I.

MISSION &VISION, OBJECTIVE & GOAL

1. Mission & Vision
1.1. Mission
- Definition
- Answer the following questions “Who are we?”, “What is our business?”
- Provide information on the purpose of the organization and its scope (p69)
- It is essential for effectively establishing objectives and formulating strategies (p69)
⇒ Summarizes the organization’s most important reasons for its existence
- Characteristics
- Allows for the generation and consideration of a range of feasible alternative objectives and strategies without unduly
stifling management creativity
- Needs to be broad to reconcile differences effectively among, and appeal to, an organization's diverse stakeholders
- Mision statement components
1. Customers—Who are the firm’s customers?
2. Products or services—What are the firm’s major products or services?
3. Markets—Geographically, where does the firm compete?
4. Technology—Is the firm technologically current?
5. Survival, growth, and profitability—Is the firm committed to growth and financialsoundness?
6. Philosophy—What are the basic beliefs, values, aspirations, and ethical priorities of the firm?
7. Self-concept (distinctive competence)— What is the firm’s major competitive advantage?
8. Public image—Is the firm responsive to social, community, and environmental concerns?
9. Employees—Are employees a valuable asset of the firm?
- Example: L’Oreal
Our mission is to design, produce, and distribute the world’s best fragrances, perfumes, and personal care products (2) to
women, men, and children (1) by utilizing the latest technological improvements (4). We empower our highly creative team of
researchers to develop safe, eco-friendly (7) products that will enable our firm to profitably grow (5) through thousands of retail
outlets. We strive to be one of the most socially responsible (8) firms onthe planet (3) and appreciate our employees (9) making
that happen, while following the “golden rule” in all that we do (6).

1.2. Vision
- Definition
- Answer the following questions “What will we be in the future?”, “What do we want to become?”
- A statement of future aspirations
- Are typically written after the mission statement is completed because the organization needs to know what it is and
what its purpose is before they can figure out who they will be in the future
- Characteristics (p72)
- Short, preferably one sentence, and as many managers as possible should have input into developing the statement
- Should reveal the type of business the firm engages
- Include 2 components (p70):
- Core ideology
- Envisioned future
- Example: General Motors: To be the world leader intransportation products and related services
⚠️Don’t need to have a vision for every shop

1.3. Developing Vision & Mission Statements

A widely used approach includes:
  Select several articles about these statements and ask all managers to read these as background information.
 Ask managers themselves to prepare a vision and mission statement for the organization.
 A facilitator or committee of top managers should then merge these statements into a single document and distribute the
draft statements to all managers.
 A request for modifications, additions, and deletions is needed next, along with a meeting to revise the document.
1.4. Importance of Vision and Mission Statements
 To make sure all employees/managers understand the firm’s purpose or reason for being.
 To provide a basis for prioritization of key internal and external factors utilized to formulate feasible strategies.
 To provide a basis for the allocation of resources.
 To provide a basis for organizing work, departments, activities, and segments around a common purpose.
1.5. Benefits of having a clear Mission & Vision

2. Objective & Goal

2.1. Objective (Mục tiêu - Cụ thể)
Objectives are the specific outcomes that an organisation wishes to achieve by carrying out its activities.
Objectives should always be stated as precisely as possible, so we can measure whether objectives have been achieved.
Objectives may be long term and short term
Objectives – small company

2.2. Goal (Mục đích – Chung) (Slide + p72)

II. LEVEL OF STRATEGIES
⚠️Organizational Scope: Corporate level → SBU level → Department/ Functional level
1. Coporate level (12 chiến lược)

⚠️Note ngoài
 Product development
o Clear: dầu gội cho nữ, mới dầu gội cho nam
o Phát triển thành tàu hỏa hạng sang
 Diversification: liên quan về khách hàng, máy móc sử dụng, kênh phân phối => Mục đích chung: Đạt được sự cộng
hưởng
o Related diversification:
 Dịch vụ mát xa trên tàu hỏa (không cùng sản phẩm) vì người dùng tàu mới sử dụng sản phẩm dịch vụ
 Nguyễn Kim: cùng một nơi vốn bán điện máy, h mở thêm khu bán quần áo
o Unrelated diversification:
 Nguyễn Kim: 1 nơi bán điện máy, mở thêm 1 nơi bán quần áo
 Chiến dịch thu hẹp (rechangemance)
o Turn around
o Liqudation
o Divestment
o Bankruptcy
o Chuyển đổi mô hình kinh doanh: Off – Onl, B2B – B2C, chuyển đổi sản phẩm

2. SBU (Strategic business unit) ⇒ Competitive strategies

 Cost leadership (low cost) – to competitive: Offer products or services at the lowest cost to target a broad, general
customer base.
o Walmart: Walmart focuses on reducing costs through large-scale operations, supply chain optimization, and
offering low prices to attract middle- to low-income customers
 Bulk purchasing to negotiate lower prices.
  Optimizing logistics to reduce transportation costs.
 Everyday Low Prices (EDLP) strategy to consistently offer low prices.
o Vietjet: A low-cost airline providing budget-friendly flights, primarily targeting the mass market and domestic or
short-haul routes.
 "No-frills" model, offering only basic services to lower operational costs.
 Increasing the number of daily flights to maximize revenue per aircraft.
 Utilizing promotional campaigns to attract price-sensitive customers.
 Differentiation – The unique, features (dịch vụ, tính năng): Deliver unique products or services with distinctive features
to cater to customers seeking innovation or exclusivity
o Apple: Positioned as a premium technology brand known for sleek design, innovative features, and a seamless
ecosystem
 Investing heavily in product design (e.g., MacBook, iPhone).
 Creating an integrated product ecosystem (Apple ID, App Store, iCloud).
 Branding focused on luxury, innovation, and lifestyle.
o Vietnam Airline: Focuses on premium air travel services targeting business travelers and luxury tourists
 Offering business-class services with spacious seating and exclusive lounges.
 Operating long-haul international routes.
 Providing high-quality in-flight meals and 24/7 customer support.
o Microsoft: Differentiates itself through user-friendly software and advanced solutions like Windows and
Microsoft 365.
 Ensuring compatibility across devices and platforms.
 Developing innovative technologies like AI and cloud computing (Azure).
 Continuously enhancing product features and user experience.
⇒ Board tagert customer: Mass customers, easy to target (khách hàng đại trà, dễ xác định mục tiêu)
 Focus => Niche market
o Cost focus: Street Food Skewers ("Xiên Bẩn"): Targets students and low-income workers looking for cheap and
quick meals
 Selling in high-traffic, low-rent areas.
 Using low-cost ingredients with simple preparation methods.
 Minimal investment in branding or customer service.
o Differentiation focus:
 LV: A luxury brand catering to high-income customers who value exclusivity and craftsmanship
 Offering handcrafted, premium products with limited availability.
 Building a brand image of sophistication and exclusivity.
 Providing personalized services to elite clientele.
 RMIT: A premium international university in Vietnam targeting students seeking a global-standard
education.
 English-based education with international faculty.
 Modern facilities and strong connections with global businesses.
 Career support and opportunities for studying abroad.
 Vin: Targets middle- to upper-class customers with high-quality services and integrated ecosystems
 Developing a closed-loop ecosystem (VinHomes, VinSchool, VinMec, VinPearl).
 Providing superior customer service tailored to high-end needs.
 Offering cross-value integration across its ecosystem to enhance customer experience.

⚠️Note: Chiến lược kinh doanh (Business Strategy) >< Chiến lược cạnh tranh (Competitive Strategies)
Chiến lược kinh doanh dựa vào chiến lược cạnh tranh (công cụ hỗ trợ)
Chiến lược cạnh tranh là một phần của chiến lược kinh doanh
Competitive Strategy Business Strategy
Definition A plan to position the business and gain a A comprehensive plan that outlines how a business will
 competitive advantage over rivals in a specific achieve its long-term goals, including competitive
market positioning, growth, and resource management
Objective Focused on outperforming competitors by Focused on the overall operations and development of the
delivering better value to customers business, including competing, product development,
market expansion, and resource allocation
Scope Narrower, as it focuses on how the business Broader, encompassing all aspects of the organization
competes within a particular market or industry within a Strategic Business Unit (SBU) or the entire
company
According to Michael Porter, there are three main Key Components:
competitive strategies: 1. Target Market: Identifying customers and market
1. Cost Leadership: Offering segments.
products/services at the lowest cost. 2. Value Proposition: Determining the value
2. Differentiation: Providing unique delivered to customers through products/services.
products/services that are hard to 3. Operational Strategy: Optimizing processes and
replicate. resources for efficiency and effectiveness.
3. Focus: Targeting a specific niche market
(either cost focus or differentiation focus)
Examples  Vietjet Air: Applies a cost leadership  VinGroup: Implements a multi-industry strategy
strategy in the low-cost airline industry. (real estate, healthcare, education, tourism) to create a
 Apple: Uses a differentiation strategy by closed ecosystem.
offering premium, innovative products.  Unilever: Adopts a multi-national strategy, tailoring
products to meet local market needs while leveraging
global resources.

