ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

Submission date 26 February 2024 Date Received 1st submission 26 February 2024

Re-submission Date 11 March 2024 Date Received 2nd submission 11 March 2024

Student Name Vu Thi Lan Anh Student ID BH01977

Class MA07101 Assessor name Pham Duc Viet

Student declaration

I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.

Student’s signature Lan Anh

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 Table of Contents
I.Introduction. ................................................................................................................................................................5

II.Economic sector. .........................................................................................................................................................6

1. Private sector..........................................................................................................................................................6
1.1.Definition. ........................................................................................................................................................6

KEY TAKEAWAYS...............................................................................................................................................6

1.2.Types of private sector businesses. ..................................................................................................................7

a.Sole proprietorships............................................................................................................................................7

b.Partnerships ........................................................................................................................................................7

c.Limited liability ....................................................................................................................................................7

2.Public sector. ...........................................................................................................................................................8
2.1. Definition. .......................................................................................................................................................8
2.2.Characteristics. .................................................................................................................................................9
2.3. Example. .........................................................................................................................................................9
3. Voluntary sector. ................................................................................................................................................. 10

3.1.Definition. ..................................................................................................................................................... 10

3.2.Examples....................................................................................................................................................... 10
III. Size and scope of a company ................................................................................................................................. 11

1. Business size........................................................................................................................................................ 11
1.1.Small business organisations ........................................................................................................................ 11
1.2.Medium sized organisations ......................................................................................................................... 11

1.3.Large organisations ....................................................................................................................................... 11

2. Presentation on the size and scope of Sao Mai Group ....................................................................................... 11
2.1. Field of operations of Nhua Binh Minh Company ........................................................................................ 11

2.2. Total capital and total revenue .................................................................................................................... 12

2.3. Number of employees.................................................................................................................................. 12
2.4. Stakeholders................................................................................................................................................. 13

2.5. Vision............................................................................................................................................................ 13
2.6. Mission ......................................................................................................................................................... 14
IV. Presentation of organizational structure ............................................................................................................... 14
 1.Organizational structure model ........................................................................................................................... 14

2. The main departments of the company ............................................................................................................. 15

a.Human Resources (HR): ................................................................................................................................... 15

b.Marketing:........................................................................................................................................................ 16

c.Finance and Accounting: .................................................................................................................................. 16

d.Production and Operations Management: ...................................................................................................... 16

3. How is the function related to the goals of Sao Mai Group................................................................................ 16

IV. Conclusion.............................................................................................................................................................. 17
V. References .............................................................................................................................................................. 17

I.Introduction.
This report targets research and analysis of businesses operating in Vietnam, with a special focus on Sao
Mai Group Joint Stock Company. Sao Mai is one of the leading enterprises in Vietnam in the field of food
production and trading. Established in 2001, Sao Mai has quickly developed and become one of the
reputable brands trusted by consumers. With the mission "Bringing value to life", Sao Mai constantly strives
to provide high quality products and the best service to customer
Sao Mai Group's predecessor was An Giang Provincial Architecture Joint Venture Company, established in
1988. By March 5, 1997, following the open integration trend of the economy at that time, key officials
separated to establish Sao Mai Construction Joint Stock Company, An Giang province. This is the first
nonstate-owned enterprise with a Party cell in An Giang province. Starting from a small business with less
than 50 employees, charter capital of 905 million VND. Up to now, Sao Mai Group has had a breakthrough
development, growing stronger with a current human resource of 12,000 people, charter capital of 7,433
billion VND (including all subsidiaries).

Currently, Sao Mai Group is known as one of the "big" large corporations, always in the top of the most
profitable businesses in Vietnam. Sao Mai covers investment in many business fields such as real estate,
seafood, production of value-added products from pangasius, design consulting, services - tourism, training
and labor supply. moving into foreign markets, renewable energy. (www.saomaigroup.com | TẬP ĐOÀN
SAO MAI, 2024)

II.Economic sector.
1. Private sector.
1.1.Definition.
The private sector is the part of the economy that is run by individuals and companies for profit and is not
state controlled. Therefore, it encompasses all for-profit businesses that are not owned or operated by the
government. Companies and corporations that are government run are part of what is known as the public
sector, while charities and other nonprofit organizations are part of the voluntary sector.

KEY TAKEAWAYS

• The private sector consists of all privately owner, for-profit businesses in the economy.
• The private sector tends to make up a larger share of the economy in free market, capitalist based
societies.
• Private sector businesses can also collaborate with government run agencies in arrangements called
public-private partnerships.

