Ineffective Internal Communication Of Importing Process In Srithai Limited Company.doc

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
NGUYEN THI THUY
INEFFECTIVE INTERNAL COMMUNICATION
OF IMPORTING PROCESS IN SRITHAI LIMITED
COMPANY
MASTER OF BUSINESS ADMINISTRATION
SUPERVISOR: NGUYEN PHONG NGUYEN

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Table of Contents
EXECUTIVE SUMMARY ........................................................................................................ 3
CHAPTER 1: BACKGROUND INFORMATION .................................................................... 4
1.1 Company background .................................................................................................. 4
1.2 Company symptoms ................................................................................................. 5
1.2.1The method of scan symptom .................................................................................. 5
1.2.2Justify the importance of symptoms ..................................................................... 5
1.2.3General symptoms ................................................................................................ 6
1.2.3.1 The first symptom: Low Customer’s satisfaction ................................................ 6
1.2.3.2 The second symptom: Gross profit decreases ...................................................... 9
1.2.3.3 The third symptom: High failing projects rate ................................................... 10
CHAPTER 2: PROBLEM IDENTIFICATION ....................................................................... 11
2.1 Methodology .............................................................................................................. 11
2.2 Identifying and Diagnosing Tentative Problems ....................................................... 11
2.2.1The first tentative problem: Ineffective internal communication ....................... 14
2.2.2The second tentative problem: Weak leadership ................................................ 18
2.3 The real problem: Ineffective internal communication ............................................. 22
2.4 Problem definitions of ineffective internal communication ...................................... 25
2.5 Verifying the importance of ineffective internal communication ............................. 26
2.6 Verifying the existence of ineffective internal communication ................................. 27
2.7 Causes and Effects chart of real problem: Ineffective internal communication in
Srithai Vietnam company ..................................................................................................... 29
CHAPTER 3: ALTERNATIVES ANALYSIS AND POSSIBLE SOLUTIONS .................... 31
3.1 Verify causes of the real problem .............................................................................. 31
3.2 Main cause of the problem: weak individual leadership ........................................... 34
3.3 Possible solutions ....................................................................................................... 37
3.3.1Solution 1: Applying ROFO principle in office departments in Srithai Vietnam
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CHAPTER 4: ACTION PLAN FOR SOLUTION .................................................................. 39
CONCLUSION ........................................................................................................................ 43
SUPPORTING INFORMATION ............................................................................................ 44
REFERENCES ......................................................................................................................... 75
APPENDIX .............................................................................................................................. 77

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EXECUTIVE SUMMARY
The thesis writes about improving internal communication of importing process in
Srithai Company. The essay focuses on main area office departments. In specific,
there are Plastic sales department, Purchasing department and Finance department.
The main process is followed during essay is importing process related main products
of Material Handling Equipment (MHE). In specific, MHE products have been traded
since 2016 and reached high overcome in 2017. However, report of finances about net
profit of this group presented to decrease. In addition, the analyses later of customers’
satisfaction and failing project rate also showed negative. Therefore, the thesis will
focus on analyze these issues and figure out what is the main problem of these things
through the data from company and from some qualitative research. Not only that, this
thesis will evaluate and raise the most suitable solution as well as detail actions plan
for solving problem. And as finding from the research, the main problem leads to
decline bottom profit of MHE group is ineffective internal communication. This
problem does exit due to low motivation employees, weak teamwork skill, different
language and weak individual leadership. Those causes have built a bad culture for
working in company. Hence, it is suggested that company should apply ROFO
principles to encourage internal communication system in company. More than that, it
helps to build new culture, create facilitate working environment for employees.

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CHAPTER 1: BACKGROUND
INFORMATION 1.1 Company background
Srithai Superware was established in Thailand in 1963. In 1996, Srithai comes to
Vietnam and becomes a joint-venture company under the name of Vietthai Industrial
Plastic Co. Ltd. located in Ho Chi Minh City. However, it has moved head office and
factory to Binh Dương provinces since 2005. Currently, it has 3 factories, 2 ones are
in the south and one is in the North Vietnam.
Srithai has more than 20 year’s experiences in Viet Nam with 46 Injection
Machines and 20 Compression Machines. The capacity is plastic 2.500 Tons/year,
beverage 8.000 Tons/year, household 500 Tons/year.
Srithai is one of the leading manufacturers and distributors of three products group
below: Industrial Plastic Product, Food & Beverage Packaging and Melamine
Tableware. They do business with huge giant in plastic industry such as GS battery,
Pinaco, Suntory Pepsi, Sapporo, Jotun, etc…
The business vision of Srithai Vietnam Co. Ltd is using quality products and
services to achieve customer's complete satisfaction, thereby ensuring company
profitability and sustained market growth.

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1.2 Company symptoms
1.2.1 The method of scan symptom
The research started from researching KIP of Plastic sales department. There are five
group of products such as Original Equipment Manufacturer (OEM), Material Handling
Equipment (MHE), Paint Pail, Cinema and Promotion. This thesis focus on Material
Handling Equipment group. The main products in this group are plastic pallet and
container. Both of them are imported from Srithai Superware Thailand, Mother company.
Srithai Vietnam started to trade imported products from Mother company from June
2015. However, it reached first customer in half of year 2016 after a year approached.
MHE group reached target in 2017, however, the data analyses show bottom profit is lost.
It raised many meetings between Sales, Purchasing and Finance department from early
year 2018 for finding reasons, corrective actions and solutions.
On the other hands, there is big gap between sales budget and actual revenue in half
year 2018. This issue is not only happened with MHE group but also another groups.
Moreover, sales budget was forecasted based on actual sales 2017 and customer
forecast in 2018. That raised two questions for board of manager. First question is
why sales forecast in 2018 is too different from actual return. Second question is plan
of quarter three and four to cover back for decreasing of revenue in first half of year
2018. Thus, the research starts from the history data such as sales report, profit report
and customer’s satisfaction survey report, references from sales, finance and ISO
department.
1.2.2 Justify the importance of symptoms
A business runs because of many purposes. Goldman et al researched that “the
business organization is a part of society and exists to serve and advance society”(1).
It could be said that the original purposes of business are continuously to produce
goods to supply for society; simultaneously, non-stop learning, improving and driving
society go advanced. On the other hands, Goldman also explored modern theory that
the primary purpose of organization is “realizing a sustained long-term profit, thereby
maximizing return on investment for shareholders and investors”(1).

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Nowadays, most of practitioners and normal people both agree that profit is the most
importance to ensure survival and development of company. The need for organization
to adapt and re-inventing itself to the forever changing business environment has
become more and more apparent in recent years. With fast pace technology changes
and disruptive innovation such as smartphones, e-commerce, and Industry 4.0, the
business environment now is most dynamic and unpredictable. Then, organizations
who can learn about these changes and be the first to re-invent itself to take advantage
of the new development will possess a competitive edge and those who are slow to
adapt or oblivious to these changes are doomed to mediocrity or, at the worst,
complete failure.
When profit of company reduces, immediately it impacts on whole activities of
enterprise. Which reasons lead to decrease profit? If business is not timely to find out
and solve it, business may not survive in non-stop changing environment today.
Otherwise, it could be said that customers are who bring value to company. Without
customer company will not survive. Therefore, many companies invest very much
money to find customers ‘need and their behaviors and make them happier. Thus,
customer ‘satisfaction rate is significantly vital to company. There are many signals to
indicate company that where it is position. Which are its strengths and weaknesses.
Most of improvements will base on customers’ behaviors.
On the other hands, Dawson also emphasized the importance of organization’s
knowledge capabilities. Its ability to process the changing competitive and market
environment. By stating that “Effective Real-time development and implementation of
strategy – which is essential for organizational success – depends completely on the
organization’s knowledge capability”(2). Thus, it can be implied that an organization
is only as good as its knowledge capabilities. Any improvement should base on
knowing clearly about knowledge capabilities of company.
1.2.3 General symptoms
1.2.3.1 The first symptom: Low Customer’s satisfaction

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Customer satisfaction of importing products group
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Quality of product Delivery After delivery service Salesman's knowledge
2017 88% 45% 70% 70%
2018 90% 50% 80% 80%
Figure 1: The average customer’s satisfaction in 2017 and 2018 of importing
products group
Source: Customer’s satisfaction index report 2018, ISO department
ISO department will conduct a survey about customers’ satisfaction in middle of
year. The survey has been concentrated on four main points. First point is about
quality of products. Second point is about service after sales. Third point is delivery
service. Final point is salesman’s knowledge.
Srithai has traded import products in two years from 2016 to 2018. The survey has also
conducted for two years. The chart above shows results that customers are quite
satisfied with quality of products, after delivery service and salesman’s knowledge.
However, they have been disappointed with delivery service of company with 45%
and 50% in 2017, 2018 respectively. In specific, Srithai delivered products on time 30
orders in amount 91 ones in 2017, 10 orders in amount 38 ones in first two quarters in
2018. Most of late delivery orders are related to projects.
such as project to supply pallet to Suntory Pepsi, MM Mega Market, Nestle, Mondelez
Kinh Do and provide container to Big C, Pharmacity and Bach Hoa Xanh, etc.

