SABECO's Business Performance and Stakeholder Engagement in 2020, Thesis of Business Ethics

Download SABECO's Business Performance and Stakeholder Engagement in 2020 and more Thesis Business Ethics in PDF only on Docsity! ASSIGNMENT 1 FRONT SHEET Qualification BTEC Level 4 HND Diploma in Business Unit number and title Unit 1: Business and Business Environment Submission date 30/3/2022 Date Received 1st submission 30/3/2022 Re-submission Date Date Received 2nd submission Student Name Đỗ Huyền Trang Student ID BH00323 Class BA0501 Assessor name Nguyen Thu Hien Student declaration 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. Student’s signature ChangChang Grading grid P1 P2 P3 M1 M2 D1 Table of Contents I. Introduction.............................................................................................................................................................4 II. Different purpose and types of organisation.......................................................................................................5 1.Private sector........................................................................................................................................................5 1.1. Purposes............................................................................................................................................................5 1.2. Legal structure.................................................................................................................................................5 a. Sole Trader......................................................................................................................................................5 b. Partnership......................................................................................................................................................6 c. Limited liability company...............................................................................................................................6 d. Joint stock company.......................................................................................................................................6 1.3. Types:................................................................................................................................................................6 2. Public sector........................................................................................................................................................7 2.1. Types of regulations in Viet Nam...............................................................................................................8 2.2. Purposes of public sector.............................................................................................................................8 3. Voluntary sector:.................................................................................................................................................9 3.1. Types.............................................................................................................................................................9 3.2. Purposes of voluntary sector.....................................................................................................................10 III. SABECO (SAIGON BEER – ALCOHOL – BEVERAGE CORPORATION)............................................12 1. SABECO Introduction.....................................................................................................................................12 1.1. Brief about the company...........................................................................................................................12 II. Different purpose and types of organisation In business environment, there are different types of organistion that help in achieve goals and objectives for growth and enhancement. Following are the types, purposes and legal structure of different organisations. 1.Private sector That part of the economy where ownership and control of the organization is in the hands of private individuals or groups and where profit-seeking is a central goal. (Worthington, Britton and Thompson, 2018:18) Evidence to prove the company is Private sector: The Owner structure chart of the company: (found in the Annual Report, Website...) If the Private individual or organization own more than 50%, the company belong to the Private sector 1.1. Purposes For profit → a part of profit will be distributed for members or shareholders (dividend) 1.2. Legal structure a. Sole Trader “A sole trader is a business owned by one individual who is self-employed and who may, in some cases, employ other people on either a full-time or a part-time basis” Characteristics: 1 individual owner Unlimited personal liability to the debt of the business Not being registered and No legal entity/personality b. Partnership More than 1 owner (Partners): Ordaining Legal entity status Both limited and unlimited liability with 2 types of Partners: Unlimited partners: at least 