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Following are the main points that I learnt from this session: The close relationship between the governance and external environments where an organisation operates; How the environment factors impact on the organisation; Each type of organization has its own competitive advantages and disadvantages. How each stakeholder group has the influence on the organisation s business.
The point about social issues influencing the organisation s strategy and stakeholders expectations to the organisation are very interesting to me. Related to this point, the article with the title CEOs on strategy and social issues on mckinseyquarterly.com has analysed the new tendency on implementing CEOs strategy and difficulties facing them when doing these. Nowadays, CEOs strategy will focus on addressing social issues such as the shortage of natural resources and damage on our living environment. This approach is considered as the new competitive advantage over competitors. Also, CEOs have recognised the big change in the influence of different stakeholder groups on the organization. Purpose of maximising the value of the shareholder group is not enough today. The other stakeholder groups such as employees and consumers have more and more impact on the business. In 5 recent years, CEOs ranked the role of employees as the 1st in deciding the strengths of organizations. To attract and keep talents, organizations must pay attention to creating the better working environment and general sustainability. Next rank for stakeholder group is consumers. However, employees and consumers will inverse their ranking in next 5 years. I found that my former organisation has focused on the values of other stakeholder groups apart from shareholders in two recent years. They have tried to build the better working environments for employees. Employees have chances to join activities outside to build and maintain the good relationship to each other. Pursuing this strategy, my organisation has carefully taken care of the customers expectations. There are surveys conducted in a period of 6 months or 1 year to find out the real reasons of customer satisfaction and disappointment with services.
SESSION 2 - Analysis of the Environment Understanding the Managerial Environment
From the session PESTLE-type analysis , I learnt that the effective operation of organizations can be measured by their reaction to the impact of external environmental factors. By applying the PESTLE analysis method and giving the right valuation, organizations can identify what are opportunities and threats from these external factors to prepare the better strategy for their business growth.
The case study with the title Business Education on The Economist shows the impact of economic factor upon business schools strategy. The key points I find out from this article is that business schools have changed their strategy to adapt to the new trend of environmental factors. The demand for MBAs from leading business schools that have ever been boomed decreased. Organizations prefer people with practical experience to pure theory. Also, the internal training can help organizations save cost and retain talent better. This demand has tendency to increase more and more and it will be a big challenge for business schools. To adapt with the change of majority, these business schools must adjust their strategy to balance the big gap. They have revised their curricula to be less theoretical than before. In addition, another social factor the financial crisis that recently happened has affected business schools decision for doing more changes in their strategy. The unexpected result of laying off the key labour force from banks and consulting firms who graduated from business schools has given the bad sign for the future time. Business schools have sought more professors who have the real business experience outside.
In my former organization, I found that the economic factor such as the recession and financial crisis have affected to the organization s strategy. Some new services have been discontinued due to the demand of employers changed. Their recruitment plan has been delayed due to headquarters facing problems and they cut the investment in Vietnam. Also, the social factor such as education has the impact on the resume database of my organization. People have chosen to study majors in the hot industries such as accounting, finance, marketing, so there is the shortage of qualified candidates in some other industries.
SESSION 3 - The Macro-economic Environment the Economy and the Role of Government
In the session The Macro-economic Environment the Economy and the Role of Government , my main learning points are the influence of marco-economic environment on organizations, the key role of Government in boosting the economic growth, and trade-offs in choosing the marco-economic stability policy. I am interested in inflation factor that is hot in the current Vietnam economy. An article with the title Vietnam faces more price hikes despite inflation woes shows the potential risks facing Vietnam economy in which the high inflation rate fears people.
In this article, it is found that Vietnam Government has been making much efforts to stimulate the economic growth. A series of policy in the rapid pace have been made such as increasing the electricity and petrol price, devaluating Dong, cutting the budget-deficit target. These policies have caused the consumer goods price increase and the fastest inflation. The people with low cost of living will face more difficulties. In this tough time, organizations need to forecast and be active with changes of Government s policy. The high awareness and good preparation can help organizations to avoid risks that may harm to their business.
