Business environment of Nam Duong Company

Contents

EXECUTIVE SUMMARY:______________________________________________________3

TASK 1: AN INTRODUCTION OF THE BUSINESS AND BUSINESS ENVIRONMENT:_4
1.1) Provide a briefing about what student learns from the instructor, classmates / friends,
and the materials during the class sessions_________________________________________4
1.2) Describe the importance, roles, objectives and reasons why student studies this module
_____________________________________________________________________________5

TASK 2: A BRIEFING OF THE SPECIFIC BUSINESS ASPECT THAT STUDENT PAYS
MOST ATTENTION___________________________________________________________6
2.1) Definition of “Entrepreneurship and Small business”_____________________________6
2.1.1) Definition of Entrepreneurship______________________________________________6
2.1.2) Definition of Small Business_______________________________________________7
2.2) The important of “Entrepreneurship and Starting small business” in enterprise______7
2.2.1) The important of Entrepreneurship in enterprise________________________________7
2.2.2) The important of Starting small business in enterprise____________________________8
2.3) Advantages and disadvantages of “Entrepreneur and Starting Small Business” for
business environment in Vietnam_________________________________________________9

1


2.3.1) Advantages of “Entrepreneur and Starting Small Business” for business environment in
Vietnam_____________________________________________________________________9
2.3.2) Disadvantages of “Entrepreneur and Starting Small Business” for business environment
in Vietnam__________________________________________________________________10

TASK 3: APPLIED BUSINESS PRACTICES TO WHAT STUDENT GAINS FROM THE
MODULE___________________________________________________________________12

TASK 4: SELF-ASSESSMENT__________________________________________________14
4.1) Self-analysis’s table________________________________________________________14
4.2) Solutions and ways to improve:______________________________________________15

CONCLUSION_______________________________________________________________16

REFERENCE________________________________________________________________17

2


Executive summary:
This assignment first presents an overview and definition of business and business environment;
the second part, the author believed that “Entrepreneurship and starting a small business” is the
desire of every businessman, in this chapter, the author declares the deeper description about
start-up and also exploits strengths and weaknesses of starting a business in Vietnam.
Simultaneously in task three, the author chooses Nam Duong Company, which is a Veterinary
Pharmaceutical Company as well as a limited company; to compare between theoretical and
practical in business environment. For the last part, the author creates a table for personal selfassessment with the characteristics of a business administrator; moreover, how to improve and
develop skills in macroeconomic situation will also be mentioned.

3


Task 1: An introduction of the business and business environment:
1.1) Provide a briefing about what student learns from the instructor, classmates / friends,
and the materials during the class sessions
First, a business is defined as an organization or enterprising entity engaged in commercial,
industrialized, or professional activities. Businesses can be for-profit entities or non-profit

organizations that operate to fulfill a charitable mission or further a social cause. A for-profit
business is also any activity that seeks to provide goods and services to others while operating at
a profit. Moreover, it is an organization or economic system where goods and services are
exchanged for one another or for money. Every business requires some form of investment and
enough customers to whom its output can be sold on a consistent basis in order to make a profit.
On the contrary, a non-profit organization is a business that has been granted tax-exempt status
by the Internal Revenue Service because it furthers a social cause and provides a public benefit.
Donations made to a nonprofit organization are typically tax-deductible to individuals and
businesses that make them, and the nonprofit itself pays no tax on the received donations or on
any other money earned through fundraising activities. It must serve the public in some way,
whether through the offering of goods, services, or a combination of the both. It’s also required
to make financial and operating information public so that donors can be informed about how
their contributions have been used. The different between two kinds of businesses is its purpose,
a profit business focus on revenue and interest while the other’s target is social benefit.
Second, business environment is the total of factors, factors (external and internal) that mobilize
interaction with each other, direct and indirect impacts on the business activities of the enterprise.
In more detail, business environment embrace many factor, for example: political,
macroeconomic factor, microeconomic factor, social factors, technology factor, organizational
4


culture, organizational structure, management structure. Furthermore, many departments in the
company are also explained and supplemented more detail knowledge about specific office.
1.2) Describe the importance, roles, objectives and reasons why student studies this module
For this module, knowing how the company runs and the way to organize a business is
importance. It is provide the insight of the environments created by the economy, technology,
competition, diversity, global opportunities, and social responsibility. Also is help students
comprehend the need for stewardship in business organizations, how to develop the role of
administration in an organizational system, and the process of manufacture products and services
that customers pleased. Its roles to help students comprehend how a company operating and

manage employees to get the highest productivity while creating an effective and friendly
business environment. Another role of this course is to help students not be surprised when
starting to work in the office. The main objective of this module is teaching pupils surviving in
the business; besides, steps to communicate effectively during the interview process, making the
right decisions and many others detailed instructions. The reason student should learn this
subject is it brings lots of benefit for students when they graduate and start their job in a business
environment.