2 Limited partners c. Limited liability company From 1 to 50 members: a limit of 50 Legal entity status Liability of members: Limited d. Joint stock company At least 3 shareholders and no limit Liability of shareholders: Limited Enjoy: Legal entity status Public company The Securities Law 2006 of Vietnam: supplement one more case: 100 investor and charted shares which is equal or more than 10 billions 1.3. Types: Limited liability company with 1 member Limited liability company with equal or more than 2 members Example: VIETNAM DAIRY JOINT STOCK COMPANY Type Joint-stock company was listed on the main stock exchange of Ho Chi Minh City (“HOSE”), Vietnam on January 19, 2006. Vinamilk is the largest dairy company in Vietnam. Based on the UNDP 2007 Top 200 largest firms in Vietnam report, it was also the 15th largest company in Vietnam. Vinamilk's primary activities include the manufacture and distribution of condensed milk, powdered milk, fresh milk, soya milk, yogurts, ice cream, cheese, fruit juice, coffee, and other milk-based goods. Owner structure: According to the newly announced 2020 annual report, Vietnam Dairy Products Joint Stock Company (Vinamilk -HoSE: VNM) has a charter capital of VND 20,899 billion, equivalent to a market capitalization of VND 229,443 billion. The company has: 279,099 treasury shares, accounting for 0.01% of charter capital. In the shareholder structure, the State Capital Investment Corporation (SCIC) is the largest shareholder owning 36% of the capital. Followed by F&N Dairy Investments Pte with 17.69% and Platinum Victory Pte with 10.62% of capital. Vinamilk's dividend policy is approved by the annual General Meeting of Shareholders based on the Company's business results in the year. Dividends of fiscal year 2020: The company has paid dividends to shareholders with a total amount of VND 5,572 billion, equivalent to 50% of consolidated profit after tax. Particularly, the remaining dividend of 2020 will be submitted to the 2021 Annual General Meeting of Shareholders for decision. 2. Public sector that part of the economy under the control of government and its agencies and where the state establishes and runs the different types of organization on behalf of its citizens and for their general well-being. (Worthington, Britton and Thompson, 2018:18) Non-governmental organization a. Social enterprise Characteristics Conduct a business as usual Profit is not distributed to owners/ no dividend is allocated Profit for reinvestment or other social rescue/ public benefits Tax advantages. b. Non-governmental organization (NGO) NGOs according to Vietnamese law: Foreign non-governmental organizations, hereinafter referred to as NGOs, in order to conduct development assistance and humanitarian aid activities in Vietnam for non-profit or other purposes, must be authorized by the Government of Vietnam. (Worthington, Britton and Thompson, 2018) Characteristics Not a company, It is an organization Not owned by state, it is private owned Not carry out a business Not for profit 3.2. Purposes of voluntary sector Not for profit For the benefit to society: the interests of the public at large Social goals: environment, fair trade, community support, poverty eradication ... Tax support for social enterprise Example: ACH-Building a better future for refugees and migrants in the UK ACH provides safe, supported housing for refugees and migrants in Birmingham, Bristol, Wolverhampton and Coventry. Each year they support 800+ individuals to lead independent and ambitious lives. 2008 ACH was founded in Bristol 2012 ACH achieved Registered Social Landlord status and Birmingham office opened 2019 Coventry office opened and ACH announced as Top 50 Social Landlord ACH is a social enterprise comprised of a diverse group of strategists and researchers led by lived experience. We provide tailored integration services that not only help individuals, but also disrupt the systems that have entrenched inequalities in our society. Vision Is for all refugees and migrants coming to the UK to be successfully integrated  into their host society and economy. Mission To support the settlement and resettlement needs of refugees to develop their independence and equip them with the skills they need to gain sustainable employment in the UK. To be a nationally and internationally recognised leader in the refugee sector, driving change and transforming lives through the dedication and unique expertise of our staff. Values People come first in all we do. We work for the people and with people, and that is always something we keep in mind Vietnam is a developing country with a fast-growing economy in comparison to its neighbors and the rest of the world. As a country with an Eastern culture, people value parties, meetings, family discussions, friends, relatives, and so on, and alcohol is nearly always present at every celebration. Saigon Beer, Alcohol and Beverage Joint Stock Company is one of Vietnam's leading enterprises in this industry (Sabeco). I chose Sabeco as the subject of my research because I wanted to understand about