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This report aims to find out the Vietnam business environment which affects the running business of BP p.l.c. Besides, this report also finds out the influence of stakeholder to the activities of BP p.l.c.
BTEC HND IN BUSINESS (FINANCE) ASSIGNMENT COVER SHEET NAME OF STUDENT REGISTRATION NO UNIT TITLE ASSIGNMENT TITLE ASSIGNMENT NO NAME OF ASSESSOR SUBMISSION DEADLINE Trần Quyết Thắng - Joe F05-194 Unit 1: Business Environment Organizations in Their Environment of Jubred A Peñano February 25, 2013 I, _Trần Quyết Thắng - Joe _ hereby confirm that this assignment is my own work and not copied or plagiarized from any source I have referenced the sources from which information is obtained by me for this assignment Signature _ February 25, 2013_ Date - FOR OFFICIAL USE Assignment Received By: BE A1 2012-2013 HVNH Date: Red Unit Outcomes Evidence for the Outcome Feedback criteria Assessor’s Internal Decision Verification First Re- attempt work Identify the purposes of different types 1.1 of organization Understand the organizational purposes of business Describe the extent to which an organization 1.2 meets the objectives of different stakeholders LO1 Explain the responsibilities of organization an 1.3 and strategies employed to meet them Explain how economic systems attempt allocate Understand to 2.1 resources effectively the nature of the national Assess the impact of environment in fiscal and monetary which policy on business businesses organizations and their operates 2.2 activities Evaluate the impact of LO2 competition policy and other mechanisms regulatory on 2.3 the activities of a selected organization Merit grades awarded M1 M2 M3 Distinction grades awarded D1 D2 D3 BE A1 2012-2013 HVNH Red Outcome Evidence for the Feedback criteria Assessor’s Internal Decision Verification First Re- attempt work Assignment ( ) Well-structured; Reference is done properly / should be done (if any) Overall, you’ve Areas for improvement: ASSESSOR SIGNATURE DATE / / DATE / / NAME: (Oral feedback was also provided) STUDENT SIGNATURE NAME : FOR INTERNAL USE ONLY VERIFIED YES NO DATE : VERIFIED BY : NAME : BE A1 2012-2013 HVNH Red BP p.l.c in Vietnam business Environment Title Page Prepared for: Professor Jubred A Peñano Business Environment Organizations in Their Environment Banking Academy, Hanoi Submitted on November 20, 2012 Prepared by: Trần Quyết Thắng (Joe) Class: F05-B Registration No.: ITP- F05 - 194 BE A1 2012-2013 HVNH i Red BP p.l.c in Vietnam business Environment Executive summary This report aims to find out the Vietnam business environment which affects the running business of BP p.l.c Besides, this report also finds out the influence of stakeholder to the activities of BP p.l.c The find shows three types of stakeholder and their objectives to BP p.l.c additionally, this report presents the position of each kind of stakeholder and its influence to BP p.l.c furthermore, and the ways which BP p.l.c meets stakeholders‟ objectives are indicated The Vietnam policies and laws are also introduced such as fiscal and monetary policy, welfare policy, competition policy… It is clear that BP p.l.c has tried too much to meet the stakeholders‟ objectives but there are still some sections that BP p.l.c cannot get them done Therefore, BP p.l.c has to change the plans and strategies to make them suitable to Vietnam business environment so that BP p.l.c could grow well BE A1 2012-2013 HVNH ii Red Table of Contents Evidence for the criteria ii Title Page i Executive summary ii Introduction 1 Background Aims Scope This research focuses on the Vietnam business environment in recently and the influence to the activities of BP p.l.c Outcome 1.1: Identify the purposes of different types of organization 1.1.1 The BP Global 1.1.1.1 The legal structure of BP 1.1.1.2 The vision statement of BP p.l.c 1.1.1.3 The mission statement of BP p.l.c 1.1.1.4 The goals of BP p.l.c 1.1.1.5 The objectives of BP p.l.c 1.1.1.6 The values of BP p.l.c 1.1.2 The comments about the vision, mission, goals, objectives and values of BP p.l.c 1.1.2.1 The vision of BP p.l.c 1.1.2.2 The mission of BP p.l.c 1.1.2.3 The goals of BP p.l.c 1.1.2.4 The objective of BP p.l.c 1.1.3 BP Vietnam Outcome 1.2: Describe the extent to which an organization meets the objectives of different stakeholders 1.2.1 The position of stakeholders 1.2.1.1 Key players 1.2.1.2 Keep satisfied 1.2.1.3 Keep informed 1.2.1.4 Minimal effect 1.2.2 Evaluation of extent to which BP p.l.c has satisfied their stakeholders 1.2.2.1 Internal stakeholder – Managers 1.2.2.2 Connected stakeholders – Shareholders 11 1.2.2.3 Connected stakeholders - Local authorities 12 BE A1 2012-2013 HVNH Red Outcome 1.3: Explain the responsibilities of an organization and strategies employed to meet them 13 1.3.1 The social responsibilities 15 1.3.1.1 Helping the community around the projects of BP p.l.c 15 1.3.1.2 Investing for students 15 1.3.1.3 BP p.l.c works with the well-known organization 15 1.3.2 The environment