VD: Starbucks' strategies differ depending on the market

1. Starbucks in the United States
 Competitive Strategy: Cost Leadership
In the U.S., Starbucks has optimized its operations to keep prices competitive while maintaining quality and
convenience.
o Key Factors:
 Large-scale operations and supply chain efficiency reduce costs.
 Automated systems and mobile app adoption streamline orders and payments, saving time and labor.
 Broad accessibility with numerous stores in both urban and suburban areas.
o Target Audience:
Middle-class professionals, students, and casual coffee drinkers seeking consistent quality at reasonable prices.

2. Starbucks in Vietnam
 Competitive Strategy: Franchise Model – Differentiation (with a slight emphasis on cost leadership)
In Vietnam, Starbucks positions itself as a premium coffee brand with a focus on creating a unique customer experience,
while still managing competitive pricing to attract a growing middle class.
o Differentiation Elements:
 Premium image: Modern, upscale stores with a luxurious atmosphere.
 Unique offerings: Signature drinks, international menu items, and locally inspired products (e.g.,
Vietnamese coffee variations).
 Consistent quality: High standards for coffee and customer service.
o Cost Leadership Elements:
 Economies of scale through its franchise model.
  Localizing some supply chain elements to reduce costs (e.g., sourcing ingredients like milk and
packaging locally).
o Target Audience in Vietnam:
 Expatriates and tourists: Familiarity with the brand and international menu.
 Young professionals with disposable income: Seeking a stylish, comfortable environment for work,
meetings, or relaxation.
 Affluent youth and urbanites: Those who value the brand's prestige and are less price-sensitive.

3. Functional level
 Marketing department, Finance department, HR department,…

Corporate Level SBU Level Department/Functional Level

Scope The broadest level, focusing on Focuses on a specific business or The narrowest level, focusing on
the entire organization and its product line within the specific functions or departments
portfolio of businesses or organization. Each SBU operates within an SBU (e.g., marketing,
industries like a mini-business with its own finance, operations)
strategy
Key Objectives  Define the overall vision,  Formulate strategies for  Implement strategies defined at
mission, and goals of the competing in a specific the SBU level.
organization. market or industry.  Optimize functional
 Decide which industries or  Align with corporate goals performance to support overall
markets to enter, expand, or while maintaining operational business goals.
exit. independence.  Manage day-to-day operations
 Allocate resources across  Maximize the profitability and within their area of
Strategic Business Units market share of the business responsibility.
(SBUs). unit.
 Ensure synergy and value
creation across different
businesses.
Strategic Focus  Portfolio management (e.g.,  Competitive strategies like cost  Functional excellence, such as
diversification, acquisitions, leadership, differentiation, or improving supply chain
divestitures). focus. efficiency, enhancing marketing
 Corporate-level strategies like  Market positioning, product campaigns, or streamlining
growth, stability, or development, and customer financial processes.
retrenchment. segmentation.  Tactical planning and resource
 Overseeing the overall management for specific
performance of the functions.
organization.
 Decision- Strategic and long-term Strategic but more market- Tactical and operational
Making specific
Responsibility Portfolio management Business unit performance Functional efficiency and support
Time Horizon Long-term Medium- to long-term Short – to medium – term
Examples  VinGroup: Operates across  VinHomes (VinGroup): A real  Marketing Department of
multiple sectors like real estate estate SBU focused on VinHomes: Designs campaigns
(VinHomes), healthcare developing residential and to target high-income buyers.
(VinMec), and education commercial properties.  R&D Department of Dove:
(VinSchool). The corporate  Dove (Unilever): A personal Focuses on developing
level defines the strategy for the care brand under Unilever that innovative products like sulfate-
entire conglomerate. competes in the global beauty free shampoos.
 Unilever: Focuses on industry.
managing its global portfolio of
brands and deciding on
geographic expansion.

Conclusion:
 Corporate Level: Defines the overall direction and allocates resources.
 SBU Level: Focuses on competitive strategies for specific markets or industries.
 Functional Level: Implements and supports strategies through day-to-day operations.
These levels are interconnected, ensuring that the entire organization works cohesively toward achieving its goals.
III. ORGANIZATIONAL STRUCTURE
The formal system of task and reporting relationships that controls, coordinates, and motivates employees so that they
cooperate and work together to achive organization’s goal.

1. The configuration (Cấu hình)

+ Organizational design of configuration involves two complementary problems: (1) how to partition a big task of the
whole organization into smaller basic tasks of the subunits, and (2) how to coordinate these smaller subunit tasks so that they fit
together to efficiently realize the bigger task or organizational goals (Mintzberg, 1983)
+ Tells us how the firm partitions big tasks into smaller tasks either by specialization or product.
+ Two fundamental dimensions have been used to distinguish the basic configurations
• Product/service/ customer orientation ⇒ External focus
৹ Total firm task will be partitioned by the outputs of the firm
৹ The firm has divisions or departments with product or customer names
• Functional specialization (the smaller tasks can be coordinated and work well together) ⇒ Internal focus
৹ The work will be divided by specialized activities
৹ The firm has departments with function names or product names

1.1. Simple (Không theo phòng ban, theo cá nhân)

Is usually a small organization, consisting of an executive and perhaps a few other individuals. The executive tells the
others what to do and manages the ongoing operations. The individual employees do not have specific tasks or activities to
perform, nor are there well-defined job descriptions. The total task of the firm is broken down into smaller tasks and assigned to
the employees by the executive on an as-needed basis; the coordination of the activities is also done by the executive. Both the
task assignments and the coordination are accomplished by the executive in an ongoing and continuous manner.
Little is fixed; things are very fluid and can be very flexible to adjust to the situation at hand. The executive is at the
center of the information flows, makes the decisions, coordinates the activities of the employees, and controls the operations –
telling others what to do. The executive is also the main contact with the market, customers, suppliers, and clients of the firm.

The simple configuration is usual for small firms – whether new small startups or older firms. In some rare situations,
the executive of the larger firm maychoose the simple configuration – particularly for an owner-managed firm which has grown
from a small start-up to a larger firm. For all of these firms, the executive is in charge of or oversees almost everything that goes
on. In terms of information processing, it can be a very demanding task.
 The simple configuration is flexible but not usually efficient or effective. Theefficiencies of specialization are not
realized, as the employees are asked to do many tasks for which they may not be fully skilled. The simple configuration depends
heavily upon the vision of the executive for its effectiveness orientation. A danger is that the focus can be narrow and not very
effective for the firm’s customers if needs change and vary over time. Because the executive is the focal point of all information
processing in the firm, it can be difficult for this one person to take time to adjust the firm’s direction or seek innovative
opportunities. In brief, the simple configuration does not take advantage of the efficiencies of specialization, and its effectiveness
depends heavily upon the actions of one person – the top executive.
The executive is at the center of all that happens in the simple configuration. It is the executive’s show. If the executive
uses time well, makes good decisions, and coordinates activities well, then the simple configuration leads to good performance.
But if the executive becomes overloaded and fails on any of these tasks, the firm’s performance will suffer.
Examples of simple organizational structures in Vietnam:
1. Small coffee shops or street-side iced tea stalls
o Owner: Manages all operations, including purchasing supplies, calculating revenue, and hiring service staff.
o Employees: Handle tasks like preparing drinks, serving customers, and cleaning.
o There are no dedicated departments like Marketing, Finance, or Human Resources because the owner
personally handles these tasks.
2. Family-owned convenience stores
o Store owner: Handles everything from stocking inventory and managing the store to handling sales and
customer service.
o No staff or specific departments; all tasks are performed by family members.
3. Small food stalls (e.g., pho, banh mi, or noodle soup vendors)
o Owner: Responsible for cooking, purchasing ingredients, and managing finances.
o Staff (if any): Usually family members who assist in serving customers.
o Marketing or complex management systems are unnecessary.
Why is this structure common in Vietnam?
 Small scale: Businesses of this type don’t require a complicated management system.
 Low cost: Eliminating multiple departments reduces operational costs.
 High flexibility: Decisions can be made quickly as they only need the owner’s approval.
 Cultural factors: Many small businesses in Vietnam are family-run, where members share responsibilities.
This simple organizational structure is highly effective for small businesses, but as a company grows, transitioning to a more
complex structure becomes necessary to ensure efficient management.