the company's past and future strategies. III. SABECO (SAIGON BEER – ALCOHOL – BEVERAGE CORPORATION) 1. SABECO Introduction 1.1. Brief about the company Saigon - Hanoi Beer Joint Stock Company was established on July 6, 2007. As a member of Saigon Beer Alcohol Beverage Corporation. With a capacity of 90 million liters of beer per year, the company's products include: Saigon Beer cans 333, Saigon red beer 355, Bottled beer 333, Saigon draft beer. With a team of highly qualified authorities and employees, modern equipment and machinery, and understanding of how to promote Vietnam's strong intellectual and creative resources, the country is well-positioned to swiftly grasp new technologies. During the business process, SABECO-HANOI always takes "Food quality and safety and food hygiene and safety create prestige and sustainable development" as the top standard to come to customers. Saigon - Hanoi Beer Joint Stock Company thinks that its capacity and experience will enable it to satisfy all of Saigon Beer Alcohol Beverage Corporation's requirements, and it looks forward to working with customers, including you. ssn IF, on * a. The number of total equity Consolidated balance sheet Form{5 61 - DN/HN as at 31 December 2020 {issued under Circular No, 202/2016/TT-BTC dated 22 December 2014 ofthe Minstyyof Finance) se Ss ao Sao = —_— : nen eee ‘Cash and cash equivalents: 110 6 (2,726,137,088,387 4,115,884,646,637 ries _ ee a ‘Cash equivalents: Az 1,884,934,000,000 /3,162,405,649,072 Finaane leane tangible fed saness: i =: Lneinccneanat = ‘Short-term financial investments 120 14,547,419,492,877 12,393,226,750,273 East 2. Jrgme,a77 59 x Held-to-matucity investments, 123 7a) 14,547,419492,877 12,293,226,750,273 Apramuleted depreciation = (886,754,367) - ‘Accounts receivable from customers, im 8 (69,331,890,605 157,654,572,653, = ue nee: <a Prepayments to suppliers 132 164,204,071,490, 34,679, 363,371 ‘Aorumetated emertnten anal Say Parad Other short-term receivables: 136 sta) 699,600,027,317 ‘702, 587,109,178 ane rape = = re ae Allowance for doubtful short-term debts awa ‘10{a) (342,289,573,303) (346,312,667,285) = ” ae avaasscascd inietaed ut 45038 020,678 2,169,540753,708 ‘Long-term work inprogrest 240 aeaneaae oe aorrrrea.aes Allowance for iventories Ma (78,205,925.145) (202, 403,033,801) een 3 = ae suas ae = cca ae See Tavscappaaneas = aati pian levsnersinaiectesndenly sy) GRBSONADG.——_—LATAASH.T4350 Taxes receivable rom State Treasury 1532016) 36131716051 4an1.249752 operas ee eewece aiarae: 24 Tle) (444.407.086.674) (aas.a73,931,648 at eng tar awe investinents ‘Long-term assets PE eee oe Taenseanzsisra7ara,se2,412 Held-4o- matty investments 2s) 20,065,579,805 '59,868,679,905. Accounts receivable long-term 220 13,958 290,566 ,110;00,70 (ther ong:term aaets 260 520,520,707,659 S74,a77 a66 835 Pon eateciers aa: casein: agrees, Long-term prepaid expenses rr 12 330,639,468,716 1328,604633,780 eat aoe ae Tana Gamene Delered tax assets 28 170 769,540,065 24.736, n1075 aE RE = on aanaei aRaaS Long-term tools, supplies and spare parts 26311) 29,121,698,896. 311026,421,640 Allowance fordoublfullong-termdebts 212 a0(8) (ap.a07982:923) (ap.390,13,623) TOTAL ASSETS (270 100 +200) 270 23T4,S72,775,358 —26,962,476,0096,085 The accompanying rotsareanizeegee pera! sete rancatstaterents The ccramponyng notes cron regret prtaf these consected inal atements 2017 2018 2019 2020 0 5000 10000 15000 20000 25000 30000 22014 22367 26962 27375 Figure 1: Total assets increased 1.5% compared to 2019 As of December 31, 2020, total assets recorded was VND 27,375 billion, an increase of VND 413 billion over the same period Specifically, short-term assets increased slightly by 348 billion dong, mainly due to an increase in term deposits while cash and cash equivalents and inventories decreased. Inventory at the end of 2019 was higher due to the preparation of goods for Tet in January 2020 while this year's Tet fell in February 2021 as well as more efficient inventory management. Long-term fixed assets decreased by 90 billion VND due to depreciation although the value of fixed assets recorded increased at Saigon - Quang Ngai Brewery and Saigon - Lam Dong Brewery for the canning line and at home Saigon Beer machine – Nguyen Chi Thanh for beer filtration system. Long-term investments increased by 188 billion dong, mainly from profits in joint ventures and associates. The decrease in ROA and ROE ratios over the same period was mainly due to lower profit after tax in 2020. UNIVERSE ae “BTEC ssn IF, on * b. Total Owner’s Equity Consolidated balance sheet as at Form B 63 - BN/HN 31 December 2020 (continued) (issued under Cicular Wa, 202/2024/TT- BTC dated ‘2BDecember2014 ofthe Ministry of Finance) ss es a RESOURCES EQUITY (400= 410) 24,235,276,300,928 20,076,247,056,364 a ee ae Se ed ee eee Long-term liabilities: 0 986,653,164,558 ‘T98,398,984,642 ee Other payables long-term B72) 54,553,516,008, 54,073,316,900 aN rien! sb) samsseesr__esazeegee (| sence eae age 33 ‘75,786,613,683 63,996,130,130 = =—- ==. == ASSESSMENT OF BUSINESS RESULTS IN 2020 2020 is