responsibilities 15 1.3.2.1 Reducing the pollution 15 1.3.2.2 Improving the environment 16 1.3.2.3 Protect the resources 16 1.3.3 Ethics and business 16 1.3.3.1 Providing the good working conditions for employees 16 1.3.3.2 Providing support to help employees 17 1.3.3.3 Treating people fairly, with dignity and giving everyone equal opportunities 17 1.3.4 Management responsibilities 18 1.3.4.1 Having policies for retirement, redundancies… 18 1.3.4.2 Responsibilities for competitors 18 1.3.4.3 Providing the safe working condition for employees 18 1.3.5 Public relations and corporation image 18 1.3.5.1 The position of BP p.l.c in the world 18 1.3.5.2 A good company 18 1.3.5.3 Corporation image 18 Outcome 2.1: Explain how economic systems attempt to allocate and make effective use of resources available within the country 19 2.1.1 The definition of economic system 19 2.1.2 The types of economic systems 19 2.1.3 Vietnam economic system 19 2.1.4 The way Vietnam allocate and make effective use of resources within the country 20 2.1.5 The influence to BP p.l.c 20 2.1.6 The effects of Vietnam economic system to BP p.l.c 21 Outcome 2.2: Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organization 22 2.2.1 The definition of macroeconomic policy ( fiscal and monetary policy) Error! Bookmark not defined 2.2.2 The impact of fiscal and monetary policy on vietnam economic Error! Bookmark not defined 2.2.3 The situation of Vietnam fiscal and monetary policy 22 BE A1 2012-2013 HVNH Red 2.2.4 The effect of global economy 23 Outcome 2.3: Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organization 24 2.3.1 The Vietnam industry policy 24 2.3.2 The social welfare policy 24 2.3.3 The effect of the interest group and the pressure group 25 2.3.3.1 Interest group 25 2.3.3.2 Pressure group 25 Conclusion 26 Reference 27 Table 1: The stakeholder mapping of BP P.L.C Table 2: The satisfactions of stakeholders Table 3: The responsibilities of BP P.L.C 14 Figure 1: The salaries of BP P.L.C‟s managers Figure 2: The share price of BP P.L.C 11 Figure 3: Green gas emission 16 Figure 4: The percentage of women in BP P.L.C 18 Figure 5: CPI growth rate of Vietnam 23 Figure 6: GDP growth rates in advanced countries Error! Bookmark not defined Figure 7: The unemployment rate in advanced countries Error! Bookmark not defined BE A1 2012-2013 HVNH Red Introduction Background BP p.l.c has been in Vietnam market for a long time It brings many good ideas for developing in Vietnam There are many factors which affect the development of BP p.l.c in Vietnam and the business environment in Vietnam also is different from others which BP p.l.c has projects However, Vietnam has been a member of WTO and it brings numerous of attractive and supportive policies for foreign companies including BP p.l.c Additionally, the global economy has huge influence to the policies of Vietnam Aims The purpose of this research is to review the BP p.l.c‟s stakeholders and how their objectives affect BP p.l.c Moreover, it also dedicates the Vietnam policies and laws which BP p.l.c has to comply with Scope This research focuses on the Vietnam business environment in recently and the influence to the activities of BP p.l.c BE A1 2012-2013 HVNH Red Outcome 1.1: Identify the purposes of different types of organization 1.1.1 The BP Global 1.1.1.1.The legal structure of BP BP is a public limited company It means that BP can issue shares to the general public and have the limited liability Therefore, BP p.l.c has been owed by their shareholders Additionally, with the limited liability, it is very attractive for investors because they not have to be provided further capital like their houses, cars, lands… to pay company debts 1.1.1.2.The vision statement of BP p.l.c The vision of BP p.l.c is: “BP p.l.c wants to become a good company.” 1.1.1.3.The mission statement of BP p.l.c “BP is making choices – value over volume, strategic assets over non-core, and new opportunities over mature assets We aim to build an ever stronger portfolio, upstream and downstream, generating enough cash both to invest for the future and to reward those who invest in us We have made a strong start on our portfolio, we‟re building the cash generation and, with today‟s announcement, we have begun to provide those rewards.” 