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Trinh Phuong Uyen_10170346_BBE_A1

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Contents
INTRODUCTION .............................................................................................................................. 3

EXECUTIVE SUMMARY ................................................................................................................ 4

TASK 1 ................................................................................................................................................ 5

1.1. Legal form ............................................................................................................................ 5

1.2. Vision .................................................................................................................................... 7

1.3. Mission .................................................................................................................................. 7

1.4. Core values ........................................................................................................................... 7

1.5. Goals ..................................................................................................................................... 7

1.6. Objectives ............................................................................................................................. 8

1.7. Stakeholders of ICT........................................................................................................... 10

TASK 2 .............................................................................................................................................. 13

Conclusion ......................................................................................................................................... 17

References ......................................................................................................................................... 18

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INTRODUCTION
International Investment and Construction Joint Stock Company was established on 01 March
1999 under the Establishment License No. 4028/GP-UB in February 1st 1999, issued by the People's
Committee of Hanoi and the Business Registration Certificate No. 055919 in February 09, 1999
issued by Department of Planning and Investment of Hanoi. Over the past 19 years, ICT has been
developing in depth and width. From the year 1999 to 2005, ICT started investing largely in building
construction, trading a large quantity of asphalt, and building three asphalt depots in the North,
South and in the middle of Vietnam. ICT notably ranked the second position in 2014 in the asphalt
supply sector in Vietnam, just behind Petrolimex. In 2009, ICT also started building Chiem Hoa
hydropower plant, which was the first hydropower plant using bulb turbine in Vietnam and set the
first pace in the hydropower sector. What is more, in 2015, ICT attained high position with the 428th
of top 500 huge enterprises in Vietnam. With the existing potentials, International Investment and
Construction Joint Stock Company will further develop to further enhance the position of
enterprises on the Vietnamese market. This assignment will discuss about basic elements of ICT
and assess the way ICT organizes and manages itself.

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EXECUTIVE SUMMARY
In this assignment, I will define the organization of ICT by clarifying their vision, mission, core
values, objectives and goals of the company. Then, I will assess its objectives by using SMART tool.
After that, I will choose some vital stakeholders of ICT, show the reasons why they are important and
analyze what the company does to meet the interests and expectations of stakeholders by using
stakeholder mapping. Next, I will show my understanding about the structure of the company and
critically analyze the interrelationships of several functions of the organization. Last but not least, I
will make the conclusion part to sum up all the learning results of the assignment.

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TASK 1
1.1. Legal form
a. ICT is one of the five largest liquid asphalt suppliers in Vietnam and stands on a par with ADCO,
SHELL, CALTEX and Petrolimex. In the newspaper of Hồ Thu Thủy (2009), from 2003 to 2005,
ICT inaugurated 3 first Asphalt depots throughout Vietnam, which became 3 largest liquid asphalt
depots in Vietnam with huge storage system and flexible tanker system. For instance, ICT Asphalt
01 has been supplied asphalt for many important constructions such as Ho Chi Minh Road,
Central Vietnam, Hai Van Tunnel… In addition, the staffing system of ICT has more than 320
employees, which exceeds 250 employees like other international corporations. According to Ms.
Tạ Hương Giang - the Director of ICT – ASP, the revenue of asphalt production in 2017 fluctuated
from 90 to 120 billion dong; the revenue in 2017 of ICT Chiem Hoa hydropower plant is from
190 – 230 billion dong; ICT Vinh Ha hydropower plant earned 65 – 84 billion dong. As a result,
it can be easily seen that the size of ICT – ASP is large.

b. ICT is a private joint stock company with Board of Directors including 3 people: 1 Chief
Executive Officer (CEO) and 2 Executive Vice Presidents. They are restricted to transfer their
share to the public and should limit the members of the company to 50.

c. There is a legal issue in 2017. In the newspaper of Thúy An (2017), although some new roads
had been completed and put into operation, there appeared a lot of cracks on the road in the
provinces and cities near the Mekong River Delta, such as "potholes" and peeling of road
surfaces… This remarkably resulted in bad influence on traffic safety and public annoyance.
However, ICT made a huge impact on the market. According to Ms. Tạ Hương Giang (2018), her
company made a conference with several experts about asphalt in order to prove that the quality
of asphalt product used in building road was an indispensable part.

d. There are two types of sector:

