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MGT103_10W_1_Group11 Flipbook PDF
MGT103_10W_1_Group11
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Group Members: SE161480 Phạm Đình Khương Nguyên SE161442 Nguyễn Quách Hoàng Long SE161626 Nguyễn Hữu Nhất SE161848 Lê Minh Mẫn SE160816 Phạm Trần Đăng Khoa SE151128 Hồ Nguyễn Minh Triết Table Of Content 1. 2. 3. 4. 5. 6. 7.
Overview Organization Vietnam Airline different types of products Vietnam Airline products are sold in different regions The company performs Organization chart Explain and justify the firm’s structure Reference
1. Overview Organization Vietnam Airlines has become the leader of the aviation industry in Vietnam after 20 years of development .Vietnam Airlines was founded in 1956 and became a state-owned enterprise in April 1989. Vietnam Airlines mission is to be the bridge between Vietnam and other countries in the world and “bring Vietnam culture to the world”. In 2002 Vietnam Airlines launched its new logo The Golden Lotus that embodies the flag carrier’s growth to reach the status of an important regional and global player with a national identity.In 2016 Vietnam Airlines officially certificated as a 4 star airline according to Skytrax standards.(Vietnam Airline annual report 2019)
2. Vietnam Airline different types of products *The main business lines of Vietnam Airlines 1.Air passenger transportation(air transport services for passengers), air cargo transportation(transportation of luggage, cargo, parcels, postal items, mails).
2.Direct support services for air transportation: • General aviation operations (flights for terrain photography, geological surveys, flights for calibration of air traffic control towers, repair and maintenance of high voltage transmission lines, oil and gas services, afforestation, environmental inspection, search and rescue operations, medical first aid, flights for political, economic, social, national security and defense tasks). • Other specialized aviation services. • Provision of commercial, tourism and hospitality services, sale of duty-free goods in waiting areas at international border gates being airports, on-board, and in Vietnam’s provinces and cities.
• Provision of ground-based technical and commercial services; services at passenger terminals, cargo terminals and parking lots at airports.
3.Repair and maintenance of transportation vehicles: maintenance of aircraft, engines, spare parts, aviation supplies and equipment, equipment for groundwork and other technical equipment.
4.Manufacturing of measuring, testing, navigating and controlling equipment: manufacturing of spare parts, supplies, technical equipment and other aviation industry components, provision of technical services and spare parts to domestic and international airlines.
*The business lines related to Vietnam Airlines’s main line of business 1.Other supporting service activities related to transportation(freight forwarding services; investment and exploitation of technical infrastructure at airports; multimodal transportation). 2.Manufacturing of aircraft, spaceship and related machinery. 3.Job education. 4.Advertisement, media. 5.Publishing newspapers, magazines and periodicals. 6.Restaurants and mobile catering services. 7.Wholesale of solid, liquid, gaseous fuels and related products: (i)Supply aviation oil and grease(including fuels, lubricants and specialized fluids) and other petroleum at the airport airlines; (ii)Import and export of aviation gasoline and grease.
8.Other air services.
3. Different regions in which Vietnam Airline products are sold: VNA has always been at the forefront of Vietnam's aviation market share since the first years of its launch. Time has passed and many new airlines have launched in Vietnam, but VNA has always maintained its position as the best 4-star domestic airline in Vietnam. However, the market share of VNA has somewhat dropped since the 2 years since the Covid-19 pandemic occurred. The chart from vneconomy newspaper:
VNA has continuously expanded its international flight network: in 2010 opened 7 international routes from Hanoi, Ho Chi Minh City to Japan, China, Myanmar; in 2011 opened 4 new routes, notably the first direct flight between Vietnam and the UK; in 2012 opened 2 routes to China, Indonesia; in the first 6 months of 2013 opened 3 new international routes from the central region to Russia, Korea and Cambodia. (baotintuc.vn) In 2018, VNA plans to continue to open new routes to Korea and Japan, namely Nha Trang - Seoul route (expected from the end of March 2018), Da Nang - Busan and Da Nang - Osaka routes. (expected from the end of October 2018). The expansion of the flight network to Northeast Asia aims to continue
affirming VNA position in the traditional market area, meeting the increasing travel needs of passengers. (https://www.brandsvietnam.com/) In 2021, after exactly 20 years since the time VNA established a representative office in the US to lay the foundation for the process of building a direct route between the two countries. VNA has been licensed to fly directly to the US. The US is considered a very strict country in terms of aviation security. VNA is currently the exclusive VNA for direct flights to the US in Vietnam. (spirit.vietnamairlines.com) In 2022, VNA opened its first flight to India from Hanoi to New Delhi. The new route of VNA is considered to make an important contribution to enhancing trade, cultural and social connections between Vietnam and India. (vnexpress.net)
