Identify various decisions that may be taken by managers at different managerial levels at Vietnam Airlines.

University Degree Business and Administrative studies

Contents

Task 1a: Indentify various decisions that may be taken by managers at different managerial levels at Vietnam Airlines.

Vietnam Airline is the first-choice in Vietnam and is ranked the fourth in Asia. Their business is transporting people and delivering cargos throughout Vietnam and countries abroad such as China, USA, Australia and so on. Therefore, Vietnam Airline will have a number of mangers for different areas of the business. Their responsibilities range from supervising and managing the overall performance of staff I n their department to analyzing, reporting, giving recommendations and developing strategies on how to improve quality and quantity of the business. The chart below will show the structure of Vietnam Airline.

Figure 1: Management level of Vietnam Airlines

Figure 2: Organizational structure of Vietnam Airlines ( Appendix 2)

Managers are organizational members who are responsible for the work performance of other organizational members. Managers have formal authority to use organizational resources and to make decisions. In organizations, there are typically three levels of management: top-level, middle-level, and first-level. These three main levels of managers form a hierarchy, in which they are ranked in order of importance. Each of these management levels is described below in terms of their possible job titles and their primary responsibilities and the paths taken to hold these positions. Additionally, there are differences across the management levels as to what types of management tasks each does and the roles that they take in their jobs.

TOP-LEVEL MANAGERS

Top-level managers, or top managers, are also called senior management or executives. In the case of Vietnam Airline, in top level managers they have Chairman, President, CEO and Vice president. In the top-level management of Vietnam Airlines, they have Mr.Nguyen Sy Hung as Chairman, Mr. Pham Ngoc Minh as Managing director and some others key positions.

Top-level managers make decisions affecting the entirety of the firm. All important decisions are also made at this level. This level of management is concerned to the various administrative functions. Besides, top level management consists of board of directors, managing director, general manager and senior most managers. Top level management is administrative in nature. They do not direct the day-to-day activities of the firm; rather, they set goals for the organization and direct the company to achieve them. Moreover, top managers are ultimately responsible for the performance of the organization, and often, these managers have very visible jobs. The top level has small number of people but their strategy greatest effect on success of Vietnam Airline.

After the meeting between the CEO of Vietnam Airline with the Prime Minister on the March 2009, the company has proposed the goal to be the second in South East Asia only after Singapore Airlines.
To posses 150 aircrafts by the end of 2016
Buying or renting airplane to supply for the operation of the company;
Setting up new flight
Issuing guidelines to medium level managers.

MIDDLE-LEVEL MANAGERS

Middle-level managers, or middle managers, are those in the levels below top managers. Middle level management is the link between top level and low level management and executory by nature. In Vietnam Airline, middle-level managers are responsible for carrying out the goals set by top management. They do so by setting goals for their departments and other business units. Middle managers can motivate and assist first-line managers to achieve business objectives. Middle managers may also communicate upward, by offering suggestions and feedback to top managers. Because middle managers are more involved in the day-to-day workings of a company, they may provide valuable information to top managers to help improve the organization's bottom line. In the company, they receive reports of actual performance from their low level managers. They study reports and issue necessary instructions. Therefore, middle level managers bridge the gap between two. It helps in removing misunderstanding and creates cordial relationship among the levels of management. Important functions performed by the middle level management in Vietnam Airline are as follows:

They also give decisions in promoting supervisor for their outstanding performance.
They also recommend revised and amended policies of their respective departments.
Manager of in-flight production and services has responsibilities in choosing supplier for the operation of the company such as: food, fuel, material and so on.
HR Manager has responsibilities to set up training program for pilot and flight attendants
Finance Manager will decide on the amount of money input and output during the operation of the company
Flight operations manager has the responsibilities to lead the plan land on and take off.
Technical Services manager has to update new technology to supply for flight operation
Sales Manager will decide on the price of the ticket and choose time to set up sales promotion program to attract customers.
Marketing Manager makes decision on designing advertising, poster or events to promote the image of the company
Cargo Services Manager manage on setting up new services for customers in cargo areas