 Public sector: consists of those companies which are owned and controlled by the
government, the main reason to exist of these companies is to provide services for citizens.
 Private sector: unlike public sector, companies whose private sector are run by individuals,
the only incentive of those companies is to make profit.
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Base on the information stated above, ICT is a private-sector company as it is not owned or
controlled by the government. It also does not belong to Vietnamese. Furthermore, ICT is also a
private limited company because it does not have the annual report on the company’s website.
Also, the stock code is not publicized. It was not until being asked by IBD students, Ms. Tạ Hương
Giang (2018) have indicated the revenue of 4 business areas of ICT in 2017. As it was mentioned
above, the revenue of asphalt production fluctuated from 90 to 120 billion dong. She also said
that those were internal data.
Next, I will show the advantages and disadvantages of ICT when they are a private limited
company.
 Advantages:
 Enduring stability: The company remains unchanged by the death or the withdrawal of any
employees.
 Limited Liability: The shareholders’ liability is limited to the amount of share they invest
in the company.
 Banks are more agreeable to lend money to limited company.
 Reducing costs by claiming VAT back on the purchase of the company.
 Disadvantages:
 The cost for integration is moderately higher than other entities.
 Complicated requirements and procedures of company’s registration.
 The company decreases its legal responsibilities itself. It is wholly liable for debt, profit
and loss of the company. When the issue goes beyond the boundary of the company, the
liabilities may spread to the owners of members.

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Because ICT only publicizes its information about asphalt division, so I can only define its vision,
mission, core values, objectives and goals.

1.2. Vision ICT-ASP desires to become the foremost supplier of asphalt and
asphalt production in Vietnam.

1.3. Mission  Developing sustainably for Community and Society

 Abiding by the law
 Providing the development of infrastructure and transport with
high quality asphalt products

1.4. Core values  Human:

 Humans are considered to be the most valuable sources of
the company
 They are also the root of every single decision, tactic, plan
and action project.
 Production and business: Putting the ethical Serving the
community
 Internal & external
 “You are us”
 “We are a family”
 Benefits
 Individual’s benefits are business’s benefits.

1.5. Goals  Creating the habit of utilizing asphalt for Vietnamese asphalt
customers.
 2 targets of asphalt export:
 Quang Ninh asphalt supply station  Laos
 Quang Nam & My Tho asphalt supply station  Laos &
Cambodia
These are two countries which are close to Vietnam. Even though
they have few sea lanes, they still earn much ODAs from Japan.
This will be an advantage for ICT – ASP in exporting asphalt.

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1.6. Objectives

100.000 150.000 200.000

2018 tons 2019 tons 2020 tons

Figure 1: The objectives of ICT – ASP

ICT – ASP’s objectives that they targeted will be identified by using the SMART tool. Doran
(1981) explained in his article what SMART stood for: Specific, Measurable, Attainable, Relevant
and Time. Three activities of the objectives in ICT – ASP company will be described in the chart
below.

Specific Increase the amount of Increase the amount of Increase the amount of
asphalt products to build asphalt products to build the asphalt products to build
the high way North – South high way North - South the high way North –
South

Measureabl Increasing 50.000 tons of Increasing 50.000 tons of Increasing 50.000 tons
e asphalt products per year – asphalt products per year – of asphalt products per
try to achieve 100.000 tons try to achieve 150.000 tons year – try to achieve
200.000 tons

Attainable ICT ranked the second ICT ranked the second ICT ranked the second
position in asphalt products position in asphalt products position in asphalt
suppliers suppliers products suppliers

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Relevant ICT - ASP achieved half ICT - ASP achieved half of ICT - ASP achieved
of the target output within the target output within the half of the target output
the first two quarters of the first two quarters of the year within the first two
year 2018 (Tạ Hương 2018 (Tạ Hương Giang, quarters of the year
Giang, 2018) 2018) 2018 (Tạ Hương Giang,
2018)

Time-bound 2018 2019 2020

The objectives of ICT - ASP is increasing the amount of asphalt in the period of 2018 – 2020. As
we can see from the chart above, every single year, they aim at augmenting 50.000 tons of asphalt. It
is safe to say that the amount of asphalt ICT wants to increase is quite low. The reason for this is
because ICT desires to build up the brand image with society, they mainly focus on a certain target
with high quality for the market.

Moreover, asphalt quality determines the quality of the asphalt surface and is an important factor
affecting the cost and profitability of the Investor and the Contractor. Thus, ICT only imports asphalt
from 2 famous and big sources: SHELL and ExxonMobil from Singapore. According to the statement
of Ms. Tạ Hương Giang (2018) in the lecture at IBD@NEU, the price of these two sources is quite
high comparing to other sources such as Petrolimex. However, when researching about the price, Shell
asphalt is sold with 11 million dong per ton (Cung cấp nhựa đường, 2018); the price of Petrolimex
starts from 12 million per ton (Phạm Quang Thắng, 2018). As a result, there is a conflict between the
statement of the Director and the fact.

