CHAU HUNG COLLEGE, HCMC BTEC HND IN BUSINESS (MANAGEMENT)

ASSIGNMENT COVER SHEET

NAME OF STUDENT REGISTRATION NO. UNIT TITLE ASSIGNMENT TITLE ASSIGNMENT NO NAME OF ASSESSOR SUBMISSION DEADLINE

Unit 1: Business Environment REE Corporation Market Environment 2 of 2

I, __________________________ hereby confirm that this assignment is my own work and not copied or plagiarized from any source. I have referenced the sources from which information is obtained by me for this assignment.

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BE Assignment 2 Nov 2011

Unit Outcomes
Outcome Evidence for the criteria Feedback Assessors decision
First Re-

Internal Verification

Explain how market structures determine the pricing and output decisions of businesses

3.1

Understand the behaviour of organisations in their market environment L03

Illustrate the way in which market forces shape organisational responses using a range of examples

3.2

Judge how the business and cultural environments shape the behaviour of a selected organisation Discuss the significance of international trade to UK business organisations

3.3

4.1

Be able to assess the significance of the global factors that shape national business activities L04

Analyse the impact of global factors on UK business organisations

4.2

Evaluate the impact of policies of the European Union on UK business organisations M1 D1 M2 D2

4.3

Merit grades awarded Distinction grades awarded

M3 D3

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Outcome

Evidence for the criteria

Feedback

Assessors decision

Internal Verification

Comments by Assessor - Common Skills

A B C D E F G

Assignment
( ) Well-structured; Reference is done properly / should be done (if any) Overall, youve Areas for improvement:

ASSESSOR SIGNATURE NAME:.........................................................................................

DATE

(Oral feedback was also provided) STUDENT SIGNATURE NAME :..............................................................................

FOR INTERNAL USE ONLY VERIFIED YES NO DATE NAME : .......................................................................... : ...........................................................................

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COMMON SKILLS & COMPETENCIES ASSESSED (indicated by X)

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A. MANAGING & DEVELOPING SELF

1. Managing own roles & responsibilities 2. Manage own time in achieving objectives 3. Undertakes personal and career development 4. Transfer skills gained to new/changing situations & contexts

D. MANAGING TASKS & SOLVING PROBLEMS

12. Use information sources 13. Deal with a combination of routine & non-routine tasks 14. Identify & solve routine & non-routine problems

X X

B. WORKING WITH & RELATING TO OTHERS

5. Treat others beliefs and opinions with respect 6. Relate & interact effectively with individuals & groups 7. Work effectively as a team member

E. APPLYING NUMERACY
15. Applying numerical skills and techniques

F. APPLYING TECHNOLOGY
16. Use a range of technological equipment and systems

C. COMMUNICATING
8. Receive and respond to a variety of information 9. Present information in a variety of visual forms 10. Communicate in writing 11. Participate in oral & no-verbal communication

X X X

G. APPLYING DESIGN AND CREATIVITY

17. Applying a range of skills and techniques to develop a variety of ideas in the creation of new / modified products, services or situations 18. Use a range of thought processes