SUPERVISORY-LEVEL MANAGEMENT

Supervisory level management is line between middle level management and workers. There manages are close workers. They are also help building image of the enterprise before workers and also help in creating the sense of belongingness among them towards the enterprise. Managers of this level are directly related with the routine functions of the firm. Although Supervisory level managers typically do not set goals for the organization, they have a very strong influence on the company. These are the managers that most employees interact with on a daily basis, and if the managers perform poorly, employees may also perform poorly, may lack motivation, or may leave the company. Vietnam Airline has nearly 8 thousands of people from pilot, air hostess, security guard to sale executive, IT specialist, engineering specialist and so on. They have involved in daily activities of each flight and they can be considered as the face of the company.

In the case of Vietnam Airline, we have flight attendants whose task is to serve and satisfy the customer during the flight. Flight attendant will supply drink and food for the customers, guide them to use seat-belt, help to arrange the luggage and so on.
The pilot has to ensure the safe of the flight. Besides, they have to make decision when unexpected danger happened.

Task 1b: Review some of the information and knowledge that you may require to ensure that the above decisions are effectives

The information and knowledge have the big impact on effectiveness of decision. If the information is not clearly in supplying then the implement of decision will make difficulties, and it will be done in wrong decision.

In company, information has the important role in every activities and survival. It is necessary for people to carry out their works. If there is not information or lack of information, everyone will not know what is happening, what they should do. Besides, in order to give out decisions, we have to get organization’s historical information and current information. These types of information will help the staff of the company understand more about the position as well as the condition of the company in order to give decision and solution of problems in the company. Businesses need information to be successful, and that information can come from a variety of sources, both internal and external. Understanding the various sources of information and how to access them can help companies and their leaders stay on top of emerging trends and environmental factors that can affect their success.

Information within organization can be analyzed into three levels.

Strategic information: is mainly used by directors and senior managers to plan the organization’s overall objectives and strategy and is also measure these achieve. The characteristics of strategic information are as follow: derived from internal and external sources, summarized at a high level, relevant to the long term, deals with whole organization and often prepared on basic. It will be used for the management decision-making previously.
Tactical information: is used by managers at all levels, but mainly at the middle level for tactical planning and management control. These managers require information and instructions from the strategic level of management and information from the operational level of management. Tacit information is used for the decision-making previously referred to as management control. In short, the information would also be in a summarized form, but detailed enough to allow for tactical planning of resources and manpower.
Operational information: is a used ‘front-line’ manager. It relates to the level of decision-making previously referred to as operational control. The characteristics are as follows: derived entirely from internal sources, highly detailed, relates to immediate (short term), task-specific and prepared frequently, routinely.

On the other hands, information is one of important to ensure these decisions that become well and better. Information means data that have been shaped into a form that is meaningful and useful to human beings. It supports the decision making process.

To have these good decisions, we have to divide from this raw information, and process it, and then we will get this information that we need get it.

Input, process and output is these activities in an information system produce the information that organizations need for making decisions, controlling operations, analyzing problems, and ...

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To have these good decisions, we have to divide from this raw information, and process it, and then we will get this information that we need get it.

Input, process and output is these activities in an information system produce the information that organizations need for making decisions, controlling operations, analyzing problems, and creating new products or services. Input is the capture or collection of raw data from within the organization or forms its external environment for processing in an information system. Processing converts this raw input into a more meaningful form. Output will transfer the processed information to the people who will use it. Especially, information system is also require feedback, which is output that is returned to appropriate members of the organization to help them evaluate or correct the input stage. In Vietnam Airline, when customers use the service of the company, employee must to have specificity customer service. For example, good communication, always smile with customers although they unpleasant, bad-temper and so on, enthusiastic guide for customers go there first time. Besides that, service is too fast, simple, clearly and high effect. Besides, today the competition is higher with more airline is opened. So, a service customer is very important. In addition, customers are always given these true advices to develop the company’s brand name.