In my organization, first, the soaring prices affected employees psychology when it is the time for reviewing performance and salary, especially at the staff level. The maximum increase rate has been set at the beginning of the year, so the increase percentage based on the business productivity that staff receive is small. Staff can be demotivated and tend to seek other job opportunities. Therefore, the organization s business will not be smoothly operated. Second, the recruitment demand of employers have considerably reduced due to they faced the similar problems. They just use the services for key positions that need to be replaced. Otherwise, they have chosen the option of job re-arrangement The uncertainty of the economy made our customers to be afraid of unforeseen risks, so they cancelled some orders that they planned for expansion. As a result of some policy changes that may cause the high inflation, both my organization and customers cut unnecessary cost as much as possible.
SESSION 4 - The European Environment
The global trend becomes the key competitive advantage to grow country s economy. One of the good ways is to coordinate to each other between countries within the same regions. The European Union was established to follow this goal by simplifying the unnecessary procedures between countries. From the session European environment , I can deeply understand two sides of The European Union. There are both advantages and disadvantages existing simultaneously that each member needs to carefully consider. The advantages are free trading area without tariff barriers including free movement of capital, people, goods, and services. These have created the smooth business and generate the huge benefits for The European Union s members and contributed the high percentage of exports to the world economy. Besides that, the participation of more countries with different cultures and histories has raised more conflicts and sensitive issues between members. Moreover, the expansion in currency, political union has caused more debates.
In this session, I am interested in the matter of euro in which it has not completely got the support of all member countries at the beginning. The article on The Economist with the title The European Union and the euro zone talked about the debate between the European Union members outside and inside the euro. The members outside the euro do not want to loose their influence in The European Union. In addition, it has also raised the disagreement between country member leaders and voters about joining or not joining the euro zone. It seems that the original common purpose has been affected by the conflict in benefits of each European country. It is difficult to maintain a stable economic environment and equal development for all The European Union member countries.
Most of key customers of my organization have foreign investment capital and some of them have headquarters in European countries that may belong to The European Union. Therefore, the impact of economic environment in European market can affect to the new projects and investment in Vietnam. As a result, their recruitment plan for expansion will be delayed or cancelled. The hard time of most organisations will seriously hit my organisation as well.
SECTION 5 The Global Environment (I): Globalisation
Through the session of globalisation, I can approach many different views and perspectives about globalisation and see two opposite sides of globalisation. I wonder if there are any perfect strategies for globalisation that bring more advantages than disadvantages to everyone. The gap between the rich and the poor is ever-wider than before. The globalisation brings the higher standards of living to the world, but only a small part of the rich enjoys this; the loss of globalisation mostly puts pressure on the poor.
I am interested in the point The widening inequalities between rich and poor countries . This issue can be seen on media daily. Paralleling with the communication about the huge profits of big multinationals is the news about the poor people from poor countries lacking foods and fighting against diseases due to the bad living conditions. One of the articles regarding this issue is Inequality, the new dynamic of history on guardian.co.uk. The globalisation seem leave consequences for the unskilled labour forces while the wealth of a few people become bigger and bigger. The globalisation drive organisations to compete to each other about natural and labour resources, particularly rare materials and excellent individuals. It seems that the big gap between the poor and the rich is difficult to narrow. The rich increases chances to get the better and higher education. In the meantime, the poor cannot complete the basic education. For the globalisation ahead, the inequality that happened in countries in Africa now may spread through more countries.
In my organisation, the wage between the key positions and normal staff is quite different. This difference based on the opinion that it is easy to find normal staff in the labour market. On the contrary, the key people should be offered the best benefits and attractive salary to avoid to be hunted by other competitors. Our customers also like to attract talent from their competitors due to those people have the experience in the same industry. They are willing to pay an interesting salary to hire best people due to it may save their time and costs for training.
