Assignment1 - Gemma Qt20 - Bbe

You might also like

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 28

I.

Introduction Sport Industry in VN:


The sports industry continues to be one of the largest and fastest-
growing industries in the world as well as in Vietnam. This tremendous
growth has quickly attracted and fueled a passion in the sports industry.
Corporations, organizations, and events related to the sports industry
today, both in terms of apparel and equipment and infrastructure, are of
great value and have significant growth in the present and future. In this
assignment, we will demonstrate the development diversity of the sports
industry in Vietnam through organizations such as the Public Sector,
Private Sector, and Voluntary Sector with specific illustrative examples.

I. BACKGROUND: NIKE & DELTA SPORTS & GERU


SPORTS & H2H AROUND THE WORLD
Background Nike: Nike is one of the world's largest sports companies
founded on May 30, 1971. The company is an American incorporated
association known for manufacturing and marketing sportswear, shoes,
and accessories. The size of Nike INC is large with 44,000 employees
and was valued at $19 billion in 2014, and the figure is growing day by
day. In addition, the scope of NIKE is very wide because its subsidiaries
appear in most countries around the world and participate in many
global sports programs and events. NIKE's mission is to enhance
products to reduce the risk of injury for athletes (Nikecompany. 2021)
Backround Delta Sport: In 2002, Delta Sport created the first soccer ball
and handball under the standard & technology imported from Hungary.
At this time, Delta products used the cow leather technique and were
exported to the East Europe area. Continuously expand production,
recruit talented workers, and upgrade infrastructure to stand out in the
market trend. Over the years, Delta Sport has constantly developed and
achieved customers' trust, creating strong business relationships with
countries worldwide such as Japan, China, Germany, and the USA.
(About Us, 2021.)
Background GERU SPORTS Company (with the brand names Geru
Sport and Geru Star) a member of Vietnam Rubber Corporation
operating in the field of sport and sports and achieved many categories:
Enterprise "enterprise integration & development in 2007, 2008",
"Football meets FIFA standards - Vietnam Gold Star Award 2004,
2005." (Geru sport, 2021.)
Background H2H Around The World :The annual cycling event “H2H
Ride for Vietnam” was started in 2009 by expats living in Vietnam
wishing to contribute to the community and explore the country by
bicycle. This journey usually stretches 2,000km from Hanoi to Ho Chi
Minh City. Ho Chi Minh City and takes place in April every year. In 11
years, H2H has raised more than 400,000 USD to help desperate
children in Vietnam.( laodongxahoi.net, 2021)
II. DEFINITION:
1. Ownership
PUBLIC SECTOR PRIVATE SECTOR
1 Definition
An enterprise in which the State A business in which an
controls the whole economic individual or personal company
part. controls total income and
profits.
2. Ownership
Government and State manage Private Individuals and
and control public companies. Companies are owners of
private companies.
3 Listing in Stock Markets
Public Sectors are publicly Private Sectors are publicly
traded on exchanges. traded on exchanges..
4. Resource Mobilisation (Funding)
The company's financial Utterly dependent on private
situation will always be backed funds and capital raised from
up by government capital so the market
that it will be more
advantageous
5. Work Culture for Employees
High level of job security, pay, The culture and work
and perks are not that environment are relatively
fascinating in comparison to competitive based on
Private Company performance, revenue, and
growth.
(Vaidya, A.byM.T.R.byD. et al., 2021)

I.2 Voluntary Sector:


+ Founded by volunteers
+ The prime purpose is to create humanitarian activities
rather than profit. The voluntary sector does not rely on
the national government and is entirely different from the
private sector.
+ Provide support and consult groups of people in need
+ They can work anywhere, such as locally, nationally, or
worldwide. (Reach Volunteering. 2021)

2. Profit and non-profit organizations:

2.1 A for-profit organization:


+ Existing primarily for for-profit purposes
+ The factor of most interest in these institutions is how much
profit is generated from the investments.
2.2 A non-profit organization
+ Existing to provide products and services to the community.
+ These are public interest organizations, religious
organizations, charity organizations, museums...
+ The most important criteria for evaluating operational results
the activities of these organizations are not profit.
(Vietnambiz,2019)