Knowledge is the central productive and strategic asset of any firm. Knowledge is a complex concept and includes information, social relations, personal know-how, and skills. Knowledge is an attribute of both individuals and organizations. To response these requirements to ensure that the above decisions are effectives, we can divide two types of knowledge: tacit knowledge and explicit knowledge. When you want to decision-making any problems, you have to divide knowledge 2 types: explicit and tacit knowledge.

Explicit knowledge: is a formal and standard. It can be shared and communicated easily and expressed in formal and systematic language. In contrast, it is re-usable in a consistent and repeatable manner for decision-making. So, although more abstract, it can be more easily codified, documented, transferred or shared.
Tactical knowledge: is highly personal, hard to formalize and deeply rooted in specific context such as: actions, values, commitments or emotions…It includes craftsmanship, teams that work together well, values, culture and attitudes that support learning, and decision-making patterns based on knowledge. Besides that, it is personal rooted in a specific context. Tacit knowledge is critical to producing a desired outcome when the task is complex.

To give an effective decision, the managers are required a lot of knowledge about explicit and tacit.

        First of all, a manager must have relevant professional knowledge, includes 'technical' knowledge such as production technology, marketing techniques, engineering knowledge, relevant legislation, sources of finance. This is consider as explicit knowledge and can be develop by reading books, do research or attend a course. Besides, a manager must have knowledge of basis background management principles and theories such as planning, organizing and controlling. These skills are tacit knowledge because the manager gets them from their own experiences.
        Thirdly, the job of the manager is very much concerned with making decisions. Sometimes these can be made using logical, optimizing techniques. Other decisions call for the ability to weigh pros and cons in what is basically a very uncertain or ambiguous situation, calling for a high level of judgment or even intuition. The manager must therefore develop judgment-making skills, including the ability to cope with ambiguity and uncertainty, striking a balance between the necessities at times to be guided by his/her subjective feelings without throwing objective logic completely out of the window.
        Finally, the successful manager develops a range of abilities which are essential in such activities; communicating, delegating, negotiating, resolving conflict, persuading, selling, using and responding to authority and power. This knowledge can help them manage the business of the company effectively. These skills can be collected through experiences, books, internet and so on. They are the explicit knowledge of a manager.

Task 1c: Identify, assess, and specify your internal and external sources of information that you gathered as formal and informal, primary and secondary and others.

Internal information is necessary for all management levels, in every function in the organization. It will relate to activities within the organization. Often these activities generate costs and revenues and so a lot of the internal data collected will be quantitative. The internal sources include: the accounting ledgers, personnel and payroll systems, production departments and marketing departments. Besides that, information form inside the organization involves establishing a system for collecting data and relying to some extent on the informal communication lines between managers. Knowing the source helps the user to compensate for systematic bias. With Vietnam Airline, internal information is collected within the organization such as sales, numbers of customer, profit, number of employees and so on.

External information emanates from official and unofficial sources. It concerns .such matters as official areas, the economy, suppliers and customers. There are a wide range of sources including the government, consultants, newspapers and magazines and so on.

Formal information sources are structured consistently to encourage this reports, forms and etc. It includes statements from the organization’s officials, published documents and company advertising. There are many advantages such as familiar style, structured and accurate. On the other hands, these disadvantages such as inflexible, overlooks information received by informal means and ignore group and social mechanisms.

Informal information sources include rumors, it should be formal with suppliers or customers and reports complied for personal use. They interpret information in a way that is useful to them at that time. They may do this in groups, passing the ‘informal’ interpretation between each other. There are many advantages such as flexible, detailed and problem solving. Otherwise, many disadvantages such as often inaccurate, not always relevant, localized, volume constraints slow, inefficient and selective.