SESSION 6 The Global Environment (II): Emerging Economies In Three Continents
Emerging economy in 3 continents session gives me some learning points as follows: First, large corporations at developed countries have the trend to expand their business to new markets where they can gain the huge profits. The markets attracting investors interest have the same characteristics: large population providing the good and cheap labour forces as well as potential consumption objects; large natural resources; willingness to open the door to the world to attract capital investment etc Second, both investors and emerging economies can enjoy the benefits at the first time, but there are risks and challenges for them in the long term. One of the reasons is that Government will intervene when necessary to balance between the free market and strict political control, maintaining the economic stability as well.
Regarding this session, the article with the title China s economy may soon hit the brakes posted on MarketWatch mentioned about challenges facing China now as a result of rapid growth of the emerging economy. The foreign capital investment helped China develop economy, improve the infrastructure, increase the annual GDP. However, the wealth distribution is unequal and many regions are still in the poor condition. Now, Chinese Government has trend to take priority over controlling the economy instead of rapid growth. by increasing the consumption, sustaining the price stability, and raising the interest rates to curb the high inflation. This action may not be beneficial to investors. The lesson here is that challenges always accompany with opportunity. We must well prepare to fight with bad situations.
Operating in Vietnam where the inflation rate has a risk to increase higher and higher, my organisation must be aware of any changes that may harm the business. The estimation of damage that inflation-fighting tool may cause should be measured to avoid unforeseen situations. In the current economy, my organisation is facing the difficulty in attracting investors. To maintain the stable business and wait for the better recovery, my organisation has discontinued some young brands to focus on developing the most recognised brands.
SESSION 7 Brand Management
With the session Brand management , I can understand more about marketing concepts, strategies, factors affecting marketing, and tools used to analyse and measure marketing performance. I also imagine a part of process to build and bring the brands such as Ipad, Nokia, coca-cola etc to consumers. I know the important role of Marketing function in deciding product life cycle. To gain the large brand recognition as well as avoid the new brand to be failed, it required performers to have broad knowledge, good skills and do the correct research and analysis about segments and customer needs.
Making brand portfolios work on mckinseyquarterly.com let me know that brand management is a complicated task to maintain the profits and growth of organization. Brand Managers of organisations must make sure to keep track a list of all existing products or services and the new ones that need to build brands. It is very important to find out & kill off the unprofitable products or services while the profits cannot be reduced. In addition, the new products or services that need to replace must correctly and consistently position in the markets. In order to be recognised broadly by the consumers, it requires organisations to correctly define segments and consistently position in the market for a suitable period of time. Moreover, organisations must deeply understand customer needs and each brand unique to have the correct decisions for killing off, restructuring, or launching new brands. In order to void risks that affect organisation growth, organisation must predict all situations that may happen. That can also help them manage brand portfolio well. By recognising customer needs and managing the old and new brand portfolio effectively, organisations can increase revenues as well as profits and save marketing expenditures.
After operating in online recruitment industry nearly 10 years, my organisation built the VietnamWorks brand that has been largely recognised among the human resource community in Vietnam. My organisation s key customers are famous domestic and international corporations. My organisation s resume database is dominant about quantity and quality compared to other online recruitment websites. With this advantage, the board of directors decided to build more brands in training and advertising industry. However, these brands failed due to both internal and external factors. Particularly, these brands seem new to our existing customers. Those are big lessons for Board of Management in my organisation.
SESSION 8 Learning Points from Module
Module Global Organisational Environment gave me an overall picture about the interdependence between organisations and their global macro-environment. I know that an organisation can not solely operate but is affected by most of external environment such as global political, social, economic, technological, ethical, legal factors. Through the module, I am familiar with analysis tools and I can select an appropriate tool to analyse and find out how they affect to my organisation. Based on the analysis results, I can seize good opportunities and have plan to react to threats that may harm objectives of my organisation.
To do the good job at the role of a Manager, I must understand what happened, are happening, and will happen in the future to have the suitable scenario planning for my organisation. Therefore, the knowledge of the macro-economic environment, the establishment and growth of regional trading blocs, their influence on the global business environment, industry and competitor analysis, segmentation of market, uncertainty management is extremely useful for my work. It is very important for a Manager to lead, manage, give consult, delegate, and motivate subordinates, so the general as well as specific knowledge from this module guides me on how to select the suitable method and overcome obstacles on the way to gain organisation goals as well as my personal career path.