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Moreover, the average late delivery is 7 to 20 days. In fact, delivery is late 7 to 20
days is normal in import field. However, lead time of import products is 30 days from
releasing PO is included estimated how many days be delayed. In addition, Srithai has
lead time delivery highest compare with its competitors in this industry.
Delivery Lead time
35
30
25
20
Day
15
10
5
0
Srithai Dino Platinum
Delivery Lead time 30 15 20
Figure 2: Delivery lead time of Srithai, Dino and Platinum
Source: Internal meeting minutes of Sales department in January 2018

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1.2.3.2 The second symptom: Gross profit decreases
Unit: Million VND
Figure 3: Sales and %Gross Profit of Plastic Business Quarter 1, 2 in 2017, 2018
Source: Finance report in July 15th
2018
The figure 3 shows the big gap between revenue of quarter one and two in 2017 and
2018. Moreover, actual sales in half of 2018 significantly different from forecast in
beginning of year 2018. In specific, sales and gross profit of import products group
also same trend with sales and gross profit of plastics business in 2018 and very low
compare with 2017 (Figure 4).

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Sales & GP of importing products group
3,500
3,000
2,500
VND
2,000
1,500
Million
1,000
500
-
-500
Jan Feb Mar Apr May June
Sales 2018 2,157 1,836 1,660 601 288 841
Sales 2017 730 896 1564 3166 2898 1250
GP 2018 130 105 -12 -65 30 31
GP 2017 30 20 -30 179 187 50
Figure 4: Sales and Gross Profit of import products group quarter 1, 2 in 2017,
2018
Source: Finance report in July 15th
2018
1.2.3.3 The third symptom: High failing projects rate
Pallet and container are main product of Material Handling Equipment group. They
are usually sold as a project. There are many failing projects in half of year 2018. The
rate of failing project is higher than 2017. We have failed fifty percentage of projects
with old customers. We lost some main big customers as ABI Bev, MM Mega Market,
Suntory Pepsi to competitors NPC Toda and Long Thanh company. In addition, some
daily customer as Kureha and SABMiller company have stopped ordering because
price is too high compare with price of market. Moreover, every month MHE team
approach average five new customers and they are seemly got stuck in low pricing
process such as Asia Saigon Foods with volume 10,000 pcs plastic pallet.

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Speed of sending quotation and lead time of Srithai Superware to too low compare with
its competitor such as Platinum, Dino, etc. While Srithai Superware has taken a week
for making quotation its competitor as Dino just need twenty-five minutes (sources:
meeting minutes of sales department in March 2018). Moreover, about lead time of
delivery, Dino has just taken fifteen days while Srithai needs near forty days.
In fact, it doesn’t have official commitment import process between Srithai Vietnam
and Srithai Thailand. Therefore, it is very hard to follow orders and solve problems
when they have come.
CHAPTER 2: PROBLEM IDENTIFICATION
2.1 Methodology
In order to finding the real problem, there are four researches will be conducted. In-
depth interview is suitable for this case because number of employees in sales,
purchasing and finance under thirty people. Moreover, depth interview with advantage
that the interviewer has many times to probe and obtain in-depth responses since
respondents tend to express themselves more freely. In addition, it has been selected
because interviewer can capture emotions and behaviors of respondents to find down
if they are telling the truth or interviewer can change the way they conduct the
interview if the respondent expresses their uncomfortable with the interview.
2.2 Identifying and Diagnosing Tentative Problems
Depth interview 1
Purpose: The research focus on MHE group consisted plastic pallet and
container those in imported from Thailand. There are three specific purposes:
Which reasons make profit decrease in period 2017 and 2018
Low customers ‘satisfaction in period 2017 and 2018
High failing project in in period 2017 and 2018
Method: Qualitative research- In-depth interview
There are three people who are chosen to join interview because they are manager and
they are work in Srithai more five years. They know very well activities of Srithai Viet

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Nam from its policy, style of boar of director management and employees’ ability.
Nevertheless, they have many relationships in company and Mother Company in
Thailand. They have overview knowledge of Srihai Company.
The depth interview will be taken from July 27th, 2018 to July 30th, 2018 with
three respondents from three departments in Srithai Vietnam as below:
No. Full name Position Date
1 Nguyen Ngoc Thanh Finance Manager July 27th
2018
2 Puripong Pinanong Sales Manager July 28th
2018
3 Nguyen Thi Le Purchasing Manager July 29th
2018
Table 1: The first depth interview arrangement
Research findings
How long have you worked with Srithai Company? How do you feel about its working
environment? Prompts: support policy of company, style of managers, attitude of
employees in working, etc.
All respondents have been worked in Srithai for five years. Therefore, they have many
experiences about Srithai such as relationships, management and its policy. Most of
people said that Srithai have slow working transaction and weak caution system. Ms.
Le showed that “workload is quite slow; it has not prevented problem before it
happens”. In addition, respondents agree that management of company is weak, “I
saw that there is not specific person who responsible for specific problem. The faults
often belong to group. Therefore, the policy of appraisal and punishment is weak. It
does not support for fair and improvement” Ms. Le said. Moreover, Mr. Puripong
Pinanong told that “Srithai company do not empower well to employees. Therefore,
they do not active in their job. Employees tend to finish their job; however, they are
not care much about colleagues’ job”.
It could be said that there are three main points of working environment of Srithai
company. First point is low working load so that it does not much pressure on

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employees. Second point is weak leadership of board of manager. Therefore, employees
are not empowered then they are not active in their job. Third point is low spirit
supporting between employees. Three points show a working environment in Srithai
company is not healthy. Arguably, the working environment within an organization is a
fruit of the organization culture, so it can be said that organization culture is a key in
ensuring the successful implementation and maintaining of a learning organization,
among other strategies. It constrains development of company.
According to report of half year 2018, Company is reducing profit in 2017 and half of
year 2018, especially, importing plastic group. In your opinion, what are the reasons
that make importing plastic group get loss in a year and half?
Most of candidates indicated that Srithai company got lost because it did not control cost
effectively. Mr. Puripong Pinanong and Mr. Thanh agreed that company got lost in period
2017 and first half 2018 because “in-put is too high and cost of transportation also high”.
Ms. Le also said “salesman sold price lower than break-even”.
Sales and purchasing department did not cooperate well then, they did not update
information together timely. Therefore, there are many times salesmen sell products
under break-even. The jobs of purchasing and sales department is overlapped
together. Mr. Puripong presents that “importing process runs too low so that they do
not get earlier in-put price to make selling price to customers in Vietnam market.
Therefore, most of cases salesman based on historical data to make quotation to
customers. However, in-put price may change because of price of raw material
change”.
On the other hand, purchasing department did not provide enough and timely in-put
information to sales department. Finance department also supplied analysis after
any deals has done. Finance departments, they did not join in making quotation and
raise caution for sales department. There are many points show that the
communication between departments are not fluent.