SCENARIO REE CORPORATION Established since 1977, REE (Refrigeration Electrical Engineering Corporation) today is a diversified business group operating in the fields of mechanical and electrical engineering services (M&E), manufacturing, assembling and sales of airconditioner systems, real estate development and management, and financial investments. REE Refrigeration works includes manufacturing, assembling, and marketing air conditioners (Reetech brand) and Electric Appliances. REE Land and Real Estate includes management services for lease office properties as well as real estate developers. REE also provide M&E contracting in Vietnam. REE is also a strategic infrastructure investor in the power and water sectors with ownership stakes in several power and water utilities. REE is one of the first companies to list its shares on the Ho Chi Minh Citys Stock Exchange with a market capitalization of US$ 170 million as of 31/12/2010 and a wide investor base. In 2002 - 2003, the company structured the manufacturing and mechanical and electrical engineering activities into REE M&E and REE Electric Appliances to grow the businesses stronger. In 2010, Vietnams economy continued to maintain strong economic growth of 6.7%; there are still ongoing macroeconomic uncertainties such as large trade imbalances and high inflation rate. Even as the economy presents plenty of opportunities, there are also more challenges in navigating the business environment. Looking forward to 2011, REE carries with itself a strong excitement of new possibilities for growth and a keen belief in building a solid and sustainable development. REE Group strived to explore new opportunities and markets, optimized internal operations, and solidified our strength to deliver the Groups business objectives for 2010. Reetech Reetech sharply increased the number of air conditioner units sold during the year and solidified Reetechs market share. Aside from sales of retail products of the business, Reetechs product supply to the commercial project market helped
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diversify the customer base and leveraged the strength in engineering expertise of the Group to fully explore market opportunities. The domestic appliance industry saw a very strong demand for air conditioners with growth of 50% in number of units consumed over 2009. The exceptional performance of the industry reflected a sustainable local consumption and a particularly longer dry season in 2010. Though the market potential is great, competition remains strong. Reetech was focused on building proactive relationships with suppliers, expanding the distribution network, and ensuring good after sales service to provide consistent product quality for the customers. Reetech (40% of REEs 09 sales; 6% market share) has recently faced many strong international competitors such as Sanyo, Toshiba, National, Panasonic, Hitachi, and LG; in products including civil and commercial air conditioners, digital based air conditioning systems, home appliances such as refrigerators, washing machines, showcases, and coolers. Over the past decade, as the old local incumbent facing a surge of market entries by international majors, it has steadily lost market share (e.g., its market share as recently as three years ago was 10%). However, Reetech has an advantage in providing extensive services and longer warranty time of up to five years compared to other competitors less than three year period. Reetech also has a strong distribution network with over 70 distributors and agencies in 28 cities/provinces across the country. Reetech believe it will manage to retain not less than 5% market share. With its midprice products, backed by a newly improved in-house engineering team (which has saved costs as a result of lower reliance on buying-in engineering capability from outside), along with the high housing, commercial, and industrial demand growth in Vietnam, it forecast low double digit percentage sales growth in the next few years for Reetech. Reetech business was focused on exports its product to South East Asia Countries, Europe and US market in order to expand their market globally. Can the UK benefit from a strengthening Vietnamese economy? The Vietnamese economy is currently in a strong position. It has a low and steady inflation rate, a satisfactory balance of payments position and low unemployment. Improving economic conditions and increasing aggregate demand have changed the countrys budget position. Rather than using monetary policy measures, the Vietnamese government has chosen to introduce a number of supply-side policies to attract overseas investment and reduce unemployment. This approach has contributed to the expansion of the Vietnamese economy. Vietnams economic success is having a global impact. It is demonstrating that economic growth in one country can benefit not only its own people but also people in other countries. As an economy grows, it may become more competitive and export more. If so, the resulting higher income may lead it to import more which will raise aggregate demand in other countries. Currently Vietnams main trading partners are Japan, China, South Korea and Australia. Under the right conditions, there may be scope for UK firms to export more

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products to Vietnam. If this could be achieved the UK economy would be in a better position to meet its own macroeconomic policy objectives. The above data has been based on a real life organisation, but details have been changed for assessment purposes and do not reflect the current management practices.

Role You have been appointed in the new position of Business Development Executive to bring a professional approach and expansion of Reetech operations both locally and the UK market. Task 1 You are asked to prepare presentation materials (PowerPoint slides) by your department head to be tabled for discussion in the following areas:

Explain how market structures determine the pricing and output decisions of businesses (3.1) Illustrate the way in which market forces shape organisational responses using a range of examples (3.2) Judge how the business and cultural environment shape the behaviour of REE Reetech locally.