1.1.1.4.The goals of BP p.l.c In 2012, BP expects to pass several milestones as it implements its 10-point plan In addition, BP p.l.c wants to increase dividend to delight the shareholders, create the safety working condition for the employees and produce the fuel that does not harm or damage the environment… 1.1.1.5.The objectives of BP p.l.c In 2013 and 2014, as investment continues, BP expects to see greater financial momentum Main developments are planned to include: Increasing exploration activity – up to 25 exploration wells per year A further nine major upstream projects - making 15 between 2012 and 2014 Unit operating cash margins from new upstream projects in 2014 expected to be double the 2011 average (assuming a constant $100 per barrel oil price and excluding TNK-BP) Whiting refinery upgrade expected on-stream in second half of 2013 Completion of $38 billion divestment program by the end of 2013 High value, focused portfolio that plays to BP‟s strengths Around 50% more annual operating cash flow by 2014 compared with 2011 BE A1 2012-2013 HVNH Red Outcome 1.3: Explain the responsibilities of an organization and strategies employed to meet them Organizations are the part of human society so they need to have responsibilities to follow the rules, take care of employees, protect environment, help people, etc The responsibilities of an organization include social responsibilities, environment responsibilities, ethics and business, management responsibilities, and public relations and corporation image Furthermore, management responsibilities seem to be the first responsibilities that BP plc and other organizations need to implement because businesses would not be run if not having right management By conducting these responsibilities, BP p.l.c could attract customers using its products and get the help from government This table below will show the responsibilities of BP p.l.c in business and community BE A1 2012-2013 HVNH 13 Red Table 3: The responsibilities of BP P.L.C Specific Social responsibilities of Strategies employed to meet the organization responsibilities Helping the community Investing more than US$6 million responsibilities in community projects across Vietnam Investing for students Providing over US$620,000 in sponsoring Vietnamese students Working with well-known Supporting Save the Children's organizations Poverty Alleviation and Nutrition Program Environment Reducing the pollution Decrease the release of emission responsibilities Improving the environment Reducing energy consumption Protect the resources Declining volumes of non- hazardous waste disposal Ethics and business Providing the good working Empower employees conditions for employees Providing support to help Having OpenTalk program employees Treating people fairly, with dignity Providing the jobs for people, and giving everyone equal including women, opportunities Management Having policies for retirement, Have many plans to help the life of responsibilities redundancies… retirement and redundancies people Responsibilities to competitors Maybe share their learning about new technologies, systems and equipment Providing the safe working Training employees carefully condition for employees Public The position of BP p.l.c in the BP p.l.c has a high rank in the relations and world world corporation A good company Having some charity programs Corporation image The large non-state owned energy image company BE A1 2012-2013 HVNH 14 Red 1.3.1 The social responsibilities 1.3.1.1.Helping the community around the projects of BP p.l.c BP p.l.c has many non-profit programs to help community BP has invested more than US$6 million in community projects across Vietnam, with particular focus in Ba Ria Vung Tau Province where the oil and gas fields are exploited Community is also the customers so if customers are not satisfied, BP p.l.c will get troubles 1.3.1.2.Investing for students BP p.l.c help with the training for Vietnam's government employees and students, has provided over US$620,000 in sponsoring Vietnamese students to pursue graduate studies in the UK Students are the future of each country so if country has high education students; there will be many good employees BP p.l.c is an energy company so the technologies are very important but to use the technological equipment effectively, BP Vietnam need high quality workers This is one main reason explain why BP p.l.c focuses on educating students 1.3.1.3.BP p.l.c works with the well-known organization One way that BP p.l.c use to help people is to donate the funds for the charitable organization BP Vietnam has worked with Save the Children's Poverty Alleviation and Nutrition Program and assisted over one-million people in 13 provinces across Vietnam (BP plc, 2000) 1.3.2 The environment responsibilities 1.3.2.1.Reducing the pollution BP p.l.c has released a huge number of emissions like CO2, NOx…All of them can destroy the environment and harm people living condition Therefore, customers will deny consuming the products of BP p.l.c To protect the environment, BP plc direct GHG emissions were 61.8 million tons (Mt) in 2011, compared with 64.9Mt in 2010 This chart below will show the data about the emission reduce of BP p.l.c BE A1 2012-2013 HVNH 15 Red (Source: BP p.l.c, 2011) Figure 3: Green gas emission 1.3.2.2.Improving the environment BP p.l.c does many things to improve the environment One of them is reduce the energy use First of all, it helps BP p.l.c cut down the costs of producing Next, it is the good way to protect environment 1.3.2.3.Protect the resources The volumes of non-hazardous waste disposal decreased from approximately 861thousand tons in 2010 to 550 thousand tons in 2011 It is reasonable because the resources are limited Besides, the expense for