Improvement the business strategic efficiency of saigon mart supermarket chain

THESIS
"Improvement the business strategic efficiency of
Saigon Mart supermarket chain"

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TABLE OF CONTENTS

FINAL ASSIGNMENT ............................................................................................................ 1
EXERCISES OF STRATEGIC MANAGEMENT ............................................................... 1
PREFACE ................................................................................................................................. 4
I. REASONS FOR TOPIC SELECTION .............................................................................. 4
II. Research objectives ...................................... 5
III. Research methodology ........................................................................................ 5
IV. Research scope ........................................... 7
CHAPTER 1 : THEORETICAL BASIS ............................................................................... 8
1.1 What is strategic business management? ............................................................................. 8
1.1.1 Overview about management ............................................................................................ 8
1.1.2. Definition of strategy ........................................................................................................ 9
1.1.3. Definition of business ..................................................................................................... 10
1.1.4. Strategic business management ...................................................................................... 10
1.1.5. Pros and cons of strategic business management .......................................................... 11
1.2 Influential factors to strategic business management. ....................................................... 12
1.2.1. Company’s business environment .................................................................................. 12
1.2.1.1. Macro environment of a business ............................................................................... 12
1.2.1.2. Macro economic environment ..................................................................................... 13
1.2.1.3. Operating environment ................................................................................................ 14
1.2.1.4. Internal situation of a business .................................................................................... 17
1.2.2 Identifying functions, mission and objectives of strategy ................................................ 18
1.2.2.1 Identifying functions ..................................................................................................... 18

1.2.2.2 Identifying mission ........................................................................................................ 19
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1.2.2.3 Identifying objectives .................................................................................................... 19

CHAPTER 2 : FACTORS INFLUENCING ON THE BUSINESS OPERATONE OF
SAIGON MAR ........................................... 21
2.1 Overview about system of Saigon Mart supermarket…………….……21
2.1.1 History of establishment and development ...................................................................... 21
2.2 Organizational structure .................................................................................................... 21
2.2. Factors influencing on the business operation of Saigon Mart .... 36
2.2.1 General Development objectives and orientation of the company .................................. 36
2.2.2 Overview about socio-economic situation of Vinh Yen city - Vinh Phuc province ....................... 36
2.2.3 Competitiveness assessment ............................................................................................ 44
2.2.4 Study on characteristics and demands of customers ....................................................... 52
2.2.5 Analysis of internal operation of the company ................................................................ 53
2.2.5.1 Analysis of prestige and infrastructure ........................................................................ 55
2.2.5.2 Financial factors........................................................................................................... 56
2.2.5.3 Marketing activities ...................................................................................................... 56
2.2.5.3.1 Assessment of product factor ..................................................................................... 57
2.2.5.3.2 Assessment of distribution network ........................................................................... 59
2.2.5.4 Assessment of human resources ................................................................................... 60
2.2.5.5 Assessment on information and technology.................................................................. 63
CHAPTER 3 : STRATEGIC SOLUTION TO IMPROVE EFFECTIVENESS OF
BUSINESS ACTIVITIES OF SAIGON MART SYSTEM IV .......................................................... 66
3.1 Optional measures .............................................................................................................. 66
3.1.1 SWOT analysis ................................................................................................................. 66
3.1.2 SPACE Matrix analysis method - Matrix of strategic position and activity evaluation ....................................69
3.1.3 Main strategic matrix analysis technique ........................................................................ 70

3.2 QSPM Matrix- Choosing feasible strategies ...................................................................... 71
RECOMMENDATIONS AND CONCLUSION.................................................................. 73
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I. Conclusion ............................................................................................................................. 73
II. Recommendations ................................................................................................................ 76