5


Task 2: A briefing of the specific business aspect that student pays most attention
A business aspect which the author pays most attention is chapter 5 – “Entrepreneurship and
Starting a Small Business”.
2.1) Definition of “Entrepreneurship and Small business”
2.1.1) Definition of Entrepreneurship
Entrepreneurship is accepting the risk of starting and running a business as well as the process of
designing, launching and running a new business, which is often initially a small business. The
people who create these businesses are called entrepreneurs. It is also as known as startup, the
individual entrepreneur exploiting new technology or market opportunity. The skill to spot
opportunities and create new ways to exploit them is at the heart of the innovation process.
Entrepreneurs are risk-takers, but they calculate the costs of taking a bright idea forward against
the potential gains if they succeed in doing something different – especially if that involves
upstaging the players already in the game (John Bessant and Joe Tidd, 2015). Entrepreneurship
also has been described as the "capacity and willingness to develop, organize and manage a
business venture along with any of its risks in order to make a profit". While definitions of
entrepreneurship typically focus on the launching and running of businesses, due to the high
risks involved in launching a start-up, a significant proportion of start-up businesses have to
close due to "lack of funding, bad business decisions, an economic crisis, lack of market demand
—or a combination of all of these (Business Dictionary). According to Understand business

(Nickel, Mchugh, Mchugh, 2016, p.152), age at start-up from 18 to 24 is 8%, 25 to 34 having the
highest number 71%, the number significant decrease after it, from 35 to 44 is 13%,while 45 to
54 is only 6% and the rest is 2% more than 55 year-old.

6


2.1.2) Definition of Small Business
Small business is a business that is independently owned and operated, is not dominant in its
field of operation, and meets certain standards of size (set by the Small Business Administration)
in terms of employees or annual receipts. A small business is considered “small” only in
relationship to other businesses in its industry. (Nickel, Mchugh, Mchugh, 2016, p.162). Small
business also defined with depending on its industry, a small business could be defined as
business with a maximum of 250 employees or a maximum of 1,500 employees. They’re
privately owned corporations, partnerships, or sole proprietorships that have less revenue than
larger businesses (McIntyre, 2019)
2.2) The important of “Entrepreneurship and Starting small business” in enterprise
2.2.1) The important of Entrepreneurship in enterprise
Entrepreneurship is a beginning for the business, no matter it is a whole – scale or small – scale.
It is easily to established but also easy to collapse. There are many reasons people are willing to
take entrepreneur risks, but the author focus on four things. First, it is opportunity, to be able to
enter a competitive market with the opportunity to develop their ideas, as well as be able to
manage their own businesses. Second, profit is another important reason to become an
entrepreneur. Many start-up projects get huge profit base on owner ideas, which is the exclusive
products and the whole market wants to own it. For example, Microsoft owner – Bill Gates, the
richest man in the United State and the world. Third, entrepreneurship synonymous with
independence, many entrepreneurs simply do not enjoy working for someone else, they can take
something that motivates or inspires them and act on it without roadblocks. Last but not least,
entrepreneurs are excited to take challenge. In general, entrepreneurs seek achievement more
than power (Nickel, Mchugh, Mchugh, 2016, p.154).

7


2.2.2) The important of Starting small business in enterprise
Small business is very important to any country base on its productivity for pushing economy.
Firstly, major employers, Businesses that employ fewer than 500 employees provide job
opportunities for many different types of employees, and rely heavily upon their workers for
success. Because so many jobs are provided by small businesses, the economy thrives due to
their successes. Secondly, small business is the main job – creators. Small businesses create more
new jobs than larger firms. The Small Business Administration reports that from 2005 to 2008,
small businesses were responsible for creating 81.4 percent of the net new jobs in the U.S. Job
growth is imperative for the continued growth of the United States economy and small
businesses meet those needs with new jobs being created all the time. Thirdly, inventive minds,
small business encourage their employees to be innovative and creative, using their technical
skills and common sense to create new inventions and technology. These small companies'
contributions to the economy are significant through their inherent and marketable worth.
Fourthly, payroll significance, not only small businesses responsible for major employers and job
creators, they also pay a significant chunk of U.S. workers' paychecks. The Small Business
Administration figures indicate that small businesses pay out 44 percent of the U.S. payroll
annually to their employees. That substantial part of the economy stimulates and drives the rest
of the U.S. economy by providing funds for employees to spend on necessities and other items
they desire. As these employees spend money, additional life is breathed into the economy,
making it strong. Without these small businesses, the United States payroll would be much
smaller. The last point is exporting importance, small businesses are important due to their role in
exporting to other nations. Ninety-seven percent of identified exporters are small businesses, and
they produce 26 percent of the export value through their products they ship to consumers in