The private sector is the segment of a national economy that is owned, controlled, and managed by private
individuals or enterprises. The private sector has a goal of making money and employs more workers than
the public sector. A private sector organization is created by forming a new enterprise or privatizing a public
sector organization. A large private sector corporation may be privately or publicly traded. Businesses in the
private sector drive down prices for goods and services while competing for consumers’ money; in theory,
customers do not want to pay more for something when they can buy the same item elsewhere at a lower
cost.
In most free economies, the private sector makes up a big portion of the economy, as opposed to nations that
have more state control over their economies, which have a larger public sector. For example, the United
States has a strong private sector because it has a free economy, while China, where the state controls many
of its corporations, has a larger public sector. (Team, 2024)

1.2.Types of private sector businesses.

The private sector is a very diverse sector and makes up a big part of many economies. It is based on many
different individuals, partnerships, and groups. The entities that form the private sector include:

a.Sole proprietorships
A sole proprietorship is an unincorporated business that has just one owner with no separation between the
business and the owner. The owner receives all profits but is also liable for all debts and losses.The owner
of a sole proprietorship pays personal income tax on profits earned from the business. Many sole
proprietors do business under their own names because creating a separate business or trade name isn’t
necessary.Also referred to as a sole trader or a proprietorship, a sole proprietorship is the easiest type of
business to establish or take apart, due to a lack of government regulation. As such, they are very popular

among sole owners of businesses, individual self-contractors, and consultants. Most small businesses start
as sole proprietorships and either stay that way or expand and transition to a limited liability entity
or corporation. A sole proprietorship is an unincorporated business with only one owner who pays personal
income tax on profits earned. Sole proprietorships are easy to establish and dismantle due to a lack of
government involvement, making them popular with small business owners and contractors. Most small
businesses start as sole proprietorships and end up transitioning to a limited liability entity or corporation
as the company grows. One of the main disadvantages of sole proprietorships is that they do not have any
government protection, as they are not registered. This means that all liabilities extend from the business
to the owner. Sole proprietors report their income and expenses on their personal tax returns and pay
income and self-employment taxes on their profits(Twin, 2024).

b.Partnerships
A partnership is a formal arrangement by two or more parties to manage and operate a business and share
its profits.There are several types of partnership arrangements. In particular, in a partnership business, all
partners share liabilities and profits equally, while in others, partners may have limited liability. There also
is the so-called "silent partner," in which one party is not involved in the day-to-day operations of the
business. A partnership is an arrangement between two or more people to oversee business operations and
share its profits and liabilities.In a general partnership company, all members share both profits and
liabilities.Professionals like doctors and lawyers often form a limited liability partnership.There may be
tax benefits to a partnership compared to a corporation. (Kopp, 2024)

c.Limited liability
A limited liability company (LLC) is a business structure in the U.S. that protects its owners from personal
responsibility for its debts or liabilities. Limited liability companies are hybrid entities that combine the
characteristics of a corporation with those of a partnership or sole proprietorship.While the limited liability
feature is similar to that of a corporation, the availability of flow-through taxation to the members of an
LLC is a feature of a partnership rather than an LLC.The limited liability company (LLC) is a corporate
structure that protects its owners from being personally pursued for repayment of the company's debts or
liabilities.Regulation of LLCs varies from state to state.Any entity or individual can be a member of an
LLC with the notable exceptions of banks and insurance companies.LLCs do not pay taxes on their profits
directly.Their profits and losses are passed through to members, who report them on their individual tax
returns. (Fernando, 2023)

2.Public sector.
2.1. Definition.
The public sector is the portion of the economy that the government controls and manages. It consists of
entities that offer public goods and services, including national defense, law enforcement, public education,
health care, social welfare, and infrastructure development. Its purpose is to provide essential goods and
services to the general public and ensure the well-being of the society as a whole.

Typically, these organizations are nonprofit and tax-funded, which means that they are financed by taxes
paid by residents rather than through selling products and services. However, it is also the purpose and
responsibility of the public sector to redistribute resources through progressive taxes and social programs to
minimize economic disparity and assist those in need. (Kosha, 2023)keaways