producers will be decreased 1.3.3 Ethics and business 1.3.3.1.Providing the good working conditions for employees The employees work in different conditions so BP p.l.c has to provide the good environment to ensure employees work efficiently To make it easily for employees, BP p.l.c has empowered its employees to give them the abilities to make decisions about working If they realize that the working conditions are not dangerous and not safe, employees can stop working BE A1 2012-2013 HVNH 16 Red 1.3.3.2.Providing support to help employees BP p.l.c has created the programs to support its employees OpenTalking program is the popular program for BP p.l.c‟s employees If they have any problems, employees can contact to OpenTalking program – an independent corporation from BP p.l.c Therefore, employees not worry about the retaliation of other employees, managers or top headers 1.3.3.3.Treating people fairly, with dignity and giving everyone equal opportunities Now all companies hire employees based on the abilities of workers so women are not exception Therefore, BP p.l.c also does that to make people believe the company and use its goods and services It is one of the goals of BP p.l.c - increasing the number of women on the board to three by 2013 and to work towards 25% representation by 2015 (BP p.l.c, 2011) (Source: BP p.l.c, 2011) BE A1 2012-2013 HVNH 17 Red Figure 4: The percentage of women in BP P.L.C 1.3.4 Management responsibilities 1.3.4.1.Having policies for retirement, redundancies… BP p.l.c has many polices and plans to help retirement and redundancies people The employees work directly and are the one part of the company‟s success BP p.l.c has the BP Retirement Accumulation Plan (RAP) which allows employees‟ cash balance account to grow steadily with monthly pay and interest credits over their career with BP p.l.c these also make the current employees feel assured about their future after stopping work 1.3.4.2.Responsibilities for competitors BP p.l.c or any other companies always research and find out the new technologies for producing to cut down the costs of producers and improve the quality of goods and services Furthermore, the new technologies can help BP p.l.c protect environment so they can share the technologies to competitors to decrease the influence of exploiting the oil 1.3.4.3.Providing the safe working condition for employees BP p.l.c has the significant duties and one of them to ensure workers has good and safe condition working Therefore, BP p.l.c has several training programs to make sure that the employees have enough skills and the method to protect them 1.3.5 Public relations and corporation image 1.3.5.1.The position of BP p.l.c in the world BP p.l.c is one of the largest energy companies in the world so their brand is very wellknow so it is easy for Vietnam customers know about BP p.l.c, its products, services and the quality of them Petrolimex has market share more than 50% and dominates the Vietnam market It is very good for the development of BP p.l.c now and in the future 1.3.5.2.A good company BP p.l.c has many programs to meet its vision such as charity programs It is very meaningful In Russia, the charities of BP p.l.c focus on supporting sick children Besides making profit, BP p.l.c wants to be known as a good business with the actions to help people 1.3.5.3.Corporation image BP p.l.c is the large non-state owned although energy is an important section of every country so they usually are controlled by government BE A1 2012-2013 HVNH 18 Red Outcome 2.1: Explain how economic systems attempt to allocate and make effective use of resources available within the country 2.1.1 The definition of economic system An economic system is the type of rules and schemes used by a group of people to exchange valued goods and services between different parties Having a system that this group agrees upon is necessary for the relative success of trade Different types of systems exist around the world and are usually heavily linked to the actions of a government (Chavis, n.d) An economic system helps the trade activities around the world become easier because in each country, there are various ways of exchanging goods and services All of them are based on the demand of customers and how supply goods and service 2.1.2 The types of economic systems There are three types of economic systems They are divided by how the resources are controlled and used Three types of economic systems are: Free market economy (capitalism) In this type of economy, most decisions are taken through the operation of the market mechanism Supply and demand and the ability to pay influence decision making This is very little government intervention business decision making (Course book) Command economy (state controlled) In this type of economy, decisions are taken collectively, usually by central planning committees The government controls what is produced, how much is produced, the price and who the goods are available to Decisions are intended to benefit all members