Key characteristics Advantage Disadvantage

• Doesn't have multiple layers • Flexible => the speed and the way • Not so efficient or effective
• One owner that delegates tasks to owner make decisions • The executive’s show
employees directly • Increased leader control. • Lack of specialists
• The employees report to only the • Elevated responsibility of employees • Limited growth
leader when they finish tasks. • Fewer budget costs

1.2. Functional (Các phòng ban chức năng)

Từng phòng ban thực hiện từng chức năng của doanh nghiệp
The focus of work is based on the functional specialization – hence the name.
The functional configuration is more complex with respect to information processing than the simple configuration. In
the functional configuration, there are department managers with specified subunits, each of which has welldefined jobs. The
total firm task is broken down and assigned to subunits; the coordination, or putting together, is accomplished by the hierarchy,
which uses a combination of rules and directives. In contrast to the simple configuration, where little is fixed (i.e., task
assignment and the organizational structure can change frequently), much is fixed for the functional configuration. It is more
machine-like and can accommodate large-scale organization as well as a high degree of information processing. The production
flow is to hand off work from one subunit to the next, e.g., operations to marketing, which requires coordination. The executive
is again at the center of the organization for information flows to and from the top, making decisions, and coordinating activities
of the subunits

Figure 4.3 shows an organizational chart that illustrates the functional configuration where the functional departments
are: supply, manufacturing, and sales. There could also be functions such as operations, marketing, finance, and human
resources. Operations and marketing are usually called line functions and departments like finance and human resources are
called staff functions. The executive level coordinates the manufacturing, sales, and other major efforts and is concerned with
matters such as planning and realized versus projected expectations of firm productivity. Although information flows through the
top of the organization, coordination is required among the subunit activities, and each department processes information on its
own, offloading some of the information-processing demand that was pushed to the executive level in the simple configuration.
The major advantage of the functional configuration is that specialization provides the rationale to assign individuals
and subunits to specific tasks which they learn to do efficiently. From Adam Smith (1776) onward to this day, the economies of
specialization make the functional configuration the most common configuration. The rationale is an efficient organization
which is directed by the executive level. There is a strong reliance on the skill of the executive – both for the short-term
coordination of ongoing operations and for the long-run choice of specialization.
A frequent question about the functional configuration is, how many subunit functions should there be? It is a question
of (1) the limited time of the executive who must make decisions and coordinate the subunits (departments), and (2) the capacity
of the subunits to process information. The time demands on the executive grow as the number of subunits increases, but also the
coordination demands increase as the number of products increases. Unfortunately, as either the number of subunits or the
number of products increase, the coordination demands increase nonlinearly with the implication that only a few functional
subunits are possible (Burton and Obel, 1984). Most firms have about five subunits and rarely should they have more than seven.
As in the simple configuration, the executive in the functional configuration is at the center of the organization and may
become overloaded if the environment is not predictable. Where adjustment and change in work tasks are required, the situation
can become overwhelming. The functional configuration is efficient for unchanging activities; however, that efficiency is lost
when rapid change is required. The functional configuration is a good choice if you want the organization to operate with high
efficiency and precision. The configuration works well for tasks that are repeated frequently and in high volume.
Example: The LEGO Group has a functional organization with five functions: Markets & Products (M&P) has global
responsibility for product development, marketing and sales. Community, Education & Direct (CED) is responsible for direct
contact with consumers via brand retail stores, online sales, and mail order. In addition this business area handles contacts with
fans and the development of new business concepts aimed directly at end-users. And it is this unit that is responsible for the
Group’s development, marketing and sale of educational materials. Corporate Center (CC) covers the administrative service
departments: IT, Human Resources, Corporate Communications, Corporate Governance and Sustainability and Corporate Legal
Affairs. Global Supply Chain (GSC) is the business area responsible for the Group’s supply chain – from procurement and
production to shipping and distribution to the retail trade. Finally, Corporate Finance is responsible for financial management
and control as well as followup on business planning and strategic initiatives.
 Key characteristics Advantage Disadvantage
• Groups employees into • Chief executive in touch with all • Senior managers overburdened with routine
different departments operations matters
• Each department has a • Reduces/simplifies control mechanisms • Senior managers neglect strategic issues
designated leader • Clear definition of responsibilities • Difficult to cope with diversity
• Specialists at senior and middle • Co-ordination between functions difficult
management levels • Failure to adapt

1.3. Divisional – Cấu trúc theo kiêu bộ phận

The focus is not so much on the internal specialization but more on the outside products and services that the firm
produces, or on the customers it serves.
There is an executive level that oversees subunits which are relatively independent of each other and have limits on their
contact with the headquarters. Each subunit, which may be called a division, an SBU (strategic business unit), product business,
customer business, or country business, is its own business, frequently organized as a simple or functional configuration within
the subunit. Each division is externally focused and has its own markets and customers. It pursues its own destiny within the
constraints and policies of the headquarters. The most important relationship is financial, where each division has its financial
goals, receives its operating monies as well as its long-term investment funds (Williamson, 1975). The top executive sets policy
for the divisions. These policies can be quite general, such as, “operate within the law,” or they can be quite detailed including
financial reporting standards, human resource policies, and innovation directives for new processes and products. The extent of
involvement by the top executive can vary. At the one extreme, the headquarters is a “bank” that provides financial oversight and
not much else, and at the other extreme, each division can be driven from the top. For the latter case, the headquarters is likely to
become overloaded with large information flows and many decisions to make; performance suffers (Chandler, 1962). So, the
divisional configuration works best when there is limited coordination from the top and each division is left to run its own
business where it has resources and can coordinate its activities to focus on the market for itsproducts, its customers, or in its
region (Burton and Obel, 1984). As noted earlier, within each division, the organization can be configured as a simple or
functional configuration or even another division. In Figure 4.4, the divisional configuration is shown where the product flows
and information flows have been added.
 The advantage of the rationale for the divisional configuration is that it aims to be effective with its external focus on the
product, customer, or region. The divisional configuration is more market-responsive than the functional configuration. Because
the divisions are relatively autonomous, they can make decisions on their own, meet the needs of the marketplace in creative
ways, and thus foster opportunity for growth. Many firms treat new acquisitions asdivisions, allowing them to operate relatively
independently of headquarters so that they can continue with the success experienced prior to acquisition. Dividing the firm into
product or brand groups is another way to create divisions that can grow or die depending on their success in the marketplace.
The disadvantage of the divisional form is that each division is relatively independent of the other in its operations and
markets. The divisional configuration does not handle interdivisional dependencies well. For example, two divisions selling
competing products to the same customer or developing a new technology which requires their joint efforts will find it difficult
to coordinate and/or avoid duplication of efforts. Interdependent efficiencies are lost. If a customer goes to IBM to buy both
consulting services and network computers, they must deal separately with the two divisions that manage these products. The
divisions have separate sales and support groups, and the customer must bear the coordination cost of dealing with the two
divisions. But each division can be efficient using a functional configuration. If a division becomes less effective, it can be sold
off in the marketplace, as IBM recently has done with its PC division.
At the top, the executive of the divisional configuration is responsible for the choice of the divisions and their level of
activity, and more generally the overall firm performance. There is a strong reliance on the divisions and their own executives to
relate to their own markets with products and services. The divisional configuration requires a top management level in which
the head of each division has strong executive capability beyond those of the Chief Executive Officer
How many divisions should a divisional firm have? Unlike the functional configuration where more functions or more
products increase the coordination demands nonlinearly, additional divisions do not (Burton and Obel, 1984). In the extreme, an
additional division only means choosing the divisional executive, adding one more column to the financial reports and affirming
that the existing policies and information systems apply to the new division. In terms of NK complexity theory, K is very low or
the divisions are only loosely connected. So, the number of divisions can be quite large, up to twenty or so. Considerably more
subunits are possible in the divisional configuration than in the functional configuration. For example, General Electric has
fourteen businesses, which include: aviation, healthcare, lighting, energy, finance, water, among many other diverse products and
customers. As is evident, it is a diverse set of different businesses, products, services, and customers
For the divisional configuration, the top executive is the center for corporate finance and policy. If divisional
interdependencies are abundant, then the executive can become overloaded resolving interdivisional issues. The goal is to have
divisions with minimal interdependency
Chia thành 3 loại
+ Chia theo khu vực: Geographic structure (Ngân hàng chia theo chi nhánh): groups functions by region so that each
division contains the functions it needs to service customers in a specific geographic area.
+ Sản phẩm: Product structure: groups functions by types of products so that each division contains the functions it
needs to service the products it produces
+ Tệp khách hang: Market structure: groups functions by types of customers so that each division contains the functions
it needs to service a specific segment of the market
 Key characteristics Advantage Disadvantage
• Organizes employees • Operate effectively in each market area. • Lack of organizational communication and
around a common product • The divisions are relatively hierachy understanding.
or geographical location. autonomous/semi- autonomous in creative • Departments compete against one another.
• Semi-autonomous unit ways.

