CHAPTER 2: Decision making

Decision-making process:

Step 0: Be aware of yourself: The way you look at life, work, school,... your view about the
world, philosophy (affect the way you make decisions) (slide 2)

1/ Define problem: (vd: Need to buy a pair of sport shoes to play badminton )`
2/ Define criteria: (vd: price, color,
size, brand, quality, style, online
review, shoes with features
specially made for badminton ...)
3/Allocate weights: (evaluate the
previous criteria to identify priority
level)
(vd: Safety P1, Quality P2, price
P3,...) - When consider between
expensive but high quality and
cheap but low quality shoes->
choose expensive + high quality
shoes because prioritize quality
over price)
4/ Develop Alternative:(list
potential choices)
Yonex, Adidas, Nike, Thượng Đình
shoes, Kawasaki,...

5/ Analyze: mark & evaluate choices based on criteria

Brand Quality Price Colour Size Form Review Advanced
Tech

Thượng Đình 8/10 100-200 Simple has size suitable 7/10 7/10
thoundsand single 37
color

Kawasaki 8/10 600-1M Outstand has size suitable 8.5/10 8.5/10

ing 37

Yonex 8/10 >1M Diverse size 37 suitable 9/10 9/10

out of
stock

Lining 7/10 >1M Mostly has size Too manly 8/10 8.5/10
white + 37
only few
bright
color
6/ Select best option: → Choose Kawasaki because it meets the demands and is suitable
(reasonable price, nice form, good reviews)
7/ Implement: ask for (your mom’s) money -> purchase
8/ Evaluate: make assessment after purchasing -> good and suitable
_______
Making decision style/approach:
*different person have different style

In common:

- make a decision based on evidence, fact, not based on their emotions

- try to maximize benefit - does it have evidence to show it benefits

Different:

- Rationality: you try to have as many options as possible - then analyze with as much

info, evidence as possible to maximize the goal achievement. In short, we can

understand it as “choosing the best out of everything” - quality (make decision after

consider many aspects carefully)

Ex: Serious life choices require people to make rational decisions. Such as a

highschool student choosing what major to pursue and which university or college

they should attend.

However, in reality, people do not have enough resources or the ability to process

everything so they usually choose:

- Bounded rationality: only consider the options that are convenient for you and you

analyze the option with information that you can easily get, available “choose the

most convenient”

Ex: You want to buy a Pepsi at a store near your house, but they only sell Coca-cola;

instead of going to a further shop to buy Pepsi, you choose to buy Coca-cola because

it is ‘good enough’, ‘acceptable’.

Intuition: based on emotion, no maximize benefit, search evidence based on experience with

limited time “decision depends on intuition and personal experience” - VD: Choose it

because you ‘feel like it’

Ex: Women’s intuition about a partner cheating is often right. This gut feeling can

lead them to check the partner’s phone or friends list for validation
Evidence-based management: Make decisions based on reliable, relevant evidence and data,

to improve management practice.

Ex: When writing an essay, you need to have evidence from authoritative sources to back up

your thesis, otherwise, the reader won’t be convinced.

Crowdsourcing: collecting work, information, or opinions from a large group of people via

the Internet, social media, and smartphone apps (opinions from customers, consumers)

E.g: In an English center, after a certain period of time, the school conducts a survey to get

students’ opinion about teachers in order to make suitable changes and improvement.

_________

2 Types of decision-making condition:

Programed: involves those decisions that Non-programed:

already have a plan or rule in place and is used - is used for complex and unstructured, new

to reach a solution or conclusion. In short, it's a situations that can’t be predicted.

repetitive and routine process to solve problems. - you make different solutions depending on the

- routine and predictable, based on type of problems - flexible

established plans - require judgment, creativity, and

- normally taken responsibility by low problem-solving skills that are usually made by

managerial level (usually made by first top managers or leaders (CEO, CFO,..)

line or middle manager) Ex: CEO of leather shoe company that currently

*if the business is big enough →managers will makes dress shoes for men wants to launch a

train new staff by following consistent new product: leather boots for women, to reach

procedures of the company. more customers.

Ex: If customers return cold soup, the line

manager will handle the situation by either

offering a refund or providing a replacement.

Staffs can also solve this problem themselves if

the customer does not ask for the manager.

