot easily find substitute products if they
suppliers, and actual prices in the do not use the products of current suppliers
market

Implement backward vertical Suppliers can implement forward vertical integration

integration
(Hội nhập dọc ngược chiều)
The buyers of social media platforms: Company who use ads on the platforms
Q6: Substitutes & competitors?
Substitutes: A product that can satisfy some of the same customer needs as another that is not
of the same type 
Competitors: Person/business/team/organization that competes against you or your company
+) Substitutes for Vietnam Airline (plane) is car, train, motorbike…
+) Competitors of Vietnam Airline is Vietjet Air, Bamboo Air…

Exit barriers high → Competition high, Entry barriers high → Competition low
Exit barriers low → Competition low, Entry barriers low → Competition high
Capital requirements high → High entry barriers
To illustrate how issue management works in practice, let's look at
some examples of issues that occurred in different projects and how
they were managed.
For instance, a software development project faced an issue when
the client requested a major change in the functionality of the
product.
The project manager identified the issue and analyzed its impact on
the project scope, schedule, and budget.
P: He then proposed a solution that involved negotiating a revised
scope and timeline with the client, reallocating the resources, and
updating the project plan. Similarly, a construction project faced an
issue when a severe storm damaged some of the materials and
equipment on the site. The project manager identified the issue and
analyzed its impact on the project quality, schedule, and budget. He
then resolved the issue by contacting the suppliers and contractors,
arranging for the replacement or repair of the damaged items, and
adjusting the work schedule and budget accordingly. Lastly, a
marketing project faced an issue when a competitor launched a
similar campaign. The project manager identified the issue and
analyzed its impact on the project objectives, strategy, and
performance. He then resolved the issue by conducting a market
research, revising the campaign's value proposition and target
audience, and implementing new tactics and channels. In all cases,
the project manager monitored the progress of the issue and
reported the results to the client and the project team. He closed
the issue when the work was completed within the acceptable
parameters.
Organization
Example: FTU, Clubs, WTO,...

Organization is a deliberate arrangement of people brought together to accomplish a specific

purpose.

Main characteristic:

 (People) Have many people (at least 2) working together

 (Goal) Have a common, distinct goal
o Example:
 FTU - educate and provide high quality labor into the market
 Bank - make profit
 (Structure) Have a deliverate systematic structure
o Many departments, from top to down of the organization

<aside> ❔ Is this class an organization?

 More than 2 people

 Goal: To finish the course sucessfully
 Structure: Teacher - Monitor - Vice Monitor

⇒ Yes

</aside>

Managers
Manager is someone who works with and through other people by coordinating and
integrating their work activities in order to accomplish organizational goals.

Difference from employees:

 Responsibility for overseeing the work of others Employees have no

responsibility for overseeing the work of others.
 Direct the activities of others

Classifying managers
First time managers

Main: Leading → Organizing → Planning → Controlling

Works directly with non-managerial employees.

Give advice, guidence to complete the activities of the organization.

Makes detailed, short-range operating plans.

Reviews performance of subordinates.

Makes specific task assignments.

Supervises day-to-day operations.

Maintains close contact with operative employees.

Middle managers

Main: Leading → Organizing → Planning → Controlling

Transfer the vision to first-time managers, assign the work for the first-time managers

Makes intermediate-range plan and prepare long-range plans for review by top management.

Establish departmental policies.

Review daily and weekly report on production or sales.

Analyses managerial performance to determine capability and readiness for production.

Advices subordinates on production, personnel and other problems.

Recruit and select personnels.

Top managers

Main: Organizing → Planning → Leading → Controlling

Responsible for making organizational wide decisions and establishing plans and goals that
affect the entire organization.

Creates vision and mission to inspire staff

Develops and reviews long-range plans and strategies

Evaluates overall performance of various departments and ensures cooperation

Involved in selection of key personnel

Consults subordinate managers on subjects or problems of general scope

Management
Management is the process of working with people and resources to accomplish
organizational goals.
Management is the achievement of organizational goals by engaging in the for major
functions of planning, organizing, leading and controlling.