of society Citizens all contribute to this common good of the state There is a lot of state intervention in this type of economic system (Course book) The mixed economy There is a balance between market forces and state intervention The view is taken that certain activities need to be regulated by the state while others can be left to the influence of the market (Course book) 2.1.3 Vietnam economic system Vietnam economic has had significant changes since 1986 Before that the most economy in Vietnam was controlled by the government It was very stifling central planning During this period, all decisions about the economic transactions were made by Vietnamese government They decided what is produced, how much is produced, the price and who the goods are BE A1 2012-2013 HVNH 19 Red available Additionally, government made decisions about how the resources are used and distributed However, Vietnamese economic system has changed since the economic plan “Doi Moi” (renovation) was launched in 1986 After this plan, Vietnam redeveloped the economic plan in 1986 to support a mixed economy (one that can function privately or with state control) (Asian info, nd) A mixed economy includes the free market economy and the command economy It means that most of economic decisions are depend on the individual, the corporations… but government also has an important role in the economic system of Vietnam As the result of this, the capital is invested more by the individual business and there are competitions between companies to own and use the resources The labor is also increased However, government still controls some economic sector like Vietnam Shipbuilding Industry Group, or Vinashin 2.1.4 The way Vietnam allocate and make effective use of resources within the country Vietnam has the various resource especially hydro-carbon resources like oil and coal They are the main export products of Vietnam economic; the profit of these has over 31 % of totaled import products Therefore, Vietnam depends on the benefit of them too much so government needs to have the reasonable and suitable to manage these resources To ensure the resources be used effectively, Vietnamese government brings the policies which require the corporations that they have to show their investment and contribution to local authorities professedly The next thing that government has done is to improve the general policy and public the income and expense of the different activities of mining industry to make it efficiently Additionally, Vietnamese government has built the law documents about mining the mineral like coal and oil including the requirements about exploration, exploiting, processing, using and managing the finance Besides, it is really necessary to have mechanisms to manage and supervise mining effectively and reasonably Furthermore, there are many environmental regulators that companies have to comply with 2.1.5 The influence to BP p.l.c Vietnam has the huge of reserves of oil so this is a good chance for BP p.l.c develops and expands the business Because of the fact that these reserves are very rich in Vietnam, BP p.l.c has invested for equipment and the pipeline in Ba Ria Vung Tau province and numerous other things like plants Moreover, the price of plan and the low salary employees are quite cheap Thus BP p.l.c can easily build the stations, plants and hire Vietnamese workers to make producing process price lower BE A1 2012-2013 HVNH 20 Red 2.1.6 The effects of Vietnam economic system to BP p.l.c Vietnam has mixed economic system so it has both advantages and disadvantage to the development of BP p.l.c in Vietnam market In this economic system, the producing goods and services are depended on the demand and supply but sometimes, the company can be affected by the government Fuel is a necessary thing for the life, so the demand for it is very high If in a pure free-market economy, BP p.l.c can change the product price easily because all decisions are made by them However, with the government‟s control, government will have the policies to manage the fuel price like decrease tax to cut down the price In brief, the economic system has a huge effect in running business of companies and BP p.l.c is no exception In the mixed economic system, BP p.l.c has some disadvantages but they can be support from the Vietnam government to stabilize the price for customers and keep profit for BP p.l.c BE A1 2012-2013 HVNH 21 Red Outcome 2.2: Assess the impact of fiscal and monetary policy on business organizations and their activities 2.2.1 Fiscal policy Decree No 29/2012/QH13 This policy promulgates about the implementation on tax payment of the organizations by cutting down tax by 30%, exempting (VAT, personal income tax) and corporate income tax (chinhphu.vn, 2012) There are a lot of difficulties which Vietnam businesses had to turn over in 2012 To help them, Vietnam government brought several fiscal policies to make the whole economy become stronger When government reduces tax, people could saving more from addition