___________
Bias - why you still making wrong decision

- hindsight: convinced themself that they successfully predicted the outcome after the

results had been known.

E.g: After three months on the job, the person hired may be great, or the opposite. The

HR guru will say, "My gut told me they were right for the job," if the recent hire

performs well. In contrast, the HR manager would remark, "Well, I had a bad feeling

about that person all along," if the candidate didn't do well.

- overconfidence: people thinking that they know a lot but in reality they don’t.

E.g: Some students do not revise basic knowledge that they think they have known it

but end up making the wrong choice in test.(overconfident about knowledge)

- self-serving: tendency to place the blame for our shortcomings on external

circumstances and our successes on internal, personal elements.

E.g: When studying for an exam, if the student get gọod grade-> thịnk that is because

he is smart, if the student get bad grade->think that because the school self-study

room was too noisy, the test was too difficult

- Randomness - Representation: Decide based on nothingness, no specific evidence

E:g: - Randomly pick a solution and try to make it meaningful (choose only one out of

five topics to study thinking that it will be in the test because a senior said so)

- Pick a solution based on past experience although they aren’t related (A girl

has an argument with her boyfriend and decides to break up because her friend

did the same even though their situations are not related)

- immediate gratification: make decision based on short-term benefit, not consider

long term benefit, consequence - (cheat on exam)

E.g: Cheating on exams as it saves time on studying and can still get high scores at

that current time, however, they won’t have the basic knowledge of that subject. And

in the future, they won’t understand anything new that they learnt at school.

_________
 - anchoring: make decision based on the first option/information that you have (ignore

the other opinion)

E.g: When we go to the bookstore, instead of choosing a book with good content, we

judge a book by its cover at the first look.

- confirmation:you have options that you like and only need info to prove/confirm that

option - ignore other options (disagree with contrast opinion)

ex: Picky eaters may look for evidence to support their initial suspicion that a food is

disgusting when faced with it, not even try tasting it even though another person has

said that it’s delicious.

-Selective perception: make decisions focusing on your point of view leading to

unfair decisions.

E.g: Interview: Employers choose the candidates that are more good looking thinking

that they are better and can work well with others.

- framing: Focusing on certain aspects

E.g: Between two yogurt brands, one advertised as “10% fat” and the other as “80%

fat free”, customers would prefer to buy the latter due to the wording even though

both have the same meaning.

- availability: believe that common info to be true and uncommon to be false

E.g: Recruitment, you interviewed an applicant and saw that their behaviors were

inappropriate; However, you still let them pass because they have a good reputation

outside of the interview section -> After that they pose a threat to the club’s

environment

- sunk cost: Focus on correcting the past rather than correcting the future (dating

someone for few years but right now you don't like but still continue)

E.g2: You are in your 6th year of medical school, but later you found out that your

personalities are more suitable to be a teacher -> You still choose to be a doctor

although your performance in the field won’t be as well as being a teacher just

because you’ve spent years to study doctor

 ________

cutting-edge approaches for improving decision making:

Design thinking: make decisions based on the customers’ perspectives, instead of trying to

fix the current product, remake it in another way.

E.g: LEGO once released a set with over 3,000 pieces in 120 colors. Although it was popular

at first, many pieces were rarely used, moreover, increasing production costs. Instead of

discontinuing the set, LEGO reduced the number of pieces and colors to manage production

costs while maintaining customer interest.

Big data & AI: complicated data with large amounts of information that may require

technology to deal with. (Use AI to analyze the employment rate of a particular field across

country)
 1. Communication
- Interpersonal
- Organizational:
+ Internal
+ External
2. Verbal process (mostly)
encode medium decode
sender → message 1 → receiver → message 2→ feedback →

encode: an action to produce information, such as write, speak, draw, sing, dance,...
medium: a container of information
feedback * : always make sure to give feedback in business.
noise: irrelevant information not from the sender (from 3rd party)

