ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

Submission date DateReceived1stsubmission

Re-submissionDate DateReceived2ndsubmission

Student Name Nguyễn Ngọc Uyên Nhi Student ID GBD18320

Class GBD0825.1 Assessor name Trần Minh Tùng

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.

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Nguyen Ngoc Uyen Nhi 1

Nguyen Ngoc Uyen Nhi 2
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Nguyen Ngoc Uyen Nhi 3

 Table of Contents
I. Introduction: ......................................................................................................................... 5
II. The type and purposes of Petrolimex: ................................................................................... 8
1.The type: ........................................................................................................................................... 8
2.The purposes: .................................................................................................................................... 9
2.1 Purposes:.................................................................................................................................................... 9
2.2 Strategy: ..................................................................................................................................................... 9
2.2.1 Market strategy:...................................................................................................................................... 9
III. Size and scope: .................................................................................................................. 11
1.Size: ..................................................................................................................................... 11
1.1 Finance: ................................................................................................................................................. 11
1.2 The number of labours:......................................................................................................................... 12
2. scope: ............................................................................................................................................. 13
2.1 Scope: ....................................................................................................................................................... 13
2.2 Sales Network: ......................................................................................................................................... 16
2.3 Market share: ........................................................................................................................................... 20
2.4 Target customers: .................................................................................................................................... 21
IV. The functions of Petrolimex: .............................................................................................. 22
1.Functions: ........................................................................................................................................ 22
1.1 Functions and duties of technical department: ....................................................................................... 23
1.2 Functions and duties of sales department:.............................................................................................. 24
1.3. Functions and duties of project development department: .................................................................. 25
1.4 Functions and duties of accounting and finance department: ................................................................ 25
1.5 Functions and duties of administration and personnel department: ...................................................... 26
2. The relationships between these departments: ............................................................................... 26
V. Conclusion: ......................................................................................................................... 27

Nguyen Ngoc Uyen Nhi 4

 I. Introduction:
◆The company: Gas Petrolimex

Vietnam's National Petroleum Group (Petrolimex) was established by Decision 828/QD-TTg

of 31 May 2011 of the Vietnam National Petroleum Corporation as a government firm
pursuant to document 2946/UBCK-PLQH of 17 August 2012.

◆Charter capital: 603.426.380.000 VND (2018)

◆Headquarters: 229 Tay Son street – MIPEC building, Dong Da district, Ha Noi city.

◆The subordinate units, Corporations have 100% charter capital:

Gas Petrolimex Ha Noi Co.ltd

Gas Petrolimex Hai Phong Co.ltd
Gas Petrolimex Da Nang Co.ltd
Gas Petrolimex Sai Gon Co.ltd
Gas Petrolimex Can Tho Co.ltd

◆The website address: http://pgas.petrolimex.com.vn/

◆Share code: PGC

◆History of Gas Petrolimex JSC:

Fifty-five years of construction and growth of the Vietnam National Petroleum Corporation
were
strongly related to historical occurrences in the struggle to protect and build the nation.

Nguyen Ngoc Uyen Nhi 5

 Period 1956-1975: The mission of Vietnam's National Petroleum Corporation was to meet oil
demand for the job of socialist building rehabilitation and growth and the fight to beat the
North's war of destruction. Petrolimex member units have been given the titles "People's
Armed Forces Heroes," "Labour Hero" and "Martyrs of War."

Period 1976-1986: Vietnam National Petroleum

Corporation has been involved in the rehabilitation of the North's devastated oil installations.
The State granted the Corporation a Medal of Independence 2nd class, a Title of Labor Hero
for an individual and many Labor Orders for collectives and individuals during this period.

Nguyen Ngoc Uyen Nhi 6

 Period 1996-2011: The Vietnam National Petroleum Corporation is gradually building the
Corporation into a powerful, vibrant domestic oil company to be involved in regional and
global economic integration. The State has given First Class Independence Order, Second
Class Labor Exploit Order, Titles "Labour Hero in Renovation Time" for two units, 5 "National
Emulation Fighters" and 114 Collective and Individual Labor Orders.