3. LEGAL FORM:
3.1 Sole trader:
+ A self-employed person who run your own business.
+ Having control over everything that belongs to the company,
including all of the company's profits after taxes and other
assets.
+ Sole trader are independent, self-directed, and respond quickly
to new trends in the market without the consent of others.
+ However, sole traders need to have the necessary skills and
risk losing their entire fortune when the business fails (Johnathan
Korchak, 2021)

3.2 Partnership:
+ A relationship built between people who have the same goals and
strategies to implement a business in order to receive with view profit.
+ Each partner must be assuredly responsible for the debts and accept
foreclosure in order to pay off the debts owed by the company
3.3 Company:
3.3.1 Joint Stock Company:
+ Shares are the charter capital in the company separated into equal
parts.
+ The General Meeting of Shareholders, the General Director, and the
Supervisory Board are essential in a joint-stock company.
+ All shareholders have the right to transfer their shares to others and
issue securities on exchanges stock per regulations.

+ Advantages:

Limited liability regime: The company is only responsible for debts


within the provided capital; therefore, the risk of shareholders is not
multistorey.
The operation capacity is very wide, in most fields and industries.
Having the right to issue shares to raise capital → the ability to raise
capital is very high.
The transfer shares are easier than private public company

+ Disadvantages:

A joint-stock company's management and runs are highly complex since


many shareholders are in the company. In addition, it is strictly bound
by the provisions of law; it is why JSC is more intricate than other
types.. ( Ketoananpha.vn.2021)
3.3.2 Private Limited Company : + Being held entirely by a
relatively small business or individuals.
+ Do not overcome 50 people and can limit shareholders to their shares.
+ Publicly trading shares are restricted by shareholders and the company
Advantages:

+ Shareholders are only liable for the company's activities up to


the amount of capital they contributed
+The purchase, sale, and transfer of capital contributions among
company members is carefully regulated by law, allowing managers to
easily control the capital contributions of members while preventing the
entry of new members
Defect:
+ Limited liability firms are subject to more stringent legal
oversight than partnerships or private enterprises.
+ In certain circumstances, because the members of the company
owner are only accountable for the amount of capital they provide to the
firm, many partners and consumers are hesitant to cooperate out of fear
of risk. They may have to take risks they don't want to take.
(LuatVietnam, 2021)
3.3.3 Public limited company: + A public limited business's
shares are open to public ownership.
+ Anyone can buy and sell stocks in the corporation, should they be
available.
+ The business must publish its annual statutory account results to
provide an accurate representation of its current profits, financial
position and tax responsibilities. (LuatVietnam, 2021)
Advantages: + 1. Capital raised from the issuance of shares to the public
and stock exchanges.
+ 2. Draw more shareholders and spreading risk:
Investors can keep shares of the company to earn profit
and also sell a part of shares to reduce risk..
+ 3. Transferability of shares
The shares of a public limited company are more easily
transferable than those in the private limited company.
Disadvantages: + Difficulty in control: Many shareholders => hard to
control each member's responsibility and the company's secrets => easy
to have loopholes and reveal information to competitors.
+ Lack of sustainability and stability, only one member, has
inappropriate views, business activities are easy to stagnate
+ There are disadvantages compared to private enterprises, such as
having to share profits and choosing incompetent and dishonest
members (vietnambiz, 2021)
4. SIZE :
- 4.1 DEFINITION :
+ Organizational size is the structure of an organization based on the
size of space volume, company employees, customers, net assets
- 4.2 CLASSIFY:
+ SMB/SME: small business usually own and run by one person
such as sole trader or by a few people. Normally employee less
than 50 people. Eg: Grocery shop
+ Mid-market: medium sized business operate at a local or
national level with employees between 50-250 people Eg:
insurance company, theater)
+ Large enterprise: With over 250 employees. Having offices
and factories in more than one city or country. Eg: google,
facebook, amazon...
5. SCOPE:- An organization’s scope contains
+ entire organization
+ specific functions
+ sections of the organization, or one or more parts across a group
of organizations.
- Scope is wide or narrow. It is an important part of organisational
strategy. An organisation’s scope or domain refers to three
dimensions: (Stapleton, J., 2021)
5.1 . Customers or clients:
+ Wide scope = many clients/customers of different ages, genders,
markets and preferences
+ Narrow scope = focus on few clients/customers of a similar age,
gender, markets and preferences
5.2 Geographical location :
+ Wide = Operating in many cities or countries
+ Narrow = Operating in few cities or countries
5.3 Business activities:
+ Wide = Organization engages in a number of business activities
+ Narrow = Organization engages in few business activities