medium choice:
- feedback: does the medium allow fast reply
- complexity: can the medium contain difficult information. mediums with
pictures, demonstrations have higher complexity.
- ease of use
- cost
- confidentiality: can the medium be used to keep secrets
- warmth: can the medium be used to build relationships. Digital medium - low
warmth and vice versa.
- time & space: do the sender and receiver have to be in the same place at the
same time.
- scannability: can the medium highlight small details. Mediums that can be
saved or have words → high scannability
3. Non-verbal
- Why is it important?
+ Can be prepared
+ First impression
4. Organizational behavior
Citizenship: voluntary positive actions that go beyond the contract, responsibilities.
5. Factors of best behavior
- attitude: (to)
+ job
+ company
+ you
- perception (năng lực)
personality competence: big 5
Improve job attitude:
- make the job fresh, dynamic
- empower: Allow employees to propose and implement new ideas related to their
roles.
- Create challenges related to job responsibilities
- Introduce a point system where employees earn points for completing tasks. Points
can be redeemed for rewards or recognition.
Improve company attitude:
 - provide good salary, benefits
- people relations (organize team building activities)
- enhance work-life balance
- Provide Continuous Learning Opportunities: Invest in Training Programs
Improve attitude towards you:
- Be nice, take time to connect with employees on a personal level
- Be Fair, treat everyone equally #1 the most important thing
- Show Empathy, Understanding and be available for support
- Demonstrate Integrity: follow through promises and admit your mistakes
Improve perception:
- Training - Communication: suitable medium, good encode, always feedback and
reduce noise
Choose personality:
Big 5 and MBTI
However, BIG 5 cannot measure:
- self - esteem
- locus of control
*anything is okay but need to be responsible
 CONTROLLING
1. Why? Performance
The purpose of controlling is to ensure and enhance performance.
- Productivity: the amount of work divided by time/resource. Some companies use the
word “efficiency”.
- Effectiveness:
• Quality
• Goals

2. What?
- Structure control: you prevent the structure from breaking.
- Plan control: every plan needs a control process in order to succeed.
- People control: (*) indirect

3. Plan control
- Feedforward: what to control before the plan happens.
• Anticipate problems -> solutions (scenario planning)
• Rehearsal. Ask for expert advice for plans that can’t be rehearsed.
• Communication channel
• Last minute revision
- Concurrent
• Throughout management by walking around (experiential management)
• Immediate correction

Immediate: fix the problem right there and Basic: fix the cause of the problem (can only
then be used after the event)

- Feedback
• Report: management by walking around, staffs/customers, experts, media
• Measure performance (*)
MEASURE
Quantitative Qualitative
e.g. Pho Satisfaction
1->5 Opinion
5*= perfect perception
4* and below: useless
 Use for finance, audience,…
• Compare with standard (*): law, industry standard, benchmarking (compare
yourself with the leaders in your industry), sometimes standard=goal
• If performance <standard then you use basic correction
4. Tools
- Balanced scorecard
issues real standard goal
KOL 3T <2.5T <2T
Lighting 0.6T <1T <0.8T

- MIS (management information system): a software that automatically collects,

processes, and presents information.
Base.vn
ENTREPRENEURSHIP

1. Graduate options
- Employment: full-time / part-time (give examples)
- Self-employ: freelance / business (give examples)
Freelance is different from part-time but both is not recommended
Freelance Part-time
No protection Have protection
Paid by package Paid by hour
Take on jobs by yourself Have a contract
- Master
- Gap year (not recommended)

2. Business
Small business Entrepreneurial venture
You sell something already in the market (ở You sell something new
quy mô tỉnh, quốc gia)

New
Tesla Grab / Uber
Iphone Airbnb
New product or service New process: you sell an existing product in a
new way (more easier)

3. Entrepreneur process
- Idea:
+ PESTLE -> Look for unsolved problems
Experience
+ Core competencies
Is your solution easy to copy?
(competitive advantage)
 Solution: product or process
- Feasibility: Can my idea become a business (most important)
1. Finance, Legal
(a) Legal: grey area (plastic gun, thám tử tư, camera ẩn, vape, bar) -> lawyer
(b) Finance:
+ Self, family & friends
Low risk
Competition, grant

+ Bank, Investors High risk

Bank < Investor

Collateral (tài sản thế chấp) Equity (share)
Principal + Interest Dividend (cổ tức)
-experience
 -network (partners, facilitators)
-free marketing
Investors
Angel: the investors use their own Fund – venture capital: the investors
money to invest use other people's money to invest
Tiền ít, share nhiều, đồng hành cùng Tiền nhiều, share tương đương, không
đồng hành cùng