From these sessions, I learnt that there are many changes in the global business environment that require organisations must quickly adapt to be able to survive and develop. For example, the rapid development of technology made the big change of the world economy with the appearance of many new industries and the disappearance of some existing industries. Besides the benefits of globalisation, organisations must be aware of negative side that cause more problems for societies due to there is a big gap between the poor and the rich, even the gap between countries. There will be more challenges for organisations in the upcoming time due to the turbulent economy happening around the world. Therefore, I must smoothly use tools and techniques to well prepare for the future prediction.
In short, in the context of globalisation, the understanding of the external environment and good application of this knowledge in practice can help me make the correct decision for each unique situation as a Manager.
1a. VietnamWorks Bunisess Type
VietnamWorks is operated by Navigos Group Vietnam Joint Stock Company being a strategic partner of Navigos Group - a British Virgin Islands company.
(A type of Corporation and Partnership)
1b. VietnamWorks Scope
Online recruitment services
- Job Posting: employers post open positions on www.vietnamworks.com to give job descriptions and requirements. They will be offered an account to receive and manage candidates applications. The recruitment process including resume screening and interview will be handled by themselves. A job goes online for 30 days.
- Resume Search: Employers are offered an account to access to resume database to search suitable candidates.
- Logos/banners Advertising: There are many options for employers to choose. Most positions of logos/banners are on the homepage.
2a. VietnamWorks purpose
VietnamWorks aims to help both employers and candidates gain their objectives. Employers can find talent and candidates can find good jobs.
This purpose has been communicated at its mission and vision as follows:
To help people achieve their dreams. That's why we call our employees "Dream-Makers".
To be an indispensable aid to every single person in Vietnam who wants to improve themselves and climb the ladder of success.
(Navigos Group Vietnam Joint Stock Company)
2b. VietnamWorks Key Stakeholders
Interest: Managers of VietnamWorks have prioritised organisation growth and broader brand recognition in 2011. They focus on the long term objectives for both strong brand and profit increase. The specific action plan is to discontinue complicated and unprofitable services and concentrate more resources and efforts on improving the existing effective services.
Power: Their influence of Managers on the organisation is strong. They have convinced Board of Directors/ Management team to believe in this strategy. VietnamWorks will suffer the reduction of profit in a short-term due to customers used to react with any changes at first. When they are familiar with the change and see benefits of new services, they will be willing to spend more for services. This trust is built on the leadership ability of Managers.
Interest: The high profit and job security are employees interest.
Power: VietnamWorks considers talent as assets. The funny, friendly, and challenging working environment has been built to encourage each employee develop and pursue their personal career path.
Interest: This stakeholder group is interested in the profit maximisation as well as the success of VietnamWorks.
Power: Key decisions about the VietnamWorks objectives and direction are influenced by shareholders due to some of them are in the Management team. Besides, VietnamWorks also keeps other shareholders satisfied to maintain the stable capital.
Interest: Customers have an interest in how are quality services and what values that are beneficial for them. Their satisfaction is based on the quality of candidates resumes and recruitment result.
Power: Carefully taking care of customers and listening to their feedback and problems are important to VietnamWorks. Providing customers with the right solutions can stop competitors from approaching them.
Interest: This group shows an interest in the prosperity and growth of VietnamWorks, particularly liquidity of VietnamWorks.
Power: The influence of this group is not high. VietnamWorks only contacts suppliers for Marketing campaigns, customer conferences and events.
Interest: There is the same interest as the supplier group including the liquidity, prosperity, and growth of VietnamWorks
Power: Organisations may face difficulties if they refuse to lend money in some cases.
Interest: They take an interest in financial statements and how correctly the tax is reported.
Power: Any changes in legal, tax, labour law affect VietnamWorks.
Interest: With the nature of VietnamWorks business, the local community s interest is minor.
Power: This group has no influence to the organisation s activities.