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1.7. Stakeholders of ICT

High Keep satisfied Manage closely

POWER

Minimum Effort Keep informed

Low High

INTEREST

Figure 2 :ICT Stakeholders mapping following

Mendelow’s matrix in 1991 (Botten, 2006)

Notes:
Directors and Managers Employees

Other competitors and their leaders Customers

Finance and Accounting Dept. Admin and Modernization Dept.

Government International Trading Dept.

The figure 2 above illustrates the Stakeholder mapping of ICT company. It can be easily seen
from the map, there are 4 parts is: “Keep satisfied”, “Manage closely”, “Minimum effort” and “Keep
informed” and 7 circles represent for 7 sectors. Those stakeholders above that exist inside of the
company: Directors and Managers, Employees, Finance & Accounting Dept.; Administration and
Modernization Dept., International Trading Dept., they are called internal stakeholders. External
stakeholders of the company are: Government, Customers, Competitors and their Leaders.
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a. Directors and Managers:

Directors and Managers are resented in the red circle and they are one of some factors that should
be managed closely. They have the highest position in both Power and Interest since they not only
manage employees directly, determine how the implementation of ICT will be but also decide the
worker keep working or not. In this way, the organization should figure out the procedures to
improve the benefits of the company in order to make a great impact on their investors to make them
feel satisfied and accomplish their role of managing and representing.

b. Employees:
The blue circle is for Employees of ICT, they are in the middle of the map with average power and
average interest. There is a strong connection between customers and the strategy of directors.
Employees can bring about both drawbacks and benefits for ICT. If they successfully persuade the
customers to use ICT asphalt products, it means they can bring about profits for the company. In
contrary to that, ICT – ASP revenue can be decreased because of the failure from employees.

c. Customers:
The customers is displayed in yellow color and belongs to “Keep informed” lane. According to
Kokemuller (n.d.), customers are those people who influence on the success or failure of the
company. It is because all strategies, activities, productions and services are made to serve customers
with a view to making the revenue back to the company. Moreover, many previous experiential
evidence pointed out that the way how company treated customers could significantly impact on
financial performance.

d. Other competitors and their leaders

This factor belongs to the “Minimum Effort” side with the lowest Interest and Power because they
do not care about other organizations.
e. Government:
The grey circle illustrates for Government, they have high power which can easily affect ICT
company but there is no interest for them. In spite of the fact that ICT is a private joint stock
company, their activates are still under control of the Government.

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f. Finance and Accounting Dept.:

This department plays a vital role in the company. When salespeople talk to the customers, firstly
they have to agree with each other’s decision and then sign the contracts. The financial and
accounting department must revise the operating direct costs and indirect costs, calculate the
company's revenue base on those costs, subtracting all the input costs to figure out the profit.
Likewise, a billing group collect data from customers and the shipping order departments so as to
make invoices which will be sent to customers. All fields of analysis can be modified bases on an
usual basis, there will be many other viewpoints for the manager to view in order to improve financial
results. Besides, they also have the role of cross-control, monitor the limits of customers. Unlike
other products, the company normally sells and collects money right away, the asphalt business is
not the same. The Finance & Accounting department has to give customers a debt limit. Debt limit
is the same as the credit limit.
g. Administration and Modernization Dept.:
All business activities usually arise contract appendices, quotes as well as official document to
recover debts. The role of the Administration department. About the Modernization department, its
role is to control the transport efficiency and internal control during the transportation of the tanker.
For example, when the tank truck abnormally stops and parks, there are only two reasons: eating or
stealing asphalt from the tank truck. When the regulator finds something suspicious, they will blow
the whistle.

h. International Trading Department:

Asphalt is a limited material source that is not always available, especially high quality sources such
as Shell and ExxonMobil are not easy to buy. All these activities must be through trading. For
example, to order products for this month, this department has to make a deal 2 - 3 months before,
they even have to deposit a large amount and sign contract to get goods to Vietnam. In South East
Asia, their demand is very strong as the construction sector is growing. For International Trading
Department, it is important to sign contracts with the Shell Group. As a result, the import and export
goods to Vietnam is the number one requirement for this department.

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TASK 2
The figure 3 below will describe the structure of ICT. Like many other international organizations,
ICT used a categorized structure that based on the model structure invented by Andreas Lendlein in
2005. It is really appropriate for large organizations like ICT to use this kind of structure as it brings
about a lot of benefits. First of all, by mixing the divisional, functional and product-based structure,
the Hybrid assists ICT in achieving it. This reason is quite effective, in reality when the company does
not have its asset, the company still can run splendidly; it will also ensure the volume and nature of
work. Besides, thanks to the adaptability in the structure which helps the company to facilitate the
relationship between the board of directors and the association to be better. As a consequence, the
profit of the organizations will be increased. Whatsoever, everything has two sides, there are still some
drawbacks of this structure that ICT has to face with.