income and have more money to use so the expenditure on consumer goods also increases In addition, BP p.l.c can have more money to invest and use for business This will make the companies produce more products to supply and it means that companies would bring more jobs for people Besides, the unemployment rate also reduced and the life will be improved This means that the organizations can have more powerful workforce working effectively and BP p.l.c can use it to make more profit 2.2.2 Monetary policy Circular No 33/2012/TT-NHNN State Bank continues specified maximum short-term interest rates in VND of credit institutions and branches of foreign banks for borrowers to meet the capital requirements serve a number of sectors, industries sectors (VnEconomy, 2012) It means that the cost of credit and availability of credit would be decreased by selling bonds and it will make the interest rate become higher Thus, the companies including BP p.l.c cannot have enough abilities to borrow money and they can cut down the producers and make the inflation rate fall 2.2.3 Vietnam economic situation Vietnam continues tightening monetary and fiscal policies in 2012 (Sophie, 2011) It means that the inflation rate in Vietnam is still high so government needs to curb it to stabilize the whole economy The contractionary monetary policies will make the interest rate become higher and this is the difficulty for the development of BP Vietnam because it cannot borrow more money to invest, run business and producing Besides, these policies directly have a huge impact on customers Due to high interest rate, the product prices could increase, customers would restrict the expenditure on goods and services Instead of using own vehicles, people tend to use public transport to cut down the expense for fuel Furthermore, BE A1 2012-2013 HVNH 22 Red the BP workers are consumers If the product prices are high, they will be worry about the expenditure and the various things Thus the productivity could fall Figure 5: Vietnam annual CPI growth rate (Statfor, 2012) Figure 5: CPI growth rate of Vietnam To tightening fiscal policies, Vietnamese government may increase income tax Customers are affected immediately; their expenditure on consumer goods would decrease In addition, BP shareholders will pay more tax and the money they use to invest for company plans could drop Moreover, BP p.l.c would reduce the profit because tax is high 2.2.4 The effect of global economy The global economy has become recession and crisis since 2007 It has made many companies run business difficultly and numerous companies has bankrupted including the banks in US This status of global economy has a huge impact on Vietnam economy Vietnam market also has been challenged; the prices have become higher, but salaries have stabilized It makes the life of Vietnamese harder Besides, the unemployment rate has increased, especially in advanced countries It means that the customers not have money on expenditure so the business of companies is also affected If global BP p.l.c meets difficulty, BP p.l.c Vietnam will have more troubles such as the investment decrease Besides, the unemployment rate has increased, especially in advanced countries It means that the customers not have money on expenditure so the business of companies is also affected If global BP p.l.c meets difficulty, BP p.l.c Vietnam will have more troubles such as the investment decrease BE A1 2012-2013 HVNH 23 Red Outcome 2.3: Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organization 2.3.1 The Vietnam industry policy Vietnam industry policy has had the significant changes since 1986 Vietnam opened the market for foreign business and attracted the investment from outside countries Additionally, during the period from 1986 to 2006, many embargoes had been removed It motivated Vietnam industry develop Moreover, Vietnam government has passed the competition policy on 3rd December 2004, the guide documents and the organizations have responsibilities to this policy For example, the decree 116/2005/NĐ-CP of government regulates some details for implementation of some articles of the law of competition; the decree 120/2005/NĐ-CP about handling violations of the law of competition policy… This policy has applied to all companies which run business in Vietnam Besides, Vietnam Competition Administration Department has several duties to conduct this policy, especially investigation like DGCCRF of France Oil is the important resource so Vietnam government has managed it carefully It is the one main reason why Vietnam limits the number of Energy Company in Vietnam market If there are many companies which exploiting the oil, it may harm or damage the environment and it is very difficult to control all of them Another reason is Vietnam government can control the price of various kinds of fuel like gas, petro … easily The fluctuation of fuel price can affect the Vietnam economy considerably because fuel plays an important role If not enough fuel, the machines, vehicles … cannot work 2.3.2 The social welfare policy Vietnam is a developing country so the average income is still low so Vietnam government has many policies to help them have a good life after retirement Therefore, Vietnam government has the policies which require the companies follow so BP p.l.c is no exception Resolution number 15-NQ/TW, dated 01.06.2012, the Fifth Conference of the Central Executive Committee XI about a number of issues on social policy for the period 2012 to 2020 The welfare policy of Vietnam government is to support the people those have difficulty Additionally, Vietnam congress has voted through the Labor Code (modified) on 18th June 2012 The law must wait for the Government issued more than twenty decrees guiding the implementation, so until 1/5/2013 officially takes effect These include the maternity leave of women employees, the retirement age for different working groups and the new policies about salary Thus BP Vietnam has to prepare the reasonable plans to ensure the BE A1 2012-2013 HVNH 24 Red policies are conducted For example, when the maternity leave of women employees increase, it means that BP p.l.c has to some alternation for this time Besides, BP p.l.c uses more money for look after the health of the expectant mothers However, if the retirement age is changed, BP p.l.c will have a lot of employees who has numerous experiences In general, the employees are motivated, they could have more creativities and innovation, new ideas to increase the productivity and quantity of output 2.3.3 The effect of the interest group and the pressure group 2.3.3.1.Interest group Interest groups are the group which has interested in the activities of companies They always find out the new ideas to develop companies For example, BP Vietnam donates for funds for Saving the Children in Vietnam and this charity is an interest group The charities want BP p.l.c have more projects for public to create the benefits 2.3.3.2.Pressure group Pressure groups are the groups which make the pressure on companies to make them to something For example, if BP p.l.c has oil spill accident, these pressure groups will find out the evident about the influence of this accident to environment and require BP p.l.c has some activities to troubleshoot Some other pressure groups are organizations which protect wild animals… Both two groups have the specific power to make BP p.l.c change its policies and make it become better BE A1 2012-2013 HVNH 25 Red Conclusion BP p.l.c is one of the biggest energy companies in the world and BP Vietnam also plays an important role in the Vietnam economy BP p.l.c brings many projects to Vietnam including both non-profit projects and business projects However, it has been complied with the policies and satisfied the stakeholders especially customers BP p.l.c ensures that its employees have good and safety environment, and try to reduce the risk which harm or damage the environment as possible Furthermore, BP p.l.c has invested for developing the Vietnam society, had a lot of plans which donate funds for the Vietnam charities to help poor or disable people BE A1 2012-2013 HVNH 26 Red Reference Asiainfo (n.d.) Vietnam's Economy Retrieved November 13, 2012, from Asiainfo.org: http://www.asianinfo.org/asianinfo/vietnam/pro-economy.htm BP P.L.C (n.d.) Share charts Retrieved October 25, 2012, from BP: http://www.bp.com/extendedsectiongenericarticle.do?categoryId=152&contentId=706 3971 Chavis, J (n.d.) Definition of an Economic System Retrieved November 12, 2012, from eHow: http://www.ehow.com/facts_5784595_definition-economic-system.html Chinhphu.vn (2012) Cong thong tin dien tu Chinh phu nuoc Cong hoa Viet Nam Retrieved 01 27, 2013, from Chinhphu.vn: http://www.chinhphu.vn/portal/page/portal/chinhphu/hethongvanban?class_id=1&mo de=detail&document_id=162596 Fernando, A (2011) Business Environment In A Fernando, Business Environment (p 149) Pearson Education India, 2011 Sophie (2012, January 04) Vietnam Extends Tight Monetary Policy in 2012 Retrieved November 13, 2012, from STOXPLUS: http://www.stoxplus.com/News/66622/1/186/vietnam-extends-tight-monetary-policyin-2012.stox Taylor, N G (2006) Economics In N G Taylor, Economics (p 721) Cengage Learning EMEA VnEconomy (2012) Ngan hang Nha nuoc giam cac tran lai suat Retrieved 01 23, 2013, from VnEconomy: http://vneconomy.vn/20121222103737535P0C6/ngan-hang-nhanuoc-giam-cac-tran-lai-suat.htm BE A1 2012-2013 HVNH 27 Red ... p.l.c in Vietnam business Environment Executive summary This report aims to find out the Vietnam business environment which affects the running business of BP p.l.c Besides, this report also finds... the environment 1.1.1.5.The objectives of BP p.l.c In 2013 and 2014, as investment continues, BP expects to see greater financial momentum Main developments are planned to include: Increasing... responsibilities Helping the community Investing more than US$6 million responsibilities in community projects across Vietnam Investing for students Providing over US$620,000 in sponsoring Vietnamese