Examples of Divisional Structure in Vietnam:

1. Vingroup
o Divisions based on products/services:
VinFast: Focuses on manufacturing electric cars and motorbikes.

 VinHomes: Specializes in residential real estate.
 VinMec: Provides healthcare and hospital services.
 VinSchool: Offers education services.
 Each division has its own management team and departments, including Marketing, Finance, and HR.
2. FPT Corporation
o Divisions based on industries/services:
 FPT Software: Software development.
 FPT Telecom: Telecommunications and internet services.
 FPT Education: Education and training.
 FPT Retail: Retailing technology products.
 Each division operates independently, with its own business goals and strategies.
3. Masan Group
o Divisions based on products:
 Masan Consumer: Produces and distributes consumer goods (fish sauce, instant noodles, coffee).
 Masan MEATLife: Focuses on fresh food products.
 Masan High-Tech Materials: Engages in mining and processing resources.
 Each division has its own functions, from product development to marketing and sales.
Advantages of Divisional Structure:
 Specialization: Each unit focuses entirely on its specific area, improving operational efficiency.
 Quick response: Divisions have the autonomy to make decisions quickly in response to market changes.
 Performance evaluation: The performance of each division can be measured independently.
Disadvantages:
 Higher costs: Duplicating departments (e.g., Marketing, HR) across divisions increases operational expenses.
 Lack of coordination: Divisions may operate independently, leading to poor communication or resource sharing.
The divisional structure is often suitable for large corporations or companies with diverse product/service portfolios operating
across multiple geographical areas or markets.

1.4. Matrix – Cấu trúc dựa theo Functional (ngang)+ Divisional (dọc)
=> Sự linh hoạt
VD: khi triển khai dự án thì có pick người từ các phòng ban, khi kết thúc dự án thì có thể về vị trí
=> Để tổ chức tốt cần mô tả rõ chức năng nhiệm vụ cho từng phòng ban

There is both the functional hierarchy and the divisional hierarchy for the same firm. The top executive is responsible for
both the functional and divisional dimensions – to set policy, set priorities and resolve conflicts among the subunits. The top
executive is not involved in the details of operations, but does oversee the entire firm. Most of the difficult coordination
problems are handled by the matrix managers, i.e., those that act as a link between the lateral divisions and the functional
hierarchy. Matrix managers make multiple variable tradeoffs which involve both the function and the division. Figure 4.5
illustrates a matrix in which functional specialization is combined with product orientation to yield coordination of functions
across the product groups. As shown in Figure 4.5, the matrix configuration requires simultaneous coordination of the functional
specialties across the projects, products, services, or customers that the firm services. When there is a change in the timing of an
activity, it ripples across the whole of the firm – called the jello effect.

The matrix can be very flexible, dealing with new information and adjusting to the new situations quickly to utilize
limited resources to meet firm priorities. In general, a matrix organization can handle much more information than other
organizational configurations. The advantage is that the matrix can realize both the efficiency of the functional form and the
effectiveness of the divisional form – overcoming the limitations of both forms. When it works well, both efficiency and
effectiveness result. Complicated tradeoffs are considered; decisions are made; and the firm moves on. But when the matrix is
not well managed, it can be neither efficient nor effective. The challenges of managing a matrix include reconciling conflicts
between the lateral and vertical subunits, information overload, excessive meetings, and decision delay. The firm does not move.
The matrix configuration requires managerial skills that include a focus on the entire firm as well as one’s own function or
division, the acceptance of uncertainty, the willingness to consider complicated tradeoffs and negotiate realistic solutions, and a
focus on results. These benefits must exceed the additional costs of coordination if the matrix is to be justified beyond the
functional or divisional configurations
The matrix configuration has many two-dimensional names in practice: function and product, function and
project, specialty and industry customer, product and customer, product and region or country, basic technology and
product – to name a few. There are also three dimensional matrices, as many multinational firms have function, product, and
country or regional dimensions. Procter & Gamble has a four-dimensional matrix of: global functions, global business units,
regional products and the fourth, global customers (Galbraith, 2010). Matrix relations go beyond setting up the matrix
configuration reporting relationships. Management must invest in developing crossorganizational coordination. This is realized
in many ways: lateral relations, liaison roles, various coordinating committees – all of which consider issues which are not dealt
with well or quickly within the hierarchy. Combining the matrix configuration together with its various other cross-
organizational relations, it is quite possible to have eight dimensions: function, product, region, customer, technology
development, basic research, human resources, and inter-country finances – perhaps more to be managed and involving
complicated tradeoffs and coordination. Most firms are not so complicated; yet, many modern firms have an array of matrix
relations, or cross-organizational mechanisms to coordinate across the dominant hierarchy in the firm.
How big can a matrix be? The matrix has both a functional and divisional dimension to manage simultaneously, so the
size is the number of functions multiplied by the number of divisions. Given the jello effect, or more formally in NK theory
where N is the number of subunits and K, the degree of interdependency, we suggest that the matrix can include only a small
number of subunits, say four or five on each dimension. However, the big Swedish-Swiss multinational firm ABB at one time
had a matrix configuration where there were over 100 separate SBUs along one dimension. They used an additional middle level
of management in the matrix to support the complexity of interdependency to be coordinated. Still, the matrix was too complex
to manage and was eventually dismantled and replaced with a simpler configuration. Yet quite recently, IBM has adopted a
multidimensional and reconfigurable organization which yields both the multidimensional coordinated and also a continuing
reconfiguration; it goes beyond even the four dimensions. Perhaps more important is the reconfiguration aspect which permits it
to adjust to an ever changing environment (Galbraith, 2010). It should be emphasized that the coordinating units do not span all
of the dimensions of the organization as found in a two-dimensional matrix. The capacity to reconfigure the matrix is paramount
here. In turbulent environments, it is not likely that one configuration of the matrix will work well for an extended time, it must
be reconfigured regularly. It is both the matrix configuration and its capacity for reconfiguration that are needed – not a static
matrix configuration.

When both efficiency and effectiveness are needed, the matrix configuration is an appropriate choice. The matrix is
usually more costly to manage than a hierarchy as there are more managers, more information, and more complicated
coordination to be done. Further, the managers must consider and deal with many considerations that simultaneously have
overall effects as well as effects on the subunit. Individuals who have been successful in a hierarchy may not be comfortable or
successful in a matrix configuration. The matrix must be justified in terms of the strategy and the firm’s environment.
The top management in the matrix has a focus on both efficiency and effectiveness – attempting to obtain both. The top
management cannot direct the organization but must rely heavily upon the functional and divisional managers for the detailed,
ongoing coordination adjustments in order to meet the firm priorities. Yet, the executive has much to do: set priorities, resolve
differences among the subunits, and generally oversee the entire firm.
It is important to emphasize that the matrix can also lead to poor performance. The dual coordination across the
functions and the divisions can lead to conflicts of priorities between the managers of subunits. If conflict management requires
great involvement by the top executive, a major advantage of the matrix hasbeen lost. The telltale signs of a matrix in trouble
are, again: overload of decisions at the top as the managers are not able to solve problems; problems are not dealt with at all and
opportunities are lost; budgets are exceeded; operations are not coordinated and resource utilization is lost or
inefficient;employees are unhappy and confused; subunits are spending excessive time on coordinating with other subunits to the
detriment of subunit performance; and opportunities are lost. When the matrix works well, it can achieve efficiency and
effectiveness. But when things go badly, they can be very bad
The organizational configuration is not the whole story; the organizational complexity is another property of the
organization which can be designed to meet the goals of efficiency and effectiveness.