Figure 3: The structure of ICT company

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As it can be seen from the structure above, Board of Directors have the highest power including
three position: 1 Chief Executive Officer and 2 Executive Vice Presidents. Next is the General
Director, because two positions Deputy General Director for Technical Affairs and for Internal Affairs
have functional interrelation with Board of Directors so they are split into two positions separately.
There are 5 mangers reporting to 2 Deputy General Directors and 3 to 4 departments reporting to only
one manger. The span of control is quite large as the company consists of more than 320 employees.
According to Ouchi and Dowling in 1974, how close the relationship between managers and
employees is considered to be measured by the span of control. With the large span of control in ICT,
it might result in low productivity in some ways if they do not communicate much with each other.
Moreover, ICT has 4 different branches so they used product-based structure to separate two
hydropower plants: ICT Vinh Ha hydropower plant and ICT Chiem Hoa hydropower plant.

Head of
Market
Surveillance

Block depot
Sales force
unit

Depot Deputy Depot

Manager Manager

Security
Accountants Operators Drivers Maintainance
guards

Figure 4: The structure of an asphalt depot

The Head of Market surveillance has the highest position, then the Sales force and the Depot unit.
Every depot has one Depot manager and one Deputy depot manager along with constant 4 operators,
4 security guards and 4 maintenances. The depot manager and deputy depot manager supervise all the
activities of their subordinates and inform to the Head of market surveillance.

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The duties of the accountants are carefully recording all of the amount of asphalt that has been
imported, exported, and all small operations that serve the depot. The security guards control all the
asphalt tank truck when they are moving in order to ensure that the tanker can not take the asphalt out
to sell or it is even more dangerous that they mix the asphalt with other substances. There is still
enough amount of asphalt but with very poor quality.

Technology is a threat or an opportunity?

At the present, technology can be considered as a supportive tool for all of the activities in ICT.
Especially with the asphalt production company like ICT, technology is applied quite a lot with several
software, such as management of customer debt, management of vehicle tank truck (GPS positioning
software, tank truck sensor system, security camera system at each station as well as on each tank
truck). With the application of such technology, it helps a lot in time-management, accurate, scientific
and effective. However, the biggest threat to using technology in management is leakage of
confidential information. Besides, as we depend too much on the technology, when the technology is
broken, we will be somewhat passive in management.

The interrelations of some departments in ICT and how they link to each other

Each department in ICT and their particular task are closely related. Take Human Resources
Department as an example, their ‘main task is to supervise all employees of the company and manage
plenty of processes which are correlated. Normally, people only consider: recruiting, training and
developing, motivating, compensating and ensuring insurance are HR dept.’s main tasks. What is
more, the HR department in ICT has to interact with all other departments in the company, which is
called interrelating. As it was mentioned above, the size of ICT is large with over 320 employees
and the size of HR team is quite small, so this might be an exasperating matter for HR team. In order
to solve this problem, ICT should broaden their knowledge and enlarge the HR department’s size.
Another outstanding example is the Finance & Accounting dept. is also an interrelated department.
A company whose strong financial status can invest in many projects from all departments.

The interrelation among International Trading dept., Finance & Accounting dept. and Sales dept.
is also another example. Firstly, asphalt products are normally sold to many organizations rather than
individuals because asphalt is virtually never sold to individuals. Whenever any company wants to
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buy asphalt, they always buy in a such a huge quantity. Therefore, the suppliers, whom ICT – ASP
imports asphalt from, always compel the company to make a deal 2 to 3 months before. The job of
International Trading dept. is to negotiate with the partner to import liquid asphalt at a suitable price,
then two sides will both agree and sign the contract. But before signing, the price must be accepted
by the Finance & Accounting dept.. They have to carefully calculate all the costs and forecast the
selling price, so that at the end the company can earn profit. Secondly, since the Sales department
spends most of their time approaching to customers so they know best how to meets the customers’
needs and wants. Therefore, they will be able to tell the Finance & Accounting dept. to raise or
decline all costs and prices.

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Conclusion
After completing the assignment on the investigation of International Investment Construction and
Trading Corporation, this company expounded the change in the construction context. Firstly, this is
such a sorted out company, it has an outstandingly itemized scheme for the next three years. They
achieved such progressive outcomes from starting point with high revenue, such as ICT Chiem Hoa
hydropower plant earned 190 – 230 billion dong, ICT – ASP earned 90 – 120 billion dong for asphalt
products, etc.,… Secondly, the company successfully built in up their brand image in the mind of
customers. Last but not least, all branch offices are closely related to all other subsidiaries / divisions
of ICT company. They brought good administration for the customers and allocated regularly benefits
for the investors.

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References
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