BUSINESS MANAGEMENT 1

Dr. Nguyen Thi Lien Huong, FBM NEU

Lecturer
Info Dr. Nguyen Thi Lien Huong

Mobile: 0917.394.393
Email: lienhuong@neu.edu.vn

Faculty of Business Management

Room 714, Buiding A1, NEU
 Lecturer Introduction

University of Wollongong 2015 – National

Top 1% Uni by QS World Uni Economics University
ranking 2021
Top 14 best modern uni by QS top
50 under 50 ranking 2021

2007 start working for HSBC VN– top 4

biggest banks in the world.
Leaving as Business Development Manager
TEXTBO
OK
 COURSE CONTENTS
Week 1. Course Introduction & Chapter 1:
Taking risks & Making profits within the
dynamic business environment
Week 4 – Chapter 4: Demanding ethical
and socially responsible behaviour

Week 2 – Chapter 2: Understanding economics

Week 5. Midterm examination
and how it affects business
Pitching and presentation guide sessions

Week 6 – Chapter 5: How to form a

Week 3 – Chapter 3: Doing business in Global business
market
 COURSE CONTENTS
Week 7 - Chapter 7:
Management and leadership
Week 10: Team presentations

Week 8 – Chapter 8:
Week 11. Midterm result returned and last
Structuring organizations for today’s challenges
teams Presentation.

Week 12: Revision, announcement of group

Week 9: Team presentations presentation results
 COURSE EVALUATION

10% 50% Attendance and participation

Group presentation
Midterm exam
20% 20% Final exam
ATTENDANCE & PARTICIPATION

10% Attendance and participation

1. Both offline and Team (if applicable)

2. 15 mins grace period

3. No participation = No 10 marks
 GROUP PRESENTATION

Group presentation

Choose a company in the list below

and explain how it cultivates its
business in the current diverse,
global environment and plans for
20% the future.

COMPANY NAMES: 1. Cocacola 2. Pepsi 3. Honda

4. Thaco 5. Starbucks 6. Trung Nguyen
SUPPLEMENTARY: 7. Lotte 8. Vingroup
 GROUP PRESENTATION

Group presentation
Important deadlines:
- Submission of slides: All
groups by 5PM Fri of week 8
20% - Presentation: week 9 to 11
- SLIDE ONLY TO EMAIL. No
report please!
NOTE: Mark will be awarded on team basic. Teams allocate each member’s mark
accordingly. Team leader is responsible to check if lecturer received your product.
 MIDTERM EXAM

Midterm exam
1. Week 5, start time sharp
2. Coverage: Chapter 1 to 4
20% 3. Format: 30 Multiple Choices
30 mins + 5 mins reading time
Exam paper will be provided
Textbook allowed in exam room
FINAL EXAM

Final exam
50% 1. Timetable: TBC by the Uni
2. Coverage: Chapter 1 to 5, 7 & 8
3. Format: 2 Multiple Choices (2
marks), 5 True/False with short
explanation of your choice (5
marks) and 2 Critical thinking
questions (4 marks), 90 mins.
Textbook allowed in exam room.
 DO & DON’T
IN CLASS

DO DON’T

Pre-class preparation • Private talks, work

noise welcome in
Ask questions
discussion session
Answer questions • Using mobile devices
Feedbacks during class hours
Ideas & Comments • Leave allow no need
permission but be
Join the discussions
quiet while leaving
CHAPTER 1
Taking risks and making profits within the
dynamic business environment
Ann-Marie Campbell of
Home Depot

GETTING TO KNOW
 Chapter
Structure
1.1. Business and wealth building
1.2. The importance of entrepreneurs to the creation of wealth
1.3. The business environment
1.1. Business and wealth building
 Business, goods, services
 Revenues, profits and losses
 Matching risk with profit
 Standard of living and quality of life
 Responding to the various business stakeholders
 Using business principles in nonprofit organizations
 1.1. Business and wealth building
Business, goods, services, entrepreneur

Goods are tangible products

such as computers, food,
Business is any activity that clothing, cars, and appliances.

Business
seeks to provide goods and
services to others while
operating at a profit. Goods

Services

Entrepreneur
An entrepreneur is a person
who risks time and money to
Services are intangible products start and manage a business
such as education, health care,
insurance, recreation, travel and
tourism.
1.1. Business and wealth building
Revenue, profit, loss

Revenue is the total amount of money a business takes

in during a given period by selling goods and services
1

Profit is the amount of money a business earns above

and beyond what it spends for salaries and other
2 expenses needed to run the operation.

A loss occurs when a business’s expenses are more than its

3 revenues.
 1.1. Business and wealth building
Making risk with profit

Risk is chance an entrepreneur takes of losing time and money

on a business that may no prove profitable.
 1.1. Business and wealth building
Standard of living and quality of life

• Standard of living refers to the amount of goods and services

people can by with the money they have.
• Quality of life refers to the general well-being of a society in terms
of its political freedom, natural environment, education, health
care, safety, amount of leisure, and rewards that add to the
satisfaction and joy that other goods and services provide.
 1.1. Business and wealth building
Responding to the various business stakeholders

Outsourcing means contracting with

other companies to do some or all of
the functions of a firm, like its
production or accounting tasks.