The public sector, sometimes known as the government sector, refers to government-owned and operated
enterprises, institutions, and agencies. To ensure the well-being of society as a whole, the public sector
provides essential goods and services to the general public. The public sector is accountable to the
government and citizens since tax dollars support it. Therefore, they must maintain operational and financial
transparency. Examples of public sector institutions include schools, hospitals, police agencies, and public
transportation networks. The provision of these services is regarded as the government’s responsibility.
The public sector is the portion of the economy that the government controls and manages. It consists of
entities that offer public goods and services, including national defense, law enforcement, public education,
health care, social welfare, and infrastructure development. This involves improving social welfare and
protecting national security. Through rules and regulations, the government ensures that the private sector
functions in the best interest of residents. Employees in this sector are often viewed as civil servants
committed to serving the general people. Depending on the political and economic systems, the size and
scope of the public sector might differ from country to country. In certain nations, the public sector is larger
and more active in providing goods and services, whereas in others, the private sector is dominant. (Kosha,
2023)

2.2.Characteristics.
Key qualities of the public sector are as follows:
Organizations in the public sector are owned and governed by the government, as opposed to private persons
or businesses.
Such organizations are often not driven by profit but rather by the desire to provide the public with essential
products and services.
This sector provides critical commodities and services for the well-being of individuals, including education,
healthcare, and infrastructure.
This sector is financed by taxes citizens pay instead of profits from selling products and services.
The government regulates the private sector through rules and regulations to guarantee that it functions in
the best interest of residents. The sector redistributes resources through progressive taxes and social
programs to minimize economic inequality and assist the disadvantaged. (Kosha, 2023)

2.3. Example.
Example #1

A NY Times piece highlights how the public housing sector in New York is experiencing difficulties. It
argues that New York City’s public housing has not gotten sufficient funds from the government to address
the aged structures, faulty heating systems, broken elevators, rats, and other issues that have made it a
symbol of neglect. In addition, residents’ decreasing rent payments threaten to exacerbate the situation in
the nation’s oldest and largest public housing system.

The New York City Housing Authority collected just 65 percent of the rent it charged in the 12 months
before December, the lowest proportion in the agency’s almost 100-year history and an alarming decline
from yearly pre-epidemic figures of 90 percent or more. Rent issues in New York City public housing are a
new setback for an institution that, despite its many flaws, is crucial to New York, offering some of the few
inexpensive dwellings in one of the most expensive cities in the country. The New York City Housing
Authority (NYCHA) provides 340,000 individuals with housing and has more than 270 complexes. (Kosha,
2023)

Example #2

Government-run hospitals are an example of public sector organizations. The state or federal government
owns and operates government-run hospitals that provide public healthcare services.

Typically, these hospitals are supported by public funds and function as nonprofit organizations. They may
also obtain support from insurance companies and self-paying patients. Hospitals in the public sector
frequently act as a safety net for low-income and uninsured patients and offer specialized treatments that
may not be available in the private sector. (Kosha, 2023)
3. Voluntary sector.

3.1.Definition.

The Voluntary Sector (also known as the third sector, nonprofit sector, and community sector) is usually
comprised of organizations whose purpose is to benefit and enrich society, often without profit as a motive
and with little or no government intervention.

Unlike the private sector where the generation and return of profit to its owners is emphasized, money raised
or earned by an organization in the voluntary sector is usually invested back into the community or the
organization itself.

One way to think of the voluntary sector is that its purpose is to create social wealth rather than material
wealth.

Although the voluntary sector is separate from the public sector, many organizations are often tightly
integrated with governments on all levels to support it in the delivery of programs and services.
(PRIVACYSENSE.NET, 2023)

3.2.Examples.

There are many different types of organizations in the voluntary sector.

Some of these organizations have a mix of paid and volunteer staff, like most charities. Other organizations
are much more loosely defined, like community groups, and can be composed entirely of volunteers.

Examples of organizations in the voluntary sector include:

Charities: World Vision, American Red Cross, YWCA

Foundations: David Suzuki Foundation, Bill and Melinda Gates Foundation
Social Welfare Organizations: Human Rights Watch, Environmental Protection Agency (EPA)
Advocacy Groups: Privacy International, World Wildlife Fund
Faith-Based Organizations: Churches, Mosques, Temples
Community Groups: Neighbourhood Watch, Knitting
Recreational Sports: Ultimate Frisbee, Running Clubs

The National Center of Charitable Statistics (used by the IRS to classify nonprofits) divides nonprofits into
26 major groups under 10 broad categories. (PRIVACYSENSE.NET, 2023)
III. Size and scope of a company
1. Business size
1.1.Small business organisations
A small business organisation generally operates on a small scale with a limited number of people involved
in the operations. It can be a start-up organisation or an existing one with a small scope and limited resources.
It can be a sole proprietorship, partnership, or a limited company depending on the type of business it
operates in.