4. The company performs A/Strategic management: General items: Building the Corporation into a strong enterprise, a national airline, a force key transport, playing a leading role in Vietnam's air traffic with infrastructure security technical layer and specialized advanced training, is a bridge to the international system The country of Vietnam integrates, becoming a major airline in Southeast Asia and 24 holding a distribution position in the Mekong Sub-region, doing business effectively on the basis of harmonize the interests of shareholders and the needs of the country's economic development and be the expected force Trusted for national security. B/Procurement, logistics, and distribution: Procurement: I will talk the last 3 transactions in airline procurement of Vietnam Airlines
Fair booth setting in the Korea World Travel Fair (KOTFA) 2022 . Tender for Aviation Jet Fuel Supply to VietNam Airlines JSC at LAX location for period 2022-2024 . VietNam Airlines JSC(VNA) would like to invite Vendor(s) to join the bidding for "VNA Crew Accommodation and Transportation in Busan, Korea(PUS) from 23/06/2022 - 31/12/2023 . Logistics: Last year, under the heavy influence of the global Covid-19 pandemic, Vietnam's logistics industry also suffered a lot. However, with flexible solutions, freight activities have contributed to helping logistics businesses offset revenue, especially aviation businesses. Vietnam Airlines is an airline that accounts for 90% of the international freight market share and 60% of the domestic market share. In 2020, the global supply chain's disruption due to the pandemic has caused the carrier's freight output to drop by about 40% compared to the previous year. Immediately after suspending international passenger flights to Vietnam, the airline immediately planned to remove passenger seats and convert its fleet of passenger aircraft to cargo, helping to significantly offset transportation revenue. Distribution: With a wide network of routes, diverse distribution channels, many options and utilities, Vietnam Airlines is a familiar companion on every journey of many passengers. According to Skytrax standards, Vietnam Airlines is rated as a 3-star airline. This is also the first airline of Southeast Asia to join the global airline alliance SkyTeam. In the past 9 years, the airline has transported over 10 million passengers, the average seat occupancy rate is 76%, and the on-time (OTP) index is over 89%. The airline's distribution channels in Vietnam include: a ticketing system through 27 box offices and 422 official agents spread across the country and online ticket sales on the airline's official website. The ticket offices are located in major cities, which are the official transaction points of the airline, representing the airline to handle all issues related to booking and ticketing for
guests; Refund, change tickets for customers of the domestic market, help refund, change tickets of customers exported in foreign markets. C/Operations: Vietnam Airlines operates in accordance with the business lines specified in the Business Registration License issued by the Department of Planning and Investment of Hanoi City, in which freight transport is not the main business product. As of December 31, 2014, Vietnam Airlines has not recorded the increase in equity in the account of the public auction of shares, PO and the sale of preferential shares for employees, trade unions and previous financial Due to the time of converting to a joint stock company on April 1, 2015, this account will be recorded as capital increase by Vietnam Airlines in the financial statement of the second quarter of 2015. D/Product or service development: - Affirming the key position of Vietnam's national airline in the Vietnamese market, attaching importance to economic efficiency to ensure the interests of shareholders along with the good implementation of political tasks assigned by the State. , plays a key role in air traffic as a reserve force for national security; - Striving to achieve the goal of becoming an advanced airline, one of the leading airlines in the ASEAN region in terms of scale, holding a dominant position in air transport in the Mekong Sub-region, building Vietnam Airlines into a brand that has Vietnam's reputation on market. - Cooperating with airlines in Vietnam Airlines Corporation including Jetstar Pacific, Cambodia Angkor Air, VASCO to build a range of products to meet the transportation needs of customers, creating advantages of scale. in the combination of product promotion products, training, training, aircraft maintenance, improving competitiveness. - In air transport, safety is the top priority; improve the quality of products and services with the principle of "customer-oriented", gradually increasing the