Nguyen Ngoc Uyen Nhi 7

 II. The type and purposes of Petrolimex:
1.The type:
Type of Petrolimex is Joint Stock Company, also is State-owned enterprise.

Vietnam National Petroleum Corporation (Petrolimex), formerly known as PetroVietnam Gas

Corporation, was established under Decree No. 09 / BTN dated January 12, 1956 of the
Ministry of Trade and was re-established under Decision No. 224 / TTg dated 17.4.1995 of
the Prime Minister.

Nguyen Ngoc Uyen Nhi 8

 Vietnam Petroleum Corporation has: 41 member companies, 34 branches and enterprises
directly under 100% state-owned member companies, 23 joint stock companies with
dominant contributed capital of the Corporation, 3 Joint venture with foreign companies and
1 branch in Singapore.

2.The purposes:
2.1 Purposes:
◆Strive for an average annual growth rate of gas output of 3-5% and may be higher when

they have opportunity. The profit grows sustainably, surely that pay enough for shareholders
and accumulating profits for re-invest and develop.

◆Continue to strengthen and improve the business efficiency or restructure the company in

the units that the corporation invested in joint ventures and associates. Search for profits and
be ready to develop a new type of business that firstly takes advantage of the Corporation's
advantages to develop this type of business.

◆Striving to build a logical economic structure, safe and efficient.

◆The work of ensuring security and safety in production and business activities is always

ensured throughout the company.

2.2 Strategy:
2.2.1 Market strategy:
The company judged that market expansion is a necessary condition for business to develop
the company. In the next year, the Corporation will continue to improve production capacity,
invest in storage and distribution system in ports and terminals to improve reserve
management capacity, strengthen customer transmission. System and develop new
customers, analyze and find available market areas. Maintain the orientation of developing
corporations according to many new market segments to create a premise for the strong
development of the corporation after.

Nguyen Ngoc Uyen Nhi 9

 2.2.2 Distribution strategy:
The company mainly deals in the commercial sector, so the completion and development of
diversified distribution channels in key market areas and distribution channels keep
established in most provinces and cities throughout the country. The company determines
that Gas is a specific product to ensure safety in exploitation, transportation and using.
Therefore, not only sales, the corporation attaches technical services and after-sales service
to affirm Petrolimex Gas is a reliable choice of customers.

2.2.3 Price strategy:

The liquefied petroleum gas market in Vietnam is one of the increasingly fiercely competitive
areas, including price competition. Although, the price strategy of the corporation always
determines the price suitable for the market based on the financial capacity of the
corporation so that some other big gas companies can stabilize the market to ensure the
harmonization of the benefits between consumers and distributors.

2.2.4 Human Resources strategy:

●Developing young human resources through recruitment and training plans to create a
driving force, step by step inheriting and absorbing experiences from experienced staff.
●Regularly training to improve skills and qualifications of management staff.
●Gradually improve the organizational structure, wages and bonuses in order to encourage
the increase of labor productivity and create a favorable environment for each staff member
to assert themselves.

Nguyen Ngoc Uyen Nhi 10

 III. Size and scope:
1.Size:
Petrolimex is a key state-owned enterprise, specially ranked, nationwide, ensuring 60%
market share of the national petroleum. Petrolimex always promotes the key and
mainstream role to stabilize and develop the petroleum and petrochemical products market
to meet the people's consumption demand, serve the country's economic development and
ensure national security.

1.1 Finance:

◆ Capital:

Unit of calculation: million VND

2,500,000.0
Capital
2,000,000.0

1,500,000.0

1,000,000.0

500,000.0

0.0
2016 2017 2018
Liabilities Owner's capital

(nien, 2019)

Nguyen Ngoc Uyen Nhi 11

 ◆Liabilities:

Unit of calculation: million VND

Liabilities
2,000,000
1,500,000
1,000,000
500,000
0
2016 2017 2018

Long-term liabilities Short-term liabilities

(nien, 2019)

◆Solvency:

The index of short-term solvency of the company increased year by year. This shows that
Petrolimex always ensures the ability to pay due debts.