According to OECD (2022) a small business usually has 10 to 49 employees. Any organisation having less
than 10 employees is called a micro enterprise. There are millions of small businesses around the world
which immensely contribute to the global GDP. These organisations are found virtually in all industries.
(David, 2023)

1.2.Medium sized organisations

A medium sized organisation can be either a start-up organisation or an existing organisation that has a
moderate scope of operations and resources. A moderate scope of operations can be in the field of
manufacturing, service provision, or social work that may require a moderate amount of capital and
employees. According to OECD (2022) a medium sized organisation usually has 50 and 249 employees.
(David, 2023)

1.3.Large organisations
A large organisation is an organisation that has a large scope of operation and resources. It may be in the
business of manufacturing a particular product or providing a specific type of service or it may operate in
the field of social work for a large section of the society. According to OECD (2022) a large organisation
employs 250 or more people.

According to CNN (2021) the 20 largest organisations in the world are Wal-Mart Stores, China National
Petroleum, State Grid, Sinopec Group, Hon Hai Precision Industry, China Post Group, U.S. Postal Service,
Volkswagen, China Telecommunications, Aviation Industry Corp. of China, Compass Group, Agricultural
Bank of China, International Business Machines, Deutsche Post, McDonald’s, Carrefour, Industrial &
Commercial Bank of China, Tesco , Gazprom, and Sodexo. (David, 2023)

2. Presentation on the size and scope of Sao Mai Group

2.1. Field of operations of Nhua Binh Minh Company
Sao Mai Group is one of the leading corporations in Vietnam, with main activities in the fields of agriculture,
fisheries, real estate, business and services. In the field of agriculture and fisheries, Sao Mai has large
livestock farms and industrial gardens, participating in processing and exporting seafood. In addition, Sao
Mai also invests in real estate and develops urban projects and industrial parks. In addition, this group also
operates in the business and service sectors, including retail stores and tourism services. With diversity in
fields of operation, Sao Mai actively contributes to the economic and social development of Vietnam.

2.2. Total capital and total revenue

In 2022, Sao Mai Group's total assets will reach 19,086 billion VND, an increase of 917 billion VND, higher
than
5% compared to 2021.
In the total assets configuration, assets with long-term limits of use are VND 9,837 billion (#51.54% of
total assets) and
Short-term assets used were more than 9,248 billion VND (# used 48.46% of total assets).
(www.saomaigroup.com | TẬP ĐOÀN SAO MAI, 2022)
With the profit on the 2022 consolidated financial statements reaching 962.5 billion VND, an increase of
36.75% over the year.
2021. However, the EPS index is 1,883 VND/share, down 18.8% compared to 2021.
For the Parent Company, profit after tax reached 476 billion VND, an increase of 1.9% compared to 2021.
In 2022, the Group will achieve the following notable results:
STT Targets on the Currency Year 2021 Year 2022 Observe 2022 vs.
consolidated 2021
financial statements
1 Equity Billion VND 7.576 7.840 Up 3,48%
2 Charter capital Billion VND 2.589 3.365 Up 30%
3 Turnover Billion VND 11.398 13.749 Up 20,63%
4 Profit after tax Billion VND 704 963 Up 36,75%
5 Profit after tax per sh copper/share 2.319 1.883 Discount 18,8%
are
(www.saomaigroup.com | TẬP ĐOÀN SAO MAI, 2022)

2.3. Number of employees

The total number of employees of the entire Sao Mai Group on average in 2022 is nearly 12,000
people, including many elite officers trained from developed countries, are key leaders.
of member companies in the Group. The labor structure is as follows:
CHART OF LABOR STRUCTURE BY TITLE
(www.saomaigroup.com | TẬP ĐOÀN SAO MAI, 2022)
CHART OF LABOR STRUCTURE BY WORKING SENIORITY

(www.saomaigroup.com | TẬP ĐOÀN SAO MAI, 2022)

2.4. Stakeholders
Stakeholders of Sao Mai Group include people and organizations related to the company's business
activities. These can be shareholders, employees, customers, suppliers, local communities, governments,
financial institutions, competitors, civil society organizations and the media. Each stakeholder has its own
role, perspective and contribution to the success and development of Sao Mai Group.