an extremely difficult year for SABECO. After having to deal with false rumors that SABECO is a Chinese company spreading since the end of 2019, the Corporation had to face the Government's implementation of Decree 100 in January 2020, including: regulations that severely penalize drivers involved in traffic when there is any alcohol concentration in the blood or breath. While SABECO is gradually recovering from that double impact, the Covid-19 pandemic has appeared and caused negative effects on the Corporation's profits. However, thanks to the fact that Covid- 19 is being well controlled by the Vietnamese government, Vietnam is on a much faster track of economic recovery than other countries, and so are SABECO's business activities. CONSUMPTION SITUATION Consumption volume in 2020 is lower than in 2019 due to the influence of many factors, including false rumors, Covid-19, Decree 100 and prolonged flooding. Faced with these difficulties and challenges, SABECO has adjusted its business strategy, shifting its focus to take-away consumption channels and increasing promotional activities. The Corporation also launched two new products, Lac Viet Beer and Saigon Chill Beer, and received many positive feedbacks from consumers. NET REVENUE 2019 KH 2020 2020 0 5000 10000 15000 20000 25000 30000 35000 40000 37899 23800 27961 Figure 3: Net Revenue Net revenue reached VND 27,961 billion, down 26% compared to 2019 due to reduced sales volume and partly offset by price increases during the year. GROSS PROFIT Gross profit dropped 11% due to lower sales. However, the gross profit was partially offset by the reduction in raw material costs, packaging costs and transportation costs, as well as better management of manufacturing overheads. PROFIT AFTER TAX 2019 KH 2020 2020 0 1000 2000 3000 4000 5000 6000 5370 3252 4937 Figure 4 : Profit after tax Profit after tax reached VND 4,937 billion, down 8.1% compared to 2019 due to a decrease in gross profit. However, profit after tax in 2020 is still 51.8% higher than the annual plan approved by the General Meeting of Shareholders GROSS PROFIT Gross profit dropped 11% due to lower sales. However, the gross profit was partially offset by the reduction in raw material costs, packaging costs and transportation costs, as well as better management of manufacturing overheads. OPERATION COST General and administrative expenses were VND702 billion, down 33% compared to 2019 because in the same period last year, SABECO made provision for investments in associates operating in real estate. Selling expenses were VND2,859 billion, down 4.8% as almost all beer bottles had been depreciated. Although there were more marketing activities and promotions during the year, SABECO has implemented cost reduction measures to minimize the impact of revenue reduction. d. The total employees Figure 5: Overview of labor force The overall revenue for the year cannot exceed 50 billion VND, and the total capital cannot exceed 20 billion VND, but it is not a micro-enterprise according to regulations. Workforce of fewer than or equal to 100 individuals. - In the field of commerce and service The overall revenue for the year cannot exceed 100 billion VND, and the total capital cannot exceed 50 billion VND, but it is not a micro-enterprise according to regulations. Workforce of fewer than or equal to 50 individuals. Medium enterprises: - In the field of agriculture, forestry, fishery and industry, construction: The overall revenue for the year cannot exceed 200 billion VND, and the total capital cannot exceed 100 billion VND, but not small enterprises, micro enterprises according to regulations. Workforce of fewer than or equal to 200 individuals. - In the field of commerce and service The overall revenue for the year cannot exceed 300 billion VND, and the total capital cannot exceed 100 billion VND, but not small enterprises, micro enterprises according to regulations. Workforce of fewer than or equal to 100 individuals. Big enterprise: Capital greater than 100 billion. The workforce is more than 300 people. Meanwhile, the charter capital of SABECO is 6,421,811,860,000 VND and the number of employees is 8388. This shows that SABECO is a big enterprise. 2.2. Scope of the SABECO 2.2.1. Stakeholders SABECO is continuing to build and develop cooperative and cohesive relationships with stakeholders based on trust, transparency and mutual support. The close association with related parties will be a solid foundation for the pursuit and maintenance of the Corporation's sustainable development. a. CUSTOMERS/CONSUMERS Main concerns SABECO’s actions Results in 2020 Products’ quality and safety  Apply advanced science and technology to improve products’ quality and designs  Comply with production standards and regulations  Beer freshness was ensured in the market Customer care  Launch new products to meet different needs of consumers  Expand the distribution system  Launch various attractive trade promotions  Collect feedback from consumers Research into dynamic market demands  New brands received positive feedback on packaging