3. The key external environmental issues
The key external environmental issues are analysed in a PEST framework analysis. PEST stands for political, economic, social, and technological issues that influence VietnamWorks business in 2011.
Government policy about the human resource development during the 2011-2020 period shows the positive sign for the human resource industry. This plan led by deputy minister of planning and investment aims to build the skilled labour forces that reach 56.95 million in total by 2020. (Vietnam Investment Network Corporation/Thoi Bao Kinh Te).
Besides that, under the pressure of high inflation in countries, unstable and slow economic recovery in the world, Vietnam government has determined to fight against inflation by implementing some urgent tasks. They adjust exchange rate, increase key interests rates, strictly control free trading of foreign currencies, reduce credit growth target and tightening lending to non-manufacturing area. Their top priority is to curb inflation, stabilise macro-economy, and ensure society.
Vietnam Economic Indicators for Year 2011 (Forecast) from EconomyWatch shows a slight growth. GDP per capita (US Dollars) will increase 10% compared to 2010. Inflation will decrease about 0.9% and unemployment rate will maintain 5%.
The real result of the survey conducted by global Grant Thornton with the participation of 5700 enterprises in 39 economics in the world has shown that Vietnam ranked No. 7 in countries with the highest optimism in the global rankings . Vietnam economy has the optimistic development with the raise from 62% to 80%.
Foreign direct investment (FDI) in 2011 is forecast to reach $20 billion. From this investment, there will be 1.9 million jobs created. (Ngoc Van, 2011)
The population of Vietnam reached 86.025 million in 2009. The forecast for 2011 will be more than 95 million. Vietnam ranked the third most populous country in Southest Asia and 13th in the world. Currently, Vietnam has been called golden population with the dominance of young working age. This is a good condition for organisations in manufacturing industry.
Education in Vietnam has been paid attention to develop a long time ago. It is one of the top priorities of Government that occupy around 20% of all state budget expenditures but the quality of workforces has not met the organisations requirements now. Challenges facing Vietnam include: people at higher education only making up 2%, lacking students in other industries due to most young people choose to learn economics/business. This leads to the high competition between organisations for talent.
Now, the structure of Vietnam's labour market has been shifted from low productivity to higher value industries and service sectors. More and more people participated in the technology and finance industry. As a result, labour market in traditional sectors such as agriculture, forestry and fishery reduced. This change helps narrow the gap between supply and demand in the industrial zones located near big cities.
According to Speedtest.net, the internet access speed of Vietnam ranked the second in the Southest Asia. In addition, a recent report published by Royal Pingdom, Vietnam stood No. 20 in the list of top 20 internet-using countries in the world. There are 24.3 million Internet users making up about 27.12% of Vietnam population. That means the potential Internet users is very high and it will be beneficial for VietnamWorks service expansion in upcoming years.
4. VietnamWorks market position and its segmentation in 2011
a. Porter s Five Forces Model
The Porter's 5 Forces tool is useful in assessing and understanding the current competitive position of an oganisation and how to make it stronger in the market. The five forces include:
- For the online recruitment industry, it is not too difficult to build a website and design the same services.
- Capital requirements at first are low. But the marketing expenditures are high to build the brand.
- Service differentiation can be created by consulting skills, professional knowledge, and intelligent functions of the website.
- Loyal customers to existing services are low due to urgent needs, they may use many channels and suppliers at the same time. However, achievements of the past built their trust on services and the close relationship. Moreover, big customers usually buy pre-paid package for one year.
- Governmental and Legal Barriers are not high due to they have not strictly controlled the online business.
- It took VietnamWorks nearly five years to build the brand, so it may require the same period of time to achieve economy of scales for entrants.
- Big discounts are applied for large packages.
- VietnamWorks differentiates their services from other job websites with higher quantity and quality of applications.
- For logo/banner advertising, there is the high competition between customers in the same industry due to the limit on quantity.
* Image below illustrated for the idea above.
Threat of Substitutes
- There is no brand substitution with the similar result of good applications and competitive price in the selected segmentation now.
- The switch to service substitutions such as executive search or head-hunter will highly cost customers.