proportion of high-income customers; Product design creates cultural identity in Vietnam Airlines service, other clearly distinguishing itself from competing airlines and meeting international standards of 4-star standards, striving to become the preferred airline in Asia in terms of air and ground service quality by 2020. - Ensuring sustainable development through focused investment policies in key business lines, creating competitive advantages and improving the quality of air transport services of Vietnam Airlines and other companies with capital contribution in the world. principles of ensuring the balance of investment capital and investment efficiency. Focus on investing in technical infrastructure for repair and maintenance, specialized training facilities and facilities in the synchronous service chain at base airports. - Flexibility in layout and use of resources, especially aircraft fleet and technical infrastructure, proactively in each period in line with market forecasts. - Maximize internal resources, focusing on human resource development. Building an elite apparatus of cadres, pilots, engineers and experts in expertise, high labor productivity, with solid political qualities, well in charge of the operation and management of an airline professional, large scale. E/Marketing, sales, and customer accounts: Important factors in Vietnam Airlines marketing strategy In order to be able to have the current position, the business strategy of Vietnam Airlines must include many different factors. Let's find out the important factors to help the marketing strategy of Vietnam's national airline succeed. Position yourself as a premium airline The positioning strategy of Vietnam Airlines has always affirmed itself as a premium airline. Compared to other competitors in Vietnam, Vietnam Airlines always has an advantage because this is the "national airline of Vietnam". This helps Vietnam Airlines affirm itself as a national brand with high quality service. Although Vietjet Air has a much cheaper price than Vietnam Airlines, Vietnam Airlines still has a certain position in the market. Distribution strategy of Vietnam Airlines
During the period of existence and development, VNA has continuously expanded its distribution network to many different continents around the world. This is an extremely impressive achievement for a Vietnamese brand. According to statistics, as of 2016, Vietnam Airlines' PSA and BSP general agents have reached more than 10,240 ticket offices. Marketing strategy of Vietnam Airlines in distribution is as follows: In Vietnam: 0% commission, 2% discount on international sales. This discount policy is built in the form of "hundreds of flowers blooming" in domestic markets. In Northeast Asia: 7% commission, in addition, VNA also applies a discount policy for agents who are key agents with discounts of 1%, 1.5% and 2% of revenue. European market: The cost of applying commission is 5% using flexible pricing policy, and competitive product policy. Communication strategy of Vietnam Airlines The communication strategy of Vietnam Airlines has been shown very well to help customers have the most accurate view of VNA. Newspaper advertising is an extremely good means of advertising images aimed at the business customer segment. Moreover, Vietnam Airlines also targets famous foreign newspapers such as Travel Trade, Ashahi, Goodweeken, etc. In addition, short advertisements on television are also the form VNA uses to reach many customer segments . F/Human resources management: In order for employees to connect with the enterprise, the orientation and training of staff is also a key element of the long-term strategy of all businesses. Especially in today's dynamic environment where change and improvement take place continuously. Therefore, in order to adapt and be different, leaders must develop an effective way to lead and manage the team to achieve the Company's goals. Recognizing that importance, in order to develop and build long-term resources, AITS organized a training course for all leaders on "Retaining
employees" in 2 sessions on November 13 and 20// 11 with the direct participation of the Company's Executive Board. The course also helps members understand the wishes and expectations not only of the Executive Board but also from the same units in the Company to continue building AITS to develop in accordance with the Core Value "Employees are asset, The right person in the right job is the most valuable” that the company is aiming for. G/Finance The Covid-19 pandemic has caused the air transport market to seriously decline. Vietnam Airlines have an extremely difficult situation as it continues incurring losses. Vietnam Airlines said the impact of the Covid-19 effected their finance. The financial statement recorded a loss of 2,700 billion dong, down 34% compared to the first quarter in 2021. At the end of the first quarter in 2021, Vietnam Airlines owned 12,800 billion dong of short-term assets.Meanwhile Short-term debt of Vietnam Airlines is up to 45,700 billion dong, which is more than 3 times higher than short-term assets. If the negative equity position persists through the year-end, the Vietnam Airlines have to stock delisting(vneconomy.vn).Moreover hundreds of aircraft have been idle., 127 out of 218 aircraft of four airlines in Vietnam have been suspended. (Vietnamnet.vn)