2. Marketing
3. Supply
4. HR
5. Sale
6. …..
- Planning: strategy
+ vision, mission, analysis, goal
+ finance
+ legal registration
Proprietorship Corporation Limited liability
Partnership company
Liability: Your responsibility to pay
- Raise fund
- Operate: Phát triển càng nhanh càng tốt để tránh bị copy
- Exit
+ Sell *keep some share
+ Transfer
+ Liquidate
*NO MATTER WHICH WAY, MUST BE ETHICAL*
 HR (tHRee)
Recruitment
Retention (keep)
Reduction
A. The Fun
1. Recruitment
● Analysis
- Expertise: Skills, knowledge, experience, qualifications, duties
- Practical information: salary, schedule, location, contact
(*) With functional manager
● Write job/ad description
- purpose: inform, encourage
-
Format Phrasing
1. Title + mode of work 1. Specific
2. Summary (optional) e.g: good communication
3. duties -> public speaking
4. salary, benefits to the point that the reader can
5. requirements imagine the action
6. practical information 2. Non-negative (not = positive)
7. how to apply e.g: long hours, late hours
8. contact -> flexible
e.g: “demanding customers”
-> diverse needs
- When to use “negotiable” for salary: the job is unpopular on the market,
the job is complicated and therefore very difficult to price.
● Advertise
- online: Vietnamworks, TopCV, LinkedIn, ybox, company’s web, social
media.
- offline: universities, job fairs, competitions (MT), company tour
● Processing (MIS)
Excel -> sort (must formalize)
Add hyperlink to names

Degree IELTS Exp …..

Minh

Ánh

Phong

Tú

● Evaluate * with functional manager

 → Shortlist
● Interview (+test: personality, competence)
scenario, discussion about an expertise issue
salary:
1. Give a number
2. Show that you have done research, especially salaries of opponents
3. Give a reason why you’re asking price is higher or equal than the
market average.
● Contract negotiation

2. Retention
● Orientation
- Job (functional manager)
- Company
● Training
- internal
- external (professionals)
● Culture
● Performance Evaluation
* Formalise

3. Reduction
- Violation
- Low performance: In order from low to high
Rotate
Trial: SMART
Discipline
Demote (a type of discipline)
Fire

B. The Real
- paperwork
- labor law

C. The Ugly
- hard power = contract
- soft power = relationship
How to identify soft power
- groups
important people where? (hard power)
→ anyone with them?
 - who holds info?

D. A good CV
- work: part-time, intern, family, start up
- learn: language, certificate, skills
- competition: school, company
LEADERSHIP
1. Leader vs manager
every manager is, or rather should be a leader
In reality, leaders are different from managers. (don’t write in exam)
to lead means to motivate
2. Elements
How to become a leader?
- build trust and have good communication (interpersonal) (this is the core)
- motivation skills
- styles
3. Trust
How to build trust?
- ability: in
+ management
+ industry
- benevolence: care about your stakeholders
- integrity: people can see that you have self-rules (moral codes) and you stick to
them.
- predictability: are you moody? consistency of your behavior
4. Motivation
what is motivation: from lowest to highest
- physiological = body needs (hunger, thirst, shelter, air, sleep, illness)
- safety:
+ physical
+ mental: do i feel that the job is stable? Am I harassed? How much
pressure do I feel?
- social: sense of belonging, do i feel that i am part of the company?
- esteem: am i respected for my contribution? through rewards, gifts, bonus,...
- self-actualization: cannot be affected by someone else
+ the need to overcome something that you don’t think you can.
+ Do I feel that life is meaningful?
passive motivation:
- environment:
flexible:
- seating
- time
- mode
=> work-life balance
- job design:
appropriate with personality and competence
if possible, make it fresh and dynamic
challenging (a little bit) and empower
explain your purpose
5. Styles
- work focused —------------------------------- people focused?
- transactional —---------------------------------- transformational?
- autocratic —----------------------------------------- laissez faire?
↑democratic↑
- work-people: you emphasize the result or you emphasize the process and growth of
your staffs
- transactional (stand outside, observe, cheer people on) -transformational (involved
with everyone, mentor and guide your staffs) : how involved are you
- autocratic: you make decisions
laissez faire: employees make decisions
democratic: you make decisions but let employees take part
ORGANISING
1. You can not win!
2. Principles of organizing
- Decision criteria:
+ Size
+ Competence (Trình độ quản lí)
+ Technology
+ Nation and company culture
+ Industry (những ngành sáng tạo, số tầng quản lí phải ít)
+ your view of organizing (1. expertise , 2. power)
- Elements of organizing (Find disadvantage and advantages for exam)
+ Specialization : divide work -> job -> task (->action (ở nhà máy))
● benefits: productivity, easy to control
● drawback: boredom, no growth for employees
+ Departmentalisation: how do you group different specializations

