ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

Submission date 12-04-2021 Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student Name Doan Nguyen Xuan Quynh Student ID TBS20043

Class GBS0906 Assessor name Mr. TuanDM

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 Xuan Quynh

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 TABLE OF CONTENTS
INTRODUCTION................................................................................................................................................ 4

Overview of Company .................................................................................................................................. 4

MAIN TOPIC ..................................................................................................................................................... 5

I. Type and Purpose explanation .............................................................................................................. 5

1. Type: ......................................................................................................................................................... 5
2. Purpose: ................................................................................................................................................... 8

II. Size and Scope of PNJ Company .......................................................................................................... 10

1. Size: ........................................................................................................................................................ 10
2. Scope: ..................................................................................................................................................... 11

III. Organization Structure Chart .............................................................................................................. 13

CONCLUSION ................................................................................................................................................. 15

REFERENCES ................................................................................................................................................... 16

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 INTRODUCTION
According to the requirement of supervisor in Wells Fargo company which is a US multinational financial
services company, I will perform analysis in a chosen company via model, scope and size company with the
purpose investing in 2020 – 2025. Therefore, I made up my mind to choose PNJ Company, which is Vietnamese
Joint-Stock company, established in 1988. Additionally, the company is majoring in producing and trading gold,
silver, gemstones jewelry, business gifts, fashion accessories, souvenirs, watches, gold bar trading, providing
needle inspection services diamonds, precious stones, precious metals, and real estate. Moreover, PNJ company
is rankek 16th in the top 500 largest jewelry compnay in the world by Plimsoll since 2010. It is fact that PNJ is
considered as one of the large-scale jewelry trading company and currently has 7 member companies
(Information about PNJ).

Overview of Company

(Logo of PNJ, PNJ..vn)

Name of Company Phu Nhuan Jewelry Joint Stock Company

Abbreviated name PNJ.,JSC

Headquarter 170E Phan Dang Luu St, Ward 3, Phu Nhuan Dic, HCMC

Contact Tel: (84-28) 39951703

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 Fax: (84-28) 39951702

Email: [email protected]

Tax Code and Business 0300521758

Certificates

Type of Company Joint – Stock Company

Charter Capital 2.252.935.850.000 VND

Representative Ms. Cao Thi Ngoc Dung – Chairwoman of the board

(Information, PNJ.com.vn)

MAIN TOPIC
I. Type and Purpose explanation

1. Type:

• Profit and Non-profit Organization.

Almost every business, when it is founded, has the common goal of making a profit. The organization will be a
sole proprietor, partnership, joint venture, or corporation. Furthermore, with this type, it is necessary to
maintain accounting books for tax and auditing purposes. Whereas a nonprofit is to promote the public good to
make a profit, which has no owner but is formed by a group with a common purpose for the community.
Through donations from sponsors, sales of programs,etc to generate revenue. And this kind of organization will
not have to pay taxes (example: AIESEC, Unicef, etc) (vi.gadget-info, 2019).

According to theories, it can be seen that PNJ company is a profit organization. The company must be pay taxes
which showed by tax code (0300521758). Moreover, the company has made a significant profit in 2019 which is
depicted in annual report 2019 of PNJ (PNJ, C., 2020).

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 (PNJ Annual Report 2019)

• Public or Private.

PNJ is a public company which widely mobilize capital from the public through the issuance of securities (stocks,
bonds) listed at stock exchange centers. Furthermore, on the stock exchange, the stock code is PNJ
(VietstockFinance. 2021).

(VietstockFinance. 2021)

• Private -owned enterprise or state-owned enterprise.

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 PNJ has become a private company, has more than 4,000 employees, 273 stores, and revenue in
the first half of 2017 reached 5.5 trillion VND (Trí Thức Trẻ, 2017). Additionally, the annual report 2019
illustrates clearly about stock of each shareholder.

(PNJ Annual Report 2019)

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 2. Purpose:

a. Vision:

In terms of corporate vision, PNJ is the leading jewelry manufacturer and retailer in Asia and also holds the
number one position in the Vietnamese market, focusing on the mid-range and high-end segmentation
(PNJ.com.vn).
b. Mission:

PNJ always pledges to bring customers pride with exquisite jewelry products with outstanding quality
(PNJ.com.vn).

c. Core Values:

There are five main values: Integrity - Responsibility - Quality - Innovation – Cohesion (PNJ.com.vn).