Primary data is necessary when a researcher cannot find the data needed in secondary sources. Three basic means of obtaining primary data are observation, surveys, and experiments. It is used solely for the purpose for which it was collected is termed primary data. Some problems can only be solved by collecting primary data and this involves carrying out an inquiry or survey. Primary sources of information allow the learner to access original and unedited information. A primary source requires the learner to interact with the source and extract information.

Secondary data is data that is taken from some other sources is called secondary data. An important distinction is made here since information collected for one purpose by a company and then, at a later date, used again for another purpose would no longer be primary data. In addition, secondary data is collected and possibly processed by people other than the researcher. Sources of secondary data for social science include censuses, large surveys and organizational records. Secondary sources take the role of analyzing, explaining, and combining the information from the primary source with additional information. Secondary sources are edited primary sources, second-hand versions.

Aside from information, the manager must have knowledge in order to control the business of the company. There are two kinds of knowledge explicit and tacit. Explicit information is formal and standardized. Explicit knowledge can be articulated into formal language, including grammatical statements (words and numbers), mathematical expressions, specifications, manuals, etc. Explicit knowledge can be readily transmitted others. Also, it can easily be processed by a computer, transmitted electronically, or stored in databases. Meanwhile, tacit knowledge is personal knowledge embedded in individual experience and involves intangible factors, such as personal beliefs, perspective, and the value system. It is subconsciously understood, applied and developed from direct experience. Besides, it can be share through conversations, stories or shared experience. It contains subjective insights, intuitions, and hunches.

Task 1d: Provide your recommendation with supporting reasons for improvements in making decisions at various level at the organizations

As a Customer Development Manager, I know that information is very important for company to give decisions for improvement. However, the information system of Vietnam Airlines is supplied is slowly, it makes the work is not effective, this is a disadvantage competitiveness of Vietnam Airlines. This is my suggestion about improve information system for Vietnam Airlines. The organization has executive support systems (ESS) at the strategic level; management information system (MIS) and decision-support system (DSS) at the management level; knowledge work system (KWS) and office automatic system (OAS) at the knowledge level; and transaction processing system (TPS) at the operational level. The typical systems found in organizations are designed to assist worker or managers at each level and in the functions of sales and marketing, manufacturing, finance, accounting and human resources. These function of the six types of information systems. This is characteristics of information processing system.

With strategic level, the information or data from any sources must be available and easy for senior to use. From that, senior can be easy to make the final decision or give the strategic plan in order to suitable with the real situation.

With the tactical level, the information should be supported clear so the managers analyze, evaluates and condense large volumes of data into a form that aids managers make decisions. From that, manager can give the exactly information to higher manager or lower manger.

With the operational level, the main of work in Vietnam Airlines is produce and selling, so the information in use should increases the productivity in work. For example, the information of suppliers is always available and updates in order to fit with the production in Vietnam Airlines; with the selling the information about of the products such as the numbers in the stocks or the numbers of products is sold, or the data of employees.

Beside that, the skill and attitude of stakeholders such as suppliers, employees in company is also very important because it make the operation faster and more effective. Vietnam Airlines should create the effective networking. Through the connection, trustworthy relationships are developed that generate information, referrals, advice, support, energy, and much more. Vietnam Airlines can open the training, coaching with the case study, the meeting with the suppliers, employees to get the ideas, company should can have the effectively communication, keep pace with developments and trends in their fields, be prepared and willing to share information., keep in touch with others, nurture friendships and relationship, listen carefully and show interest in what others are saying. From that, the skill and the attitude of stakeholders will increase, they will help for decision making more effective.

Vietnam Airlines can use Knowledge Work Systems (KWS) like many groupware for workgroup scheduling, to keep track of colleague’s itineraries. From that it will support for decision making by access to an information database, and customizable views of the information held on it, which can be used to standardize the way information is viewed in a workgroup. The information can be collected, organized, share files with others on the team or across the organization. Hence, the decision making will be easier and quickly.