PREFACE
I. REASONS FOR TOPIC SELECTION:
Vietnamese supermarket chains have been developed and diversified for recent years
with the participation of many enterprises. State-owned-Enterprises include
supermarkets such as: Hapro, Fivimart, Joint Stock Enterprises include: Citimart,
Saigoncoop mart, Vinatexmart, Joint Venture and 100% foreign capital enterprises
include BicC, Mertro … Besides, many supermarket chains such as Wallmart…are
putting their eyes on Vietnamese market, which create favorable environments for
supermarket business development in the international integration tendency.
In such integration tendency, the business strategies have been playing a more and
more important role for the existence and development of any enterprise, including
supermarket business enterprises. Firstly, the business strategy fosters enterprises to
identify their own purposes and guidance; those are the foundation and guideline for
all enterprises’ activities. Successively, in the variable and rapidly developing business
environment, the business strategies will facilitate to catch up and optimize the
business opportunities simultaneously, find the solution actively and come over the
dangers and perils in competitive markets. Furthermore, the business strategies also
contribute to advance the resource utilization efficiency and enforce competitive
position ensuring the continuous and sustainable development of enterprises. Finally,
the construction and execution of the business strategy also create sustainable bases to
propose policy and rational decisions in line with the ups and downs of the market.
The actual operation of retail industry shown that, if the enterprises adopt the right business

strategy, with broad vision, action thought creation, towards the specific strategic objectives,
those enterprises are able to exist and succeed in competition today, on the contrary, those will
strand a hard stage, non-efficient operations or go to bankruptcy.
Therefore, the core issues of enterprises are to give orientation of long-term development
through sound business strategies which is set up suitably with current context and adapted
to capacity, position of each enterprise in such variable market with more and more server
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and exciting completion. Those are the reasons to select the theme “Improvement business
strategic efficiency of Saigon Mart supermarket chain”.
II. Research objectives:
Selection the theme Improvement business strategic efficiency of Saigon Mart
supermarket chain” aims to:
1.

Analyze the impacts of business environment over the operation of
supermarket business.

2.

Be aware of opportunities and challenges, the strength and weakness of the company.

From these findings, necessary business methods will be proposed to increase the
efficiency of business strategies of the Company.
III. Research methodology:
The research of this theme is conducted with following methods:
Step 1: Collect the data through:
 Documents of the researched location (Saigon Mart supermarket)
 Reference to the relating documents

 Actual observation at the researched location
 Or interview directly managers of the researched location
Step 2: Analyze the collected data with some of following methods:
-

Comparative and synthetic methods: compare among different periods of
the year then come to conclusions.

-

Inductive method: method that goes from small details to the general conclusion.

-

SWOT analysis method: is the technique to analyze and process the
research results on business environment, basing on which a scientific and
suitable strategy will be proposed to the enterprise.

SWOT can show a connection for each couple of factors perfectly or the connection
among 4 factors. Those connections will help the Enterprise to form the strategies
efficiently in order to make full use of outside opportunities, reduce or avoid threats,
on the base to optimize the strengths and overcome the weaknesses. The connection
between SWOT expressed as the below chart:
S : Strengths
W: Weaknesses
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O : Opportunities
T : Threats

 Analysis method by SPACE Matrix (strategic position matrix and activity
evaluation): This method shows whether the strategy of attack, discretion,
deference or competition is the most adaptable to one organization. Accordingly,
FS is Financial Strength, CA is Comparative Advantages, ES is Environment
Stability and IS is Industry Strength. Official strategic matrix method: is also a
popular tool to form optional strategies. Official strategic matrix is based on 2
aspects to evaluate: competitive position and the market growth. Matrix consists of
4 quadrants: The Quadrant I indicates the best strategic position, Quadrant II
indicates the necessity to evaluate carefully the current measures for the market,
the Quadrant III indicates competition among the low-growth-industries and weak
competitive position, and Quadrant IV indicates that Enterprises is at the strong
competitive position but lying in the low-growth level industries.
FS
+6
+5
+4
+3
Careful