and tastes  SABECO products were easy to find  Brand awareness and loyalty were improved Sales policies for distributors  Apply motivated incentive schemes  Distributors were encouraged to invest in SABECO and their own businesses b. SHAREHOLDERS/INVESTORS Main concerns SABECO’s actions Results in 2020 Information transparency  Comply with regulations of information disclosure  Information was disclosed timely and sufficiently Benefits for shareholders and investors • Maintain dividend payout • Ensure fairness for all shareholders and investors • The 2020 dividend rate was maintained at 35% nd suppliers • Information sharing for better work efficiency • Forward buying of raw materials for hedging purposes e. AUTHORITIES/GOVERNMENT/ASSOCIATIONS Main concerns SABECO’s actions Results in 2020 Compliance with the law and regulations  Comply with laws and regulations related to SABECO businesses  Update relevant legal documents  SABECO was considered one of the largest contributors to the State budget  The Corporation’s brand reputation and value were maintained Support for State policies and activities  Participate in programs and activities launched by authorities  Contribute to improving provincial economies  Stable jobs were created for local people  SABECO was considered one of the most active enterprises in supporting State activities f. PRESS/MEDIA Main concerns SABECO’s actions Results in 2020 Information and image of SABECO  Issue and implement  SABECO news was released regulations on public speeches and information to be given to the press  Increase the number of highquality articles given to the press and media  Build and maintain strong relationships with the media, especially local newspapers timely, accurately, and transparently  Clear messages of SABECO were conveyed  The reputation of the Corporation was strengthened g. COMMUNITY Main concerns SABECO’s actions Results in 2020 Contributions to the society  Launch various large-scale CSR activities  Create stable jobs for local workers  SABECO’s reputation and Bia Saigon brand was strengthened within local communities  The role of government, social organizations and SABECO’s partners was strongly connected in CSR activities Environmental protection  Comply with regulations on environmental protection  Conduct various initiatives to cut down on raw materials,  Environmental impacts were minimized energy, and natural resources  Raise awareness of environmental protection among employees ssn IF, on * 3. The functions of the SABECO 3.1. Structure chart GENERAL MEETING OF SHAREHOLDERS. AUDIT COMMITTEE —— BOARD OF DIRECTORS ( INTERNAL AUDIT DEPARTMENT BOARD OF MANAGEMENT : BOD OFFICE. SALES DEPT. . . Pace: MAMAGEMEST SYS a + conporateorrice ‘COMMUNICATION DEFT. [ASSURANCE FUNCTION MARKETING DEPT, ee FINANCE DEPT. LEGAL DEPT. internat contro oer, AccounTiNG DEPT, = =} + _procuncuenr pep. HUMAN CAPITALDEPT. = + PLANNING DEPT. SAIGON oceR- SAIGON BcER- CU cH . repr. _—— ET NGUYEN CHI THANH aREWERY BREWERY ‘TECHNICAL DEPT, 1. quaurvconrnonoerr. 3.2. Each department of SABECO undertakes the following specific tasks: General Meeting of Shareholders: The General Meeting of Shareholders is the highest authority of the company, whose professional task is to orient the development of the company, to decide on the most important issues of the company, including: Shareholders with voting rights or authorized representatives of shareholders, decide on issues within their competence in accordance with the law and the company's charter. Board of Directors: The Board of Directors consists of 07 members, is the management body of the company, has full authority on behalf of the company to decide all issues related to the purposes and interests of the company, except for matters under its authority. of the general meeting of shareholders. Board of Supervisors: The Supervisory Board consists of 3 members with a term of 5 years. Powers and responsibilities of the Board of Supervisors comply with the provisions of the Enterprise Law and the Company's Charter. To check the reasonableness, legality, honesty and prudence in the management and administration of business activities, in the organization of accounting, statistical and financial statements to ensure the legitimate interests of the shareholders. Board of Directors: The General Director is the person who manages the daily production and business work of the Company and is responsible to the Board of Directors. Assisting the General Director are the Deputy General Directors, Chief Accountant and professional divisions. Internal audit: As well as consulting for managers to perfect the internal control system. Internal audit is responsible for uncovering errors in business operations of the enterprise, acting as a consultant and orienting the board of directors and the board of directors on risk control, helping business owners improvement of weaknesses in the management system and corporate governance. By analyzing, examining, and monitoring the operational processes of all departments in the business apparatus, internal