8

other countries. Exporting U.S. goods to other nations also helps to keep the U.S. economy
strong. Without the impact of small businesses, American exports would be much lower, which
would significantly damage the U.S. economy (Wright).
2.3) Advantages and disadvantages of “Entrepreneur and Starting Small Business” for
business environment in Vietnam
2.3.1) Advantages of “Entrepreneur and Starting Small Business” for business environment
in Vietnam
Although the theory of startup is very convincing but when applied to the business environment
in Vietnam, there are many advantages and disadvantages for entrepreneurship and also for
starting small business. For advantages, the first point is strong economic growth rates, since the
economic reforms launched in 1986, Vietnam’s economy has grown substantially even at the
time of uncertainties. Even though financial crisis slowed down the growth, the country’s
economy remained quite resilient and soon afterward returned to pre-crisis numbers. Currently
fully recovered, the 6.41 rise of GDP in the first nine months of 2017 is expected to grow up to 7
percent in the next year. The country that used to be one of the world’s poorest is now becoming
a hub for labor-intensive goods. It has long been an attractive foreign direct investment
destination, starting a business in Vietnam surely become popular among foreign investors
(Cekindo). Second, young and skilled population, foreign investors might also benefit from the
growth of the Vietnamese population. The third largest population in South East Asia is relatively
young, with more than half of the inhabitants below the age of 30. This vast, well-educated, and
relatively cheap workforce has become one of the Vietnamese major assets. Vietnam’s literacy
rates are over 90 percent and one of the highest Internet penetration levels in Southeast Asia.
Foreign investors are taking advantage of its technological awareness, the solid entrepreneur
9


community, and the country’s general openness to new ideas. Together with that, starting a
business in Vietnam will cost investors cheaper labor for local employees who are equally
competitive, average salary of a worker is about 150 - 200 USD in big cities, in the countryside
is lower. Third, new market, Vietnamese economy has experienced a boom over the last 30 years.

Starting a business in Vietnam is relatively new and less tough than in other countries.
Consequently, investors not facing harsh competition while trying to implement innovative or
risky ideas with their business. Meanwhile, Vietnam is developing fast, with 92 million
consumers it is becoming an interesting market for international companies. Fourth, free trade
agreements, Vietnam are a member of the ASEAN and World Trade Organization, enabling its
relatively smooth trading with other countries. Moreover, it has signed regional free trade
agreements as well as bilateral one with the majority of the world’s leading economies. The Free
Trade Agreement with the European Union, which comes into effect in 2018, will support
Vietnam’s eagerness to promote the country’s economic growth.
2.3.2) Disadvantages of “Entrepreneur and Starting Small Business” for business
environment in Vietnam
Nevertheless, start – up in Vietnam have many problems. First, infrastructure is not developed,
there are barely a few hundreds km of highway in all the country. In big cities people mostly use
motorbikes as mean of transport thus the traffic is horrible and the air is polluted. Second,
lacking focus, entering a developing market as a foreign entrepreneur can feel like the beginning
of a modern-day gold rush, but there are also too many good opportunities for any single person
or company. Third, the laws regarding the business environment are not complete, not clear, give
room to interpretation and corruption. So corruption is endemic, everywhere, in all the level of
government and authorities. Fourth, placing funds in Vietnam, there is a advice said that if
10


entrepreneurs are not Vietnamese, avoid placing money inside Vietnam. Banking regulations
make it hard to get it out, much better to have an offshore entity in Hong Kong or Singapore as
the holding company, and then a local company to hire staff. Lastly, just focusing on only
Vietnam, Vietnam is a large but immature market, so it is not a bad idea to look at some
neighboring markets as well. An added bonus is that investors often love a regional plan. There
are some who have managed to do it success (Xo tours).