+2

Attack

+1
CA

-6

-5

-4

-3

-2 -1

0

+1

+2

+3

+4

+5

+6

IS

-1
-2
Defense

-3

Competitive

-4
-5
-6
ES

Chart 1.1

 Analysis method by QSPM Matrix (Strategic planning Matrix can quantify):
This analysis technique will express objectively which the best alternative
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strategies are. QSPM Matrix adopts the input data owing to analysis from EFE
matrix, competitive image matrix, IFE matrix. Then, receiving the necessary
information to set up QSPM matrix from SWOT matrix, SPACE matrix,…
IV. Research scope:
This theme is only studied Sai Gon Supermarket Mart chain. Specifically, the research
is conducted basing on the figure base, practical situation of the Saigon Mart
supermarket, because, currently each Saigon Mart supermarket is under management
of a separate company. Researches and current figures are only the general data of
researched location. When this report is accomplished, this chain can be merged into
Sai Gon Supermarket Mart Joint Stock Company to complete Southwest Saigon
supermarket chain. The given solutions in this theme only mentions to current Saigon
Supermarket Mart system.

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CHAPTER 1 : THEORETICAL BASIS
1.1 What is strategic business management?

1.1.1 Overview about management:
Management is a process to attain desired objectives by cooperating resources of an
enterprise effectively. From this concept, it can be referred that management is necessary
and continuous activity for existence and development of every organization.
An objective of management is to produce surplus value, i.e. to find suitable method to
perform tasks the most effectively at the best cost. Therefore, the reason for the
existence of management is the desire for effectiveness and only when people concern
about effectiveness, do they concern about management.
In other word, management in business is a process of planning, organizing
cooperation and controlling activities of members, departments and functions of
business to mobilize maximum resources in order to achieve preset objectives of
organization. Hence, management includes four basic functions: planning, organizing,
leading (directing), and controlling business process. The tight relationship of these
functions is shown in the following diagram:

PLANNING
Set-up objectives and
define the best way to carry
out these objectives

SUPERVISION
Inspect and evaluate the
activities to obtain the
targets

ORGANIZATION
Allocate determine, and
arrange of human
resources

LEADERSHIP
Influence on other
people, work together
towards the targets of the
organizations

Chart 1.2
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Besides, decision making process contain the following steps:
Step 1: Analyzing problem specifically, finding the nature of that problem.
Step 2: Set up possible approaches
Step 3: Compare and select the most feasible approach.
Step 4: Select the most optimal approach.
Step 5: Implement selected approach
Step 6: Evaluate the implementation of that approach
1.1.2. Definition of strategy:
Strategy consists of objectives and policies which are set up in long term on the basis
of exploring maximum resources of an organization to obtain development objectives.
Therefore, a strategy should be in form of a plan or general action diagram directing a
company to expected objectives.
A strategy should include the following factors simultaneously:
- A strategy has to be drafted in relatively long term.
- A strategy has to create development for an organization
- A strategy has to explore maximum resources and use current resources effectively.
After drafting appropriate strategy, it is a must to transfer it into policies, action plans
to reach preset objectives via an effective organizational structure. Features of strategy
implementation are:
o All managers are participants of strategy implementation within their scope

of power and responsibilities, executors are participants who work under
managers’ direction.
o Strategy execution is considered to be successful when a business achieves
its objectives and makes progress in striving for advantages and power in
comparison with competitors and predetermined mission.
o Strategy execution is a combining process between scientific and artistic
features of management.

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1.1.3. Definition of business:
According to Article 9, Company Law of Vietnam, issued on February 2nd 2009, “Business is
to implement all steps of process of investment into production, product consumption or
deliver services on market to gain benefit”. As a result, it is possible to understand that:
Business includes activities to gain benefits of enterprises on market.
1.1.4. Strategic business management:
Strategic business management is a process in which managers define long- term
objectives and directive approaches to attain objectives on the basis of using the
maximum of current resources and resources which are possible to mobilize.
Specifically, strategic management is a process researching current as well as future
environment, planning objectives of a company, drafting, implementing and
controlling decision implementation to achieve those objectives in current as well as
future environment.
The aim of one strategy is to search opportunities, in other words, to increase
opportunities and grow up to a competitive position. Hence, strategic management is a
process including three main stages:
- Stage of planning and setting strategy
- Stage of executing strategy
- Stage of controlling strategy

To set up a suitable and effective strategy, it is essential to take into accounts
influential factors such as: strengths, weaknesses of business, opportunities and threats
from external environment, mission and objectives of business.