audit will give advice to help the company operate more efficiently and effectively. The Office of the Board of Directors Perform office, clerical and secretarial work under the Board of Directors, Supervisory Board, record minutes and archive resolutions, decisions, photos of other documents of the General Meeting of Shareholders, the Board of Directors, the Supervisory Board. Advise and propose to the Board of Directors and the Chairman of the Board of Directors in making guidelines, policies, and decisions of the Board of Directors on issues under the duties and powers of the Board of Directors and the Chairman of the Board of Directors. Consumption Board In charge of collecting information, assessing market situation, building product consumption plans. Researching product selling prices, advertising policies, sales methods, customer support, making contracts agency. Advising customers on the use of advertising equipment, sales techniques, and advertising information. Track and manage assets, equipment, and sales tools: beer kegs, storage cabinets, CO2 bottles, shells, plastic safes in circulation, billboards of the company in the market, etc. cooperate with the financial accounting department to manage debts of agents and customers consuming products; Invoice management and invoicing, collection of sales. Technical board: Tasks of construction, reception, transfer and management of equipment operating procedures, production technology, economic and technical norms, safety techniques and food safety; implementing research and development programs for new products, technical improvement, application of advanced technologies in production, formulation of requirements and standards for product quality, materials and materials; inspect the quality of output products, quality of materials and input materials for production, manage records of machinery and equipment systems, construction. Maintain machinery and equipment, coordinate with related departments to develop and implement training program content, organize annual technical upgrading contest for workers. 3.3. Departments work together to achieve the objectives of the SABECO In a business, it is extremely important for departments to work together. For a business to be successful, its key areas – marketing, business operations, human resources and finance – cannot work in isolation. Each division relies on the others to enable them to complete their particular functional activities. Marketing The marketing department must work with business operations, human resources and finance to be successful: Human resources must ensure that marketing employees are recruited and trained properly. Operations must ensure that the business can keep up with the demand created by marketing and that the supply chain runs effectively. Marketing relies on the finance department to ensure that it has enough money to run its marketing campaigns effectively. Business operations The operations department must work with human resources, marketing and finance to be successful: Human resources must ensure that operations employees are recruited and trained properly. Marketing must create demand for the products or services that the operations department is working on. Operations relies on the finance department to ensure it can purchase supplies, transport and store goods, and oversee the general day-to-day running of the business. Human resources The human resources department is extremely important to the rest of the business. It must make sure that the operations, marketing and finance departments have enough employees. It must also make sure that those employees are effectively trained and managed. Finally, it is responsible for dealing with employees’ disciplinary and grievance issues across all departments in a business. Finance The finance department must work with human resources, marketing and operations to be successful: Human resources must ensure that finance employees are recruited and trained properly. Finance must provide marketing with an effective budget and enough financial resources to enable it to create demand for the business’ products and services. Finance must also ensure that the operations department has enough money to purchase supplies, transport and store goods, and oversee the general day-to-day running of the business. 