(Fauska, P., Kryvinska, N. and Strauss, C., 2021)


6. Market Share:
The total revenue earned by a company or an industry during a particular
period expressed as a percentage known as market share.
7. Growth:
The growth of a company is usually determined through periods such as:
Business Quarter – Business Quarter
Half year growth
Annual Growth

III. A BRIEF COMPARISION CHART


Delta Sport JSC Geru Star JSC H2H Around The
World
Ownership Private Sector Public Sectore Volunary Sector
Legal form Joint Stock Company Joint Stock Company
Profit or Profit Profit Non-profit
Non-profit
Size Large Business Mid Market Large Group

Scope Wide Scope Narrow Scope Wide scope

Business Research, Research,


Activities manufacturing, trade manufacturing, trade
Industry Sports Sports
Country of Thanh Hoa, Viet Nam Ho Chi Minh, Viet
headquarter Nam
V. Details of each organization:
1. Delta Sport Organization:
1.1 Owners : The key leaders of the
subject are:
+ NGUYEN TRONG THAU:
Chairman of the Board of Directors
and CEO.
+ NGUYEN TRONG TIN: Deputy General Manager.
+ NGUYEN MANH HUNG: Member of management
Council.
+ NGUYEN THI HOP: Member of management Council.
+ PHAM DUY GIAP: Member of management Council.
1.2 Vission: Setting one's sights on being an accomplished
industrialist in an item of clothing & sports facilities and a
social service supplier, become a momentous multi-domain
corporation.
1.3 Mission: Supply the best superior product and service with
the most budget price under four essential standards:
customer utility, employee value, society utility, shareholder
value.
1.4 Size : Large Business : For garment sport production, the
company currently has 03 production enterprises, 01 factory
training human resources for production. Total production
scale up to 40 sewing lines with a workforce of about 1,600
workers. (Fast500.vn. 2021)
1.5 Wide scope: Customers: have a wide range of sportswear
for men and women and are not restricted by age and size.
Moreover, there are many sports equipment with prices
suitable for many social classes.
Geography Location: Delta brand is widely in 28 countries
with economies developed across continents such as
Hungary, Brazil, Korea, Australia, Denmark, Norway, USA,
Germany, Japan... with moderate to high-quality products.
Business activities: Being a big sponsor for football programs
and activities from small to large scale and enormous scale in
most provinces and cities in Vietnam (Fast500.vn. 2021)
1.6 Goals and Objectives: Delta Sport is always grateful for
social trustworthiness, which incentive is to implement social
security projects included: kindergarten, general hospital, and
charity activities. (Deltasports.com.vn. 2021)
1.7 Products: Sports equipment, especially ball production and
garment clothes specifically sportswear, are the two main
products of Delta Sport JSC that has attracted a larger
number of customers around the world with more than
3,000,000 pieces per year(Deltasport.com.vn. 2021. Sportswear.)