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Function, tasks and
objectives of Enterprise
Internal analysis

External analysis

(S/W)

(O/T)

Selection the suitable
strategy

Strategy Implementation

Checking and evaluation the
implementing results

Feedbacks

Chart 1.3: The components of strategic management process

1.1.5. Pros and cons of strategic business management:

If strategic management is effective, a business will get some advantages as follow:
-

Define clearly direction of a company in the future.

-

Understand opportunities and threats in business at current and future point of time,
then take advantage of opportunities, reduce threats, stimulate a company to
overcome competition and achieve goals.

-

Make right and suitable decisions to changing environment, enhance business
productivity and growth.

-

Set up better strategy of business development, motivate employees to unify and cooperate.

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The most practical function of a strategy is to help company increasing sales revenue,
working productivity, managerial effectiveness, avoiding financial risks, rising
capabilities of protecting and avoiding company’s difficulties.
Although, strategic business management is crucial to existence and development
of a business, it brings about specific difficulties to a company such as:
-

High cost of time, money and efforts in initial time.

-

Ease of creating toughness in organizational operation.

-

If predictions are too different from practice, organizational activities will have difficulties.

-

Suspicion of helpfulness to organizational strategic management if strategy
execution is not concerned enough.

For above reasons, a company should have appropriate approaches of strategic
management to avoid losses. It is critical to analyze thoroughly, exactly factors
affecting strategic business management.
1.2 Influential factors to strategic business management.
According to “Components of strategic management process”, there are two main
factors affecting a company’s strategic management. They are: company’s business
environment including external and internal factors, functions, mission and objectives
of company. Firstly we will take a look at business environment.
1.2.1. Company’s business environment:
It is said that: business environment include factors, conditions which have direct or
indirect effects to business activities of an enterprise. In terms of level of effect to
business management, operating environment of a company has three main levels as
the following diagram:
1.2.1.1. Macro environment of a business
MACRO ECONOMIC ENVIRONMENT

1. Legal- political factors

2. Economic factors

3. Technological factors

4. Cultural- societal factors

5. Natural factors
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OPERATING ENVIRONMENT
1. Competitors
2. Bargaining power and needs of customers
3. Current and potential competitors
4. Substitute products of business’ products
5. Combining relationship
INTERNAL SITUATION
1. Human Resources
2. Research & Development (R&D)
3. Production
4. Finance- Accounting
5. Marketing
1.2.1.2. Macro economic environment:
Macro environment analysis helps business to answer a part of the question: What is a
company facing?
Economic factors:
Economic factors such as: bank interest rate, stages of economic period, financialmonetary regulations, exchange rate policies, inflation rate….. have crucial effects on
businesses’ operations.

Legal- political factors:
Legal and political factors have an increasing impact on activities of businesses, they
include: system of regulations, current legislations, tendency of government’s
diplomatic relationship, domestic, region and international political movements.
Businesses must act in accordance with regulations on tax, lending, safety, costs,
advertising, factory location and environmental protection…

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Cultural- societal factors:
Cultural- societal environment contains standards and values which are accepted and
respected by one society or specific culture. Cultural- societal factors often have long
term and more sensitive impacts than other factors, in many cases, these impacts are
difficult to recognize.
However, cultural- societal environment have strong impacts on business activities, is
often defined by such factors as: moral, aesthetic concept, lifestyle, occupation,
customs, traditions, social concerns, education level,…
Natural factors:
Natural conditions include: geographic position, climate, landscape, soil, sea,
underground mineral resources, marine and forest resources, cleanliness of water and
air environment…
Influences of above factors on business decisions have been acknowledged by
enterprises. In many cases, natural conditions become important factor to establish
competitive advantages of products and services.
Environmental pollution, low quality products, wastes of resources, greater demands
and limited resources require businesses to change their decisions and related
approaches to their business operation.
Technological factors:
This is one of the most active factors, containing many opportunities and threats to

companies. Therefore, companies have to be watchful with new technologies because
they may make their products obsolete directly or indirectly, besides profits deriving
from technological developments.
1.2.1.3. Operating environment:
Operating environment includes industrial factors and external factors to business. It decides
nature and competition of that sector. This environment is a composite of five basic factors:
competitors, buyers, suppliers, potential new entrants, substitute products. This relationship is
shown in the following diagram:

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NEW IMPLICIT
RIVALS

Threats arises
new rivals

SUPPLIERS

Price
squeeze
capacity of
suppliers

RIVAL
S IN
INDUSTRY

Price

squeeze
capacity of
consumers

COMPETITIONS OF
EXISTING
ENTERPRISES IN
INDUSTRY

CONSUMER
S

Threats owing to
potential products and
services substitute

SUBSTITUTION
GOODS

Chart 1.4: Operating background in industry
The way to capture a successful strategy is to analyze strengths, weaknesses of a company
and threats, opportunities that a sector is facing.
+ Competitors:
The competition level depends on correlation of the following items: number of rivals,
sector’s growth rate, and fixed cost structure and product differentiation.
Rival firms will decide nature, competitive rivalry or tactics to improve their market
positions and competitive advantages over the others. Therefore, enterprises need to
observe and analyze each competing firm to catch and under their responses,
countermoves which they may deploy. For that reason, some basic problems should be
thoroughly researched:

 Identify and set up company’s objectives

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 Verify essential potential, advantages and disadvantages in distribution, sales,
marketing…
 Consider unity of objectives and strategies of rivals.
 Find out adaptability and tolerability (ability to cope with a long competition),
ability to react (offensive ability) and capability of growth of competitors
+ Customer:
Customer is an irremovable pattern of a competitive battlefield. If a company can meet
customers’ demands and tastes, it will capture customers’ reliance- the most valuable
asset of a company.
Customer may reduce firms’ profitability if the have sufficient bargaining leverage to
obtain price concessions or demand better quality and other favorable terms and
conditions of sale. In case a firm can not capture targeted objectives, it has to negotiate
with customers or find less bargaining power customers.
As a result, a firm should classify current and future customers, define targeted ones to
have accurate business strategy.
+ Supplier:
A company need to have cooperation with suppliers of various sources such as:
materials, equipments, labors, finance.
-

Regarding material suppliers: to avoid material, equipment suppliers to exert
competitive pressure on firms by increasing price, reducing product quality,
terms and conditions of service supply, firms should have various suppliers,
minimize monopoly situation and consider supplier selection carefully.

-

Regarding capital suppliers, at any given point of time, most of enterprises, even
profitable ones, have to borrow temporarily from sponsors by using short- term,
long-term borrowings or issuing shares.

-

Labor resources are also a central part in competitive environment an enterprise.
Capabilities of attracting and retaining qualified employees are foundations for
business success.

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+ New potential entrants:
New potential entrants may be firms’ future competitors. Although a firm may not
encounter new potential entrants, threats of likely entry candidates will affect existing
business strategy of current sector members. Therefore, current enterprises should
forecast these new potential competitors to prevent outsiders’ entries and protect
current competitive position.
+ Substitute products:
Substitute products will create competitive pressure to limit potential profitability of
the sector due to limitation on maximum price. Most of substitute products are results
of technological booming. To get accomplishments, enterprises should pay much
attention to and spend appropriate resources to develop or apply new technology in
their new strategies.
1.2.1.4. Internal situation of a business:
Detailed analysis on internal situation of a company to verify strengths, weaknesses
can be useful for enhancing strengths, diminishing weaknesses and maximizing

competitiveness. Managers will be more aware of internal situation by analyzing the
main following factors:
Human resources factors:
Human resources play an important role to enterprises’ success. Because people collect data,
draft objectives, select, implement and control business strategies and to it is impossible to
gain good outcomes without efficient labor forces. To evaluate a firm’s human resources,
there are some issues to take into account: qualification, experience, skillfulness and
personality of employees, labor policies, balancing ability between maximum and minimum
use of labor, capabilities, consideration and qualification of top management level…
Research and development factors:
Efforts of research and development may help an enterprise to maintain sector
leadership. On the contrary, it may lag behind others without good R&D. Thus, an
enterprise has to innovate its technology, develop materials and products frequently.