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According to customer’s satisfaction report 2018 of ISO department, it is not good,
especially delivery on-time rate is just fifty percentages. It is too low. Do you think
that and what is your opinion about reasons lead to this problem?
Sales manager and purchasing manager both agreed that delivery on-time rate is just
fifty percentages is very low and the main reason lead to this issue is “complicated
import process”. There is very low transaction between Srithai Vietnam and Mother
Company. Mr. Puripong shared that besides external reason such as trading pallet and
container depend on season. The need is high in end of year. So, it makes to capacity in
Mother company’ factory so tight. He also indicated that “process importing is
complicated and take time. It wastes of us much time to get in-put price, delivery.
Consequences, it impacts seriously to our advantages competitive in the market”.
There are also three characteristics of importing process in Srithai Vietnam. Firstly, in-
put information as price, cost between Srithai Vietnam and Mother company is
unclear. Mr. Puripong said that “Mother company do not have frame of price to us”. It
is hard to have constant frame of price because price depends on price of raw material,
resin, in plastic industry. Secondly, salesmen make quotation based on historical data
instead of based on current data. Therefore, in-put price may wrong. That becomes risk
of in-put logistics lead to lose profit. Moreover, it also puts salesmen in dilemma
situation between demand of customers and company. Thirdly, cooperating between
sales department, purchasing department and finance department is not fluent.
Consequences, each link of importing chain is not controlled effective.
2.2.1 The first tentative problem: Ineffective internal communication
Initial cause-effect
Initial cause-effect map was draw base on face-to-face interview three people, sales
plastic manager, finance manager and purchasing manager.
Complicated quotation. In fact, importing process begins with asking quotation from
Mother Company. However, it has taken long days to get it. Moreover, salesman need
information to send to customers. Therefore, they often use historical data. Otherwise,
buying price may increase or decrease follow resin price, currency exchange rate and

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policy of Mother Company. In addition, the approval buying price has come from higher
bosses in Mother Company and the person in charged did not know information to follow.
The selling price fitted when Srithai Vietnam get success projects and the buying price
also fitted when the boss approved. However, buying price has come in importing process
is different, often higher than approved price. Consequences, first step in importing
process meets vague information lead to loss profit and unclear who is in charged and
responsible for this job that is also unclear job description.
Slow transaction. Slow transaction is the weakest in importing process. The cause
leads to slow transaction is employees unclear process. Job of sales department and
purchasing department often overlap together. That is a main reason make lead time
delivery last longer around ten to twenty days. Srithai has paid more money for
breaking delivery term condition in contract with customers. Moreover, company lost
much money because of customer’s services. In specific, when products came late,
company had to borrow wooden pallet for customers keep their raw material or goods
or we paid fee for keeping them in container in the port because it could not unload
without plastic pallet with hygiene customers. Another experience is we had to ship
by trucking from Amata industrial park in Norkon to Hung Yen province in Vietnam
because of late delivery. It costed three-thousand-dollar compare with one hundred
fifty-dollar ship by sea. That became legend lesson in company in 2017. That is
reason most customers are not satisfied with Srithai Company. Finally, slow
transaction lead to last importing process, therefore, increasing cost very much suffer
seriously bottom profit.
Ineffective control cost. The management in company is quite weak. First thing is
finance raise caution that company get loss when it has already happened. Second
thing is purchasing department in Srithai Vietnam could not communicate well with
exporting department in Mother Company. Third thing is sales department does
process from asking quotation and negotiate price by themselves without support
from purchasing and finance department. Thus, three departments work separately
lead to failing project rate is high in 2017 and half year in 2018.

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Relationships between departments are not good. It could be seen that
communication system in Srithai is ineffective both sides internal and with Mother
company. Firstly, the main route contact stuck between purchasing department and
exporting Thailand. Thus, they have gotten information slowly such as quotation,
booking vessel, importing document, estimate delivery date, etc. That leads many
mistakes in making selling price, confirming delivery date with customers in
Vietnam. Therefore, it suffers strongly commitment between sales and customers.
More than that, it affects really to company reliable. Secondly, communication in
company is too low. The departments work separately, therefore, lead to shortage
useful information in controlling cost. They will finger point when problems come
and no single responsibility for specific job that exist long time in Srithai culture.

Potential
Complicated Slow Unclear process
quotation process transactions
central problem
Ineffective
slow importing
process
internal
communication
Ineffective
control cost
Relationships between
departments are not good
Figure 5: The initial cause effect map
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Organizational symptom
Gross profit
decreases
Low customer’s
satisfaction
Failing project
rate is high

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2.2.2 The second tentative problem: Weak leadership
Updated cause-effect map
There are many previous studies present that effective internal communication
impacts strongly to enterprises (3). Internal communication is seen blood of
organization. In specific, it connects and guides each member in enterprises follow
one goal that is maximum profit and success. Moreover, it creates good working
environment for all employees. Therefore, ineffective internal communication affects
significantly to successes of business.
It could be said that ineffective internal communication has closely relationship with
weak leader. According Holá, J “the comprehensive content of internal
communication is realized within leadership” (4). Moreover, Bucata, G., & Rizescu,
A. M presented that managers play a role as leaders in company, they spend 45% of
time for communication with teammates, 45% of time for contact other colleagues
in company, rest of 10% of time for connect with their boss (5). Thus, it could be
said that roles of leaders are very vital in communication chain in organization. They
can take initiative in creating information that is impact directly to business.
In many previous researches show that employees are the most important asset of
company. No matter what you have the best strategy, rich capital, you could not be
successful with weak human resource. Zondi et al., described that the office life today
is very contrasting of before (6). Company work with less employees, longer working
time, and more workload. Moreover, the performance gets more attention for
appraisal than before. Thus, employees’ life meets more pressure. On the other hand,
Zondi showed more information that lack of trust among employees within business
often happens (6). It comes from mistakes of management. Therefore, they could not
find believable channels to share information. Consequences, the right information
cannot come to right people. Effective outcome of internal communication is not good
that impacts seriously to working of organization as well as its success.

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The research of Garg, A. K., & Ramjee, D showed correlation of transformative
leadership and organizational commitment (7). It could be said that type of leadership
affects strongly to company success in general and to each its activities in specific.
Leadership’s impact is large and totally in business. Gard and Ramjee also discussed
more about dimensions of transformational leadership such as “idealized influence
attributes, idealized influence behaviors, inspirational motivation, intellectual
stimulation and individualized consideration” (7). Employees always look leader as
sample to follow. Therefore, any leadership behaviors will influence on employees’
behaviors such as their feeling, trust, loyalty, respect and how they try their best to
contribute to company. Finally, internal communication is the important tool to
transfer messages from top management to employees and reverse.
Abugre, J. B indicated that “quality communication in organization (e.g. timely,
accurate, useful, complete), productivity (e.g. quantity and quality of work, time to get
job done), and reduced absenteeism” (8). Business is never existence a single job. In
specific, there are many single jobs connect together as a chain in logistic. In order to
get good results, each department has to interact together well. Therefore, low cross
departmental communication will lead to shortage information between of them and
make business worse.
As previous part, low cross departmental communication lead to vague or shortage
information. Moreover, the most vital factor in making decision is relevance
information. According to Holá, J inadequate communication will impact on “team and
each members’ activities and behaviors” such as “decrease of motivation”, “indecision
– decrease of making decision ability”, “passivity”, and “frustration” (4).
Depth interview 2
Purpose: The effective of internal communication system in Srithai Vietnam company
Method: In-depth interview
In order to check literature variables which are exit in Srithai Company, it needs to
approach people who know more detail of job in Material Handling Equipment group.
Mr. Huynh Doan Cong Bang and Mr. Pham Chi Hai both are working in sales

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department and main account for sales figures. Therefore, they contact to a lot of
current and potential customers. Thus, they know quite well about this market in
Viet Nam. On the other hand, they are in process of import products so they know
detail difficulties of it. Nevertheless, Ms. Thuy Phuong is person in charge of
importing product from Thailand. Therefore, she knows well how process works.
The depth interview will be taken from August 6th, 2018 to August 9th, 2018
with three respondents from two departments in Srithai Vietnam as below:
1 Huynh Doan Cong Sales supervisor August 6th, 2018
Bang
2 Pham Chi Hai Sales supervisor August 7th, 2018
3 Nguyen Thi Thuy Purchasing supervisor August 8th, 2018
Phuong
Table 2: The second depth interview arrangement
Research findings
Complicated process. Most of respondents agree that importing products process is
complicated. Mr. Hai says that “quotation process between Srithai Vietnam and
Thailand is complicated and unclear, not have official approval document, just
approval by mouth. Thus, we still cannot control cost”. Another reason is gadget
communication between Srithai Vietnam and Mother company meeting huge
problem. It shows language is serious issue.
Slow transaction. All candidates agree there is slow transaction in working between
Srithai Vietnam and Thailand. Mr. Hai indicates that “first reason is to take long time to
make quotation for customer”. Salesman get in-put price is too late, therefore, they
cannot make quotation accuracy and effective. He also shared that “the lead-time of
delivery is too long, forty-five days, compare with our competitor such as Platinum,
Dino, their lead-time is fifteen to twenty days, moreover, and Long Thanh just takes 7