1.2 The number of labours:

Nguyen Ngoc Uyen Nhi 12

 The total number of employees of Petrolimex (including the subsidiary with 100% capital
contribution) by 31/12/2018, is 966 employees. The labor structure by qualification is shown
as follows:

Level Amount (people) Ratio %

Graduate 30 3%
Graduate and Colleges 507 52,6%
High school 94 9,7%
Primary and technical 317 32,8%
workers
Junior high school 18 1,9%
Total 966 100%

2. scope:

2.1 Scope:

2.1.1 Petroleum Products:

Petrolimex network of 1,700,000 cubic meters of oil storage and distribution depots

Nguyen Ngoc Uyen Nhi 13

 Petrolimex's most significant task is to encourage the place of leading company in the supply
of petroleum to the entire nation under all conditions and contribute to the cause of socio-
economic growth.

2.1.2 Lubricants & Petrochemical Products:

PLC has made every attempt to gradually capture multiple global brands ' extremely
competitive national lubricants and petrochemical products market. Asphalt and chemical
products are also included in the exceptional benefits of PLC and are listed in the
diversification plan for Petrolimex goods. This product group took a notable national
consumer market share, accounting for over 2,000 billion VND in 2010.

2.1.3 GAS:
With the mission of bringing joy to every person, every family, PGC has set the goal of keeping
the top place in the production sector, distributing this category of service and enhancing
and supporting the Petrolimex Gas (PGC) brand with a market share of 10%-15%.
In 2010, income from the gas company reached VND 2,463 billion, representing 1.8 percent
of total income from Petrolimex.

Nguyen Ngoc Uyen Nhi 14

 2.1.4 Insurance:
Petrolimex Insurance has had the greatest level of development in this industry in Vietnam
in latest years. Petrolimex Insurance includes the entire country and is financed by top
reinsurance companies in the globe such as Munich Re, Swiss Re, Hannover Re, Hartfort Re,
Aon Re... 2004 was the year when, for the first time, Petrolimex Insurance directed its
operations towards the global market and obtained a profit of more than $1 million.

2.1.5 Fuel Transportation:

Oil transport is an efficient activity that is strongly associated with the oil company.
Therefore, Petrolimex invested in contemporary and fully conditioned means to reach the oil
markets around the globe.

2.1.6 Design and construction:

Petrolimex gradually achieves the goal of modernizing and planning infrastructure systems
that fulfill global norms, in line with the scale of a domestic oil business.

2.1.7 Petroleum services:

Vietnam's National Petroleum Group (Petrolimex) is a Vietnam petroleum corporation that
also supplies ship petrol. They perform FO 380 trading in South Vietnam with various sources

Nguyen Ngoc Uyen Nhi 15

 including GO 0.25, GO 0.05, FO 0.97, FO 0.991, as of August 20, 2009. With competitive cost,
fast payment, advantage selling point and product quality guaranteed to collaborate in this
region with the dealer and foreign businesses.
2.2 Sales Network:
2.2.1 The list of sales locations in the country:

TT Company Address Tel Fax

P. Bãi
Cháy,
(033)
Cty Xăng TP. Hạ (033)384
1 3846-
dầu B12 Long - 6-360
349
Quảng
Ninh
15
đường
Lê
Cty Xăng (08) (08)
Duẩn,
2 dầu Khu 3829- 3822-
quận 1,
vực II 2081 2082
TP. Hồ
Chí
Minh
Phườn
Cty Xăng (031)
g Sở (031)
3 dầu Khu 3850-
dầu - 3850-632
vực III 333
Q.

Nguyen Ngoc Uyen Nhi 16

 Hồng
bàng -
TP Hải
phòng
Số 4
Nguyễn
Sỹ Sách
Cty xăng (038)
– TP (038)
4 dầu Nghệ 3845-
Vinh – 3844-701
tĩnh 801
tỉnh
Nghệ
An
1
đường
Lê Quý
(0511
Cty Xăng Đôn,
(0511) )
5 dầu Khu quận
3824-585 3822-
vực V Hải
874
Châu,
TP. Đà
Nẵng
85 Trần
Cty Xăng (056)
Hưng (056)
6 dầu Bình 3893-
Đạo, 3893-294
Định 236
TP.

