II.

2.3

Scenario Analysis
Responsibilities of Holcim

2.3.1 Responsibilities of Holcim to its stakeholders (internal, connected, and external)

Holcim Vietnam are affected and affect the different groups of stakeholders (internal stakeholder, connected stakeholder and external stakeholder), this may be that the business should doing their best to regard what the stakeholders want. If Holcim Vietnam arent doing what their stakeholders want them to do such as delivery the cement on time and issues then it affects the stakeholders. The issues can affect Holcim is having to be competitive with prices, supporting issues they may not want to because otherwise they may be given a bad corporate image. For this reason, Holcims responsibilities is make their stakeholder satisfaction. There are three types of stakeholders in an organization are internal, connected and external stakeholders. Internal stakeholders are the employees and management, the connected stakeholders are the shareholders, customers, suppliers and the financiers and lastly the external are the community, government and pressure groups. Internal stakeholders such as employees and management are intimately connected with the company. Employees are very important with Holcim, they effect on the businesses success, their responsibility for all the aspects of work carried out to be done correctly and efficiently when they do housing construction. Stakeholders such as the union also important because their responsibilities are protect the employees interest. They are the point to connect the employee and the manage. Through the union, the manage can understand more about employees need such as environment to work, salary, etc. and after that, the manage can motivate their staff. Holcim Vietnam will be influenced by their external stakeholders in relation to their businesses vision and mission statement. For example, the government as a stakeholder is under pressure from organizations likes Greenpeace want to have more eco-friendly business activities such as reducing their carbon footprint and C02 emissions. For this reason, Holcim's goal of being the most attractive company in the building materials indus- try is the return on its invested capital.

Holcim Vietnam wants to keep their position in southern Vietnam and improve corporate image in Vietnam market. Furthermore, Holcim aims to reduce carbon emissions 25% by 2015. Because of the influence the retailer put their good business activities into their vision and mission statements to show that they are doing it to keep the customer satisfaction and their stakeholders happy.

2.3.2 Objectives of Internal stakeholders

Employees are a big stakeholder in the Holcim organization as they help run the business effectively. They are the people not only work for the company but also set up company image. Holcim Vietnam likes to keep their employees happy by giving them rewards and benefits for them to enjoy their job. Employees want the following from the company: High salary Flexible working hours Job security Health and safety Good working conditions/ environment Fair treatment Fringe benefits Promotion prospects Training opportunities

Holcim Vietnam has traingings course for their employee before they start work such as JET (Junior Engineer Trainee), GDP (Graduate Development Program) for student after complete their study in university or college, etc1. Continuous training ensures that everyone understands his tasks and has the necessary skills to carry them out. Teamwork allows us to achieve results that are greater than the sum of individual efforts. We motivate employees by demonstrating management commitment to Quality, by setting challenging goals and by giving them responsibility and recognition. It is through employee involvement that goals and targets can be achieved in the shortest time. Quality must be a way of life for everyone in the company.

http://www.holcim.com.vn/vn/con-nguoi-va-cong-viec/tai-nang-tre-tai-holcim-viet-nam.html

The Holcim Vietnam listen to what their employees want and take measures to do them, which is why they offer staff a competitive salary, along with an award winning pension scheme and 31 days of personal holiday entitlement. The group also provide an employee assistance programmer to give them expert advice on a wide range of issues.

2.3.3 Objectives of Connected stakeholders

Customers is very important with business, they like a life blood of business and business defend on them. Customers want the following from an organization like: Low prices Lots of choice, quality including sustainable, healthy and affordable products Good service Innovation Certain and regular supply Clear and accurate information Buy products from a good source

Customers always concern about the price, the quality and the value of goods that they purchase as well as service after sale. In order to satisfy this, Holcim Vietnam had develop a modern management system and customers service system. They have many services for customer such as hotline, email, fax, etc. and they have staff to consultancy work and the program such as buy goods use-friendly system by three steps. 2 Suppliers provide many things which effect on companys activities such as material, technology or services. Suppliers expect the following from the company:
2

Fair prices Large size and high value of contracts A long term relationship with the firm Frequent and regular orders Prompt payment

http://www.holcim.com.vn/vn/san-pham-va-dich-vu/xay-dung-dan-dung/be-tong-tuoi-holcim-home-beton/dichvu-khach-hang.html

The supplier of Holcim Vietnam is incorporate company Sadico Can Tho (SDG). SGD is the company to provide packing for Holcim. 3

2.3.4 Objectives of External stakeholders

The community is a highly concern for the corporation, that is the company needs to bring a good image to it. To be able to that, the enterprise will consider the vital objectives to follow: Employment prospects Safeguarding the environment Acceptance of social responsibility Ethical behavior

The Holcim Vietnam do provide what the community want by creating job opportunities for local people, as well as supporting local suppliers which creates even more job opportunities, this also allows local people to try the fresh local products from suppliers in their region. Therefore, being a powerful local business by relying on the community to buy from them, this generates profits, this allows the company to give something back to the community by helping local causes when it comes to local charities and community groups.4 Government and the general public concern about the organizations relevant law and regulations requirements satisfaction as well as contributing to local community, minimize the health and safety negative effects to the public and the environment. Holcim Vietnam has invested in infrastructure and manufacture, supported local suppliers and created more job opportunities as well as participates in charity activities. The Government expects a lot from organizations and for them to have safe business activitys, the government and regulators expect the following from Holcim Vietnam:
3 4

Compliance with laws and regulations Efficient use of resources Employment Contribution to the national economy

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Payment of taxes

The Holcim Vietnam do comply with the law by acting out the new regulations by providing good construction, green construction material and landscaping to protect environment healthy foods from good sources, as well as creating job opportunities which helps the government, by them not having to pay out as much job seeker benefits. Besides that Holcim Vietnam supports the communities where they do business, hold themselves to the highest standards of ethical conduct and environment responsibility, and communicate openly with public and employees. In conclusion, stakeholders of Holcim have key legal responsibilities for their consumers and employees ensuring that they do not discriminate against anyone who is disabled such as not employing them because of it, they need to ensure the health and safety of their staff and customers are protected and create diversity and equal opportunities for everyone by treating everyone the same with respect on how they would be expected to be treated. The company also has the responsibilities such as ethical practice, by doing business activities that is not harming the environment which will keep their stakeholders happy and ensuring that they provide stakeholders with a good pension but not to over pay.

2.4

Economic systems and resource allocation

Vietnamese economic system is a mixed economy. There are some main characteristics of the Vietnam economic system that will determine how resources will be allocated and used. Firstly, the mechanism of this economic system is basically a free market under the regulation and control of a socialist government. It means that in fact, the company can control their production to make suitable to the change of the market. Besides, the government can control the company in some ways to protect the enterprise or to make more benefits for all of the members of society. The socialist orientation will be apparent when the Vietnamese government tries to achieve economic growth together with development in education, culture while preserving the traditional values of the country. For example, even though the Vietnamese government encourages tourism, it has certain policies preventing excessive exploitation of historical or heritage sites and measures to maintaining them at the same time so as to protect the Vietnamese culture.