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Production factors:
Production is one of the initial activities to create products, and then it has strong
effects on business’ success. It is beneficial for a firm to produce comparatively good
quality product at comparatively low costs. Because it leads to better product
consumption, financial economization and positive attitude among employees. Factors
to consider here are price, availability of materials, inventory turnover, manufacturing
tools allocation, productivity and depreciation of equipments, cost and technological
capacity compared with the whole sector and with other competitors…
Accounting- financial factors:
Functions of financial department include analyzing, planning and investigating
implementation of financial plans and situation of an enterprise. Financial department
has deep effect on overall a company. Managers should pay attention to some financial
indicators as following: ability to mobilize capital in short- term and long-term, total

capital of a company, flexibility of capital structure, ability to take advantage of
financial tactics, price reduction controlling, effective accounting system, financial
plans and profitability…
Marketing factors:
Functions of marketing department include analyzing, planning, implementing and
controlling implementation of planned programs; maintain relationships and
communication with customer on win-win principle. Therefore, marketing
management is responsible for adjusting level, time and nature of customers’ demand
to obtain targeted objectives.
1.2.2 Identifying functions, mission and objectives of strategy
After having specific evaluations on a company’s situation, it is necessary to care
about important factors in strategic business management: functions, responsibilities
and objectives of strategy.
1.2.2.1 Identifying functions:
Identifying functions of strategy helps to select the right objectives, success of an
organization and its strategy. Simultaneously, it helps to build a good image and

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reputation in community, society and attracts related stakeholders (customers,
suppliers, governors…)
1.2.2.2 Identifying mission:
Mission is a long-term valuable statement representing business method, beliefs and
ideas of organizational participants.
Identifying strategy mission brings about the following benefits:
 Uniting policies
 Basis for mobilizing organizational resources to obtain targeted goals.
 Reciprocal distribution
 Shaping workplace and corporate culture.

To identify mission of a strategy, it should be considered some following factors;
 Verification of a firm’s customers
 Current used technology
 Self assessment
 Care about organizational members
1.2.2.3 Identifying objectives:
Objectives are expected and necessarily achieved outcomes of an organization after
given time. Objectives will address "Why does our enterprise exist?"
Features of a strategy's objectives are:
 Measurability
 Achievability: it is possible to implement those objectives in reality. They are
expected outcomes of a business then they should be executable and able to be
finished in practice, otherwise they become useless.
 Unity: Objectives should be correlated; completion of these objectives will not
harm the other ones but be mutually supportive which set up unification in one
organization to achieve common objectives.

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 Reasonability: if there is no acceptance of people, it will be difficult to set and
implement objectives. Human is a key factor which is both subject but also
objecting of objectives. Consequently, objectives must be ensured reasonability,
flexibility and uniqueness.
 Flexibility: Objectives should be flexible enough to adapt to changing
environment, avoid and reduce threats of breaking structure.
 Objectives should be specific and attached to each functional area. The more
specific objectives are the easier to set up strategy.
When setting objectives, some questions should be taken into consideration such as:
who is customer, how is differentiating capability, what is demand.

There are many criteria to classify objectives; however, managers are usually
interested in development objectives of an enterprise. Setting objectives often
encounters some challenges stemming from:
 Business owners tend to reach profit maximization
 Employees tend to protect their safety and stableness
 Customers require firms to satisfy their demands efficiently.
 Managers manage development by their habits
As a result, when setting objectives of strategy, managers have to combine, harmonize
and solve disputes among stakeholders.
CONCLUSION
Researching environment is to analyze internal and external environment collectively in order
to make efficient use of strengths, exploiting opportunities and be aware of its own weaknesses,
avoiding threats from environment. At the same time, analyzing and identifying functions,
missions, objectives of strategy also make great contribution to road mapping enterprise,
defining influential factors of strategy. These are important data for executing functions of
strategic management, from the stage of drafting to the stage of organizing, controlling and
developing this program.

