Mr. Nguyen Dinh Nhon
CEO of Vinabull Company
www.mba-mci.edu.vn
BUSINESS RESTRUCTURING
From point of view of an administrator.
Speaker: Nguyễn Đình Nhơn
www.vinabull.com
Email:nhonnguyendinh@yahoo.com.vn
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BUSSINESS RESTRUCTURING
• Ladies and gentlemen!
• Welcome to the conference with the topic: BUSINESS
RESTRUCTURING.
• First of all, I would like to send warm greetings to audience.
• I am very honor to be here for sharing this topic with everyone,
hoping to get support from audience.
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BUSINESS RESTRUCRING
• Ladies and gentlemen!
• Recently, the phrase “business restructuring” emerges in all media. It
become a hot and sensitive topic. People talk about it everywhere from
financial newsletters to forums.
• So, what is business restructuring? To me, it is that make change in
business completely, renewing itself to fix real situation for increasing
business productivity, competition to survive and develop.
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BUSINESS RESTRUCTURING
• I would like to introduce myself, I am Nguyen Dinh Nhon, coming
from Vinabull company.
• From the angle of a manager, I would like to share my thinking with
audience about business restructuring process. Maybe, my viewpoint
is personal, but it partly origins from my observation and experience
in real.
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BUSINESS RESTRUCTURING
• Until the end of 2011, there are about 622.977 enterprises in Viet
Nam, in which 79.014 companies wound up.
• This number show difficulty that enterprises are facing in 2012.
However, calm and care are necessary quality for leaders at present.
• And restructuring is an inevitable rule, a urgent action if enterprises
want to exist and come over this difficulty.
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BUSINESS RESTRUCTURING
• Lady and gentleman!
• We can see that a business is similar to a ship. On the ship, CEO is
like a captain and crew is like the whole of staff and worker.
• This comparison remind me of an event that I think people have
known it. And this event is also big lesson that human being have
experienced.
• That is the disaster Titanic.
• On April, 15th 2012, most place around the world celebrate 100 years
of the disaster Titanic. Some secret about it revealed after more one
century buried.
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BUSINESS RESTRUCTURING
• The disaster Titanic was the topic for series of investigations,
litigation, and leading big changes of rule of international maritime
safety. Titanic is also context and topic for works, paintings, as well
cinema.
• If you find out, I think it is also a real lesson for businesses.
• Long time ago, people believed that legendary ship and its crew sank
because it hit a giant iceberg. But according to a book published
recently, the writer prove that this ship sank by “silly” mistakes of
executive officers.
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BUSINESS RESTRUCTURING
• So, what is lesson ?
• Try to not let incident happen.
• If it happen, try to not let it become disaster.
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BUSINESS – SUBJECTIVE DISEASE
• To me, gaining successful restructuring , we have a general view
before going into details. This is like doctors before performing a
surgery , they must get general examination result of patient,
considering different angle about history of disease as well about
moment healthy situation, determining worst situation that could take
place and giving feasible method for patients.
• What happen if Titanic didn’t sink.
• This is similar to enterprises, if there was financial crisis in 20112012, they may sleep on its laurels.
• So then, restructuring is a “ridiculous” notion.
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BUSINESS – WASTE DISEASE
• In general, enterprises in Asia prefer creating a outstanding
appearance to get belief from partners or clients to expressing their
inside nature. This may partly come from prejudice of Asia people.
They believe that people with rich appearance is more reliable. That
is the reason when we drive a Roll – Royce , it is easier to get a
contract than when we catch a taxi to meet a partner.
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BUSINESS – INERTIA DISEASE
• I would like to come back to the Titanic.
• Although rudder of Titanic weren’t too small for its size, its design
didn’t apply advanced technology.
• Apparently, there were no designer that pay attention to progress in
technique of creating large rudder, and how a ship with 882½ feet
long would manage in emergency situation. That is the heel of
Achilles.
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BUSINESS – INERTIA DISEASE
• This is the same to business. Business that is capable to survive is
quick adaption to any changes of market. Especially, the board must
make decision definitely.
• And the most important thing is quick decision and quick change.
• Early of 2012, Kodak, is the old company about cinema and traditional
film industry with 130 years old and 17.000 staff, filed for bankruptcy.
The company didn’t change, not adapting to digital century. So, it
failed.
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CHANGE OF BUSINESS THINKING.
• As mentioned, restructuring is completely or partly change in order to
adapt to new situation in quick change world.
• Business thinking of C.E.O is one of elements to create a power
enterprise. Perspective of board is a core element.
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CHANGE OF BUSINESS THINKING
• Enterprises that don’t follow traditional way of business, investing
boldly, calling for capital and directing to global market with clear
strategy will create growth.
• Minh Long ceramics is a prominent example.
• Deriving from a ceramics family company, Minh Long has become a
strong company, conquering large, difficult market in world. This
achievement is thanks to creation, dynamic and tirelessly outward
efforts.
• Quailty product and international market are 2 aims that Minh Long
pursues from foundation.