In short, all of information systems have interrelationship with each other. The various types of systems in the organization have interdependencies. A TPS is typically a major source of data for other system, whereas the ESS is primarily a recipient of data from lower level system. The other types of systems may exchange data among one another well. When all the systems are connecting together, you can apply it in any field from Vietnam Airlines. It will often support these other systems in the organizations. Hence, we will monitor and checking any activities in organizations for example landing, take-off, check in and so on. And specially, we can get these feedbacks from customers to develop the organizations and serve them better.

With Decision Support Systems: apply Vietnam Airlines; DSS help managers make decisions that are semi-structured, unique or rapidly changing. However, DSS do not make decisions. This objective is to allow the manager to consider a number of alternatives and evaluate them under a variety of potential conditions.
Transaction Processing Systems (TPS): Vietnam Airlines can store, collect, modify and retrieve the transactions of their company. The decision to grant credit to a customer, for instance, is made by a lower level supervisor according to predefined criteria. A business will have several TPS such as: calculate and system these things that we need know and tax that we have to pay.
Office Automatic System (OAS): the bank can apply it because it coordinates diverse information workers, geographic units and functional areas: the system serve as a clearinghouse for information and knowledge flows. Especially, it will try to improve the productivity of employee who need to process data and information. Typically, the bank can use Microsoft Word or Microsoft Excel XP, with this system, their employees can improve quality work of every employees working in an office or can accept work at home.

Task 2a: Identify internal and external stakeholders of Vietnam Airlines

Networking is consciously developing contacts in an effort to increase the number of referrals that get for the business. It is one of the most beneficial ways for people to help other develop their ideas and professional careers. Networking helps to stay in touch between organization and key individuals who can affect the business of the organization or help you achieve your goals. It can help your career development such as: build alliances that will strengthen your work, stay in touch with developments in your professional filed, get access to information that will help your work, influence other organization to take up and support your issues and individual decision makers. This graph below will show the impact of internal and external stakeholders with Vietnam Airlines.

Customers:

They will decide the profit and the market of company because they receive products and services from company with a reasonable quality. Hence, they will pay a reasonable price for those products and services.
Failure to listen customers will ultimately result in no sales and no market. The main ways that customers affect businesses in through feedback, complaints, suggestion, choosing whether or not to buy and filling out questionnaires.

For example: Vietnam Airlines sets the strategy that expansion of the market share in existing and new market so Company will increase the quality of services and give the competitive price, existing customer may not be willing to pay more for the new services, while new customers are not attracted to a product that they will view as being of low quality and not suitable price.

Managers:

They must have the highly experienced management skill in their industry to make sure company works effective and get profit as more as possible.
They manage, pay the salary, show the individual performance measures, make sure the job security for everyone in company

For example:

Vietnam Airlines managed by an experienced and dedicated management team with extensive industry experience.

Other members of the senior management team have an average of 25 years experience in the management, distribution. Company also has a strong middle management team that is well-equipped to support its senior management and stay abreast of changes in the market place.

Suppliers:

They give the raw material to company to support the operations of Vietnam Airlines so they require the regular payment promptly.
Good relationship with suppliers is very important because they can give the best raw material to company with the lower price such as they give the advantage discount to company.
Vietnam Airlines' goal is to build long-term plans for developing good relationships with the strategic suppliers both domestically and abroad to assure that the raw materials are not only of a stable high quality but also at competitive prices.

For example:

Vietnam Airlines set the strategy that it will be continuously enhancing supply chain management. Besides, keep good relationship with partners like Vietnam Air Carter (food-suppliers) will help Vietnam Airline to ensure about the quality of their services.

Shareholders:

Their primary interest is the return on their investments, both for the short term and long term. A profit organization’s primary objective is to earn good returns for the shareholders. Some share holder may have ethical concerns, and may avoid owning shares of certain companies.

For example, If Vietnam Airlines want to set a strategy that will involve a large capital injection, shareholders will be not accept it if the injection has an adverse effect on their income stream.

Investors:

They are individuals or organizations that lend money to the business. Banks are a common example. Others may be individuals who purchased the bonds of the business of company. Hence, investors are mainly interested in the ability of the business to repay the loans (interest and principal).