Departmentalisation Despecialisation: You remove a

specialization and move it
somewhere else

+ Chain of command: how many levels of management do you have

● Regardless of how many levels, you must always follow unity
of command: every person only has one direct manager and
follows the orders of his or her line of managers.
+ Span of control: how many direct staffs each person has.
↑ When you change one, the other three automatically change ↑
+ Centralisation: how much decision do you push up.
+ Formalisation: how much do you remove decisions and replace with
procedure.
3. Templates
- Traditional = tree : as your company grows, increase specialization, chain of
command, have an appropriate departmentalisation, span of control
- flexible:
+ work-based: you already have work and fill in employees, most
companies are this type.
+ team-based: you already have teams of employees and find/create
work for them. Ex: talent management, boy band and girl band.
+ matrix:

CEO

product line production sales ….

project

em & Trinh

Trinh & em
- Solution: Mix both types of templates.
 CULTURAL MANAGEMENT

MINA
3.1 Contrast the actions of managers according to the

Omnipotent: rely more on manager

- managers are seen to be the main drivers of the success or failure of the business
- make key decisions, control outcomes, and are fully responsible for the organization's
performance
→ company succeeds, they get the credit; if it fails, they are blamed.
Ex: When a team struggles to meet a deadline, the leader assigns roles, creates a timeline, and
communicates effectively. When the project is completed on time, and the leader is praised for their
decisive actions.

Symbolic: rely on more on external condition

- external factors such as the economy or market conditions have a larger impact on outcomes,
and managers have limited control.
- manager is adaptive than directive, acting as representatives rather than direct controllers
focus on inspiring and motivating employees
Ex: During COVID-19, a retail manager faces fewer customers and supply chain disruptions. They
motivate the team and shift to online sales, representing leadership and resilience, but lockdowns still
limit the business’s success, highlighting their role as a supportive figurehead during tough times.

3.2 Describe the constraints and challenges facing managers in today’s outside environment.
(Competitors, suppliers, technology)
Which external environment is effect manager nowadays?

1. Competitors: manager must constantly innovate to stand out in a crowded marketplace,

making products or services unique while cutting costs without reducing quality.
2. Suppliers: disruptions like pandemics force managers to diversify suppliers, as relying on a
few can be risky.
3. Technology: businesses have to changes require digital transformation, so managers must
invest in new tools and train staff to stay competitive.

Ex: In a scientific research competition, team leaders innovate strategies to stand out competitors
while balancing unique presentation styles, meet the time limit but still ensuring quality (Competitors)
To have the complete presentation, the team has to use the web to research and devise plans(Tech).
and adapt when their laptop fails, using a backup like USB (Supplier).

Nhu Y
5.1 Define workplace diversity and explain why managing it is so important.
Workforce Diversity: refers to the variety of differences and similarities among employees, such as their
characteristics, backgrounds, experiences, and beliefs.
E.g: at ISB, some teachers specialize in education while other staff members have technical expertise,
showcasing different experiences.
Types of Diversity:
- Surface-Level Diversity: These are visible traits like gender, age, and body shape.
E.g: in the past, only men were pilots, but now there are more female pilots in the workplace.
 - Deep-Level Diversity: This refers to traits that are not visible, such as values, personality, and
work preferences.
E,g: In a company, the extrovert person will work in the communication department, whereas the introvert
ones will work as content writers.
Importance of Diversity:
Diversity is important because it provides several benefits:
-Organizational Performance: Diversity improves an organization’s flexibility, allowing diverse teams to
respond quickly to changes and challenges, which helps organizations grow in today’s market.
-Strategic Advantage: Diversity enhances effectiveness and competitiveness. It fosters innovation and
creativity.
E.g: Nestlé employs staff from different countries, giving them insights into customers' needs, helping
them better meet those needs and gain a competitive edge.
In summary, workforce diversity brings valuable benefits to organizations, making them more adaptable,
effective, and successful.
5.5 Describe various workplace diversity initiatives. (top management commitment)