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days to delivery”. In addition, Mr. Bang added more opinion that “I often get
information not timely about price, delivery schedule, quality, etc. that make me
super pressure when customer call”. The main reasons that make to fail many projects
is complicated importing process, different language and slow transaction in internal
process.
Low cross departmental communication. All respondents agree that lack of
effective communication in work organization would affect very much on employees’
productivity. Mr. Bang shares that “the in-put price that salesman gets directly from
Mother Company is different from purchasing department”. In addition, Mr. Hai
indicated that “We don’t have clear process in internal and external”. It proves that
importing process is not only unclear but also low cross departmental communication
is low and not exact. Salesmen and purchasing person will base on two different in-
put prices in working and it leads to confused process and information. Consequences,
losing profit is issue that company cannot avoid.
Low employees’ commitment and passionate with job. As Ms. Le shares in first
interview that “The employees are not empowered so that they often wait for their
bosses solving problems, they are not initiative to deal with their issues”. Moreover,
she also indicates “there is not specific person who responsible for specific problem.
The faults often belong to group”. It proves that employees have low commitment
with their job and company. In addition, they are not empowered combine with
shortage information, they meet hard to make decision by their own job. Thus, they
are less passionate with job.
Lack of trust amongst employees. The employees show low commitment in their
job. According Ms. Le says in previous interview that “there is not specific person
who responsible for specific problem”. It will lead to lack of trust amongst employees.
Low motivated employees. Mr. Hai says that he cannot be initiative making decision
because of shortage in-put price and he gets much pressure because slow process
importing. He also shares that “the policy of company is not motivation salesman”. In
previous interview, Mr. Puripong Pinanong shared his experiences that “the policy of
company does not provide to them enough information about their career path.

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Moreover, Srithai company does not empower well to employees. Therefore, they do
not active in their job. Employees tend to finish their job; however, they are not care
much about colleagues’ job”.
2.3 The real problem: Ineffective internal communication
The updated map shows two potential problems during interviewing face-to-face in
three departments sales plastic, purchasing and finance; then reviewing literature. First
problem is ineffective communication. Second one is weak leadership. Two problems
have close relationship together and also lead to many variables.
According Hunjet et all, “Communication is crucial in all segments of company
operations, as well as in everyday life” (3). Moreover, internal communication system
significantly vital for company competitive advantages and performances. However,
internal communication system in Srithai Company is ineffective. Therefore, it
impacts on most of its daily activities, included activities of importing products
group. The process of importing is not official commitment. Thus, employees in loop
of importing process can take advantage of avoiding their responsibility. On the other
hand, low effective communication reduces trust between employees, therefore, they
will not corporate well together. That makes logistics of company will not be
controlled well. Thus, company cannot control well cost and take opportunity to get
loss.
The research of Hola, J shows that internal communication and loyalty have closely
relationship (4). An effective communication will combine all employees in company
focus one objective that create more competitive advantage and persuade them of
meaningful job.
On the other hand, leadership is extremely importance for company. However, it is very
large impact on company and structure of organization in Srithai Company. Leadership is
not only theory, but also it is practice in real life. All members of board of management
are Thai people. The structure of organization is set up by Mother Company. More than
that leadership style is to depend on knowledge, experiences and characteristic of board
of management of company. Thus, leadership of Thai board of managers is external
factor and Srithai Vietnam cannot control. However, another

23
concept of individual leadership is identified internal potential cause that
influences on all current employees in Srithai Vietnam.

Potential central
problem
Ineffective internal
communication
Weak leadership of BOD
Lack of trust amongst
employees
Weak management
Low cross departmental
communication
Low employee
commitment
Low motivated employee
Complicated process
Slow transaction
Unclear job description
Unclear KPI of profit and
cost
Weak caution system
Indecision employee
Passivity process
Slow importing
process
Ineffective
control cost

24
Organization’s
symptoms
Gross profit
decreases
Low customer’s
satisfaction
High Failing
project rate
Figure 6: The updated cause effect map

25
2.4 Problem definitions of ineffective internal communication
There are many definitions of communication term. As Manoela defined that speaker
and listener join in a dialogue with purposes notify or convince together through
exchanging signals(9). Hunjet et al research shows that “communication is an exchange
of information, ideas and feelings through verbal and non-verbal means”
(3). According Zondi et al. presents that “internal communication is communication
within an organisation and it is the lifeblood of all organisations” (6). Consequences,
internal communication in busniess is exchange of information between employees
in business in order to improve performances of employee-self and organization.
Figure 7: The internal corporate communications process
Sources: Miller, 2012.
Miller demonstrates a process of internal communication in a business clearly through
three part such as informing employees, engaging staff in dialogue and obtaining
feedback(10). The internal communication system in Srithai Vietnam is not efficient.
The influence of three parts in the circle of the map above is suitable for Srithai
situation. The first reason is low cross departmental communication, policy is poor so

26
that it may not provide enough supportive for communication system; moreover,
working process is unclear that create chance for employees to avoid their
responsibilities. Second reason is weak empowering to employees plus not motivated
them enough for engaging employees interact. Interacting is key efficient point of
internal communication in knowledge transfer and knowledge sharing(11). Finally,
employees in Srithai are not active response and feedback because of less trust
together and their opinions may be not listened.
According to Hunjet et al. (3), there are four part of internal communication
in business:
“Verbal business communications,
Written business communication,
Non-verbal business communication,
Electronic business communication”(3)
Otherwise, there is easy to misunderstand and misuse the term
“communication”. Many managers go into the trap when they try to identify
problem related to communication(12). When the real problem is mislabeled, it
easily creates an environment to managers make wrong decision on solving-
problem. Minter researched that there are four part of communication term as
Communication channels(12)
“Communication channels
Communication attitudes,
Interpersonal communication behavior and
Overall communication culture/subcultures within hierarchical structures”(12).
Basing on theory, the real problem ineffective internal communication in Srithai
related three aspects communication attitudes, interpersonal communication behavior
and overall communication culture.
2.5 Verifying the importance of ineffective internal communication
During two interviews, it could be said that ineffective internal communication is
happening in Srithai Company. First evidence is control in-put price of importing

27
products to miss between sales department and purchasing department. Mr. Puripong
Pinanong, sales manager, indicates that asking quotation from Srithai Thailand is job
of purchasing department. However, sales department often asks directly by
themselves because Vietnamese customer cannot wait long time for getting price.
Salesmen do not get timely selling price lead to reduce company competitive
advantages. He also shared that the process of competitors is faster and more facility.
Second evidence is weak to control cost lead to decrease bottom profit of importing
products group. Sales, purchasing and finance department work quite separately. Ms.
Le presents that “There is a few meetings among departments to cooperate together. I
see the meetings are hold when problems actually come and they are really big”. Each
department does not provide relevance information together so that it makes process
of importing longer and ineffective.
2.6 Verifying the existence of ineffective internal communication
Reducing enterprise’s reputation. The research of Holá, J. shows that internal
communication is used a powerful tool that connect employees and company (4).
Moreover, the study also indicates that it strongly develops “company’s reputation”.
In general, word-by-mouth is more effective than other marketing tool. When internal
communication is not good it will influence badly on working environment in
company. The relevance information will not come to right person and timely,
therefore, it makes process of work lower and ineffective. In addition, it also impacts
on employees’ relationship and their satisfaction. Thus, it affects seriously on
communication in external of company. Finally, it will not only influence on internal
organization but also external its performance as its reputation.
Declining employees ‘satisfaction and employees’ productivity. Many studies show
that internal communication has positive relationship with employees’ satisfaction. The
study of Abugre, J. B. describes that “if the organizational communication pattern is
weak, it would result in a low commitment as a result of diminished satisfaction of the
workforce, greater employee turnover, and less productivity” (8). Another research shows
positive relationship between employees’ satisfaction and organizational profitability and
productivity Fletcher, M. (13). The ineffective internal