- VietnamWorks depends on a supplier who manages its server due to the high security for database is guaranteed. Choosing overseas subsitutes will highly cost and customers usually face problems when connecting from Vietnam to overseas.
- Remaining suppliers are easy to choose and switch without cost.
- There are many job websites now but they are young and have no differentiation in their services.
- Potential risks are from online newspapers and overseas large online recruitment websites due to they have some competitive advantages.
Below is the summary of VietnamWorks competitive position:
b. Market Position
There are lots of job websites in Vietnam now but only a few websites are operating effectively and maintaining their activities about 5 years or above. No reputable organisations evaluate the leading role of job websites in Vietnam now.
To identify the market position, it is mainly based upon the recognition of employers, job seekers, and the human resource community in Vietnam.
Following are some active job websites:
Online Recruitment Websites
Free job postings, charge logo/banner advertising, large audience, focus on unskilled workers
VietnamWorks has the standard resume database (resumes format and content are checked before going online) with 60% of job seekers in the age of 21-35, so it attracts interest of both large domestic and international organisations. Big employment agencies post their clients senior positions on VietnamWorks as well. Among them are TalentNet, ManPower, HR2B
This shows the dominant position of VietnamWorks for senior jobs in the market that has the influence on both employers and high quality job seekers.
The table above shows that Careerlink has the highest number of jobs. However, they cover jobs of all levels including unskilled workers. Meanwhile, VietnamWorks follows up the strategy of high price and high value service, focusing on skilled workers from 3 years of experience and above.
Job levels of Careerlink and VietnamWorks are divided as follows:
(Numbers are relative and change time by time due to expiried jobs will disappear)
The chart above shows that VietnamWorks is strong at Experience and Executive levels. Careerlink has the high percentage at Labor and Entry level.
5. The extent of the VietnamWorks internationalization in 2011
The online recruitment industry is quite new in Vietnam. It has just started since 2001 when Vietnamese people are familiar with Internet. In the meanwhile, this industry has been developed in other countries for a long time. In Asia, Jobstreets.com has effectively operated in India, Singapore, Thailand That is why VietnamWorks is infeasible to expand internationally. A few years ago, VietnamWorks opened the CambodiaWorks.com wesite in Cambodia but the result was not good, so it has been discontinued.
Most of job websites in Vietnam focus on the domestic market. The potential of this market is the fast increase of internaltional organisations.
The VietnamWorks internationalisation is that it is popular among foreign job seekers who want to work in Vietnam. Most of foreign job seekers choose VietnamWorks as a trusted channel to seek jobs. Compared to other job websites, VietnamWorks has an separate section of expatriate jobs for foreigners.
Also, the new international organisations who first set up an office in VN approach VietanmWorks.com for their recruitment plan. Nearly 80% VietnamWorks revenue are from these organisations although the number of local companies is nearly the same.
* Most multinationals use logo advertising on VietnamWorks website as a way to introduce their recruitment brand to job seekers.
6. The key opportunities and threats/challenges facing VietnamWorks in 2011
Based on the deep analysis of external environment factors using PEST frameworks and SWOT analysis, the opportunities and threats facing VietnamWorks in 2011 are identified as follows:
o Strong leaders and leadership
o Dominance at Experience (Non-Manager) level and above.
o Employment agencies depending on VietnamWorks large resume database for most of jobs.
o Funding for HR Day a big event of human resource community in Vietnam organised by hrlinks.com
o Wide brand recognition in Vietnam
o Convenient payment methods
o Flexible and diverse services
o Strong customer care team
o Professional sales team
o Largest resume database with high quality compared to other job websites
o Pioneer in online recruitment industry in Vietnam
o Too complicated process to do any update to system
o Imperfect backup system
o Long delay in implementing service innovations
o High turnover due to incompetitive salary
o Lack of personnel resources in most of departments
o Inconsistence in working process between departments (sales, customer care, product, accounting )
o Higher price than current competitors. (following the strategy of high price, high value service)
o Expand quantity and quality of VietnamWorks resume database based on Government policy about building skills labour forces in the period of 10 years.