Managerial concerns:

 Efficiency: “Do things right” - Resource usage Getting the most output
for the least inputs.
 Effectiveness: “Do the right things” - Goal attainment Attaining
organizational goals.

⇒ Management strives for low resource waste (high efficiency) and high goal attainment
(hight effectiveness)

<aside> ❔ Why is management a process?

(Process: has many steps put in an order)

Because it performs a series of function.

 Planning: The process of setting goals and deciding how to achieve them

⇒ Delivering strategic values

 Organizing: The process of allocating and coordinating human and non-human

resources so that plans can be carried out sucessfully.

⇒ Building a dynamic organization

 Leading: The process of influencing others to engage in the work behaviors necessary
to reach organizational goals

⇒ Mobilizing people

 Controlling: The process of regulating organizational activities so that actual

performance conforms to expected organisational standards and goals

⇒ Learning and training

</aside>

Managerial Skills
Technical Skills Human Skills Conceptual Skills
Job-specific The ability to work well The ability to visualize the
techniques and with other people both organization as a whole, recognize
knowledge individually and in a group, interrelationship among
needed to to lead, motivate, and organizational parts, and
Technical Skills Human Skills Conceptual Skills
understand how the organization
perform specific communicate with other
fits into wider context of industry,
tasks. people.
nation, world.
More important
Equally important to all
for first-time More important for top managers.
levels of management.
managers
Includes interpersonal and
communication skills

Interpersonal Skills

 Coaching and mentoring skills

 Diversity skill: working with diverse people and cultures
 Networking within and outside the organization
 Working in teams, communications and commitment

Communication Skills

 Ability to transform ideas into words and actiosn

 Credibility among colleagues, peers and subordinates
 Listening and asking questions (listening: 40% - speaking: 30%)
o to employees: higher understanding of their wants, strengths and
weaknesses and improve productivity
o to partners: to know what they wants and needs to help with
negociation
o to customers: to understand the market

 Presentation skills - spoken, written or graphic formats

Conceptual Skills

 Using information to solve business problems

 Identifying opportunities for innovation
 Recognizing problem areas and solution
 Selecting critical information from masses of data
 Understanding of business uses of technology
 Understanding of organization’s business model

Mintzberg’s Managerial Roles

General Environment
Economics Segment

GDP growth:

 better growth cause firms to hire more workers and can afford to pay
higher salaries → increased spendings by consumers on goods and
services
 higher confidence to invest more if growth is strong, investment lay
foundation for future growth

Inflation:

 affects consumer’s expectation and consumption

 reduce purchasing power of consumers unless wages is adjusted
accordingly.

Interest rate:

 high deposit interest rate: less investment on projects

 high lending interest rate: cost more to borrow money → increase product
price to make up for it

Exchange rate:

 affect export/import decisions

 USD/VND $\uparrow$:
o opportunity for exporting firms (price of goods in foreign country
increase)
o opportunity for domestic firms
o challenges for importing firms (higher cost to import)

Income:

 affect demand for products and demand for labor

Unemployment:

 high unemployment = weaker economic environment

 unemployment = no money = can’t buy goods and services → bad
Political/Legal Segment

Include laws (local, federal, state, global), political conditions and stability.

Companies may have to change production process in accordance with the law.

Example: Firms are forced to stop the production of drugs after they were banned by
government.

Firms must be aware of what is allowed in the country they operate in and any changes in
legislation and its impact.

Failure to comply may result in a penalty or a cancellation of business license operation.

Examples:

 Anti-trust laws
 Taxation laws
 Labor laws
 Educational philosophies and policies
 Corporate laws
 International trade policies

Managers must adapt their practices to the expectations of the society in which they operate.

Includes trends, traditions, values, beliefs, traits, lifestyles, patterns of behavior…

Example:

 People demand more work-life balance

→ Org offers family leave policies, on-site child care, flexible working hours

Globalization

Firms are challenged by an increasing number of competitors.

Barriers to international trade and investment has been lowered or removed.

More expansion opportunities.

Learn management experience and modern technology.