Key characteristics Advantage Disadvantage

• A high information-processing capacity of a firm • Efficient Resource Utilization • Dual Reporting
• Employees are grouped based on both functional • Flexibility and Adaptability Relationships
expertise and project assignments, creating a dual • Collaboration and Cross- • Complexity
reporting structure Functional Learning • Conflicts

Examples of Matrix Structure in Vietnam:

1. Viettel Group
o Combination of functional and project-based structures:
 Functional departments include Marketing, Finance, R&D, and Operations.
 Project teams focus on specific areas like developing new telecommunications services, expanding into
international markets, or launching 5G technology.
 Employees report to both the head of their functional department (e.g., R&D) and the project manager
for their assigned project.
2. FPT Software
o Combination of functional and client-based structures:
 Functional departments include Software Development, Quality Assurance, and IT Support.
  Project teams are formed based on clients’ needs, such as developing customized software for banking,
healthcare, or logistics industries.
 Employees report to their functional manager (e.g., head of Software Development) and the project
manager responsible for the client’s project.
3. VinFast (a subsidiary of Vingroup)
o Combination of functional and product-based structures:
 Functional departments include Engineering, Marketing, and Manufacturing.
 Product teams focus on developing specific products, such as electric cars, scooters, or batteries.
 An engineer might report to the Engineering Department head and simultaneously to the product
manager overseeing electric car development.
Advantages of Matrix Structure:
 Efficient resource utilization: Employees and resources can be shared across projects and departments, reducing
redundancy.
 Promotes collaboration: Employees work closely with colleagues from different functions, encouraging cross-
departmental teamwork.
 Flexibility: The structure adapts easily to changes in projects, markets, or organizational needs.
Disadvantages of Matrix Structure:
 Dual reporting lines: Employees may face confusion or conflicts when receiving instructions from multiple managers.
 Complex management: Managing such a structure requires strong communication and coordination between functional
and project managers.
 Potential overload: Employees may experience increased workloads due to responsibilities in both functional and
project roles.
Matrix structure is typically suitable for organizations working on multiple complex projects, such as large technology
companies, consulting firms, or multinational corporations. This structure allows them to leverage their expertise and resources
efficiently while maintaining flexibility to respond to market demands.

2. Complexity (Độ phức tạp)

Complexity is a property or characteristic of the organizational structure.
It is the horizontal and vertical differentiation of task management in the firm. Each of the configurations we named
above can have high or low horizontal and vertical differentiation.
is a property or characteristic of the organizational structure. Organizational complexity is the vertical and horizontal
differentiation of task management in the firm. It is how the firm’s configuration is broken down into its several subunits.
Roughly, it is the width and height of the hierarchy. The two organizational complexity dimensions are: the horizontal
differentiation, or width, and the vertical differentiation, or height. The horizontal differentiation is the degree of task
specialization across the hierarchy; the vertical differentiation is the depth of the hierarchy – top to bottom. Each of the
configurations we discussed above can have high or low horizontal and vertical differentiation; it is a property of the
organization. The practical design questions relating to organizational complexity include: the width of specialization for the
firm, the span of control for the firm, the delayering of the firm to eliminate middle management, the scope in a divisional
configuration, and the limitation on the number of functions and divisions in the matrix configuration. Again, these design
choices are to be made in terms of efficiency and effectiveness goals.
 As shown in Figure 4.6, choices regarding the degree of a firm’s horizontal differentiation and vertical differentiation
result in four types of organizational complexity. The organizational complexity is classified as: blob, tall, flat, and symmetric.
These are not ideal types of configurations but rather archetypes that show how information processing will be conducted in the
firm based onhow work is allocated among subunits. Next, we discuss four complexity types on the horizontal and vertical
dimensions: blob for low and low; tall for low and high; flat for high and low; and symmetric for high and high, respectively

2.1. Bold
If the firm does not formally divide its work into subunits, then it is like a blob. It is undifferentiated; it is low on both
horizontal and vertical differentiation. The blob has little specialization of task; the firm can be quite flexible and quick to
respond to ongoing changes. Job descriptions are very loose, or may not exist. This lack of definition of who is to do what is
very demanding on the executive, requiring decision-making for new situations on a continuing basis,where the executive can
become overloaded and not be able to give adequate attention to the activities. The blob can also be confusing to customers or to
newcomers who join the organization, since it is not clear who does what, or where one should go for specific types of
information
Characteristics Advantage Disadvantage Example
• Undifferentiate • Little specialization of • Heavy demand on the executive; • A small creative studio where
d task; flexible firm and confusing to customers and everyone works on different
quick to respond to newcomers; limited coordination projects without clear job titles
ongoing changes or specific roles.

2.2. Tall
The tall firm is low on horizontal differentiation and high on vertical differentiation. The tall firm has a large middle
management which focuses on information processing – taking directions and information from the top and making it precise for
lower levels in the hierarchy; and taking detailed information from the bottom and summarizing and interpreting it for the top
executives. The multilayered middle management connects the executive to the specialized task level, e.g., the top executive to
the factory or service worker; the CEO to the programmer. The middle management takes directions and orders from the
executive and breaks them down into smaller task implications which then must be coordinated across the subunits. For
example, the executive of an auto plant may set the production plan at 100 automobiles, which must be broken down into plans
for many subunits and coordinated among the subunits so that all of the functions work together to meet the plan.
From the bottom, the middle management summarizes what is happening at the bottom and passes it up the hierarchy,
where the information is aggregated as it goes up, so that the top can deal with simpler, but relevant, information for decision-
making and control. Both the down and up processes involve a good deal of information processing; it takes managerial time and
can lead to delay. The span of control is limited as the information processing demands on the middle managers can be quite
high. The inter-level vertical information transferal is usually large, involving frequent interaction of detailed information. If an
additional function is added, it must be coordinated across all the functions, and thus the addition of one more function increases
the information processing demands nonlinearly. This limits the number of direct reports to a few; most firms have five to seven
functions.
 Recently, many firms have shortened their hierarchy, eliminating middlemanagement levels in the firm. This is
frequently called “delayering.” On the organization chart, it can be simply the removal of a level, but much more is involved. A
simple removal creates a mismatch and miscommunication between the two remaining levels. When a level is removed, the
connections between the level above and the level below must also be changed. So, the information and communications must
be redesigned, usually from top to bottom. Without the informational assessment and modification, the newly delayered firm
will initially struggle. With more advanced information technology, it is now possible to achieve quickly the vertical
coordination with a shorter middle management, but it still requires a redesign of the organization and its use of information. It is
not simply a matter of removing a layer in the hierarchy and seeing what happens.

Characteristics Advantage Disadvantage Example

• large middle • Lighter burden on • Heavy demand on the middle • A large corporation with
management, acts as top level so they can managerial level; time to various departments, such as
intermediary between focus on decision process information can lead finance, marketing, and
the top level and the making and control to delay. operations, each with its own
bottom level managers and teams.

2.3. Flat
The flat firm is high on horizontal differentiation and low on vertical differentiation. There are fewer middle managers
(or subunits) to coordinate between the top executives and the lower levels in the organization. Usually, these middle managers
do not focus on detailed operations which take lots of time and attention. They focus instead on resource allocation, general
policy, and finance. Other issues can be innovation, R&D, human resources – all of which involve policy and strategy. The
information is aggregated and minimal. Shortterm information exchanges focus on financial goals and cash flows. The longterm
information exchanges focus on capital budgets and technology planning. If your firm is flat in its structure, the scope of the firm
work across subunits can be quite varied, especially if there are no operational connections among them. The span of control can
be wide if the focus of information flow is on policy, not detailed operations. Put another way, the information flows are minimal
if exchanges focus on general policy but grow quickly for detailed operations
A major advantage of the flat organizational structure is that each unit has autonomy to focus on its own work. Subunits
can attend to the needs of customers or suppliers or new products – whatever is their particular charge, in terms of focus of work.
On the other hand, the executive level of the organization bears the burden of coordinating among these subunits, and they can
get out of synch, lack coordination, leading to inefficiencies for the firm as a whole.

Characteristics Advantage Disadvantage Example

• fewer managers (or • Subunits within the • Executives bear the burden of • Valve Corporation is an
subunits) to organization have coordinating subunits, without example of a flat company
coordinate between autonomy to focus on proper coordination, subunits known for its operation without
the top level and the their specific work, can lose alignment and traditional hierarchical
lower levels; leading to increased communication, resulting in management; emphasis on
emphasis on policy efficiency and inefficiencies for the employee self-organization,
and strategy. effectiveness in their organization. and collaborative work
respective areas. environment.