Task 2 The CEO of the company is concern about the current situation in the European market. He has asked you to write a report on the following areas:

Discuss the significance of international trade to UK i.e. Vietnam based business like REE Corporation in UK. Analyse the impact of global factors on REE Corporation (UK) Evaluate the impact of policies of the European Union on UK business organisations (REE Corporation (UK)).

Note that your compilation should include a content page and a separate divider for the two tasks. Your word count should be more than 1200 words each for the first and second task. This excluding appendixes such as organisational charts, flow
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charts, graphs, diagrams, tables, etc. You must be submit hard copies and in electronic form (CD) for checking. A CD should be included with references and accompanying notes.

GRADING Pass is achieved by meeting all the requirements defined in the assessment criteria. Merit Identify and apply strategies to find appropriate solutions. (M1)

Characteristics / Possible Evidence An effective approach to study and research used to investigate behaviour of organizations and the market environment affect REE Corporation as well as their expansion into other European countries. Present and communicate appropriate findings (M3)

Characteristics / Possible Evidence An appropriate structure and approach have been used to prepare a report. Present data using a range of methods e.g. tables, diagrammatical and graphical forms. Distinction Use critical reflection to evaluate own work and justify valid conclusions (D1) Characteristics / Possible Evidence Creation has been used to generate and justify valid comments based on investigation in the behaviour of organization and its market environment as well as global and European dimension. Take responsibility for managing and organising activities (D2)

Characteristics / Possible Evidence Demonstrates substantial investigations have planned, managed and organised for the given organization market structure practices, competitive strategies employed and also impact of policies. Demonstrate convergent, lateral and creative thinking (D3)

Characteristics / Possible Evidence An innovative and creative thought has been used to investigate REE Corporation within their environment at local, national and global level and the impact of government policies as well as the European dimension.
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Common Skills Grading To achieve a PASS, student should be able to gathering different sources of information including initiating tasks; answer should include diagrams, text, research and responds to a variety of information with legible and neat written work. To achieve a MERIT, student's should carry out a variety of task clear with information sources used displaying knowledge gained from using a range of technique; answers should include diagrams, plan of action including timescale and effective used resource with clear and appropriate respond and neat written work. To achieve a DISTINCTION, student's answer should display clear and appropriate respond to variety of information collected, legible, clear and neat written work, clear variety of information sources used and display knowledge gained as well as possible further anticipation of explanation of findings as well as structured with evidence of planning, and relevant use resources for possible solutions. PRESENTATION 1. The assignment should have a cover page that includes the assignment title, assignment number, course title, module title, Lecturer/tutor name and students name. Attach all the pages of assignment brief/cover sheet with your report and leave them blank for official use. 2. Ensure that authenticity declaration has been signed. 3. This is an individual assignment. 4. Content sheet with a list of all headings and page numbers. 5. A fully typed up professionally presented report document. Use 12 point Arial or Times New Roman script.
6.

Your assignment should be word-processed and should not exceed 3,000 words in length. A CD should be included with references and accompanying notes.

7. Use the Harvard referencing system. 8. Exhibits/appendices are outside this limit. 9. The assignment should be not contain a bibliography but should contain a list of any references used in the assignment. NOTES TO STUDENTS FOR SUMMISSION Check carefully the submission date and the instructions given with the assignment. Late assignments will not be accepted. Ensure that you give yourself enough time to complete the assignment by the due date.

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Do not leave things such as printing to the last minute excuses of this nature will not be accepted for failure to hand-in the work on time. You must take responsibility for managing your own time effectively. If you are unable to hand in your assignment on time and have valid reasons such as illness, you may apply (in writing) for an extension. Failure to achieve a PASS grade will results in a REFERRAL grade being given. Take great care that if you use other peoples work or ideas in your assignment, you properly reference them in your text and any bibliography. NOTE: If you are caught plagiarising, you could have your grade reduced to zero, or at worst, you could be excluded from the course.

BE Assignment 2 Nov 2011