o The optimistic economic index and FDI encouraging organisations to resume recruitment plans
o Popularity of Vietnam, especially the working age will effectively contribute to the labour market. Attracting majority of this source to VietnamWorks will help narrow the gap between demand and supply.
o Trends of work in 2011 and next years are good for VietnamWorks recruitment services. Transforming industries makes workforces familiar with higher technology
o Potential Internet users are very high, VietnamWorks services can approach more and more dynamic and young working age people.
o High Internet access speed are convenient for VietnamWorks to design more services and create more useful functions on the website.
o Economy growth may be slow due to Government s intervension to curb the high inflation.
o Uncertain time of economy making organisations too careful and easy to change their decision for open positions; following up a customer will take more costs and time or even get no result.
o Skills and qualifications of workforces do not meet organisations requirements due to the limitation of education; lacking workforces in some industries due to the unequal distribution in majors at Colleges or Universities. This long term status forces organisations to transfer to recruitment agencies to select suitable people. Even organisations hunt talent from competitors and pay the higher salary.
o Internet is in big cities only. It takes a long time to develop infrastructure in more regions to make more people familiar with websites.
o More and more job websites appearing and some of them competing in unhealthy way by copying job descriptions on VietnamWorks website and placing on their websites. This takes time and resources of VietnamWorks to resolve problems according to customers requests. Popular online newspapers also join the online recruitment industry with their advantage of large readers. Moreover, there are many small employment agencies who accept orders of normal positions rather than senior positions as previously. Large online recruitment websites who are strong in overseas want to expand in Vietnam.
7. Scenario for VietnamWorks
In 2011, VietnamWorks has plan to upgrade the system to increase its access speed + add more values to services by design some useful functions supporting customers to better manage & search applications in their own account stored on VietnamWorks website + slightly increase price for single jobs. This plan aims to increase the competition by serving more customers and job seekers while maintaining the stable access speed.
Large customers who buy prepaid package for 6 months or 1 year will not be affected by this increase due to they enjoy the huge discount for big packages.
Good to implement plan
Bad to implement plan
It is ok to implement plan
Political & economic stability and curb on the inflation.
Expansion of an overseas large online recruitment website in Vietnam.
Customers reaction to price increase
Job seekers approach to new technology as well as ability to adapt to organisations requirements.
What are the scenarios?
Good to implement plan. Economy is quite stable and some Government policies do not strongly affect to most organisations business while the inflation is curbed at the acceptable level. The online recruitment is potential but overseas large online recruitment websites have just found out information and have not yet got the specific plan for expanding in Vietnam at this time. Customers will react to the price increase by using services elsewhere for some months. However, sales team believes that they are patient enough to follow up and let customers know the real values of changes and long term benefits for their service use. It does not completely balance between demand and supply but a large number of job seekers are qualified for the job requirements.
Bad to implement plan. Political and economic environment is stable and the inflation is under the control. Labour forces are dynamic and quickly learn as well as adapt to job requirements. With these good conditions, one of overseas large online recruitment websites will start their business in Vietnam in 2011. They bring the modern technology of system and database management and the deep knowledge in online recruitment industry into Vietnam, the competitive price, especially more job opportunities for job seekers to work overseas. Customers do not satisfy with the price increase will move to this competitor.
It is ok to implement plan. The inflation continues to increase, so Government use more tight policies that slow the economy growth. Organisations at all size must cut budget of recruitment plan and hold on open positions. Customers who only post single jobs strongly react to the price increase and search for other recruitment channels. Job seekers ability or qualifications do not match or meet the job requirements. Moreover, they lack technical skills to search suitable jobs. It is not the suitable time for overseas large online recruitment websites to expand in Vietnam.
For the bad situation, VietnamWorks top priority is to approach that job website to discuss the co-operation based on the advantages of each side. If possible, VietnamWorks may invite them to invest in VietnamWorks and explore more potential sectors of the market.
With the middle situation, VietnamWorks needs to adjust the plan a little bit to adapt to the situation. The plan can be divided into small parts and implemented at different suitable points.