2.4. Symmetric
The symmetric firm is high on horizontal differentiation and high on vertical differentiation. This means that the
organization’s work is broken down into manytask specialties as well as many vertical reporting levels. Horizontally breaking
down tasks into smaller tasks means that work can be done simultaneously in the horizontal subunits. Parallel processing of
work, ability of each to deal with customers or others in the marketplace, and the opportunity to work independently all help to
facilitate organizational effectiveness. To overcome the problem of the flat organization, in which the executive level must
process information generated by each of the task-based subunits, a middle level (or perhaps multiple middle levels) are created
that aggregate work from bottom to top and facilitate information flow from top to bottom. The symmetric organization tries to
hit the ideal balance of vertical and horizontal breakdown of work into subunits. Middle levels help to coordinate work to yield
efficiencies and so that each unit can concentrate on its activities for high effectiveness. The information-processingrequirements
of the symmetric organization are very high because the coordination demands are high both horizontally and vertically
throughout the firm.

Characteristics Advantage Disadvantage Example

• The organization is • Parallel processing in • High coordination demands • A medium-sized company
broken down into multiple subunits enables in a firm require significant with departments like sales,
many task specialties independent work, information-processing, operations, and HR, each
as well as many addressing customer and involving coordination headed by managers, but
vertical reporting market demand, and across various task without excessive layers of
level. contributing to specialties and vertical management.
organizational efficiency. reporting levels.
⚠️Balance Score Card (Bảng điểm cân bằng) thông quá 4 khía cạnh (perspective)
1. Definition
A balanced scorecard (BSC) is a strategic management performance metric that a company can use to improve internal
business operations and external results.1 It's a way for organizations to focus on processes, that, when combined, can help them
meet their financial goals.
The balanced scorecard takes into account four perspectives that are essential to value creation for an organization: the
financial perspective as well as a focus on customers, internal business processes, and learning and growth. Within each of these
areas, the BSC measures and monitors the key performance data that are critical to an organization's success.
⇒ To control implementing the strategy
 Financial data (Finance, Accounting, Auditing), such as sales, expenditures, and income, are used to understand
financial performance. These financial metrics may include dollar amounts, financial ratios, budget variances, or income
targets.
 Customer perspectives (MKT, CRM, Sales, Operations (grarantee the product)) are collected to gauge customer
satisfaction with the quality, price, and availability of products or services. Customers provide feedback about their
satisfaction with current products.
 Internal business processes (MKT, HR process,… all department has own process ) are evaluated by investigating how
well products are manufactured. Operational management is analyzed to track any gaps, delays, bottlenecks, shortages,
or waste.
 Learning and growth (CSR, training, coporate culture ) are analyzed through the investigation of training and
knowledge resources. This first leg handles how well information is captured and how effectively employees use that
information to convert it to a competitive advantage within the industry.

2. Benefits of a Balanced Scorecard (BSC)

There are many benefits to using a balanced scorecard. For instance, the BSC allows businesses to pool information and
data into a single report rather than having to deal with multiple tools. This allows management to save time, money, and
resources when they need to execute reviews to improve procedures and operations.
Scorecards provide management with valuable insight into their firm's service and quality in addition to its financial
track record. By measuring all of these metrics, executives are able to train employees and other stakeholders and provide them
with guidance and support. This allows them to communicate their goals and priorities in order to meet their future goals.
Another key benefit of BSCs is the help it provides companies to reduce their reliance on inefficiencies in their
processes. This is referred to as suboptimization. This often results in reduced productivity or output, which can lead to higher
costs, lower revenue, and a breakdown in company brand names and their reputations.3

3. Examples of a Balanced Scorecard (BSC)

Corporations can use their own, internal versions of BSCs. For example, banks often contact customers and conduct
surveys to gauge how well they do in their customer service. These surveys include rating recent banking visits with questions
about wait times, interactions with bank staff, and overall satisfaction. They may also ask customers to make suggestions for
improvement. Bank managers can use this information to help retrain staff if there are problems with service or to identify any
issues customers have with products, procedures, and services.
In other cases, companies may use external firms to develop reports for them. For instance, the J.D. Power survey is one
of the most common examples of a balanced scorecard.3 This firm provides data, insights, and advisory services to help
companies identify problems in their operations and make improvements for the future. J.D. Power does this through surveys in
various industries, including the financial services and automotive industries. Results are compiled and reported back to the
hiring firm.
IV. CFSs (CRITICAL SUCCESS FACTORS)
1. Definition

those few things that must go well to ensure success for a manager or an organization ⇒ Strengthen the business strategy
CSFs can be used to translate strategic objectives into performance targets and tactical plans. Critical success factors are

⚠️Mission & Vission ⇒ Strategy ⇒ Milestone meeting (để làm công tác tư tưởng) – persuade ⇒ Design CSF (Critical
Success Factors) or OKR (Objectives and Key Results) ⇒ Each department have diferent CFS cho each function
Critical Success Factors (CSFs) – Qualitative – Nhân tố đảm bảo sự thành công - are the key areas or elements that are
vital for an organization, project, or department to achieve its goals and objectives. These factors are essential for ensuring that
an organization stays focused on what is most critical for its success.
Yếu tố thành công quan trọng là một thuật ngữ quản lý để chỉ một yếu tố cần thiết để một tổ chức hoặc dự án đạt được
sứ mệnh của mình. Để đạt được mục tiêu của mình, họ cần nhận thức được từng yếu tố thành công chính và sự khác biệt giữa
các yếu tố then chốt và vai trò khác nhau trong lĩnh vực kết quả chính

2. CSF is Designed for: Department and Organizations

 Management and Leadership: CSFs help leaders focus on the most important areas that need attention to drive
success.
 Departments: Different departments like marketing, finance, HR, or operations use CSFs to focus on achieving
departmental goals aligned with the overall strategy.
 Organizations: For overall business strategy and operations.

3. Steps to Design a CSF for a Department:

1. Identify Organizational Goals: Understand the overall business strategy and objectives that the department needs to
align with.
2. Identify the Departmental Objectives: Break down the organizational goals into specific objectives relevant to the
department.
3. Identify Key Success Areas: Determine the areas within the department that are critical for achieving the objectives.
This could include customer satisfaction, process efficiency, or innovation.
4. Analyze Risks and Challenges: Consider any challenges or risks that could hinder the achievement of the objectives,
and factor these into the CSFs.
5. Prioritize the Factors: Not all identified factors are equally important. Prioritize those that will have the most
significant impact on success.
6. Define Measurable Indicators: Set KPIs or metrics to measure how well the department is performing against each
CSF.
7. Communicate and Align with Stakeholders: Ensure that everyone in the department understands the CSFs and how
they contribute to success.
8. Review and Adjust: CSFs should be periodically reviewed and adjusted based on changing business conditions, new
risks, or evolving goals.

4. Example of a Real Company Applying CSFs:

Apple Inc. is known for its focus on design and innovation as critical success factors, particularly within its product
development and R&D departments. The following is an example of how Apple might use CSFs:
 Objective: Enhance customer experience through innovative product design.
 Critical Success Factors:
1. User-Centric Design: A focus on understanding customer needs and translating them into intuitive, sleek
designs.
2. Cutting-Edge Technology: Investing in R&D to stay ahead with the latest technologies.
3. Brand Consistency: Ensuring that all products are consistent with Apple’s brand values and aesthetics.
 4. Supply Chain Efficiency: Efficient management of the supply chain to deliver products on time.
By focusing on these CSFs, Apple ensures that its product design department stays aligned with the broader business goal of
maintaining market leadership through innovative products.
V. KPI (KEY PERFORMANCE INDICATORS)
1. Definition

the measurement of strategic performance ⇒ Focus on results

KPIs, on the other hand, are measures that quantify management objectives, along with a target or threshold, and enable

KPIs are metrics that are used to monitor performance in key areas on a daily, weekly or monthly basis ⇒ Quantitative
methods
Qualify how you measure progress toward that objective, should be a ratial (tỷ lệ) The rate of on time report

2. Example
Objective: Define what you want to achieve (SMART), more about the number
VD: bán 1 tỷ tiền hàng  Chuyển sang KPI: tỷ lệ chốt đơn thành công (success rate of closing orders)