For example, the banks can lend money to Vietnam Airlines to help company carry out its strategies. Banks also looks at the capability of Vietnam Airlines in achieving its objective so Vietnam Airlines can repay the loans and the interest.

Employees:

They are the main force in company and directly serve customer. They give the first impression of the company to the customer. Therefore, the employees’ behavior and appearance will affect directly on the image of the company.
They are interesting in the job security, the wage and the condition at the work place. Moreover, their work will be more effective if they see the satisfaction in their work at company.

For example, If Vietnam Airlines set a strategy that workers must be give more responsible for monitoring quality. Employees may not accept it if there is not supported by an increase in wages for an increase in role.

Trade Union :

They are interested in the problem of the employees such as the wages paid to employees, women’s group are interested in gender discrimination issues at the workplace, etc.
It is taken an active part in the decision making process

For example, If Vietnam Airlines want to set the strategy that the result in a manufacturing plant being closed, the union will be not accept it because it is not consulted and there is no scheme for helping employees find alternative employment..

Government and the general public :

They affect company by passing the laws and policies to protect workers and customers.
They collect the taxes such as income tax, corporation tax, VAT so they affects to the profit of company.
They can support business in socially or economically deprived areas.
They can subsidize activities and aid exporters for company.

For example, the price of fuel is being affected directly by the policies of the government. Besides, the government is also considered as the owner of the business. Therefore, their decision will impact on the activities of Vietnam Airlines.

Task 2b:

Plan for the survey:

The survey of Vietnam Airlines has two main purposes are to find out the level of satisfaction about products quality and services of Vietnam Airlines.

The target population is customers of Vietnam Airlines

The survey method is interview survey

The sampling of survey is 30 customers in Danang City

The result of survey is put on the Microsoft Excel, so they can easy to interpreted and report

The presentation is show in the Microsoft Power Point

The question of survey – questionnaire (see appendix 1)

The interpreting and reporting the result (see appendix 2)

Survey form:

VIETNAM AIRLINES’ CUSTOMER SURVEY

Please give the information below, the information will be used only for studying!

(Tick √ on the answers which you choose)

What is your gender?

Male
Female

How old are you? …………………..( years old)

Do you often use the services of Vietnam Airlines?

How much your monthly income? …………………….( vnd )

Which kind of services do you use most?

Domestic Flight
Abroad Flight
Cargo

Where do you know about Vietnam Airlines?

Magazines and newspaper
TV
Internet
Other:…..

How often do you use Vietnam Airline’s Services?

Once time per month
Two times per month
Three times per month
Four times per month
More than four time per month

How much do you satisfy with the services of Vietnam Airlines?

Very satisfied
Satisfied
Acceptable
Unsatisfied
Very unsatisfied

Do you think that the prices of Vietnam Airlines are reasonable?

Yes
No
Do not know

Please give your ideas to help Vietnam Airlines improve the products and services?

…………………………………………………………………………………………………

………………………………………………………………………………………………….

Thank you for your help!

Task 2b, 2c:

This is the report about the level of customer satisfaction about quality and services of Vietnam Airlines based on the result of the survey.

The kind of services that customers used most in Vietnam Airlines :