Demographic Segment

Encompass trends in population characteristics such as gender, age, level of education,

geographic location and family composition.

Environmental Segment

Includes natural conditions, geographic location, climate, natural resources

Strategy:

 Prioritize development of natural exploitation activities based on the basis

of maintenance and regeneration
 Saving and efficient use of resources, switching from non-renewable
resources to using man-made materials
 Promote R&D to protect the environment and lesson the impact of
promotion

Technological Segment

Concerned with scientific and industrial revolutions.

Affect quality and cost, shorten product/technology life cycles, change product demand.

Changes rapidly, forcing orgs to change/update their tech and hire/train employees with new
skills to use technology.

Replacement of technology may cause pollution.

Opportunity:

 Firms that are up-to-date will end up ahead, firms that are outdated, old-
fashioned will fall behind.

Threats:

 Low-skilled, manual jobs may get replaced by machines

Industry Environment
Bargaining power of buyers

Buyer: Person or organization who purchase good or services of the firm and is willing to pay
for it.

Consumers and Buyers may be different entities depending on the situation:

 Same: ‘A’ buy food and eat it

 Different: ‘B’ paid tuition fee for his child

‘Buyer’ Classifications: Individual / Corporate / Government

Buyer has high bargaining power when:

 Customer buy in bulk (high quantity)

 Supply > Demand
 Customer is a highly important customer (VIP)
 Supplier switching cost is not high
 Customer have full information on needs, suppliers and actual prices in
the market
 Customer can implement backward vertical integration

Bargaining power of suppliers

Providers of what an organization needs. All organizations need a supplier. Example: raw
materials, machinery, funding, capital, labor, services…

Big suppliers can increase revenue by increasing prices, decreasing quality, decreasing
service.

<aside> ❕ In the case of social media (TikTok, Youtube, Facebook…)

You are the SUPPLIER

 supplying personal information, search history

 not a buyer because you aren’t paying money to the app (paying for
internet/electricity does not count) </aside>

Suppliers has high bargaining power when:

 Low amount of supplier, Demand > Supply

 Customer is not the supplier’s key customer
 Supplier’s products are an important input
 Cost of switching supplier is high
 Customer can’t find substitute products
 Supplier can implement forward vertical intergration
Threats of substitutes

Substitutes: A product that can satisfy some of the same customer needs as another that is not
of the same type.

Example:

 Substitutes of Vietnam Airline (plane) is car, train, motorbike…

 Competitors of Vietnam Airline is Vietjet Air, Bamboo Air…

Substitute provides choices and alternatives for consumers while creating competition and
lower prices in the industry.

Threats:

 Price and quality

 Features
 New models and consumption trends

Rivalry among competing firms

Competitors: Person/business/team/organization that competes against you or your company.

Rivals: Close competitors with similar size and products.

The extent of competiton depends on:

1. Competitive structure
o Fragmented industry: a large number of small and medium-sized companies
with no significant market share or influence

low entry barriers & commodity-type product → strat: price wars

o Consolidated industry: a few large-sized firms with significant market share or

influence

→ strat: tacit agreement

2. Fragmented industry is more competitive.

3. Rate of industry growth
o Demand decrease:
 threat at first because firms have to compete
 weak firms will exit and can no longer compete
 remaining firms gain opportunity to attract customer
o Demand increase:
 opportunity at first
 hidden competitors will see the opportunity and jump in
 number of supplier increases until equilibrium
 4. Exit barriers
o Investment costs and other costs
o Legal and strategic constraints
 Legal: Firm signed a contract for X years
 Strategic: exiting will negatively affect other segments
o Psychological factors: values, prestige of leaders in the business

→ High barriers: firms can’t exit and have to compete

— Low barriers: firms can easily exit, low competition

Threat of new entrants

Refers to the threat new competitor pose to exisiting competitors within an industry. A
profitable industry will always attract new competitors looking to increase profits.

Entry barriers: the minimum cost needed to enter an industry.

Barriers to entry:

 Economies of scale
 Product differentiation
 Capital requirements
 Switching costs
 Access to distribution channels
 Government policy