11

Task 3: Applied business practices to what student gains from the module
Nam Duong Veterinary Pharmaceutical Company is a private company which is also a limited
company. It was founded in 2009 by Nguyen Dinh Thu, at that times, he quit his job to begin his
own business selling veterinary medicine. At the beginning, having same problem with many
entrepreneurs, he has to funding for his business to maintain his business with most of capital is
from family and friends. Nam Duong Company is a small private company so everything is
irreducible to minimum, from website, department, core values, et cetera. The main goal of this
company is chiefly profit as well as creating stability for animal health and expand market share.
Mission in Nam Duong Company is trying the best to bring good products to Vietnam’s small
and medium family farmers while its vision is becoming a major distributor of veterinary drugs
in the southeast and south central regions. Its organization chart has only one member, which is
the founder of Nam Duong Company while other professional duties such as accounting,
auditing, tax reporting, and legal advice is all hire people outside to do it.
Nam Duong Company has the ability to compete with other competitors because Vietnam market
still not yet has many competitors about veterinary medicine aspects. So Nam Duong Company
takes an advantage of new market. To be more precise, it is easy to negotiate on proprietary
products from small and medium-sized pharmaceutical companies overseas, especially new
products. Besides, as a private company, there is no pressure from investors and shareholders
like big companies. However, in the early days, it was not easy to compete with large
corporations with many market shares. There are big farms and family farms, as a
entrepreneurship, Nam Duong Company only focus on small family farms, which is compete
with exclusive products, others huge farms, Nam Duong Company cannot compete with large
joint stock companies. It means, although Vietnam is such a new market, but still have some
12


large joint stock companies. The founder was being pinched down on large farms, could only sell
to households. Moreover, it also takes a disadvantage of infrastructure, as a small private

company, so the CEO has to spend much time on business travel, to go to any province of
Vietnam in order to promote the product.

13


Task 4: Self-assessment
4.1) Self-analysis’s table
Self-analysis
No.
1
2
3
4
5
6
7
8
9
10

Skills
Communication in teamwork
Work independently
Be proactive at work
Productivity
Discipline
Adapt to work pressure
Proficient use of machinery
Work planning

Presentation
Learn from the critics

Score (out of 10)
9
8
7
6
9
5
2
7
2
7

14


4.2) Solutions and ways to improve:
The author feels very nervous before and during a presentation, this is entirely normal and can
even be helpful when the author may change it in the right way. The author bought an instruction
book for presentation and followed it until now. Presentation has been the author’s weakness but
the author still tries hard to improve it day by day. Another skill that needs to be improved is
using machine like projector, loudspeaker, and so on. On the day author’s team presentation, the
loudspeaker quite crackling lead to the presentation that day was not good. In the future, the
author will make sure that all the equipment work fluently before the speech, it means that if any
problems appear, the author’s team will try their best to set up all done. For work pressure, the
author thinks maintain a calm demeanor no matter what happens. Staying calm demonstrates that
the author have the ability to take things in stride and complete tasks even in the face of difficult
circumstances. Even though the day may be stressful, the author will keep mind firmly focused

on completing regular responsibilities. For communication in teamwork, the author find it
satisfied when can choose members in the group that the author pleased to work with, therefore,
members in group easily to talk and discuss everything comfortably. Another skill that the author
feels good is work independently, either in group work or individual assignment, the author do
all the task that was divided by team leader and also help other members if they find anything
difficulty. In this semester, productivity of study process quite slow for the author. As having a
part-time job that decrease time and health for study so the solution is the author will find out to
balance time for both working and studying, therefore the author will have time for look back
and improve her skills.

15


Conclusion
Through this assignment, the author find opportunity to comprehend start-up knowledge,
advantages and disadvantages of entrepreneur and starting small business, and why startups and
starting small business are so important in Vietnam. Moreover, this assignment also helps the
author to look back and do the personal self-assessment in the most accurate way; thereby, the
author has a chance to create a future plan to be able to improve oneself in the best way.

16


Reference
Cekindo. 7 Reasons Why You Should Start Your Business in Vietnam. Cekindo. Retrieved from
/>G, McIntyre. What is the Definition of Small Business? Funderal. Retrieved from
/>Introduction, Meaning & Importance of Business Environment. Toppr. Retrieved from
/>John, B and Joe, T (2015). Innovation and Entrepreneurship, 3rd edition, Wiley
V, Wright. Reasons Why Small Businesses are Important. Azcentral. Retrieved from
/>Will, K. Nonprofit Organization (NPO). (2019). Investopedia. Retrieved from

/>William ,N. James, M. Susan, M (2016). Understading business, 11th edition
XO tours. (2013). Entrepreneurship in Ho Chi Minh City. Xo tours. Retrieved from
/>
17