3.4. Organizational structure of Sabeco company by nature: centralized and decentralized: Features of centralize It is found that, at the strategic leadership level (the General Meeting of Shareholders and the Board of Directors), a higher level of concentration, at this level when the concentration is higher, it will be very relevant because the General Meeting of Shareholders The Board of Directors is the place to make important decisions, orienting the development of goals, and power needs to focus more to be able to make the right decisions. When power is concentrated in these strategic leadership levels, the company's organizational structure will be more unified, more supervisory. When the concentration is too high at the leadership level, subordinates have little opportunity to contribute ideas and develop ideas to improve the policy, which can cause shortcomings and inconsistencies in the organization's policies. High concentration at the leadership level requires those in power to have sensitivity, intelligence, vision and decisively to be able to determine the right strategy for the company, so sometimes it also puts pressure on the senior management. Too much concentration reduces the quality of strategic decisions when senior managers are bogged down in strategic management. The high concentration of management also makes them more inclined to become independent executives. Centralized distribution such as this structure is very suitable, it does not reduce the quality of strategic decisions. At the same time, it does not lose the must-have powers of the operational levels, increasing the positivity, creativity and flexibility at those levels. The reporting mechanism will ensure consistency within the organization. Features of Decentralization The high decentralization in the subordinate apparatus will also cause the abuse of authority of the lower management, and sometimes will also cause many shortcomings or mistakes if the lower management has not focused on the work. While at the operational levels, the level of decentralization is higher. The degree of decentralization at the operational levels makes the ratio and importance, the scope of the decision impact at the higher levels of deputy and department heads, vice presidents and department heads. greater independence. At operational levels, when the concentration is high, the authority will be divided widely among many people, many departments will help reduce the work burden for higher leaders, and subordinates will have more opportunities to demonstrate their ability to work. work and develop yourself better. Higher decentralization also makes it easier for departments to specialize, observe and check each other, thereby boosting work efficiency. The scope of impact of subordinate decisions will be higher. 3.5. Solutions to improve the structure: Since the Board of Directors is in charge of too many departments at once, this leads to poor quality management decisions due to the processing of too much information. The solution given here is to build a board of directors to coordinate with the board of directors to coordinate in advising and operating the below. For example: Technical director will be in charge of technical department, consumption department, factory department... Sales director will be in charge of purchasing, sales and marketing department, finance director will be in charge of When you make an initial investment, you close the account. IV. Conclusion SABECO clearly identifies strengths and weaknesses as well as opportunities and challenges to rank its businesses. Combined with development goals, industry orientation, internal and external factors to build short-term and long-term development strategies. Should take advantage of their own strengths, as leverage for activities. Today, companies always follow the path of multi-industry business, but not everyone has success. Therefore, we need to establish and determine the right direction in accordance with each stage of development and the general situation of the world economy. Each business has its own characteristics and so does SABECO. We cannot copy their ways and let's use creativity and development to build us the shortest path to success. V. Reference Worthington, I., Britton, C. and Thompson, E., 2018. The business environment. Harlow: Pearson. Vinamilk.com.vn. 2022. [trực tuyến] Có tại: https://www.vinamilk.com.vn/static/uploads/bc_thuong_nien/1617354921- 428a45ccc0746e6cdfa3569800fb919bbf8e6d36b54603862caf12ac95d89383.pdf Vnpt.com.vn. 2019. [trực tuyến] Có tại: https://vnpt.com.vn/Media/Images/19052020/Bao%20cao%20tai%20chinh %20nam%202019.PDF ACH. 2022. Refugee Integration & Employment Services UK. [online] Available at: https://ach.org.uk/ ACH. 2022. Our history. [online] Available at: https://ach.org.uk/our-history BBC Bitesize. 2022. How business functions work together to achieve aims and objectives - The interdependent nature of business - Eduqas - GCSE Business Revision - Eduqas - BBC Bitesize. [online] Available at: <https://www.bbc.co.uk/bitesize/guides/zdskkmn/revision/2 > . Nguyen Quang Trung, 2022. [online] What are the criteria for determining the size of micro, small and medium enterprises? How is the specification?. Available at: <https://i-law.vn/huong-dan-phap-ly/tieu-chi-xac-dinh-quy-mo-doanh- nghiep-66963 > khotrithucso.com, K., 2022. Analysis of Sabeco's organizational structure by centralized and decentralized nature. [online] Khotrithucso.com. Available at <https://khotrithucso.com/doc/p/phan-tich-co-cau-to-chuc-cua-cong-ty-sabeco-theo-tinh- chat-1538001 > khotrithucso.com, K., 2022. Analysis of SABECO's business environment. [online] Khotrithucso.com. Available at: <https://khotrithucso.com/doc/p/phan-tich-moi-truong-business-business-cua-sabeco-245446 > vm ‘BTEC