Nguyen Ngoc Uyen Nhi 17

 Quy
Nhơn -
Bình
Định
21
đường
Cách
mạng (0710
Cty Xăng
Tháng (0710) )
7 dầu Tây
8, quận 3827-622 3822-
Nam Bộ
Ninh 746
Kiều,
TP. Cần
Thơ
12
đường
Hoàng
Cty Xăng Hoa
(064)
dầu Bà Thám, (064)
8 3832-
Rịa - phườn 3832-043
195
Vũng Tàu g 2,
TP.Vũn
g Tàu -
Bà Rịa -

Nguyen Ngoc Uyen Nhi 18

 Vũng
Tàu
37
Phan
Cty Cổ Bội
phần Vận Châu, (031)
(031)
9 Tải Xăng quận 3838-
3838-680
dầu Hồng 033
VIPCO Bàng,
TP. Hải
Phòng
12 Lê
Cty Cổ
Duẩn,
phần Vận (028) (028)
1 quận 1,
tải Xăng 3822- 3829-
0 TP.Hồ
dầu 2675 3848
Chí
VITACO
Minh
Fl.7th,
Petrolime Buildin
x Joint g 322
(028) (028)
1 Stock Dien
3899- 3512-
1 Tanker Bien
1101 1775
Company Phu
(Pjtaco) Str., 22
Ward,

Nguyen Ngoc Uyen Nhi 19

 Binh
Thanh
Dist.,
HCM
city,
Vietna
m

2.2.2 Petrolimex Singapore Pte. Ltd.

Address: 200 Cantonment Road # 02-02 Southpoint, Singapore 089763
TEL: 0065.67358139
FAX: 0065.67358149

2.3 Market share:

Nguyen Ngoc Uyen Nhi 20

 The special compertitor of Petrolimex is PV Oil.
Petrolimex currently has about 2,500 stores, 5 times more than PV Oil. However, PV Oil's
immediate goal is to buy 1,000 more stores to increase the total number of retail stores to
1,500, three times the current number. PV Oil wants to hold 35% market share in the
petroleum market, improving competitiveness with Petrolimex.
Petrolimex is currently the leading company in the country in petroleum business, occupying
about 50% of the domestic market share.
PV Oil, was looking for opportunities and took advantage of it. In the current petroleum
market, there are 29 licensed enterprises, PV Oil is second with 15% market share.

2.4 Target customers:

Market segmentation according to geographic criteria; demographic criteria; the intended
use.

Nguyen Ngoc Uyen Nhi 21

 For civil customers, the urban market is selected by the company as the target market for
civil gas products with 12kg horizontal valves and 12kg standing valves.
For industrial customers: The company selects target customers who are traditional
customers for a long time based on their strengths.

IV. The functions of Petrolimex:

1.Functions:

Nguyen Ngoc Uyen Nhi 22

 1.1 Functions and duties of technical department:
1.1.1 Functions:
Manage, implement and inspect technical work, ensure progress in the company's work,
safety, quality and economic efficiency.
Management of the use, repair, purchase of equipment, machinery for company activities.

Nguyen Ngoc Uyen Nhi 23

 1.1.2 Duties:
Develop building plan, technical plan for all projects.
Inspect, determine quantity, quality, material specification, labor consumption based on
accepted technical and economic standards ; develop building plan, safety and sanitation
plan for major projects ; guide appropriate units to generate and approve building plan,
safety and sanitation plan for tiny projects.
Guide and inspect subsidiaries on technical job, quality, advancement, security, equipment
and hygiene.
Guide and coordinate the preparation of documents to check and take over works with
subsidiaries.
Management, maintenance, repair, control of all company construction vehicles and
equipment.
Apply science and technical progress, innovations and inventions to the Company's company
activities.
Suspend the job of team leader, individuals and sites when severe technical management
violations, job security, fire prevention, and report to Director to plan to fix issues.

1.2 Functions and duties of sales department:

1.2.1 Functions:
Develop and organize company plans, set technical targets and economic targets for all kinds
of company manufacturing.
Materials management and supply, equipment to meet the company's need for
manufacturing activities, business and services.
1.2.2 Duties:
Develop the company's regular business production plan.

