This year’s MBA fieldtrip to Vietnam aim was to examine the different approaches adopted in order compete in a highly competitive global business environment.
The visit involved either visiting or having the opportunity to meet six businesses senior managers of successfully organisations operating in Vietnam and a non-for-profit organisation.
The six businesses were either multinational organisations or local businesses from a wide range of industries, such as:
* Hive Corporation,
* Media Partners Asia Ltd,
* Samsung Group,
* Toll Group,
* Johnson & Johnson,
* Minh Long Co,
The non-for-profit organisations name was Long ...view middle of the document...
The country is reported to hve a steady Gross Domestic Product (GDP) of over 6% since 1991, what is outstanding performance in a stand-alone evaluating of the countries’ growth.
The economy is Vietnam is highly dependent on foreign investment, especially from Asian countries. In the past Russia was a strong investor in Vietnam, however since the collapse of the Soviet Union that invest has been reduced, however even reduced it occupies the 5th place in the list of top investor’s countries in Vietnam. Mr. Lourey presented the top 5 has being
1. South Korea,
One key point in the presentation was about the countries’ demographics, as it was argued by Mr. Lourey that with a much younger population, with higher levels of education, the Human resources plays a key part in the countries’ attractiveness for foreign investment, as it presents a much more attractive investment opportunity due to the low salary structure the country has together with a higher level of skill when comparing with neighbouring countries. However it is also fair to point out that its biggest strength is also its biggest weakness. The high level of skill presented by the work force in Vietnam has roots in its culture, where families strive to have their children to study. Furthermore, their family structure is organised in such a way that the sons and daughters stay in the family house for far longer, meaning that they have significant disposable income. This level of financial security, together with national cultural dimensions that Vietnam present a challenge (to be discussed above) that will take generations to be overcome.
From all businesses the Hive Corporation was the one with the highest level of diversification, competing in the market of designing and manufacturing furniture, clothing and hospitality, all with a common denominator, all businesses needed an effective workforce, something that was highlighted to be the biggest weaknesses presented in Vietnam, only followed by the inefficiency of state-owned enterprises and the bureaucracy it come with.
Toll Holding Limited
This Australian based company is considered to be the leading integrated logistic provider in the Asian region. With a consolidated revenue of over AUS$8 billion, Toll Holding Limited (Toll) aims to offer a comprehensive logistic solution to its customers. Offering a total of nine warehouses, managing over 300 trucks and with over 500 employees, Toll offers an integrated warehouse management service, with nationwide distribution, with added value services and other management services. While investing heavily in technological solutions and infrastructure in order provide value to its customers, it was reported that the major weaknesses were the country’s infrastructure and labour. For a third party logistics (3PL) good infrastructure is paramount, and Vietnam’s has very poor roads, adding challenges to any international...