Outsourcing
Stakeholders Insourcing

Insourcing: the other side of the

Stakeholders are all the people who outsourcing
stand to gain or lose by the policies
and activities of a business and
whose concerns the business needs
to address.
1.1. Business and wealth building
Responding to the various business stakeholders
1.1. Getting down to business
 A business – an entity provides goods or services
to consumers for the purpose of making a profit
 Distinction of terms:
 Revenues vs profit
 Goods vs Services vs Hybrid
 Profit vs Non-Profit
 Organizations establish goals and work to meet
them in an effective, efficient manner. Thus, most
business principles also apply to nonprofits
1.1. Business and wealth building
Using business principles in nonprofit organizations

A nonprofit organization is an organization

whose goals do not include making a
personal profit for its owners or organizers.
Nonprofit organizations often do strive for
financial gains, but they use them to meet
their social or educational goals rather than
for personal profit.
The goals of nonprofit organization are social
and educational, not profit oriented.
 1.1. Getting down to business
Business Participants and Activities

Employee(s) – hired to work

Owner(s) - primary role is to for the company and help it
invest money in the business. reach its goals.
- polish the business idea and
bring together the resources Stakeholders

Participants – those with a legitimate

interest in the success or failure
Customer - the goal of any
of the business and the policies
business is to satisfy the needs
it adopts
of its customers in order to
- Conflict of interests
generate a profit for the owners.
1.1. Functional Areas of Business

Management involves planning (goals & strategies),

organizing (activities, resources, staff), leading
1 (accomplish goals), and controlling (assessment and
correction).

Operation: All companies must convert resources

(labor, materials, money, information…) into goods or
2 services – tangible or intangible.

Operation manager designs & oversees the transformation

2 of resources into goods or services and ensure products are
of high quality
1.1. Functional Areas of Business
Marketing - everything that a company does to identify
customers’ needs (market research) & design products to
3 fit them. Marketers develop products’ benefits &
features, price & quality, best method of delivering, best
mean of promoting.
Accounting provides accurate, relevant and timely
4 financial information. Accountants measure,
summarize, and communicate financial (inside-outside,
financial strength) & managerial (internal use)
information and advise other managers.
Finance involves planning for, obtaining, and managing a
5 company’s funds. Good financial management is important
when a company is first formed.
 1.1. Business and wealth building

1. What is the difference between revenue

and profit?
2. What is the difference between standard
of living and quality of life?
3. What is risk, and how is it related to profit?
4. What do the terms stakeholders,
outsourcing and insourcing mean?
1.2. The importance of entrepreneurs to the creation of wealth

Going to work for a To become an

company entrepreneur

There are two ways to succeed in business and life

1.2. The importance of entrepreneurs to the creation of wealth
The five factors of production
1.2. The importance of entrepreneurs to the creation of wealth
The five factors of production
1. Land: natural resources.
2. Labor: people have always been an important resource
in producing goods and services, but many people are
now being replaced by technology.
3. Capital: includes machines, tools, buildings, or
whatever else is used in the production of goods.
4. Entrepreneurship: all the resources in the world have
little value unless entrepreneurs are willing to take the
risk of starting businesses to use those resources.
5. Knowledge: property of each individual, each
organization
1.2. The importance of entrepreneurs to the creation of wealth

1. What are some of the advantage of

working for others?
2. What benefits do you lose by being and
entrepreneur, and what do you gain?
3. What are the five factors of production?
Which ones seem to be the most important
for creating wealth?
1.3. The business environment
 The economic and legal environment
 The technological environment
 The competitive environment
 The social environment
 The global business environment
1.3. External forces that influence business activities

Business is influenced by a number of external factors - the

economy, government, consumer trends, technological
developments, public pressure to act as good corporate citizens,
and other factors.
Collectively, these forces constitute what is known as the “macro
environment” .
1.3. The business environment
 1.3. The business environment
The economic and legal environment

The economic system and the way

government works with or against
businesses can have a strong impact on
One way for government to actively the level of risk.
promote entrepreneurship is to allow
private ownership of businesses
1 The government can also
establish a currency that’s
3 tradable in world markets.

The government can help 2

The government can further
minimize corruption in
business and in its own ranks. 4 lessen the risks of
entrepreneurship by passing
laws that enable
businesspeople to write
enforceable contracts.
 1.3. The business environment
The technological environment

1 2 3

How technology The growth of Using technology to

benefits workers E-Commerce be respective to
and you customers
 1.3. The business environment
The technological environment
Technology: means everything from phones to computers,
mobile devices, medical imaging machines, robots, the
Internet, social media, various software programs and apps
that make business processes more effective, efficient and
productive.
• Effectiveness: means producing the desired
1 result.
• Efficiency: means producing goods and services
using the least amount of resources.
How technology • Productivity: is the amount of output you
benefits workers generate given the amount of input, such as
and you the number of hours you work.
 1.3. The business environment
The technological environment

E-commerce: is the buying and selling of goods online.