Nguyen Ngoc Uyen Nhi 24

 Develop subsidiary allotments.
Provide advance funds for projects, sites and payments.
Settlement implementation, liquidation of investor agreements at the end of the project.
Economic efficiency analysis of all Company locations and company activities.
Collect information, report monthly, quarterly, yearly results of company manufacturing.
Analysis and evaluation of the results of monthly, quarterly, annual economic performance.
1.3. Functions and duties of project development department:
1.3.1 Functions:
Marketing, searching for fresh project, preparing bid papers, creating work for the company.
Develop, handle and utilize projects to guarantee the company's high effectiveness and
development goals.
1.3.2 Duties:
Proactive in marketing, searching for new projects, preparing bid documents, ensuring
accuracy, timely, competitive prices, gaining more jobs and economic efficiency.
Collecting information, reporting project outcomes, analyzing all sites financial effectiveness,
investing projects.
Negotiate for the presentation of financial agreements to the Director.
Monitor the implementation of invested projects, ensure timely completion of all projects,
ensure quality and cost savings.

1.4 Functions and duties of accounting and finance department:

1.4.1 Functions:
Managing, inspecting, guiding and implementing accounting — statistics system ; financial
management, asset management under government law, financial regulation, and company
policy.
To meet the financial demand of all Company's business operations as planned ; to maintain
and develop Company and Shareholders ' capital.

Nguyen Ngoc Uyen Nhi 25

 1.4.2 Duties:
To assign accounting and statistics director, economic news, financial management
operations.
Develop Company Financial Management Regulations.
Ensure the source of resources to satisfy the needs of the Company's productions and
company operations.
Balance the Company's financial plan, control all of the Company's assets.

1.5 Functions and duties of administration and personnel department:

1.5.1 Functions:
The Department of Administration and Personnel engaged in assisting the Director direct,
organize and oversee the execution of organizational structure, staff management,
recruitment ; Human Resources Development, Legal Affairs, Inspection, Testing, Internal
Policy Protection, Military, Fire Prevention and Combat, Reward, Hygiene, Flood Prevention
and Company Administration.
1.5.2 Duties:
Develop an annual employee training plan and worker skills improvement to meet the need
for increased production.
Develop and execute work plan, salaries, personnel allocation for each company department
in each period.
Company seal management follows the Director's approval.

2. The relationships between these departments:

◆Technical department:

Coordinate with Sales Department, Department of Project Development to prepare the bid
document.
Coordinate with the Department of Sales, Accounting and Finance to handle the timetable of

Nguyen Ngoc Uyen Nhi 26

 cars, all kinds of computers in the Company's affiliates and other associates.

◆Sales department:

Coordinate in the settlement of subsidiaries with other departments.

Coordinate with other functional departments to verify the volume, quality, price of all
materials used in all Company projects.
Coordinate with the Department of Technology, present to the Director to issue and inspect
the implementation of the company's economic and technical standard.
Coordinate with Project Development to prepare the bid application document.

◆Project development department:

Coordinate with other Company's functional departments to verify and take over method,
quantity, create settlement document for all sites classifications, all finished projects.

◆Accounting and finance department:

co-ordinate with other departments to collect, create inner unit manufacturing price, other
type of company manufacturing.
Coordinate in the most efficient manner with other functional departments on exploitation,
using assets, company machines.

◆Administration and personnel department:

Coordinate with other departments to finish the Company land use law in its entirety.

V. Conclusion:
Petrolimex is a company that is very attractive and worth investing in. The problems of capital
and debt of the company are always solved on time, creating the prestige of the company.
The interest of investors Foreign investors for Petrolimex shares are very large and they are
willing to participate when they see a business that maintains business operations efficiently
and transparently, with the average profit over the past few years always reaching over 40%
/ capital. charter, cash dividend rate for the average shareholders is always above 25% / year.

Nguyen Ngoc Uyen Nhi 27

 After evaluation, very carefully calculated business operations, growth potential and periodic
Hoping for businesses, I decided to invest.

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Nguyen Ngoc Uyen Nhi 28

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Nguyen Ngoc Uyen Nhi 29

 https://www.petrolimex.com.vn/nd/bao-chi-viet-ve-petrolimex-va-xang-dau/cong-ty-xang-
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Nguyen Ngoc Uyen Nhi 30