There are many workplace diversity initiatives that companies can use to increase the diversity of
their workforce:(most common)
-Top management commitment:
+ very important to achieve a diverse workforce.
+ top management needs to make sure abt how diversity affects positively the goal of the
company => policies and procedures must be placed to ensure that the concerns are addressed
immediately.
E.g: A company like Microsoft publicly commits to diversity by setting specific diversity hiring goals and
transparently sharing their progress in their annual diversity reports.
-Diversity skills training:specialized training to educate employees about the diversity and teaching them
skills to work in a diverse workplace.
E.g: Many companies make workshops for their employees to guide them abt the skills to work and
knowledge related to their field in which they’re going to work.

Hungchan
5.3 Explain the different types of diversity found in workplaces. (Age/gender)
- Age:
+ Older worker (>50): Knowledge & History + Stable, less absence
+ Millennials ( 1980 - 1996 ): Technology, Communication, Curiosity
+ Can learn from each other
- Gender:
+ Although 2 genders with many sexual orientation → Still far from gender-neutral
+ Is getting better -> Social media, people attention, accusation
5.4 Discuss the challenges managers face in managing diversity. (stereotype/discrimination)
- Stereotype → Discrimination
- Discriminatory policies + promotions (Age):
+ Older: Higher paid, better promotion (Japan)
+ Younger: Lower paid, worse promotion (Vietnam) (University Degree)
- Sexual harassment (Gender):
+ Women + Men
+ Boss + Employee
Usually older workers in an organization appear to have institutional knowledge and a deep
understanding of history. Moreover, they tend to be more stable with their current jobs, which makes
it less costly focusing on recruiting new employees. And they slso
Nhat Chau
4.4. Types of International Organizations
- A multinational corporation (MNC) operates in different countries. There are three main types
of MNCs:
- Multidomestic Corporation: This type of company adapts its products and advertising to fit
each country's culture and preferences. Local employees run the business in each country. For
example, McDonald's changes its menu in different countries, offering local dishes like rice
and black beans in Costa Rica.
- Global Company: These companies also operate in many countries, but all major decisions
are made at the headquarters in the home country. The products remain the same worldwide.
Coca-Cola, for instance, keeps its drink formula the same no matter where it’s sold.
- Transnational (Borderless) Organization: These companies focus on hiring the most talented
people, no matter their nationality, and manage globally to increase efficiency. Netflix is an
example, offering movies and shows from different countries to a global audience.

4.5. Ways Companies Become International

- Global Sourcing: This means buying materials, labor and services from other countries to
save money. Nike, for instance, sources products from countries like China and Vietnam,
where costs are lower.
- Foreign Subsidiary: This is when a company sets up a branch in another country, but it
remains part of the larger corporation. Google, for example, has subsidiaries in over 40
countries.

TALE
3.3 Discuss the characteristics and importance of organizational culture (How company’s culture
affect management)
Leaders have to make plans that are suitable for the culture of an organization or maybe just a group
of people.
E.g: In a school group that has the culture of learning new things, the leader should give members a
different role for each work to help them improve in many skills. Opposite, with a culture of getting
high results only, leaders give members roles they are best at for highest quality.

4.1 Define globalization, nationalism.

Globalization: When organizations make people from around the world get to know and use their
products or services, not only in one country.
E.g: VietNam exports rice to other countries. (China, philippines, indo)
Nationalism: Opposite from globalization, people, products and services from inside the country are
more preferred.
E.g: When buying clothes, I tend to choose a local brand instead of brands from other countries
because I think that it will be cheaper and more suitable for me (style/size)