There are two major types of e-commerce transactions:
business-to-customer (B2C), business-to-business (B2B).

The growth of
E-Commerce
 1.3. The business environment
The technological environment

Technology can help businesses respond to customer

needs in many ways:
• Using bar codes to identify products
• Using the scanner at the checkout counter to identify
3 the price
• Putting all your purchase information into a database –
an electronic storage file for information
Using technology to
be respective to
customers
 1.3. The business environment
The competitive environment

EXCEEDING CUSTOMER RESTRUCTURING AND

EXPECTATIONS
Successful organizations
A B EMPOWERMENT
To meet the needs of
must now listen more customers, firms must
closely to customers to give their frontline
determine their wants and workers.
needs, and then adjust Empowerment: gving
the firm’s product, policies frontline workers the
and practices accordingly. responsibility, authority,
freedom, training and
equipment they need to
respond quickly to
customer requests.
 1.3. The business environment
The social enviroment

Demography is the statistical study

The increase in the number of
of the human population with
older citizens.
regard to its size, density and other
characteristics such as age, race,
gender and income.

Managing diversity: diversity has The increase in the number of

come to mean much more than single-parent families.
recruiting and keeping minority and
female employees.
1.3. The business environment

The social enviroment

World trade or globalization

Two important changes here are the growth of

global competition and the increase of free trade
among nations.
• War and terrorism: leads the government to
spend more money on spying and the military,
adds greatly to organizational costs.
• How global changes affect you: new jobs will be
created in both manufacturing and service
industries, global trade means global
competition.
• The ecological environment: climate change is
the movement of the temperature of the planet
up or down over time.
1.3. External forces that influence business activities
 1.3. The business environment

1. What are four ways the government can

foster entrepreneurship?
2. What’s the difference between
effectiveness, efficiency and productivity?
3. What is empowerment?
4. What are some of the major issues
affecting the economy today?
 Vietnam overview
Vietnam’s development over the past 30 years
has been remarkable.
Vietnam is experiencing rapid demographic and
social change
Over the last thirty years, the provision of basic
services has significantly improved

Vietnam’s economic outlook is positive, despite signs

of cyclical moderation in growth
In Vietnam, rapid growth and industrialization have not
been friendly to the environment and natural assets.
 Global overview 2020
Economic shock: global GDP went down by
3.5%, developed countries by 4.9%, developing
and emerging by 2.4%
International investment reduced tremendously.
Global Fix asset investment down by 13%, FDI
by 29.8% (UN, UNCTAD reports 2021)
Global trade went down by 9.5% due to cut
down of manufacturing and borders closed
Bright side in 2020: AfCFTA, RCEP (Regional
Comprehensive Economic Partnership)
Oil price reluctant to bounce back even in medium
term. Metal price had steep downturn and still there.
Food price increase by 4%.
 Vietnam overview 2020
Impacts: reduce the size of labour force and
productivity in the global market
Vietnam GDP 2020: 2.91% (7,02% in 2019),
lowest since “Doi moi” in 1980
On supply side: Many businesses closed, supply
chain breaks or temporarily suspense due to
pandemic prevention interventions.
Challenges: unpredictable, variant complications

On demand side: reduce of total demand due to fear of

pandemic infection, changes of consuming method
(offline to online)
 Vietnam overview 2020
Testing: sustainability, flexibility and tolerance
level of economies
Productivity only increase 5.4% lowest in 5 years
(6,2% 2019), lower 7 times i.c. to Malaysia, 4
times China, 3 times Thailand, 2 times Philippines,
26 times Singapore. Lower than Laos!
GII (Global Innovative Index): rank 42 out of 131
Doing Business: 67/141 in 2019. No rank for 2020.
Homework: Check the year end summary reports for
economic and achievement of Vietnam in 2020
Aspirational: check some overseas forecast of Vietnam
development for 2021.
 The end …

Taking risks and making profits within the

dynamic business environment
 APPLE
Why is it successful?

GETTING TO KNOW
 APPLE

1976 1976 2000+

Jobs and Wozniak Invested $1,300 to Revenue of $233bio

created 1st set up business in Why this start-up
computer – Apple 1 Jobs’ garage success when many
other fails?
 APPLE
Why is it success?

Products? Apple 1 & 2, Macintosh,

Employees? Talented, dedicated
iPod, iPhone, iPad

Management? Luck – being in the right place at

Willing to take calculated risks. the right time?
 APPLE
Outstep from his own company by
Sculley, someone he hired
Start new company NextStep.
Backed to Apple in 1993

Life &
Steve Jobs Influences

Great motivator & positively charming

Attend HP’s lectures after school Drive for perfection
and work for HP in summer Visionary not humility
Work at Atari and save to travel to Learned, adjusted and improvised
India for spiritual search
 APPLE – WHAT MAKES IT SUCCESS?

1. Its products
2. Its customers
3. Luck
4. Willingness to take risks
5. Steve Jobs