Figure 3: The chart about kinds of services used most in Vietnam Airlines

Look at the result of survey, the main services that the customers used in Vietnam Airlines is domestic flight with 40 %.Vietnam Airlines have flights to more than 20 cities around the country such as Hanoi, Ho Chi Minh, Da Nang, Hue and so on. With this high rate from the customers, Vietnam Airlines can know what their main service are and design strategies and plan to develop this services to satisfy the customers. Besides, they should differentiate their services on domestic flight to attract customer because there are more competitors in this field today. The other services, abroad flight and cargo are used by 30% of people surveyed. Vietnam Airlines have flights to 14 countries around the world. In Asia, they have flights to big cities of China, Taiwan, Japan, Korea, Malaysia and so on. Besides, they also have flights to some countries in Europe and to Australia. However, Vietnam Airlines have not set up flights to countries in Africa and America. Therefore, in order to develop the abroad flight of the company to satisfy the customers, the top CEO of the company should contact with airlines in these areas to open new flight to serve the customers and develop the brand of Vietnam Airlines. Cargo services are also one of the main services of Vietnam Airlines. This service helps customer import, export or transit goods both in Vietnam and abroad. Vietnam Airlines is officially providing Vulnerable Cargo Service on domestic flights from/to Noibai, Haiphong, Vinh, Hue, Danang, Quy Nhon, Cam Ranh, Tan Son Nhat and Can Tho, as of April 20th 2009. Vulnerable Cargo, including cameras, laptops, personal digital assistants (PDAs), valuable electronic equipment or electronic parts, mobile phones, phone cards and watches will be served in accordance with a strictly-controlled process to assure their safety. This is the new service of Vietnam Airlines which is opened to attract more customers’ retention and make then loyal to the company.

The sources that customers know about Vietnam Airlines :

In order to know what the most effective promotion tools of Vietnam Airlines, we set up the question “Where do you know about Vietnam Airlines?”

Figure 4: The sources that customers know about Vietnam Airlines

Among promotion tools such as Magazines and Newspaper, TV and Internet, magazines and newspaper is the most effective one with 40% of people surveyed. Internet is nowadays become very popular source of information so there is 23% known about Vietnam Airlines through this source. By promoting via Internet, Vietnam Airlines can attract the retention of customers abroad who cannot get information from TV and newspaper. Followed by 20%, TV is also an effective promotional tool of Vietnam Airlines. Although TV has been in Vietnam for such a long time, its popularity is never lost. This is because TV is available in every house in Vietnam. Besides advertising, people can also see the image as well as the information about Vietnam Airlines through films, news programme, TV report and so on. The results of this question will help Vietnam Airlines what areas of promotion they need to invest on in order to attract more customers.

The times that customers used Vietnam Airlines per month:

The results from this question will show the average times that the customers used the services of Vietnam Airlines per month.

Figure 5 : Times that customers used services of Vietnam Airlines per month

As can be seen, there are 40% of people surveyed used Vietnam Airlines’ services more than four times a month. This shows the popularity of Vietnam Airlines compared with others.

The level of customer satisfaction:

About the levels of satisfaction of customers with products of Vietnam Airlines, we can see through following features:

As can be seen, 44% of people surveyed think that Vietnam Airline is normal. Besides, there are with 30% people surveyed satisfied about the services of Vietnam Airlines and 13% very satisfied about this. However, there is still 13% of them do not satisfied with service quality of Vietnam Airline. Although, the number of unpleased customers is not too high, the company has to improve their quality by upgrading the facilities at the airport, simplifying the procedure, applying professional communicating training courses for employees and so on.

The standard and performance in flight of Vietnam Airline are proved by AQS (Aviation quality service). In 2006, Vietnam Airline is awarded the IATA Operational Safety Audit (IOSA) certificate, which is a strict safety standard set by Aviation Quality Services (AQS) . Later on, in order to ensure the safety of the passengers and get their belief on the company, Vietnam Airlines joined the International Air Transport Association (IATA) as an official member. Furthermore, the food supplier of Vietnam Airline, Vietnam Air Carter is assessed by HACCP, OHSAS 18001 and ISO 9001:2003.

Overall, with these assessments Vietnam Airline can prove that they provide good and safe services to the customers and make them believe in the brand.

Comment for price for milk product :

The first point we should look at is the monthly income of customers:

In this survey, customer is person who often uses services of Vietnam Airlines, they have the stable job so the monthly income is stable and quite high. This makes sure the using power of customer.

From the monthly income, customers also think about the reasonable of product price of Vietnam Airlines:

In this survey, there are 73 % of customers said “Yes “with the price of Vietnam Airlines services, 17 % said “ Do not know “ , and 10% said “ No “.