3. Compare
OKRs (Objectives and Key Results) and KPIs (Key Performance Indicators) are two widely used frameworks for goal-
setting and performance measurement. While they share similarities, they serve different purposes and are best suited for
specific contexts. Here's a detailed comparison:
OKR KPI
Definition o A goal-setting framework designed to align o A metric used to track and evaluate the success of
teams and individuals around ambitious, specific activities or processes in achieving business
measurable objectives and their associated objectives.
results. o Example: KPI: Website traffic reaching 100,000
o Example: Objective: Increase brand visibility. monthly visits.
 Key Result 1: Achieve 50,000 new social
media followers.
 Key Result 2: Publish 20 PR articles in
industry publications.
Purpose o Sets aspirational goals to inspire growth and o Tracks ongoing performance against predefined
innovation. targets or benchmarks.
o Focuses on what to achieve (Objective) and o Helps monitor and maintain operational efficiency.
how to measure success (Key Results). o Indicates whether specific areas of the business are
o Encourages alignment and prioritization across performing as expected.
teams.
Timefram o Typically short-term (quarterly or annual o Usually long-term, ongoing, and tied to stable
e cycles). processes.
o Encourages frequent reviews and adjustments. o Reviewed periodically (monthly, quarterly, or
o Designed to adapt to dynamic business needs. annually).
o Focuses on consistent performance tracking.
Ambition o Encourages stretch goals that push teams o Realistic, achievable targets based on historical data
beyond comfort zones. or industry benchmarks.
o Success is not necessarily about achieving o Success is defined as consistently hitting or exceeding
100% but about making significant progress. the target.
o Example: Launch a new product in 3 months o Example: Maintain a customer satisfaction score of
with 80% customer satisfaction (even if it’s 90% or higher.
ambitious).
Flexibility o Flexible: Objectives and key results can evolve o Static: KPIs are typically tied to core processes and
based on priorities or unexpected changes. remain consistent unless there’s a significant change
o Adaptable to fast-paced, innovative in strategy.
environments. o Best for monitoring steady, predictable outcomes.
Scope o Broad, focused on organizational alignment o Narrow, focused on specific activities or operations.
and overall goals. o Used to measure performance in defined areas (e.g.,
o Used for innovation, growth, and high-level sales, marketing, finance).
strategic initiatives.

Use Cases o Best for driving strategic initiatives, o Best for monitoring ongoing operations and
innovation, and cultural alignment. maintaining performance levels.
o Suitable for startups, agile organizations, and o Suitable for established businesses and operational-
goal-oriented teams. focused roles.
Example
Sales Goal Objective: Expand market share in Southeast Asia. Increase annual sales revenue by 15%.
1. Acquire 10,000 new customers in the region.
Key
2. Launch localized marketing campaigns in 3
Results:
countries.
VI. PLAN
Strategic, Tactical, Operational & Contingency (Back-up) Plan
1. Strategic Plans
– are designed with the entire organization in mind and begin with an organization’s mission
- Privided by top-level managers serve as a framework for lower level planning. Top level managers such as CEOs or
presidents will design and execute strategic lán to paint a picture of the desired future and long-term goals of the organization
- Including (for example)
+ Developing long-term strategies for growth
+ Improving productivity and profitability
+ Boosting return on investments
+ Improving customer service
+ Finding ways to give back to the community in which it operates

2. Operational Plans – plans that are made by forntline, or low-level managers

- Focused on specific procedures and processes that occur within the lowest levels of the organization
- Managers must plan the routine tasks of the department using a high level of detail
3. Tactical Plans – support strategic plans
Ranslating them into specific plans relevant to a distinct area of the organization
create a set of calculated actions that take a shorter amount of time and are narrower in scope than the strategic plan is but still
help to bring the organization closer to the long-term goal operational plans
For example
Strategic: increasing productivity
Tactics: testing a new process in making pizzas that has been proven to shorten the amount of time it takes for prepping
the pizza to be cooked or
looking into purchasing a better oven that can speed up the amount of time it takes to cook a pizza
considering ways to better map out delivery routes and drivers

WHAT ARE THE 4 TYPES OF PLANNING?

Planning is an essential function of business. Effective planning is crucial for every business to achieve the desired goals
effectively. The following are the four key types of planning in management. Let’s explore them:
1. STRATEGIC PLANNING
Definition: Strategic planning is like a roadmap for a company’s long journey. It’s a big-picture plan that guides where the
company wants to go and how it aims to get there.
Purpose: Think of it as setting the ultimate destination for a road trip. It defines the company’s goals, vision, and the main
strategies to achieve them. It’s a big dream.
Key Details:
 Who Makes It: Top-level leaders and executives in the company are like the masterminds behind this plan.
They gather to brainstorm and set the course for the future.
 Importance: Imagine trying to build a house without a blueprint. Strategic planning provides focus and
direction. It helps a company grow, adapt to changes, and stay competitive.
 Example: Suppose a toy company decides it wants to be the leader in eco-friendly toys within five years. Their
strategic plan might include goals like designing sustainable toys, expanding into new markets, and improving
their brand’s environmental image.
2. OPERATIONAL PLANNING
Definition: Operational planning is the day-to-day plan that keeps the company running smoothly. It’s like the to-do list for each
day, making sure everyone knows what needs to be done.
Purpose: If strategic planning is the big dream, operational planning is the practical step to make it happen. It’s about managing
resources, tasks, and deadlines efficiently.
Key Details:
 Who Makes It: Operational plans are crafted by managers and supervisors who oversee specific areas or teams.
They take the big goals from strategic planning and break them into smaller, manageable tasks.
 Importance: Without operational planning, it’s like having a dream but not knowing how to take the first step.
It ensures that everyone in the company knows their role, resources are used wisely, and things get done on time.
 Example: Consider a restaurant. The strategic plan might include a goal to become the go-to place for healthy
dining. The operational plan for the kitchen staff would include tasks like sourcing fresh ingredients, creating
daily menus, and maintaining kitchen equipment to serve healthy meals efficiently.
3. TACTICAL PLANNING
Definition: Tactical planning is like a playbook for a sports team. It’s about making specific, short-term moves to score points
and win the game. In business, it’s all about the specific details of a business.
Purpose: Think of this type of planning as breaking down the big goals from strategic planning into smaller, achievable actions.
Tactical planning tells us exactly what to do, like a game plan for success.
Key Details:
 Who Makes It: Middle-level managers are like the coaches here. They take the strategic game plan and create
tactical plays for their teams. They decide who does what, when, and how.
 Importance: Imagine playing chess without thinking about your next move. Tactical planning ensures that each
part of the organization is working together efficiently. It’s all about executing the strategy and getting results.
 Example: If a tech company’s strategic plan is to dominate the mobile app market, tactical planning might
involve setting specific targets for app downloads, designing marketing campaigns, and allocating resources to
app development teams.
4. CONTINGENCY PLANNING
Definition: Contingency planning is like having a backup plan for when things go wrong. It’s preparing for unexpected twists
and turns, much like having a spare tire in your car.
Purpose: This type of planning is all about being ready for surprises. It’s like having a fire escape plan in case of emergencies. It
helps a company respond to unexpected challenges effectively.
Key Details:
 Who Makes It: Just like having a first-aid kit at home, contingency plans are developed by experts in risk
management or crisis response. They identify potential risks and create plans to deal with them.
 Importance: Life is unpredictable, and so is business. Contingency planning ensures that when a crisis hits, the
company knows exactly what to do. It minimizes damage and helps the organization bounce back quickly.
 Example: Consider a manufacturing company. While their strategic plan may focus on increasing production, a
contingency plan could include steps to address disruptions like equipment breakdowns, supplier issues, or even
natural disasters. This way, they’re ready to keep production going no matter what.
The four types of planning in management work together like building blocks:
 Strategic Planning: It’s a big dream, setting long-term goals. Top leaders create the vision.
 Tactical Planning: Think of it as the game plan. Middle managers break down big goals into short-term actions.
 Operational Planning: This is the daily to-do list. Supervisors ensure tasks are done efficiently.
 Contingency Planning: It’s the backup plan for surprises. Experts prepare for unexpected challenges.
These types fit like pieces of a puzzle. Strategic planning sets the direction, tactical planning creates the plays, operational
planning manages daily tasks, and contingency planning handles unexpected bumps in the road. Together, they help a company
succeed and adapt to a changing world.
VII. REVISE
Bắt đầu từ: Vision + Mission  Strategy
Kế hoạch phòng ban  Strategy
Cấu trúc tổ chức của doanh nghiệp  Kế hoạch

CFS để đảm bảo cho chiến lược

CFS (Qualitative)  KPI (Quantitative)  Đảm bảo Kế hoạch sẽ được thực hiện theo mỗi cái đề ra
CFS (Qualitative) ≠ KPI (Quantitative, Ratial) ≠ Objective (Number)
KPI lượng hóa CFS, 1 CFS được đo bởi nhiều KPI