28
communication will lead to disturb a chain of consequences that are badly for
company’s performances.
Holá, J. also indicated many results of unproductive internal communication such as
(4)
“High rate of employee turnover (fluctuation);
Ineffective coordination of all activities of the company;
Failing to reach the company’s target;
Ineffective target and strategy;
Ineffectiveness in marketing;
Inability to compete”(4)
Depth interview 3
Purpose: Finding evidences for proving importance of existence problem.
Method: In-depth interview
Mr. Puripong Pinanong and Ms. Tran Thi Tuyet both are chosen to join interview
because they are manager and have worked in Srithai for 5 years so that they have
knowledge of management and Srithai business. There are few consequences such as
high turnover rate, low employee’s satisfaction and low company’s productivity
which related to human resources management. In addition, Mr. Puripong Pinanong
is suitable candidate for this interview because some point such as company’s
performance and reputation. Thus, his opinions will be useful for this research.
with two respondents from two departments in Srithai Vietnam as below:
1 Tran Thi Tuyet HR department manager August 15th, 2018
2 Puripong Pinanong Sales Manager August 16th, 2018
Table 3: The third depth interview arrangement

29
Research findings
Reducing company’s reputation. It could be said that profit of importing group has
been influenced seriously for 2 years. In specific, actual amount of sales is decreasing
in quarter one and two in 2018 and the trend is keep going. The budget of 2018 is
quite different from actual sales. That impacts strongly to Srithai Vietnam’s
performance in general and Material Handling Equipment group especially in Srithai
Group in the world, Mr. Puripong Pinanong said. He also indicates that reducing
company’s performance will affect negative on company’s reputation. Therefore, it
makes investment capital from equities reduce.
A bad working environment. On the other hands, Ms. Tuyet shows that ineffective
internal communication involves many negative results for company. Firstly, it
impacts directly on new comers. The relevance information such as policy, history,
strategy, description and guideline of job, etc. These documents provide enough
essential basic information to them. New comers will adapt their job better and faster.
In addition, the factors influence much on new comer is support of her or his
colleagues. They will coach and support to her. The spirit of supporting of employees
in company will create atmosphere working environment. If atmosphere working
environment is good, it will create extraordinary performances of company through
employees’ performance. Otherwise, if atmosphere working environment is not
good, it will disturb every activity in organization.
Reducing productivity of employees, employees’ satisfaction and increasing rate
turnover. Secondly, internal communication in Srithai Viet Nam is not fluent.
Specially, there is no single responsibility in Srithai, the mistakes are belonging to
group and employees often finger-point together. This environment is not good for
create working spirit and employees’ spirit. Thus, productivity of employees
reduces, therefore, impacts directly negative on employees’ satisfaction. Finally, the
rate turnover also increases.
2.7 Causes and Effects chart of real problem: Ineffective internal communication in
Srithai Vietnam company

30
Different language. Nowadays, economic integration is a trend of economic global.
Many giant companies have subsidiaries in many countries such as Pepsi, Cocacola,
Apple, Samsung, SCG, etc. Besides many advantages of saving cost of labor, tax,
distributions network, etc., there are also many disadvantages as conflicts of culture,
communication, legal, spread of knowledge, etc. Number of researches presented that
various language in company influences on most of management decision of
international enterprises(14). In multinational organization the process knowledge
transfer and knowledge sharing are emphasized to apply and attention. Moreover,
internal communication is a key tool of process knowledge transfer and knowledge
sharing(11). Therefore, language is key factor to transfer knowledge and strategies
from Mother company to subsidiaries. Another study showed that different language
is huge barrier on creating trust in diversity teams(15). This point is impacting in
Srithai Vietnam context about transfer strategy from Mother company and
relationship between Thai bosses and subordinates.
Inadequate motivation to employees. The research of Grynko indicated that well-
motivated employees is a key to successful and developed company(16). The
employee motivation is chain of activities of organization external and internal in
order to engage and encourage employees to try their best effort to reach KPI and
performance for them and company. The external motivation consists salary,
benefits and bonus. The internal company is defined satisfaction, enjoying job,
challenges, be appreciated and recognized, etc. To Srithai case, inadequate
motivation to employee express clearly on internal motivation as satisfaction,
enjoying job, appreciated and recognized.
Weak teamwork skill. Nowadays, developing rapid of technique makes environment
non-stop changing. The huge of work is accomplished by teams(17). Teamwork is
combined knowledge, skill and attitude of each member in a particular team to
complete a predetermined goal(18). The competencies of team are presented by
quality of interacts and combination of each member together(18). Therefore, weak
teamwork skill means that each member cannot connect well together during three
factors as knowledge, skill and attitude. Then they cannot present accomplish by team.

31
Weak individual leadership. Individual leadership is call personal leadership.
Personal leadership is considered as a significant element in management today(19).
Freidman defied personal leadership through a person have leadership vision.
Leadership vison concentrates three factor as the importance thing, living goal and
desire(20). According to Klagge, personal leadership emphasized four aspects such as
“mental, emotional, volitional, physical and spiritual boundaries”(19). In specific, he
also demonstrated characteristics of personal leadership behaviors as:
“creativity;
effectiveness;
use of facts and data;
quality of work;
meeting of deadlines;
implementing of
solutions; efficiency;
use of sound method;
being goal-driven;
quantity of work; and
being dependable”(19).
Weak individual leadership in organizational area in Srithai is expressed
clearly during previous analysis. They are irresponsibility, finger-point together
and explanation for their faults often.
CHAPTER 3: ALTERNATIVES ANALYSIS AND POSSIBLE SOLUTIONS
3.1 Verify causes of the real problem
Depth interview 4
Purpose: Exploring causes of real problem: ineffective in internal communication in
Srithai company.
Method: Depth interview

32
Mr. Withawin Laohakivjtoon and Mr. Do Quoc Tu both were suitable for joining this
interview. Although Mr. Withawin has just worked in Srithai for more two year and
he is twenty-seven years old; however, these points are his advantages. He is young
and dynamics. He dares to think and do. He has observation and critical thinking. The
most important reason that make him suitable for this interview is he is still new in
Srithai. He is still in time to learn and decide what are suitable for him, his career
path. Therefore, the culture and the points of view of people in Srithai are still not
absorbed by him. About Mr. Tu, he is also suitable for this interview because he has
worked in Srithai for twelve years. He knows everything and relationship in Srthai
Vietnam. His experiences are very important and useful for thesis.
with two respondents from two departments in Srithai Vietnam as below:
1 Withawin Executive Business August 26th, 2018
Laohakivjtoon Development
2 Do Quoc Tu Assistant to Director August 27th, 2018
Table 4: The fourth depth interview arrangement
Research findings
During of an interview, different language is not a real cause in internal Srithai
Vietnam. However, it is a real issue impact seriously on transaction with importing
orders. Any misunderstanding will lead to produce wrong products. Thus, it does not
reach customers’ need and their quality. It will become a big problem if customer
deny to receive products and ask for pay contract fee. The issue will be serious when
it influences on company reliable. [them theory]. Mr. Withawin said that “The key
person of Mother company who Srithai Vietnam often contact is weak English but
whole dialogue is presented by English. Therefore, some big misunderstandings
have happened”. Although this reason is belonging to Mother company but it is
impacting on MHE group seriously. It makes the importing process more stressfully.