With the 17 % of customers said “Do not know “. The comment is given is the customers are the loyal customers of Vietnam Airlines, when they use the services, they do not much considerate the price of services with many competitors.

With the 10 % of customers said “No “. The comment is given is customers see that there are some other competitors like Pacific Airline, JetStar Airline and so on. May be the quality is not far different but the price is cheaper, especially JetStar Airlines.

CONCLUSION

Information is very important for every business, it will be easier for company can catch opportunities to develop and carry out the business strategy when company manages information effective. In order to manage information effective, company should concentrate on the management information process which can support for the efficiency of decision making. Moreover, company also should apply customer relationship management because it involve in the benefit of company.

Task 2d:

From the above analysis, Vietnam Airlines can know exactly areas it needs to improve. Company should set up the strategies for improvement as recommendation:

With the information system for Vietnam Airlines, as many analysis above ( Task 1d, Recommend for improvement ) the information will be applied for Vietnam Airlines will be:

At the strategic level, senior manager can use Executive Support Systems (ESS) to monitor organization objectives and targets.

At the tactic level, company can apply the Decision Support Systems, it can helps senior managers in semi structured and structures decision making and strategic for all company.

At the operational level, company should apply Office Automated Systems (OAS), a software Intranet and Extranet. This computerized system designed to increase the productivity of data and information workers. Hence, it can collect and monitor exactly and effective in operation of the company and selling.

Executive Support System (ESS)

An Executive Support System (ESS) pools data from internal and external sources and makes information available to senior managers in easy to use form. An ESS helps senior managers make strategic, unstructured decision. It should provide senior managers with easy access to key internal and external information. An ESS is likely to contain the features such as flexibility, quick response time, sophisticated data analysis and modeling tools.

Decision Support Systems (DSS)

Decision Support Systems (DSS) combines data and analytical models or data analysis tool to support semi- structured and unstructured decision making. They are used by management to aid in making decision on issue which is unstructured, with high levels of uncertainty about the true nature of the problems. They have more analytical power than any other systems, enabling them to analyze and condense large volumes of data into a form that aids managers make decisions. Although called decision support systems, they do not make decisions. It enables managers to consider a number of alternatives and evaluate them under a variety of potential conditions. There are many packages available for managers to use data in exploring alternatives and making decisions such as PC-GIVE, Micro fit, SPSS, etc. These packages have some of the following features : modeling and simulation, spreadsheets, statistical analysis of all types, forecasting, non- line and linear programming, regression analysis, financial modeling, sensitivity and risk analysis, expert systems ( these are program that allows users to benefit from expert knowledge, information and advice such as tax advice, legal advice etc…)

Office Automated Systems (OAS)

Office Automated Systems (OAS) is computerized system designed to increase the productivity of data and information workers. OSA support typical office activities such as: Word processing, desktop publishing, and digital filling systems, email, voice mail, videoconferencing, groupware, intranets, schedulers, spreadsheets, desktop database.

Intranets

An intranet is an internal network used to share information. Intranet utilizes Internet technology. Only authorized users can gain process. Most of cost of an intranet is the staff time required to set up the system. There are many benefits of having intranets:

Saving accrue from the elimination of storage, printing and distribution of documents that can be made available to employees on time.
Documents on time are often more widely used that those that are keep filed away, especial if the document is bulky ( e.g. manuals ) and needs to be searched. This means that are improvement in productivity and efficiency.
It is much easier to update information in electronic form.
Wider access to corporate information should open the way to more flexible working patterns, e.g. material available on line may be accessed from remote location.

Extranets

An extranet is just an intranet that is accessible to authorized outsiders. They are very useful for business partners to exchange information.

REFERENCES

“Managing Communications, Knowledge and Information “-Course Book- Edexcel HNC and HDN BUSINESS – First edition May 2004.
“Managing Information “– David A. Wilson.
-“Business Environment “- Course Book- Edexcel HNC and HDN BUSINESS – First edition May 2004.