- Integrity: is the leading ethical standard in work and life that every individual and organization is
committed.
- Responsibility: take responsibility as the driving force behind all activities. Put the interests of customers
and society into the parts of the business.
- Quality: is a solid basis to ensure survival and measure the worth of each individual and organization.
- Innovation: is the foundation of the long-term development of the organization.
- Cohesion: not only connecting among employees internally, but also engaging and understanding
customers.

d. Objectives:

• Economic Objectives:

PNJ will continue re-strategize its business around this time when has shifted from the “production and sale” to
“professional retail and value delivery”. Furthermore, the customer segmentation process continues to develop
and improve, which relies on “psychology” instead of “demographics” to provide customers with the most
relevant and quality products and services. Moreover, PNJ will continue to restructure its product portfolio,
launch more new products, which meet customers' needs for fashion as well as convenience. At the same time,
PNJ also accelerated its development in other business areas (Pnj.com.vn, 2020).

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 Besides, for economic development to be effective, the company needs to have a plan to develop
capacity. The company aims to continuously change and innovate to not only lead in the Vietnamese market but
also reach out to the international market. The company focuses on development in domains such as
technology, Marketing to develop and promote products, which will help the company maintain its leading
position in the jewelry and gemstone industry (Pnj.com.vn, 2020).

• Social Objectives:

PNJ is one of the leading companies in community activities, especially social support, and human protection
activities. In 2019, 100 PNJ staff participated in completing essential items in the Autism Awareness Project in
Vietnamese Children, which PNJ is the only sponsor with Bao Fund Support for Vietnamese Children. Moreover,
PNJ also cooperates with Ho Chi Minh City Sponsoring Association for Poor Patients free medical examination
and treatment for the poor, charity walks for the poor, sponsors scholarships to pupils and students in difficult
circumstances, The year of organizing the spring of love program with thousands of gifts for poor households,
humanitarian blood donation, garbage collection, etc and many other practical activities (PNJ Sustainability
Report 2019).

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 II. Size and Scope of PNJ Company

1. Size:

PNJ is considered that a company with large size in Vietnam. The PNJ Balance Sheet 2020 illustrates clearly:

- The capital with number of total assets: 8483146.1 Million VND.

Millions VND (except for per share items)

- Owner equity: 5241861.87 Million VND.

Millions VND (except for per share items)

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 - The total liabilities: 3241284.23 Million VND.

Millions VND (except for per share items)

PNJ owns a human resource with a professional working style, higher labor efficiency, and above all, the
connection between employees and the organization. PNJ strongly attracts and retains talents during its
operation. The company's number of employees also increased continuously, with 3,950 people (2016) and
4,500 people (2017). As of 2018, the enterprise has a human resource of more than 5,300 employees with a
solid professional background. Especially a team of more than 1,000 jewelers and craftsmen are highly skilled
and have rich creative abilities, enough to create extremely sophisticated product sets (Tin tức PNJ., 2018).

It can be seen that PNJ's scale is compatible with the company's goals related to services and products. PNJ has
gone from a small economic unit to a leading jewelry enterprise in Vietnam with total assets up to 8483146. 1
million VND. From 2018 through 2022, PNJ prepares for the company's development to digitally transform to
become a professional retailer, which not only sells its goods but also sells some other products. To move to an
experienced retailer, you must have the retail industry, retail management by system. In addition, human
resources is one of the factors affecting the size of the company; the larger the size of the company, the higher
the number of employees and the higher the quality requirements. . When the company has many quality
personnel, the time and results of completing the goals will be more standard, and also contribute significantly
to opening more subsidiaries and operating PNJ's branches across the country (Thiên, M., 2018).

2. Scope:

PNJ has three sales channels: retail, wholesale, and export. In which, retail is considered to be the most critical
spearhead in the company's development orientation. By 2019, PNJ has grown and expanded many branches

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 across the country, currently owning 345 doors in 53/65 provinces. PNJ products appear in 11
countries and four continents (Denmark, Germany, UK, France, Russia, Thailand, Japan, etc). Besides, PNJ is also
highly appreciated by international organizations through international awards, such as Asia's Leading Retailer
Award at the awards ceremony held by Jewelry News Asia (Linh, T., 2019).

PNJ Store System in Vietnam

PNJ is known as a chain of jewelry stores, gold bars, accessories, watches, and gemstone inspection services.
However, the jewelry business is the most profitable sector for PNJ, contributing nearly 80% to PNJ's revenue
and more than 90% of annual profit via two methods: jewelry retail and wholesale jewelry. PNJ's market
segments in the retail segmentation are divided as follows:

Product Gender/Age Income

PNJ Gold Middle Adult (Women): 25 – 45 years old More than 58 millions per year

PNJ Silver Young Adult: 15 – 25 years old 20-30 millions per year

Fine Jewellery Middle Adult (High-end or Foreigner More than 70 millions per year

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 Customers): > 25 years old

PNJ Segmentation (BETA Securities Inc).