33
It could be said that employees are weak team work skill; therefore, they don’t have
skill to communicate and solve conflicts together. [theory about team work skill]. Mr.
Withawin shared that “the quality of each communication is key point to impact on
quality of transaction, quality of works. The spirit supporting of employees is low.
Obviously, they have finished their job but they are not put more efforts. I see that
they are weak team work skill”. Mr. Tu also presented that “Fifty percentage of
employees have family relationship. So, they often avoid together and show their
points. Most of employees have worked as their description and just that, they do not
care much about process”.
The interview also showed that Srithai has an inadequate motivation working
environment. Firstly, Srithai company has fifty percentage employees have
relationship in family. Besides, they know each other well, it creates very good
supportive. However, these nesting relationships are becoming barriers of Srithai
development. They avoid to problems and conflicts that related together. Mr. Tu said
that “The spirit of supporting between employees is low. I think the reasons are
motivation. Even you work less or more, you just get same salary, not bonus or
complements or prize”. In the first interview, Mr. Thanh also indicated this point. He
said that “working environment in Srithai is quite complicated and have many benefit
groups”; in addition, ‘Srithai contains many relationships as family. Thus, it has
impacted much on working environment here’. Another evidence is Mr. Tu said “Fifty
percentage of employees have family relationship. So, they often avoid together and
show their points. Most of employees have worked as their description and just that,
they do not care much about process”.
Final cause is weak leadership. Mr. Withawin presented that there are two types of
weak leadership in Srithai Vietnam company. He said that “each department tend to
work separately. The connect of them in a project is low. Therefore, it could be seen
that leadership of Thai members in Board of Manager is weak”. Most of interviewer
agreed that departments of Srithai Vietnam tend to work separately. In the second
interview, Mr. Hai told that “cross communication of department in company is low”.
Moreover, Mr. Withawin and Mr. Tu agreed that “Most of Thai members in Board of

34
Manager are over sixty years old. So, their style is more traditional, low dynamics and
avoid risk”. They depended too much on commands of Mother company.
Another type of weak leadership is weak individual weak leadership. This cause is not
only existing on office employees but also in every employee in Srithai Vietnam plus
member of Board of Management. Mr. Withawin indicated that “Influencing from
weak leadership of BOD, leadership of leader level is also weak. It leads to low spirit
individual leadership too. I think that it become culture of company in long time. And
now it is too hard to change or improve”. Consequences, the combination of both type
of weak leadership is constraining development in Srithai Vietnam. Mr. Tu described
that “The weak leadership both sides connect together creates culture less spirit
support, cooperating, working, improving, novating and moving forward in Srithai
Vietnam”.
3.2 Main cause of the problem: weak individual leadership
During four interviews, most of respondents showed three impressive characteristics
of employees in Srithai Vietnam. Besides, they are sympathy, finish their job follow
description. However, three points are constraining development of Srithai Vietnam
seriously. First point is no single responsible. In the first interview, Ms. Le said that
“The employees are not empowered so that they often wait for their bosses solving
problems, they are not initiative to deal with their issues”. She also mentioned that
“there is not specific person who responsible for specific problem. The faults often
belong to group”.
Most of interviewers agreed that working environment is not good. Although working
load is normal so that it does not put much pressure on employees. However, spirit of
supporting, cooperating, working, improving, novating and moving forward in Srithai
Vietnam are slow, Mr. Tu said. On the other hand, Mr. Withawin showed two factors
express the quality of communication between employees. There are frequencies and
quality of interacts between employees. He indicated that frequencies of interacts
between employees is high; otherwise, the quality of them is low.
Final point is they often finger point and explain for their faults. Those action are
symptoms of avoiding responsibility. Three points connect together create bad

35
organizational culture. That does not only constrain sustainable growth for Srithai
Vietnam but also threat to ability of survive in non-stop changing and unpredictable
environment nowadays.
Three characteristics are consequences of main real cause weak individual leadership
in Srithai Vietnam company. The thesis focuses on the weak individual leadership. In
previous part, it is showed that All members of board of management are Thai
people. The structure of organization is set up by Mother Company. More than that
leadership style is to depend on knowledge, experiences and characteristic of board of
management of company. That is external factor and Srithai Vietnam cannot control.
However, in other aspect it could be said that board of managers are the key people
lead to Srithai Vietnam. Each of them is an employee of Srithai Vietnam. Leadership
contributes to the success of organization through its action and support in bringing
about organizational learning. If each individual in Srithai has leadership spirit it will
create success and sustainable growth for Srithai Vietnam.

Potential Causes
Different language
Inadequate motivation to
employees
Weak teamwork skill
Weak individual leadership
Validated Problem
Ineffective
internal
communication
Figure 8: The final cause-effect map
36
Organizational symptoms
High failing Gross profit
project rate decreases
Low customers’
Satisfaction
Validated consequences
Reducing enterprise’s reputation
Declining employees’ satisfaction,
employees’ productivity
High rate of employees’ turnover

37
3.3 Possible solutions
3.3.1 Solution 1: Applying ROFO principle in office departments in Srithai
Vietnam
Introducing ROFO principle of Mr. Ah Bee Goh, COO of Schaffner Thailand
company.
The content of ROFO principle is(21)
R: Responsibility
Ownerships
Focus
On-time corrective action
Mr. Ah Bee Goh, COO of Schaffner company, emphasized that ROFO is not only a
deeply perception of management, but also powerful tool to deal with issues(21).
Moreover, it is a useful “guiding principle for the working behavior of the staff”(21).
He also mentioned that “it encourages employees to self-internalize and to self -
motivate themselves so as to own the total process until the desired outcome is
achieved”(21). Three factors ownership, focus, and on-time corrective action connect
and boost together in continuously circle. That process creates cooperation and
learning. The continuous cycles of ownership, focus, and on-time corrective action
result in cooperation and learning. Consequences, Mr. Ah Bee Goh indicated that
“outcome is attained with enthusiasm, passion and without blaming others”(21).
Key factors that can be achieved with ROFO in training, applying and reflecting are
Ownership Mindset
o Once every staffs in the process own the process together. Everyone takes their
tasks seriously.
o There will be no more smart talk, excuses, finger-pointing and etc.
Cooperation and Trust
o Owning the process together means they are on the same team.

38
o ROFO also emphasize not blaming other people, but fix the problem first
and in a very good-mannered way remind those people not to repeat the same
mistake. This will introduce trust and future cooperation among staffs.
Willingness to Learn Mindset
o The commitment to come up with on-time corrective action and
improvements in the process is a learning process.
o And with the ROFO mindset to ensure that this will be done every day
and every time, the learning process will go on continuously.
Gino and Staats also mentioned in their article “Why Organizations Don’t Learn?” to
overcome the conditions that impede learning, there are actions would help to
resolve the issue which includes:
Increase awareness and engage workers(22)
Encourage workers to own the problems that affect them(22)
Give workers different kind of experience(22)
Empowering workers to use their experience(22)
These actions fit well into the ROFO model proposed by the author’s view by
supporting staffs’ willingness to learn and ownership mindset. Once each employee
as leadership drives ROFO. ROFO will creates the organization culture that support
learning with ownership, trust, and the willingness to learn.
The solution one is only suitable in Srithai Vietnam case. First reason is similar
between Schaffner and Srithai company. Schaffner has factory and office around on
the world such as in Kecskemét (Hungary), Lamphun (Thailand), Shanghai (China)
and in Wytheville (USA). ROFO was the first applying in Thailand factory. ROFO is
gold lessons which Mr. Ah Bee Goh learn through whole his life. He sees humans is
central of any action. People is original of changing. The first time Mr. Ah Bee Goh
came to Schaffner Thailand, its situation is quite same with Srithai Vietnam currently.
The working environment is worse and constrain employees and company to
performance. The worse habit in working environment as finger-point, irresponsibility
and explanation became culture in long time of Schaffner in Thailand. Schaffner
worked slowly and slowly. Nowadays, Schaffner Thailand is icon of strongly

39
changing in Thailand. No one does not know about this case after applying ROFO.
Recognizing the same context between Schaffner Thailand and Srithai Vietnam,
ROFO principles should apply in Srithai Vietnam case.
CHAPTER 4: ACTION PLAN FOR SOLUTION
4.1 Objective:
The purpose of applying ROFO principle in office depatments in Srithai Vietnam.
ROFO is a set working principles (mindset) and by getting staffs to adopt
this mindset as their own is, in effect, to create a new corporate culture.
Leadership committed to Companywide training and learning keep staffs at all
levels equipped with the appropriate knowledge required in successfully
implementation of the intended Strategy
4.2 Timeline:
As can be seen in the table 1, timeline for each task will be applied in 2019 as follow:
Action 1: Training ROFO principles
The first step should be training for whole office employees of each department. Mr.
Ah Bee Goh will be invited to train for Srithai Vietnam employees. He is a great
father of ROFO principles so that he has extraordinary inspired for whole listeners.
Moreover, he will also be invited to consultant during applying ROFO principles
period in Srithai in 2019. The training will be conducted on December in 2018 in
order to prepare for changing of company in 2019. Mr. Ah Bee Goh will train in the
first time in December 2018. Another training in quarter of 2019 will be conducted
by member of board of managers of Srithai Vietnam.
Action 2: Evaluating effectiveness of conducting ROFO principles
Evaluating effectiveness of conducting ROFO principles will conducted by three
methods. First method is to evaluated 360 degree. It will carry on in whole department
level every three month. It will show improvement in whole office department in
quarter. Two other methods are to evaluate a peer and self-evaluating. It will be

40
applied in each department in order to reinforce each employee knowledge of ROFO
and apply it daily working day. It helps to build habit to use ROFO of employees.
Action 3: Encouraging employees conduct ROFO principles
In order to encourage employees to conduct ROFO principles, appraisal program will
manage two level as whole office department and each department. With whole office
department level will handle each quarter. With department level will operate in each
department.
Level Prize Recognition
Office 1,000,000 vnd 3 months
Department 200,000 vnd 1 month
Table 5: The prize and recognition of appraisal level
Office level. It will be conducted each quarter. There is only person of each
department is voted follow 360 evaluation degree to get this prize. Besides, prize is
one million dong employee will be sample in three month for whole company.
Department level. It will be handled monthly in each department. There is three
people are voted follow evaluate a peer will get a prize. The prize is two hundred dong
and employees will be sample in a month of their department.