1.8 Market Share :


(Deltasports.com.vn. 2021)
According to Market Share,
Delta Sport is a large business, so garment customers
dominate the market with 4,800,000 pieces per year,
especially in sportswear. Consumption is strongest in Japan
with 40% and second at 35% in the USA. Canada holds the
15% annual rate and is followed by the rest customers with
similar consumption levels of 5% year over year. In addition,
Delta Sport's Ball Customers also draws a large number of
customers around the world with 3,000,000 pieces per year.
The number of balls consumed in the USA compared to
Brazil is 35% and 30% per year, respectively. The percentage
of balls used annually in Germany and other countries is
quite similar at 18% and 15%, turn in. Australia, Chile have
the same rate in the market share of 5%, while Korea only
keeps 2% per year.
1.9 Stakeholders: Cooperate with and involve many sports
companies around the world:
+ Academy Sport & Outdoor: Academy Sports & Outdoors is
one of the nation's largest sporting with 259 stores and counting
offering a broad assortment of fishing, along with sports and leisure
products, footwear (academy.com. 2021)
+ Challenge Sports: Challenger has understanded customers for
over 25 years and created a TOTAL SOCCER company that caters to
everyone involved in the game with 13 offices and provides a
comprehensive range of products that include:Challenger Soccer
Academy, International Soccer Camps, SoccerPlus Camps
(Challenger Sports. 2021. About Us)
+ New Balance

- Delta Sports’ Comment:


According to the information about Delta Sports, the company
organization is rigorous and has specific plans to enlarge the
company scale and enhance product quality from time to time. As a
result, Delta Sport is gradually becoming more popular in the world,
gaining the trust of customers. The following is the Market Share
had provided. Firstly, I noticed that the consumption of Ball
customers and Garment customers has a substantial difference. I
saw that Ball customers are more prevalent and used globally,
especially in countries with developed sports industries. However,
the number of products of Ball Customers reached 3,000,000 pieces
a year compared to products of Garment Customers of 4,800,000
details a year, equivalent to approximately 1.25 times lower.
Secondly, Although plenty of Garment's products achieved
enormous annual sales, the market was still limited compared to
Ball Customers. From my point of view, if Delta Sport can
intensify the strategy of Ball Customers to fascinate the attention of
many customers and at the same time further expand the market of
Garment Customers in the world. I believe that by 2025, Delta
Sports will be one of the leading corporations in the domestic and
foreign football and sports fashion industry.

2. GERU STAR SPORTS JSC


2.1 Owners :
- Mr. Huynh Tan Sieu: Chairman of the board of directors
- Mr. Tran Van Hanh: General Manager
- Mr. Hoang Anh Tuan : Deputy General Director
- Mr. Huynh Minh Nhut: Member of management Council
- Mr. Nguyen Van Trang: Member of management Council
2.2 Vision:
Continue to promote growth, market share, domestic and foreign
markets so that by 2025 90% of products consumed will bear the name
Geru Sport.
Maintaining the goal of the Vietnam Rubber Industry Group
"Developing industrial products from natural rubber."
2.3 Mission:
Strengthen market research and investigate new products, production
diversification of products, investment in modern machinery and
equipment for several high-value items
Expand investment in production and sales plants and train skilled
employees in production labor and customer consulting.( Static2.vietstock.vn.
2021)

2.4 Size:
Mid-Market with over 178 employees and wide scope because products
manufactured by Geru Sport Company have been widely consumed in
VietNam and exported to many countries around the world.
2.5 Scope: Wide
+ Customers: Suitable for all ages with different ball sizes. Diverse
materials and suitable for each specific sport: Football, volleyball,
basketball.
+ Geographical location: exporting and consuming many countries
worldwide such as Germany, USA, Chile, South Africa...
+ Activities: There are many activities to bring sports and especially
sports to the ball to everyone, such as From 2019 to 2020, Geru
Company cooperates with the Departments of Education and Training
provinces, including Ho Chi Minh City and Ho Chi Minh City. Hanoi,
City. Ho Chi Minh City, City. Da Nang, ... implementing "Project on
Developing School Basketball to 2023” (Tiền, H., 2021. Tin tức)
2.6 Goals and Objectives: With the Geru Star ball brand, the company
will continue to promote the product through other movement awards
throughout the provinces. At the same time, cooperate with
organizations and sponsor professional basketball tournaments every
year”
(tiền, H., 2021. Tin tức )