In the wholesale sector, PNJ focuses mainly on businesses that trade in gold, silver, and jewelry, which do not
have sufficient facilities or conditions to manufacture jewelry. Moreover, PNJ is also combined with the business
segment wishing to use its branded jewelry as a partner gift (Linh, T., 2019).

The construction and expansion of many stores nationwide will help customers quickly access its products and
services. This will help the company easily achieve its business goals, increase profitability and expand its brand
name and become the leading jewelry retailer in Vietnam. The gross profit margin of the retail segment
increased in the third quarter of 2019, thanks to the increase in gem jewelry's contribution. PNJ said that the
demand for luxury products continued to grow, especially the demand for gemstone jewelry. Moreover, the
broader the store's scope, the more opportunities for the company to easily access local social issues that PNJ
branches, which the company can fulfill its social goals and helping more people (Linh, T., 2019).

III. Organization Structure Chart

According to the theories, Organizational Chart is divided into types as follows:

• Functional Organizational Structure: a type of organizational structure in which each management

function is separated by a division of an agency, which the functional staff must be professionally
knowledgeable and proficient in the scope of their management (Pfeiffer, P., 2021).

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 • Hierarchical Organizational Structure: is often used in larger companies that operate in a
wide geographic area (Pfeiffer, P., 2021).

• Matrix Organizational Structure: is constructed by combining online and program-goal structures. The
management of each area of the organization is built following the online system. In this structure,
functional and product management leaders are equally in position, who are responsible for reporting to
the same level of leadership and with decision-making authority in their respective fields (Pfeiffer, P.,
2021).

PNJ Organizational Structure (Annual Report 2019).

The PNJ diagram is a functional map of the project. It can be seen that the leadership has a lot of power and
leadership to run the organization, including: General Meeting Of Shareholders, Board Of Directors, and
Supervisory Board. Next, the company divide into two sub-divisions: Secretary Office and Operation Director to
manage and operate other parts of the organization. For example, Secretary Office will manage functions such
as: marketing, retail, supply, HR, IT, strategy, public relation and branches. And Operation Director will be
responsible for finance and operation.
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 One of the critical departments of almost every company, as well as in the PNJ joint-stock
company, is the Board of Directors (general director, executive board). The Board of Directors is responsible for
supervising the management and administration of the Executive Board. In addition, the Board of Directors also
exchanges information about the strategy, business results, implementation of resolutions, and targets set out
in the year of the General Meeting of Shareholders. In general, the oversight of the Board of Directors and risk
management is systematic and coherent, which ensures the company's operations are stable and meet the set
goals.

Furthermore, the strategy Secretary Office and Finance Director are two departments under the Board of
Directors. In which the Secretary Office is to advise and supervise projects and strategies in the long term. And
the Finance Director is responsible for capital planning, capital mobilization methods, resource allocation, and
overall risk management.

Relationship between departments in PNJ company is close and unified, which is one of the primary reasons for
the company to advance in sustainably. On the one hand, Secretary Office monitoring, and accelerating quick-
wins (QWs) in implementing risk management capacity building. Agree in the construction of a modern risk
management system and hire a consultant for implementation. Coordinate with the Finance Director in
implementing the financial management capacity development PNJ towards a group model for the next stage.
On the other hand, t he Finance Director organizes a check on the use of capital, checks financial statements at
member companies. Moreover, working with company executives to develop solutions to optimize operating
costs. Additionally, the department also coordinat with the Supervisory Board, the finance and accounting
department, the internal control department to regularly check the system to detect shortcomings; thereby
improving the inconsistent points, solving hidden risks in operation, helping the executive board to have a plan
to train and overcome, helping the company operate effectively.

CONCLUSION
In conclusion, the article has presented the scope and sizes of PNJ company. It can be seen that PNJ is a
reputable private and public company operating for profit in Vietnam. PNJ has a relatively large scale and scope
of operation, not only having more than 300 stores in Vietnam but also distributing products worldwide. At the
same time, the company also has an abundant workforce trained and equipped with good knowledge and skills.
Moreover, PNJ is leading the jewelry retail domain in the home market, and the company continues to invest

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 heavily in this area. From the presented factors, PNJ is the right company for Wells Fargo to
research and invest in the period of 2020-2025.

REFERENCES
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