41
No. Action
2018 2019
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Action
1 Training ROFO principles
1.1 Preparing
1.2 Training ROFO principles
Evaluating effectiveness of
Action
2 conducting ROFO
principle
2.1 Evaluating 360 degree
2.2 Evaluating a peer
2.3 Self-evaluating
Action
3
Encouraging employees
conduct ROFO principles
3.1 Appraisal

3.1.1
42
Department level
3.1.2 Whole office level
3.2 Recognition
3.2.1 Department level
3.2.2 Whole office level
Table 6: The timeline for implementing set solution 1

43
CONCLUSION
In conclusion, ineffective internal communication is definitely the main problem that
lead to some serious issues in MHE group products such as reducing profit,
decreasing customers’ satisfaction and high failing project rate. Moreover, it also
leads to decline significantly reliable of company in trading pallet and container field.
Furthermore, it builds a worse working environment in Srithai where employees are
low satisfy with their job, not enjoying and not appreciated and recognized. Many
analyses were conducted. Main cause of problem is defied weak individual leadership.
ROFO principles are recommended to apply for solving this main cause. Although it
is very suitable for this context; however, it still has limited about resources and
ability to conduct.

44
SUPPORTING INFORMATION
Interview guide
GUIDELINE 1
Topic The reasons that impact on profit, customer satisfaction in MHE group
Venue No.2, Street 2, Di An Ward, Di An district, Binh Duong province
Time 16 pm, Friday, July 27, 2018
Interviewer Nguyen Thi Thuy (ID: 22160052)
Interviewee , Srithai Vietnam Company
I want to thank you for taking the time to meet with me today.
My name is Thuy and I would like to talk to you about your experiences with the reasons that impact
on profit, customer satisfaction in MHE group.
The interview should take about 20 minutes. I will be taping the session because I don’t want to miss
any of your comments. Although I will be taking some notes during the session, I can’t possibly write
fast enough to get it all down. Because we’re on tape, please be sure to speak up so that we don’t miss
your comments. All responses will be kept confidential. This means that your interview responses will
only be shared with research team members and we will ensure that any information we include in our
report does not identify you as the respondent. Remember, you don’t have to talk about anything you
don’t want to and you
may end the interview at any time.
Are there any questions about what I have just explained?
Are you willing to participate in this interview?
1. Personal information. Your job/responsibility/position within the company.
2. How long have you worked with Srithai company? How do you feel about its working
3. According to report of half year 2018, Company is reducing profit in 2017 and half of
year 2018, especially, importing plastic group. In your opinion, what are the reasons that
make importing plastic group get loss in a year and half?

45
4. According to customer’s satisfaction report 2018 of ISO department, it is not good,
especially delivery on-time rate is just fifty percentage. It is too low. Do you think that
and what is your opinion about reasons lead to this problem?
5. The failing project rate is very high as fifty percentage in 2017, do you think what the
reason of this problem?
6. Do your company have motivation program for employees? If the answer is yes, could
you tell more information of program? If the answer is no, could you share your opinion
of reason that company does not have motivation program for employees?
7. Who do you think that should responsible for loss profit? Why?
8. After any projects, normally there is a meeting to review totally it, what is good and not
good, learn lessons. However, importing group plastic get loss in a year and half. Do your
company have control effective cost system?
9. Are your employees clear their job description?
10. Do you want to share more information?
GUIDELINE 2
Topic The effective of internal communication system in Srithai Vietnam company.
Time 16 pm, Saturday, July 28, 2018
Interviewer Nguyễn Thị Thủy (ID: 22160052)
My name is Thuy and I would like to talk to you about your experiences in the effective of internal
communication system in Srithai Vietnam company.

46
don’t want to and you may end the interview at any time.
11. Are you willing to participate in this interview?
14. Gross profit of importing products group has decreased since 2017, do you think what the
reasons are?
15. The failing project of importing products group rate is very high, do you think what the
reasons are?
16. Do you think that lack of effective communication in work organization would affect
employees’ productivity? How are its affects? Could you share some experiences?
17. What are your difficulties in your job? Do your boss and your colleagues support you?
18. Are you initiative to make decision in your job? If answer is no, what reasons are in your
opinion?
19. What are your opinion about cross communication of department in company?
20. How do you think of effective of sharing information between departments?
21. Are you clear your department’s KPI and your description job?
22. How do you think of effective of leadership in company? Prompts: making decision
ability, persuade ability, motivation employees, listening, etc.
23. Are you easy to tell your boss your idea or improvement?
GUIDELINE 3
Topic Finding evidences for proving importance of existence problem.
Time 16 pm, Wednesday, August 15, 2018

47
My name is Thuy and I would like to talk to you about your experiences in finding evidences for
proving importance of existence problem.
27. What are your opinions about effect of ineffective of organizational communication?
Prompt: company performances, company reputation,
28. How do ineffective of organizational communication impact on shareholder and
stakeholder of company?
29. What effects of ineffective of organizational communication to working environment in
Srithai?
GUIDELINE 4
Topic
Exploring causes of real problem: ineffective in internal communication in Srithai
company
Time 17 pm, Monday, August 26, 2018
Interviewee Srithai Vietnam Company

48
My name is Thuy and I would like to talk to you about your experiences in exploring causes of real
problem: ineffective in internal communication in Srithai company.
don’t want to and you
may end the interview at any time.
3. What are your appreciations about internal effective communication of office? Prompt:
exchanging information between departments, spirit of supporting between employees
and departments, communication between foreign managers and Vietnamese people,
communication between employees in Srithai Vietnam and Mother company, etc.
4. What are your opinions about leadership in Srithai Vietnam? Prompt: spirit leadership in
Srithai Vietnam of BOD, leaders and employees, etc.
5. Workshop in July 2018 showed three points are happening in Srithai Vietnam. There are
finger point together, no single responsible and explaination. So what are your opinions
about these points? And what are the reasons?

49
Interview transcript
Three transcripts for the first round of depth interview
TRANSCRIPT 1
Interviewee Nguyen Thi Le – Purchasing Manager, Srithai Vietnam Company
Interviewer: Are there any questions about what I have just explained?
Respondent: No
Interviewer: Are you willing to participate in this interview?
Respondent: Yes
Interviewer: Personal information. Your job/responsibility/position within the company.
Respondent: I am Le, working as purchasing manager in Srithai Company.
Interviewer: How long have you worked with Srithai company? How do you feel about its working
environment? Prompts: support policy of company, style of managers, attitude of employees in
working, etc.