+ GERU SPORT donated 03 Boccia kits to support sports development


for people with cerebral palsy and sponsored 2 Boccia competition kits
for people with disabilities nationwide in December 2020.
(Svhtt.hochiminhcity.gov.vn. 2021)
2.7 Main products:

+ Producing, buying, and selling all kinds of sports equipment,


especially plenty of balls sports like football, basketball, and volleyball,
with many different production methods.
+ Buying and selling all kinds of supplies and materials for the
production of sports equipment.( tiền, H., 2021)
2.8 Market Share:
Due to the complicated evolution of the Covid 19 pandemic, the number
of exported balls of Geru Star company decreased sharply. However, the
number of domestic balls is more consumed and have classfied for
about 80% of the company's income, while others only have accounted
for the remaining 20%. (VietstockFinance. 2021.)
2.9 Stakeholder: Geru Star as one of the companies that produce balls
that are highly appreciated and used in big matches, Geru's stakeholder
is also one of the dominant companies in the market such as
+ "RuBiCo Rubber Industry & Import & Export": Rubico is one of the
critical partners of Geru Sport. This is a large enterprise with more than
1000 employees specializing in the production and sale of high-grade
and natural rubber, which is the primary raw material for the production
of balls of Geru Star.
+ "Vietnam Rubber Industry Delegation" : As a group of many
subsidiaries specializing in the cultivation, production, and distribution
of natural rubber for sports ball businesses such as Geru Star.
+ "HN Pos": HN POS specializes in management systems and software
that absolutely support businesses in all stages of management and
production.
3. H2H AROUND THE WORLD
1. Ownership: Voluntary Sector
2. Non- profit organization: All expense are covered by sponsors and
riders, 100% of donations go immediately to charity centers
(H2hride.wixsite.com. 2021)
3. Vision: There are many good opportunities for all Vietnamese
children to access education and express their talents without being
constrained by financial burdens and miserable economic conditions.
(H2hride.wixsite.com. 2021.)
4. Mission: + H2H Around The World always aspires to discover and
celebrate the diversity of Vietnam's beauty and culture.
+ A companion with like-minded charities developing education for
poor and miserable children in Vietnam.
+ Spread volunteers happy vibes and positive energy for more
motivation and experience in life. (H2hride.wixsite.com. 2021.)
5. Size: Large Group: Until 2021, H2H charity bike team has finished its
'virtual' ride around the World on April 30 with over 500 riders from
more than 25 countries exercised from home and raised $25,000+ to
tackle child poverty in Viet Nam
6. Scope: Wide scope:
+ Target audience: H2H team is always try to approach miserable
children and shortage live conditions of all ages across VietNam
+ Geography Location: Not only assisted Vietnamese children but
also campaigning and sharing happy vibes to tragic children in
many countries such as Vancouver, London, Moscow...
+ Activities: H2H has had very diverse plans in terms of both
activities and methods of implementation. Years ago, they went
directly to each orphanage or household in need and upland to give
hand-delivered gifts to those in need. This support is known to
everyone through electronic newspapers about H2H's humanitarian
“H2H is usually a 2000km cycle ride from Hanoi to HCMC every
April, nevertheless, due to bad evolution the Covid 19, this year it
has become a 'virtual' ride! $20 donation / 20 minutes of exercise =
20km” (Just Giving. 2021)
7. The slogan "Give a child a fish, and you feed her for a day. Teach a
child to fish, and you feed her for a lifetime.”
8. Stake Holder:
- Sai Gon Children:
+ Mission : Enabling miserable children in Vietnam have the
opportunity to develop their full potential thanks to the assist of
sponsors, so that shortage young adults receive a good education.
+ Activities:
Scholarships awarded: 40011
Beneficiaries of Career orientation: 29333
Classrooms: 571
Disability Children' Assist: 11457 children
( Saigon Children’s Charity CIO. 2021)
- Blue Dragon: They are supplying exceptional care services to
children and impoverished families in Vietnam while sharing
humanitarian vibes to create long-term for a better Vietnam.
( Blue Dragon Children's Foundation. 2021)
- Ila Community Network