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CHAPTER 2 : FACTORS INFLUENCING ON THE BUSINESS
OPERATONE OF SAIGON MART
2.1. Overview about system of Saigon Mart supermarket:
2.1.1 History of establishment and development:
A supermarket system of Saigon Mart was ever a small self-selective shop, first
established in Lao Cai city in 1999, a province of North East region. The founder was
Ms Doan Le Cat Tien who had been an accountant at the supermarket system of
Citimart, one of the first supermarkets in Hanoi. In 2002, this self-selective shop was
converted into supermarket with an area of 3000m2 in Lao Cai province, at the same

time opened the second Saigon Mart in Yen Bai City, Yen Bai province with an area
of 500m2. In 2005, due to strong development of supermarket, increasing demand for
goods, pressure on order, goods transportation, goods resources, it was difficult for
activities of supermarket because of geographic conditions.
In November 2005, supermarket of Saigon Mart in Ha Dong was established to
develop business in Ha Dong City, to provide enough goods sufficiently, conveniently
for current supermarket system.
In December 2008, Saigon Mart in Ha Giang was established with an area of 500m2,
located in the centre of Ha Giang town to meet the shopping demand of Ha giang citizens.
On April 19th 2009, supermarket of Saigon Mart completed Saigon Mart Vinh Yen in
Vinh Phuc province with an area of 10000m2. It is the largest supermarket of the
Saigon Mart system. It operated to provide goods to the whole Vinh Phuc province.
Simultaneously it was a centre distributing goods to the whole system.
Supermarket system of Saigon Mart has functions of wholesaling; retailing products of
consumption, electronics, food, cosmetics…The main operation field is Hanoi and
North East provinces. The supermarket system operated in accordance with business
law. Board of management included directors of other Saigon Mart Supermarket.
2.1.2 Organizational structure:
The supermarket system of Saigon Mart has direct management model, each manager
of member supermarket is in charge of that supermarket. Strategic policies, decisions
are agreed by Board of Management with supporting ideas of individuals. That is a
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united management mechanics with financial strength, but separate and active
financing of each unit.
Currently, there are 121 employees, among whom there are 40 business and
management officers. They are all hard working, excellent officers. Additionally, the
system also has one company with retailing spots at more than 10 towns, districts of
Yen Bai, Lao Cai, Ha Giang provinces and some in Phu Tho province.

Organizational management of Saigon Mart applies directly functional model, in
which the leader has a complete right to manage, direct and make use of functions of
all departments. Those departments search their tasks and functions, and then propose
their ideas to Board of Management to reach final decisions.
The current management model of Saigon Mart system includes the following
functional departments:
Board of Management:
Board of Management is the leader of company, representing for all employees of the
company in accordance with Business Law of the state and company’s targeted objectives.
Manager is elected by company’s members, responsible to the State and employees for
business activities of the company. Manager controls management system by combining
administrative and economic, financial management:
BOARD OF DIRECTORS
DR. SAIGON
MART HANOI

DR. SAIGONMART
LAO CAI

DR. SAIGONMART
YEN BAI

DR. SAIGONMART
HGIANG

Business

Accounting

Sales Department

Marketing Dept.

Department

Financial Dept.

Development Dept

Project Dept

Wholesales Dept.

Retail Dept.