50
Respondent: I have worked here for 7 years. So i think that it is enough time for me to adapt and
understand environment in company like policy, style of my bosses, what they expect to me. In
addition, I see that workload is quite slow, it has not prevented problem before it happens. Most of
case like problems happen then it will be solved very slowly later. The employees are not empowered
so that they often wait for their bosses solving problems, they are not initiative to deal with their
issues.
Interviewer: Why do they wait for their bosses solve problem?
Respondent: As I see they want to avoid their responsible. And I saw that there is not specific person
who responsible for specific problem. The faults often belong to group. Therefore, the policy of
appraisal and punishment is weak. It does not support for fair and improvement.
Interviewer: According to report of half year 2018, Company is reducing profit in 2017 and half of
year 2018, especially, importing plastic group. In your opinion, what are the reasons that make
importing plastic group get loss in a year and half?
Respondent: I think that company got loss because salesman sold price lower than break-even. In
addition, the KPI of sales is revenue, therefore, I guess they just follow the target and do not care
much about bottom profit line.
Interviewer: Why do salesman sell under breakeven? Do they know breakeven point? Or Are they
supported enough data for controlling cost?
Respondent: As I say they may follow their goal more than bottom profit line. It may be they do not
have enough data for controlling cost. I remember a case like when products come the port, we have
already gotten commercial invoices, and it is different from quotations that we got before.
Interviewer: Why is the buying price different from quotation?
Respondent: As my experiences, in importing product group, sales department contacts directly with
big bosses in Mother Company follow each projects. And purchasing just get buying price from them.
However, the commercial invoices show price is different.
Back on previous question, i think salesmans know breakeven point, however, they do not have
enough information for control.
Interviewer: According to customer’s satisfaction report 2018 of ISO department, it is not good,
especially delivery on-time rate is just fifty percentage. It is too low. Do you think that and what is
your opinion about reasons lead to this problem?
Respondent: Yes, I see that the delivery on-time rate is very low and i am quite surprise about this
information. Actually i do not know about sales reports. I think there are 2 reasons lead to this issue.
Firstly, objective reasons are outside factors such as weather, accidents on cargo, season of import-

51
export, in high season, the traffic in a port is often happen or delay by forwarder is normal; all of them
are outside factor that we cannot control. Secondly, subjective reasons are complicated import
process. The policy of lead-time of importing product is thirty days, however, it is seem not enough,
some reports show lead-time more than forty five days.
Interviewer: Why does the lead time last longer compare with official commitment?
Respondent: In fact, this process depends upon production in Mother Company very much.
Moreover, contact between Srithai Vietnam and Thailand is very low such as asking quotation,
confirmation status of production, booking vessel, release commercial invoice, payment, etc. The
transaction between Srithai Vietnam and Thailand is very low.
Interviewer: The failing project rate is very high as fifty percentage in 2017, do you think what the
Respondent: There are many reason lead to fail projects in import products group. I thinks most of
reason belong to sales department. How they approach them, how they quote customers, and how they
keep contacting them, etc.
Interviewer: Do your company have motivation program for employees? If the answer is yes, could
you tell more information of program? If the answer is no, could you share your opinion of reason
that company does not have motivation program for employees?
Interviewer: I see most of employees are payed thirteenth month salary, insurance, vacation once per
year, and little gift on Women days. Are those company’s activities that you say motivation program
for employees, aren’t they?
Respondent: No, they aren’t. I mean that coaching of job, pay more for improvement ideas,
promotion career, etc.
Respondent: It is seem suddenly in Srithai Company. They have never pay more for improvement
ideas, they do not have clear policy about promotion career for employees.
Interviewer: Who do you think that should responsible for loss profit? Why?
Respondent: As I share previous question, sales department should responsible for this issue. They
provide to us in-put, buying price, to make a deal between Srithai Vietnam and Thailand. However,
the official price from Mother Company is higher than it. Therefore, they should responsible for
losing profit.
After any projects, normally there is a meeting to review totally it, what is good and not good, learn
lessons. However, importing group plastic get loss in a year and half. Do your company have control
effective cost system?

52
Actually, it should have this process to review and learn lessons and prevent problem. However, there
are a few meeting among departments to cooperate together. I see meetings are hold when problems
actually come and they are really big. It is style of BOD in company.
Interviewer: Are your employees clear their job description?
Respondent: My subordinates are quite clear their jobs. However, sometime the workload is high and
some of them are pressure, so that they will be not careful.
Interviewer: Do they often argue together?
Respondent: Yes, they do, however, it is normal in office life, doesn’t it?
Interviewer: Do you want to share more information?
Respondent: No.
Interviewer: Thanks you very much for your taking time to join this interview.
TRANSCRIPT 2
Interviewee Puripong Pinanong – Sales Manager, Srithai Vietnam Company

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Interviewer: Are there any questions about what I have just explained?
Respondent: No
Interviewer: Are you willing to participate in this interview?
Respondent: Yes
Interviewer: Personal information. Your job/responsibility/position within the company.
Respondent: I am Puripong Pinanong, working as sales manager in Plastic business unit in Srithai
Company.
How long have you worked with Srithai company? How do you feel about its working environment?
Prompts: support policy of company, style of managers, attitude of employees in working, etc.
I have worked in Srithai company for fifteen years, 10 years in Srithai Thailand and 5 years in Srithai
Vietnam. It could be said that Srithai Thailand is in top ten biggest company in Thailand. They do
business in many fields such as bank, hotel, restaurant, resort, real-estate and plastic industrial. They
build many factories around the world, in India, Vietnam, Malaysia, China, Cambodia, Lao,
Philippine, Thailand and many representatives in Europe and America. Generally, Srithai Vietnam get
many advantages of full capital and technology from Mother company. There are many experts in
Mother company go to Srithai Vietnam frequently to support technology. Board of manager in Srithai
Vietnam are Thailand people. Therefore, management is quite same with Mother company. Thus,
culture in Srithai Vietnam also quite same with Srithai Thailand.
It could be said that working environment in Srithai is low, not much pressure put on employees.
However, the policy of company does not provide to them enough information about their career path.
Moreover, Srithai company do not empower well to employees. Therefore, they do not active in their
job. Employees tend to finish their job; however, they are not care much about colleagues’ job.
Currently, in Srithai Vietnam have three main problems. First is finger point together. Second is no
single responsible. Final is explanations. Actually, it is not only happening in Srithai Vietnam but also
whole Srithai group.
Interviewer: According to report of half year 2018, Company is reducing profit in 2017 and half of
year 2018, especially, importing plastic group. In your opinion, what are the reasons that make
importing plastic group get loss in a year and half?
Respondent: As analysis it could be said that in-put is not good, therefore, we lost in period 2017 and
first half 2018. Pallet and container are new with Srithai Vietnam. We made market in 2 years to get
first customer. We met many disadvantages such as cost of importing, environment like price of resin,
rate of exchange. Those factors have made cost of in-put higher.
Interviewer: Why does rate of exchange impact on in-put?

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Respondent: The transaction between Srithai Vietnam and Mother company is THB currency.
Unfortunately, from August 2017 to now, THB is increasing from 630 to 740. This factor made us
lost profit, some projects and current customers.
Another reason is sales team shortage information to control in-put. Normally, we don’t get enough
information timely so that we don’t make quotation well. Salesman also complained many times to
me about quotation process. It made them in passive to control the deal with customers. Mother
company do not have frame of price to us. The importing process runs too low so that they do not get
earlier in-put price to make selling price to customers in Vietnam market. Therefore, most of cases
salesman based on historical data to make quotation to customers. However, in-put price may change
because of price of raw material change”.
Interviewer: According to customer’s satisfaction report 2018 of ISO department, it is not good,
especially delivery on-time rate is just fifty percentage. It is too low. Do you think that and what is
your opinion about reasons lead to this problem?
Respondent: We have good sales team. They know the market and have many relationships this
plastic industry. We have reached many orders. The late delivery would happen; however, I never
think that the rate is fifty percentage. It is real big issue that become huge barrier of importing
products and overcome.
Interviewer: What reasons do you think?
Respondent: I think there are two reasons. First reason is it depend on season. Normally, most of
order will come in quarter four of a year. It is quite same in Thailand and Vietnam market. Most of
company will be clear purchasing budget in this period. Therefore, this situation has made tight
capacity for Srithai Thailand’s factory in Amata industrial. We have one biggest factory with 117
injection machines, capacity 45000 tons/year. We produce for in and out domestic. Thus, quarter four
is hard period with factory. Second reason is process importing is complicated and take time. It wastes
of us much time to get in-put price, delivery. Consequences, it impacts seriously to our advantages
competitive in the market.
Interviewer: The failing project rate is very high as fifty percentage in 2017, do you think what the
Respondent: When we traded plastic pallet and container, we met biggest barrier is price. We pay for
importing cost quite high. Our biggest competitor is Long Thanh, a local company. However, we have
advantage of various model and warranty policy. The main reason leads to high rate failing project is
not shortage information about in-put like buying price, schedule of delivery, information of
characteristic of mold, material, etc.

Ineffective Internal Communication Of Importing Process In Srithai Limited Company.doc

Ineffective Internal Communication Of Importing Process In Srithai Limited Company.doc

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