2.5. Vision
Is an efficient and professional enterprise.
Is the leading unit providing quality human resources in the Mekong Delta region.
Is the most prestigious expert in consulting on career architecture of human resources, meeting the
requirements of international integration.
Is the best choice of domestic & international works.
Is an enthusiastic organization contributing to the overall development of the country. (Công Ty Cổ Phần
Đầu Tư Tài Chính và Truyền Thông Quốc Tế - MIF, 2022)

2.6. Mission
Create a professional, dynamic, creative and effective working environment.
Providing high quality - differentiated services - competitive fees.
Build absolute and lasting trust with partners and employees.
Harmonizing benefits between businesses, partners, employees and the community. . (Công Ty Cổ Phần
Đầu Tư Tài Chính và Truyền Thông Quốc Tế - MIF, 2022)

IV. Presentation of organizational structure

1.Organizational structure model
The Group's organizational structure is built on the principle of work management assignment
according to functional departments. The General Director will operate and manage through
decentralization, decentralize authority to Department Heads to directly handle the work of each department.
2. The main departments of the company
a.Human Resources (HR):
Recruit and attract talent: Ensure the development and maintenance of a high-quality workforce through the
recruitment process.
Employee training and development: Provide training and development programs to improve employee
skills and efficiency.
Performance management and sanctions: Evaluate performance and punish employees based on work
results.

b.Marketing:
Market research:Analyze and gain a deeper understanding of market needs and trends to propose next
strategies.
Advertising and branding: Create advertising and follow-up strategies to effectively increase awareness and
attract customers.
Customer relationship management: Build and maintain good relationships with customers through
engagement strategies.

c.Finance and Accounting:

Budget management: Monitor and manage key company resources to ensure operational efficiency.
Key financial reports: Prepare and present key financial reports to provide information about the company's
financial performance.
Auditing and accounting: Ensure maintenance of accounting and internal audit regulations to protect the
company's interests.

d.Production and Operations Management:

Production process management: Ensuring the production process runs efficiently and reliably.
Chain supply results management: Monitor and manage this chain supply engine to ensure stable supply.
Quality assurance: Monitor and check product quality to ensure quality standard procedures.
These departments often interact closely with each other to ensure the overall operations of the
company in a shared and efficient manner.

3. How is the function related to the goals of Sao Mai Group

Each department in Sao Mai Group plays an important role in achieving the group's common goals. The
Human Resources (HR) Department is responsible for building a team of talented and passionate employees
by recruiting, training and developing people. The Finance and Accounting department ensures the group's
finances are managed effectively, helping to achieve financial goals, including revenue and profit growth.
Marketing and Sales are responsible for building and maintaining a strong brand image, attracting customers
and creating new business opportunities through creative marketing strategies. Production and Operations
Management ensures that the group's products and services are delivered on time and meet quality and safety
requirements. The close coordination between these departments not only helps Sao Mai Group operate
effectively but also contributes to the sustainable development and success of the group.
IV. Conclusion
Based on the analysis of Sao Mai Group and its activities in many fields, it can be clearly seen that Sao Mai
Group has affirmed its position as a leading enterprise in the Vietnamese business landscape. Male. With
the mission of "Bringing value to life" and the vision of becoming an effective, professional and socially
responsible enterprise, Sao Mai Group is committed to providing high quality products and services, at the
same time contributing to the overall development of the country.Operating mainly in the private sector, Sao
Mai Group includes diverse business sectors such as agriculture, fisheries, real estate and services. Its
presence and significant contribution to the economy further highlights its importance as one of the leading
corporations in Vietnam.Sao Mai Group's success can come from a strong organizational structure, through
functional departments such as Human Resources, Marketing, Finance and Accounting, Production and
Operations Management, and functional division. and manage. Each department plays a vital role in
achieving the group's overall goals, whether it's building a talented workforce, managing finances
effectively, or ensuring production and sales. provide high quality products and services.Furthermore, Sao
Mai Group receives the attention of stakeholders, including shareholders, employees, customers and
suppliers. By building strong relationships and maintaining transparent communication with stakeholders,
Sao Mai Group aims to build long-term trust and mutual benefit.In short, Sao Mai Group's commitment to
excellence, innovation and social responsibility has placed it in an important position in Vietnam's business
landscape. With a clear vision and strategic direction, Sao Mai Group is ready to continue growth and
success in the future.

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PRIVACYSENSE.NET (2023) What is the voluntary sector? definition & examples, PrivacySense.net.
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Team, T.I. (2024) What is the private sector? definition and business examples, Investopedia. Available at:
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Liberto, D. (2023) Small and midsize enterprise (SME) defined: Types around the world, Investopedia.
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Fernando, J. (2023) What is an LLC? limited liability company structure and benefits defined, Investopedia.
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Công Ty Cổ Phần Đầu Tư Tài Chính và Truyền Thông Quốc Tế - MIF (2022) Giới Thiệu, MIFVN. Available
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