4.3 Summarize the case for and against globalization (advantages and disadvantages of globalization)
Advantage: Every country receives something by exchanging with others.
E.g: VietNam exports ST25 rice to other countries, VietNam gains more money from that and more
people know about VietNam rice while other countries can get rice from a good quality source.
Disadvantage: The source of labor or products from other countries may affect the home country
negatively.
E.g: Local brands in a country always have to compete with other big international brands, some even
have to be closed because of a lack of customers.
 SCHEDULING
VALUE CHAIN
1. PERT
1) project based
Step 1: you draw all the steps in order
Step 2: time = (t(o) + 4t(m) + tp)/6 (for each activity)
t(o): optimistic time -> no problem at all
t(m): most likely time -> common problems
t(p): pessimistic time -> common problems + potential problems
Step 3: Slack time: how much can you delay an activity without affecting the
whole project
Step 4: Critical path: the series of activities that take up the most time. => Total
time of the project => organizing, leading, controlling carefully.
2. Value chain analysis
Value chain: every activity that can enhance the production, utility and
perception of a product.

(finance is also in support activities)

Inbound Logistics: Everything that happens from your source of materials to
your production facilities.
Operations: everything that happens during the production.
Outbound logistics: everything that happens from production facilities to
point of sale. (Some companies do not have this, e.g, school, bar, gym…)
Customer Service (After sale):
Procurement (thu mua): the process of sourcing, purchasing, receiving, and
inspecting all of the goods and services your business needs to operate.

Meaning:
- analyze where value comes from
- where to invest
* identify lowest investment for highest value increase
 - pricing : market research (internal/external service) , benchmarking
(less correct)
- supply chain: every activities that ensure long term competitiveness
*BIGGEST BUSINESS LESSON: sell what people want, do not sell what
you have
Strategy
1. Priorities
Significance (consequences?)
strategy

Vung Tau

Breadth
(how many are involved)

2. Strategy:
• long term plan 3-5 years
• direction but not detail
• template for every plan
How to write a strategy?
- 2 types “normal” (SBU) = competitive vs Corporate
Single industry Multi industry (Vingroup)
- Vincom (retail)
- Vinpearl (tourism & hospitality)
- Vinfast (Automobile)

When a normal company becomes a part of a corporate it is called an SBU

A coporate strategy decides which industry to enter and which industry to avoid
Ex: Vingroup
A normal strategy decides how the company becomes the best in its industry.
Steps
1. Vision: what you want to become (noun)
Mission: what to do for vision (verb)
Ex: PNJ
Vision: jewelry fashion brand with creativity, fineness and reliability
Mission: Enhance satisfaction, diversity products and services, advance
manufacturing and management.
2. Analysis
 External Internal

Corporate PESTLE BCG

Competitive 5 FORCES Core competencies and

Competitive advantage

PESTLE: identify which potential industry to enter

(Politics, Economy, Social, Tech, Environment)
BCG: to identify which SBU to keep and which SBU to close down.
growth

?
invest Invest, sell

COW DOG
maintain Close, sell
profit
When corporate -> competitive? Product lines
5 forces: to evaluate the competition of your industry
Current competitors
Future competitors
Substitute
Supplier
Buyer

Core competencies: what you do well

Competitive advantage: what you do better than everyone else
Invest in your core competencies so that they become your competitive
advantage.

3. Goal
Vision/mission + analysis = goal
SMART
Specific: CO2
Measurable: %, tấn
Achievable: what, how much
Relevant: vision/mission, analysis
 Time: deadline
Ex: in 3yrs, reduce CO2 by 30%
Traditional MBO
Goals are set by managers who are in People affected by the plan will
charge of the plan contribute to setting the goal
Advantage: fast Advantage: Empower -> motivated,
Disadvantage: Unclear creative
Disadvantage: slow, too many
opinions, might turn into therapy
 Mix?
- How to mix traditional & MBO goal setting?
Top-down + Bottom-up
1. Give lots of options: you
Choose: staffs
2. Competing options: staffs
Choose: you
3. MBO in a selective way
➔ influencer
- List sub types of strategies (trong sach)
+ corporate: growth, stability, renewal
+ competitive:
Cost leadership (Vietjet) Differentiation (Apple)
Niche cost (Forever 21) Niche differentiation (Rolls Royce)
Chỉ ở 1 trong 4 ô và làm thật tốt nếu là 1 single industry company

3. Career planning
1. No vision/mission
➔ Chase opportunities
2. Multiple opportunities?
Core competencies -> competitive advantage and analyze 5 forces
3. Goal: fit the industry and function