Chart 2.1 :ORGANIZATIONAL CHART OF

SAIGONMART SYSTEM
22


He or she manages systematic actives in compliance with directions and plans of Board
of Management.
 Issuing policies of activities management of functional departments and
assigning functions, responsibilities of professional, managerial departments.
 Having the right of electing, eliminating responsibilities of head, deputy of
managerial, professional departments in a company (except for financial and
accounting department).
Financial Accounting Department:
Functions and responsibilities of financial and accounting department are regulated in

Decree of Ministry of Finance regarding financial statements regulations, reservation
of accounting documents...and regulations of responsibility, rights and internal
accounting of business results of each company as well as of the whole system. In
addition, the department is also in charge of:
 Building, planning and executing economic contracts according to state laws.
 Analyzing, evaluating exactly economic activities of the company according to
state regulations to propose solutions and effective business plans.
 Managing materials, properties of the company. Giving advisory to director in
managing and using capital efficiently. Organizing statistics and statistical mechanism
which is suitable with functions, tasks and development targets of the company.
 Investigating, directing professional departments, units to implement accurately
statistics, records in financial, accounting, auditing activities.
Functions:
-

Implements tasks related to profession of finance accounting according to
Government regulations on accounting standards, principles...

-

Supervises, reflects movements of company’s capital under every type and
consults Board of Management on related problems.

-

Counsels Board of General Management on accounting policies, changes of
accounting policies across periods of business activities.

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-

Cooperates with other departments to create a dynamic, effective management
of information network.

-

Takes part in building Quality Management System, Environment Management
System and Social Morality Management System.

Tasks:
-

Records, calculates, reflects current numbers, situation of rotating and using
assets, materials, capitals; process of outcomes of manufacturing and business
process, use of company’s ccapital.

-

Investgates performance of business and production plan, receivables and
payables of financial plan, collecting and payment, checks the protection and
use of assets, materials, capitals, detects and prevents wasting, violating
company’s mechanisms and regulations.

-

Disseminates state policies, mechanismss of financial management to related
departments if necessary.

-

Provides numbers, documents supporting business management, investigates,
analyzes financial and economic activities, serving activities of planning and
supervising plan implementation. Provides reports to concerned parties
according to current policies of financial, accounting reports.

-

Reports business performance to company’s Board of General Management.

Chief Accountant:
Responsibilities:
-

Organizes accounting activities, makes statistics and controlls accounting sector
which is suitable with organization of business, production in accordance with
existing and developing requirements of the Company.

-

Organizes to record, calculations and reflects accurately, hornestly, apporiately,
sufficiently the whole assets and analysis of production, business outcomes of
the Company.

-

Defines and reflects accurately, apporiately the periodical result of asset
statistics. Proposes solutions on losses, decreases (if any).
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-

Approves accounting reports, statistics and financial reports of subordinate divisions.
Makes, genealizes sufficiently and submits apporiately accounting reports, statistics
and financial statements of the Company according to defined mechanisms.

-

Organizes investigating internal accounting activities of the company and
subordinate divisions (if any).

-

Researches policies of taxation, finance, statistics, business law... of the Government
related to company activities in order to suggest an appropriate execution.

-

Disseminates and directs current mechanismss on finance, accounting, statistics
to subodinators and related divisions.

-

Maintains, archives accounting documents, keeps secret on accounting
documents and numbers of the Company.

-

Takes responsible of numbers in financial and accounting reports of Member
Council, Board of General Manager and concerned parties.

-

Supervises and reflects financial situation of the Company accurately.

Deputy Chief Accountant
Responsibilities:
-

Depending on real requirements, capabilities and assignments of Chief Accountant,
the Deputy chief accountant may share one or more tasks of Chief Accountant.

-

Except for authorised document (with Deputy chief accountant’s agreement), in
other cases, Deputy chief accountant is not responsible for legal obligations of
tasks in which he/ she is on behalf of Chief Accountant.

-

Approves accounting, statistics reports, financial statements of subordinate
divisions on behalf of Chief Accountant. Creates, generalizes sufficiently and
submits accounting, statistical reports and financial statements of the company
according to defined mechanisms.

-

On behalf of Chief Accountant, Disseminates and directs current mechanisms

on finance, accounting, statistics to subodinators and related divisions.

-

On behalf of Chief Accountant, organizes to maintain, archive accounting documents.

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