Conclusion: - Delta Sport and Geru Sport both have the legal form of a
Joint Stock Company. While Delta has ownership of the Private Sector,
Geru Star has a reverse pattern: the Public Sector. We can see many
differences in the size and scope of these two companies. Firstly, the
number of employees in Geru at 178 people is approximately ten times
lower than the number of employees in Delta, specifically the 1600
workers at Delta Sport. Secondly, Delta has three productions to produce
goods and has its factory to train human resources compared to 1 factory
in Geru Star. Moreover, we can see that the scope of both companies is
broad, but Geru's strength is only in the production of balls. Delta's
products include balls, sportswear, and sports equipment . Not only that,
Delta's geography location is also more spacious and covered worldwide
than Geru.
=> In my opinion, from Delta Sport and Geru Sport, we can see that
Private Sector has an advantage over Public Sector because it draws
many shareholders to expand the market. And the significant thing is
profit belongs to the Private Company or individual, not to the control of
the government.
- H2H around the world is a non-profit organization dedicated to sharing
happy vibes with unfortunate circumstances. Therefore, the
organization's source of income has sent to relief centers is utterly
dependent on volunteers and may not be as stable as for-profit
organizations. However, non-profit organizations will receive much
attention and support from sponsors to improve living conditions and
spread positive energy to the less fortunate.

VI. Organizational Structure Chart Of Geru Star Sports:


A diagram that directly the company's internal structures and
relationships, connections, and the roles and responsibilities of each
individual and each department in the company.
1. General Meeting of Shareholders: + Holding the supreme power
+ The primary mechanism to keep safe and exercise the rights of
shareholders
+ The Annual General Meeting of Shareholders is voted by 111
shareholders, equivalent to 2,200,000 shares. (Kalbe.co.id. 2021. )
2. Administrative Council: + Operating agency of the company may act
on behalf of the company to make decisions that do not fall under the
authority of the General Meeting of Shareholders
+ Only joint-stock companies have a Board of Directors.
3. Administration: + Supplying administrative and technical assistance
in the HR department strategic planning to draw customers, calls for
tenders, infrastructure, sponsors for sport events.
4. Sale Department: + Looking for new items to draw users
+ Take advantage of sports events to express product quality in users'
eyes.
+ Bring the product closer to the market => has divided 2 departments
under the Sales Department: Central Region Team and Hanoi Branch
5. The Supervisory Board
+ Supervising and managing the operation of the Board of Directors,
Director, and General Director.
+ Checking and informating on the situation of each department or each
employee upon request to explain the issues that need to be verified.
( Hr.virginia.edu. 2021)
6. Discipline Department: An employee's problem impacts performance
and revenue => need to have formal disciplinary actions to employee
depend on the severity of the problem.
7. The sales department
+ Responsible for selling kinds of sports balls and services to increase
performance and revenue.
8. Financial accounting
+ Reviewing, summarizing, and reporting transactions from business
activities such as incurred costs of ball production materials or profits
earned in a specific period.
9. Geru's manufacturing plant is omplex with machinery with
complicated methods to turn natural rubber into sports balls.
Porter Value Chain:

 Producing Factory and Sale Department are two main activities


and support each other. After Producing Factory directly to
produce balls, the Sale Department coordinates the products to
consumers.
 Discipline Department and Financial Accounting are two
supporting activities for the company. These two departments will
oversee staff activities and the company's budget.
Conclusion: In general, Geru's Organizational Structure Chart is
separated into departments with specific goals. However, to more
substantial development in the future, this structure should be enhanced
and established some more essential departments such as Marketing and
Service, some support activities should also be set up, such as HRM and
Technological.
VII. CONCLUSION:
Through my report, the sports industry in Vietnam is making
breakthrough progress. Although there are technical and professional
shortcomings, it will be improved thanks to exchanges and cooperation
with essential sports companies around the world quickly. In the future,
the sports industry in Vietnam will be one of the crucial industries to
boost the country's economy.

You might also like