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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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: ...................................................................................... 7
1.The type: .................................................................................................................................................... 7
2.The purposes: .......................................................................................................................................... 8
2.1 Purposes: ....................................................................................................................................................... 8
2.2 Strategy: ......................................................................................................................................................... 8
2.2.1 Market strategy: ......................................................................................................................................... 8
III. Size and scope: ............................................................................................................................ 9
1.Size: .................................................................................................................................................. 9
1.1 Finance: .................................................................................................................................................. 9
1.2 The number of labours: ........................................................................................................................ 10
2. scope: ..................................................................................................................................................... 10
2.1 Scope: .......................................................................................................................................................... 10
2.2 Sales Network: ............................................................................................................................................. 13
2.3 Market share: .............................................................................................................................................. 14
2.4 Target customers: ........................................................................................................................................ 15
IV. The functions of Petrolimex: ................................................................................................... 16
1.Functions: ............................................................................................................................................... 16
1.1 Functions and duties of technical department: ........................................................................................... 17
1.2 Functions and duties of sales department: ................................................................................................. 17
1.3. Functions and duties of project development department: ...................................................................... 18
1.4 Functions and duties of accounting and finance department: .................................................................... 18
1.5 Functions and duties of administration and personnel department: .......................................................... 18
2. The relationships between these departments: ............................................................................... 19
V. Conclusion: ................................................................................................................................. 19

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.

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."

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 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.

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.

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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.

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.

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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.

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.

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●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.

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

1,500,000.0

500,000.0

2016 2017 2018

-500,000.0
Liabilities Owner's capital

(nien, 2019)

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)

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 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:

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 workers 317 32,8%
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

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.

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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.

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.

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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 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.

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2.2 Sales Network:
2.2.1 The list of sales locations in the country:

TT Company Address Tel Fax

P. Bãi Cháy, TP. Hạ (033) 3846-

1 Cty Xăng dầu B12 (033)3846-360
Long - Quảng Ninh 349
Cty Xăng dầu Khu 15 đường Lê Duẩn, quận (08) 3822-
2 (08) 3829-2081
vực II 1, TP. Hồ Chí Minh 2082
Phường Sở dầu - Q.
Cty Xăng dầu Khu (031) 3850-
3 Hồng bàng - TP Hải (031) 3850-632
vực III 333
phòng
Cty xăng dầu Nghệ Số 4 Nguyễn Sỹ Sách – (038) 3845-
4 (038) 3844-701
tĩnh TP Vinh – tỉnh Nghệ An 801
1 đường Lê Quý Đôn,
Cty Xăng dầu Khu (0511) 3822-
5 quận Hải Châu, TP. Đà (0511) 3824-585
vực V 874
Nẵng
Cty Xăng dầu Bình 85 Trần Hưng Đạo, TP. (056) 3893-
6 (056) 3893-294
Định Quy Nhơn - Bình Định 236
21 đường Cách mạng
Cty Xăng dầu Tây (0710) 3822-
7 Tháng 8, quận Ninh (0710) 3827-622
Nam Bộ 746
Kiều, TP. Cần Thơ
12 đường Hoàng Hoa
Cty Xăng dầu Bà Rịa Thám, phường 2, (064) 3832-
8 (064) 3832-043
- Vũng Tàu TP.Vũng Tàu - Bà Rịa - 195
Vũng Tàu
37 Phan Bội Châu, quận
Cty Cổ phần Vận Tải (031) 3838-
9 Hồng Bàng, TP. Hải (031) 3838-680
Xăng dầu VIPCO 033
Phòng
Cty Cổ phần Vận tải 12 Lê Duẩn, quận 1, (028) 3829-
10 (028) 3822-2675
Xăng dầu VITACO TP.Hồ Chí Minh 3848
Fl.7th, Building 322
Petrolimex Joint
Dien Bien Phu Str., 22 (028) 3512-
11 Stock Tanker (028) 3899-1101
Ward, Binh Thanh Dist., 1775
Company (Pjtaco)
HCM city, Vietnam

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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:

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.

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2.4 Target customers:
Market segmentation according to geographic criteria; demographic criteria; the intended use.
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.

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IV. The functions of Petrolimex:
1.Functions:

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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.
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.
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.

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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.
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.

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

Nguyen Ngoc Uyen Nhi 19

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Nguyen Ngoc Uyen Nhi 21