5. Organization chart
VIETNAM AIRLINE ORGANIZATION STRUCTURE (from Vietnam Airline Annual report in 2021) 6. Explain and justify the firm’s structure To explain why VNA decided to expand many international routes (different regions). In fact, everyone in business wants to achieve the highest profit. And everyone wants what they sell to be the most widely available. So while VNA has achieved the largest market share in VNA because they are the pioneer in the Vietnamese aviation market. Therefore, they wanted to expand international routes to create new and huge profit sources for potential customers abroad. The expansion of flight routes from Vietnam to other countries not only generates income for VNA, but also helps our country
Vietnam to have beneficial cooperation relationships to develop the Vietnamese economy, earn more income. attracting foreign investment capital, trade between Vietnam and neighboring countries becomes easier and creates more benefits. More specifically, Vietnam always creates relationships with countries with strong and fast-growing economies such as Russia, Japan, Korea, and most recently, the USA. The USA is the country with the largest dominant economy in the country today and when Vietnam has developed and expanded a direct route to the US, it will save time and create many benefits. for the country as well as for VNA. VietNam airlines is using a functional organizational structure, in that management is organized from the top down, more or less resembling a pyramid with airline departments or divisions based on the different functions of the company.Vietnam airlines have a president or CEO reporting to a board of directors, with executives below for the different divisions.Vietnam Airlines firm’s structure have seven executive vice president including: ● Executive vice president flight operation director: personnel, human resources, training, ● Executive vice president sales director: corporate marketing, corporate communications, marketing, domestic sales, regional sales ● Executive vice president services director: ground operations, regional flights, catering and inflight products ● Executive vice president technical director: Technical Department , Supply & Material Management Department ● Executive vice president in charge of safety: Safety-Quality ● Executive vice president in charge of IT and external investments investment management, international relations, corporate innovation ● Other executive vice president 7. Reference Link: Reference of 2: https://www.vietnamairlines.com/~/media/FilesDownload/AboutUs/Invest or-Relations/Bao-Cao-Thuong-Nien/2019-bctn-english.pdf
https://www.vietnamairlines.com/~/media/FilesDownload/AboutUs/Invest or-Relations/Dieu-Le-Quy-Che/1Dieu%20le%20VNA.PDF?fbclid=IwAR2ZvZ s4YZ7IKb8qzNTVrzFsui9UksEBSQB05YJSRF-OeTjXBxX8Vi_Z1wo
https://www.vietnamairlines.com/~/media/FilesDownload/AboutUs/Investor-Relat ions/Bao-Cao-Thuong-Nien/2019-bctn-english.pdf ?fbclid=IwAR1Kawy3h5KOI6H VMPhMpVARVEfkW30_1NpS0ZHi9A1169cjeY42oCCHdLU
References of 3 ( different regions): https://vneconomy.vn/bao-tan-hang-khong-viet-san-sang-bat-tung-manh-me.htm https://baotintuc.vn/kinh-te/vietnam-airlines-hoi-nhap-sau-vao-thi-truong-quoc-te-2 0130725172523877.htm https://www.brandsvietnam.com/14526-Chien-luoc-quoc-te-cua-Vietnam-Airlines http://spirit.vietnamairlines.com/vi/emagazine/tin-tct-105/vna-tro-thanh-hang-hang -khong-viet-dau-tien-duoc-cap-phep-bay-thang-thuong-le-den-my-12305.html https://vnexpress.net/vietnam-airlines-mo-duong-bay-thang-toi-an-do-4476681.html References of 4: A/Strategic management: Section 17 part 1 https://www.vietnamairlines.com/~/media/FilesDownload/AboutUs/Investor-Relat ions/Thong-Tin-Co-Dong/1banthongtintomtatvecongtydaichung.pdf B/Procurement, logistics, and distribution: Procurement:https://www.vietnamairlines.com/mo/en/vietnam-airlines/procureme nt Logistics:http://spirit.vietnamairlines.com/vi/emagazine/bao-chi-voi-vna-94/logisti cs-hang-khong-chop-co-hoi-trong-dai-dich-10135.html distribution:https://vnexpress.net/kenh-phan-phoi-da-dang-cua-vietnam-airlines-27 23335.html
C/Operations Section 8, 9.1 https://www.vietnamairlines.com/~/media/FilesDownload/AboutUs/Investor-Relat ions/Thong-Tin-Co-Dong/1banthongtintomtatvecongtydaichung.pdf D/Product or service development: Section 17 part 2 https://www.vietnamairlines.com/~/media/FilesDownload/AboutUs/Investor-Relat ions/Thong-Tin-Co-Dong/1banthongtintomtatvecongtydaichung.pdf E/Marketing, sales, and customer accounts: https://duavang.net/chien-luoc-marketing-cua-vietnam-airlines/ F/Human resources management: http://spirit.vietnamairlines.com/vi/emagazine/tin-don-vi-106/aits-nang-cao-ky-nan g-quan-ly-huong-den-toi-uu-hoa-nguon-nhan-su-12355.html
G/Finance https://vneconomy.vn/vietnam-airlines-ly-giai-ve-khoan-lo-gan-2-700-ty-dong-trongquy-1-2022.htm https://tuoitrenews.vn/news/business/20220617/vietnam-airlines-resorts-to-aircraftsale-divestment-to-reduce-losses/67676.html
5/Organization
chart final-bctn-2021.pdf (vietnamairlines.com)