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CHANGE OF BUSINESS THINKING
• Trung Nguyen coffee is also a breakthrough business in coffee
business field. We hadn’t seen coffee shop chain with the same trade
mark before in Viet Nam , locating good position in the city by the
way of franchise.
• But it is not simple to change. It requires qualities such as courage,
consistency and right vision of a leader.
• Starbucks is a typical example.
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CHANGE OF BUSINESS THINKING
• What is secret to make success of Starbucks?
• Any success or failure in economy and trade is related to many
things. Besides sides such as finance, management and
competition that any small or large enterprises need to gain,
people believe that there are 4 most important factors to build
power.
•
•
•
•
1. Popularity
2. Creativity
3. Power of advertising and marketing
4. Power of internal organization
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CHANGE OF PRODUCT QUALITY
• Change of feature, product quality or service are necessary for
enterprises to exist.
• Household appliances usually combine feature 3 in 1 to satisfy
demand of customers nowadays.
• The aesthetic of product is also impotant factor, bringing a strong
impression at the first sight, making customers indeclinable the
product.
• Steve Job, the technology legend, always send following messages
to his clients : Apple’s products are perfect and subtle ones.
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CHANGE OF HUMAN RESOURCE
• Change human resource, improving value of product.
• In real, productivity of our enterprises as well our worker is so slow
compared with countries in the region.
• Another thing need to consider that small or medium enterprises
usually use personnel is relations, not recruit person from outside for
fearing loss of finance or technological secret.
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CHANGE OF TECHNOLOGY
• Change technology, improving production efficiency.
• The signal SOS was proposed at first at International conference about
telegraph contact at sea in Berlin in 1906. It was approved by
international community in 1908 and it has used widely from at that
time. However English telegraph officers rarely use, they prefer to the
old CQD signal.
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CHANGE OF TECHNOLOGY
• It seem to be ridiculous but at present, we wonder that how many
enterprises apply new technology in production and service, how
many enterprises use online meeting method in order to save time,
how many enterprises use emails instead of papers, how many
enterprises declare tax via internet to save time to commute, how
many enterprises apply ERP management system to manage human
resources and operation.
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CHANGE OF MARKET
• Change of market , segment of market.
• There is no forever stable market. Businesses can cope with difficulty
when their familiar market have trouble.
• In rough time, it is difficult to a small “way” in the market. But it
doesn’t mean that there is no way.
• Ha Noi Pho with Kobe beef is typical example.
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CHANGE OF BUSINESS FIELD
• There is a woeful comparison that 100 Gambian persons are sewers,
value of clothes that they sew in one month is not equal to value of
one-hour production of chip manufacturing experts in high-grade
electronic system in wealthy Europe and America.
• Perceiving this rule, Mr. Pham Thanh My – an oversea Vietnamese,
return his hometown Tra Vinh province, running a new technology
company instead of producing tractors. The group has focused on
potential field like:
– Chemical, pharmaceutical chemistry.
– Printing material, nanotechnology.
– Optoelectronic.
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CHANGE OF BUSINESS STRUCTURING
• It is very tough for C.E.O to change business structuring. But it must
be done.
• Less efficient , bulky departments need to cut. But it leads many
people will lost their job, many family will be difficult about finance
• After retaining efficient departments, the next thing enterprises need
to do that look at a capable manager to operate those departments
• By building modules, enterprises will operate better. Modules
perform independently following orientation and strategy of the
company. But their method of running is flexible.
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CHANGE OF BUSINESS STRATEGY
• Business strategy can be varied, flexible. If we realize that business’s
strategy don’t fit any more, we can change for matching with new
situation.
• Business strategy is also a choice between profit to ability of
dominating market. As we know, users community is also a value to
be measured. Face book, the social network, is success due to
enormous users.
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CHANGE OF BUSINESS STRATEGY
• Recently, Face book made a acquisition. It bought Instagam, a
company with only 13 personnel , with the price of 1 billion USD. It
still doesn’t make profit but it accept this to boost users. Currently,
Instagram has 30 millions users, rising day by day.
• Attention of community brought strong development to Instagram.
Since it has presented on application Android, the number of users
increased from 30 to 40 millions. Averagely, there is more 1 million
users in one day.
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CHANGE OF BUSINESS CULTURE
• A company want to develop stably, it needs to build a specific culture
identity. There are many sides in company culture, but they all interact
each other for creating success of the company.
• Punctual culture
• Smile culture
• Reward culture
• Democracy culture
• Emulation culture
• Survival culture
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CONCLUSION
• In my opinion, the notion “ periodical restructuring” will be used
widely in the coming time. Because preventing disease is always
easier than curing disease. A body want to be healthy, it need to do
exercise regularly, checking periodical health, discovering and treating
promptly when a disease just start.
• Finally, the lesson about Titanic is worth lesson in economic
recession. If there is no chance for enterprises to restructure, we
enterprises need to be calm, optimistic. Let’s do like the legendary
band on Titanic ship played a song when the ship was sinking in the
ocean before making their last farewells.
• Thank for listening !
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