KPI xây dựng cho mỗi vị trí công việc

Căn cứ xây dựng KPI: JD + CFS  Đúng và trúng

Hiện thực hóa KPI  Operational + tatical plan

Trong Các kế hoạch tác nghiệp (Operational) phải có: Steps + Timeline + Budget (cho mỗi step)  Để phân bổ nguồn lực

Căn cứ phân bổ tiền là: Số lượng x đơn giá

Tính một ngày tiêu hao bao nhiêu nhân viên
VD: Việc nghiên cứu đổi thủ cần 2 máy tính + 2 nhân viên
 Budget = 2 máy tính x giá + 2 nhân viên x lương/tháng x thời gian thực hiện theo tháng
VII. REFERENCES
You plan to start-up with a cafeteria with no more than 10 people, design an organizational structure of the cafeteria.
Design CSF and KPI for that cafeteria to increase 50% of revenue in the next 6 months

I. KPI building process for the cafeteria

Vision and Mission  Strategy  Organization Structure  Department function and objectives  CSFs  Job position
structure  Targert KPI  Plan  Report

II. General information of the cafeteria

- Vision: To be the go-to neighborhood cafeteria where people gather for delicious food, exceptional service, and a welcoming
atmosphere that fosters connection and community.
- Mission: To provide fresh, high-quality meals with warm, friendly service in a cozy environment, while consistently exceeding
customer expectations. We aim to create a unique dining experience that combines great taste, value, and convenience, ensuring
our customers leave satisfied and excited to return.
- Strategy:
 Product development: Continuously expanding product portfolio
 Market penetration: Increase marketing efforts targeting Gen Z and Millennials
- Objective (in the next 6 months): Increase 50% of revenue

III. Detail information of the cafeteria

1. Cafeteria’s organization structure

2. Department’s Function, Objective and CSFs

Function Objective CSFs Further explaination
CEO/Manager - Oversee overall Align operations to Clear Strategic A well-defined plan with measurable
operations, increase revenue by Planning objectives allows for targeted growth,
financial planning, 50% within 6 focusing on high-demand products and
and strategy months through efficient resource use
- Ensure strategic planning, Financial Monitoring expenses and optimizing costs
coordination efficient resource Management (e.g., through inventory management, labor
between allocation, and costs) ensures that increased revenue
departments, effective leadership translates to profit
manage budgeting, Cross- Effective coordination between departments
and make key Departmental ensures customer satisfaction through
business decisions Coordination smooth service and consistent food quality,
driving customer loyalty
Kitchen - Prepare high- Increase the average Menu Create new, higher-margin dishes or combo
Department quality food, order value and Optimization offers to increase the average order value
maintain customer retention and attract new customers.
 inventory, and by offering premium Consistent Food Ensure every dish is prepared to the highest
manage kitchen menu items, Quality standard to drive repeat business and
efficiency maintaining positive reviews
- Introduce new consistency in food Waste Control food costs by optimizing inventory,
menu items, quality, and reduce Management portion sizes, and minimizing wastage
control food costs, food waste by 10-
and reduce 15% by optimizing
wastage portions, inventory,
and purchasing.
Front of - Manage Achieve a customer Customer Deliver exceptional service by training staff
House customer satisfaction score of Satisfaction on customer interactions, reducing wait
Department interactions, take 90% or higher in times, and ensuring order accuracy
orders, serve food, surveys focused on Efficient Optimize table turnover rate, ensuring quick
and handle service quality, Operations and smooth customer service during peak
payments speed, and accuracy hours without compromising quality
- Ensure a Upselling & Train staff to recommend complementary
welcoming and Cross-selling items, increasing the average order value
efficient service per customer
environment
3. Job postion structure

No. Deparment Job position Report to General responsibilities Number

1 Management Assistant Manager CEO/ Manager - Support daily operations, staff scheduling, and 1
Department customer service
- Handle complaints, cash management, and
employee supervision
- Handle marketing activities
2 Kitchen Head Chef Assistant Manager - Manage kitchen operations, food quality, and 1
Department menu planning
- Supervise kitchen staff, control food costs, and
ensure hygiene compliance
3 Baker Head Chef - Prepare baked goods, manage ingredient stock, 1
and ensure quality
- Follow health guidelines and collaborate on
new offerings
4 Barista Head Chef - Prepare beverages, maintain consistency, and 1
 serve customers
- Keep the coffee bar clean and upsell menu
items
5 Front of Front of House Assistant Manager - Oversee waitstaff and cashier, manage customer 1
House Supervisor flow, and resolve issues
Department - Ensure dining area cleanliness and staff training
6 Waitstaff Front of House - Take orders, serve food, and ensure customer 2
Supervisor satisfaction
- Maintain table cleanliness and communicate
with kitchen staff
7 Cashier Front of House - Process payments, handle orders, and maintain 1
Supervisor the cashier area
- Provide friendly service and assist with
customer inquiries
8 Security Front of House - Monitor premises, handle disturbances, and 1
Supervisor ensure safety
- Assist with crowd control and emergencies

4. KPI and Target KPI

4.1. KPI for each department
No. Department KPI Targer KPI
Management Achieve 8-10% monthly revenue increase to meet the 50% growth
1 Revenue Growth
Department target in 6 months.
2 Cost Control Keep food costs at <30% and labor costs at <25% of total revenue.
3 Customer Retention Increase retention by 15-20% through promotions and loyalty programs.
Drive a 15-20% increase in new customers through targeted marketing
4 Marketing Impact
efforts.
Kitchen Average Order Value Increase AOV by 15% via optimized menu and upselling.
5
Department (AOV)
Customer Satisfaction Maintain 85%+ satisfaction on food quality.
6
(Food Quality)
Decrease food waste by 10-15% through better inventory and portion
7 Waste Reduction
management
Introduce 1-2 new items per month to boost revenue and attract more
8 Menu Innovation
customers.
Front of House Customer Satisfaction Achieve 90%+ satisfaction for service quality and experience.
9
Department (Service)
Upselling & Cross- Increase upselling by 20%, enhancing per customer sales.
10
selling
Improve turnover by 10-20% through efficient service, especially during
11 Table Turnover Rate
peak hours.
Ensure 95%+ accuracy in order fulfillment to maintain a positive
12 Order Accuracy
customer experience.

4.2. KPI for each position

No. Job position KPI Targer KPI
 Assistant Manager Revenue Growth Ensure operations run smoothly, leading to a 8-10% monthly revenue
1
Contribution increase.
Ensure that labor costs remain <25% of revenue, and that staff schedules
2 Staff Efficiency
are optimized for peak hours.
Customer Complaint Resolve 90% of customer complaints within the same day.
3
Resolution
Conduct 2 cross-departmental meetings per week to ensure smooth
4 Team Coordination
collaboration between departments
5 Head Chef Food Quality Maintain a customer satisfaction rating of 85%+ on food quality.
6 Cost Control Keep food costs at <30% of revenue, reducing wastage by 10-15%.
Introduce 1-2 new menu items per month with a focus on high-margin
7 Menu Innovation
offerings
Ensure kitchen operations meet a 15-minute meal preparation time
8 Kitchen Efficiency
during peak hours
Baker Production Maintain 95%+ consistency in the quality and appearance of baked
9
Consistency goods
10 Timely Delivery Ensure all baked goods are prepared 100% on time for service
Barista Drink Preparation Maintsain a 95%+ accuracy rate in preparing customer drink orders
11
Accuracy
12 Speed of Service Prepare beverages within 3-5 minutes of receiving the order
Front of House Customer Maintain a 90%+ customer satisfaction rate on service quality
13
Supervisor Satisfaction (Service)
14 Order Accuracy Ensure 95%+ accuracy in customer orders
Training Train new waitstaff, leading to 15% improvement in upselling and order
15
Effectiveness efficiency
16 Waitstaff Order Accuracy Maintain 95%+ order accuracy
Customer Achieve 90%+ satisfaction from customers in interactions, including
17
Satisfaction speed and friendliness
18 Cashier Transaction Accuracy Maintain 100% accuracy in handling payments and transactions.
19 Speed of Service Process payments within 2 minutes per customer to avoid queue buildup
20 Security Incident Management Respond to 100% of security incidents within 5 minutes
Customer and Staff Maintain a 100% safe environment with zero incidents of theft or
21
Safety disturbance reported.