Leadership Final Term Assitment.

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LEADERSHIP
FINAL TERM ASSIGNMENT

TOPIC: “What are the key factors that leaders of young companies in Vietnam with two years of operation need to pay attention so as to achieve sustainable success? Please specify.”

STUDENT NAME: NGUYỄN THÙY TRANG

STUDENT NUMBER: 18110027

PROGRAM: MBA – 03

Hanoi, December 2018

eeping up with the trend of the world, the Startup movement in Vietnam has been developed strongly in the past few years. The source of money from domestic investors, investment funds and specially from foreign investors into start-up companies in Vietnam are more and more increasing, showed that Vietnam's start-up environment is quite clearly. [pic 2]

Currently, the volume of money investment is gradually increasing year by year and uninterrupted. Specifically, in 2014, there were only 28 deals poured into the country, in 2015 there were 67 start-up projects with the amount of capital being poured up to USD 137 million. 2016 is 50 projects but the investment amount is up to 205 million USD. And in 2017, the number of start-up projects was invested up to 92 and the total investment value was 291 million USD. In addition to foreign venture capital funds, many domestic enterprises and investment funds also started to have big deals. Upto now, the number of start-up businesses reached 18,000 firms. Especially, startup at IT field is considered one of the peak in this trend. However, in developed countries often have good Startup ecosystems. When there are good ideas, good models, the whole ecosystem can support startups (Business models, providing capital – using capital, guiding operational management skills, marketing strategies, brands, participation of investors ... ...). In contrast, Vietnam is a lack of a sustainable ecosystem to support young people Start-up. The start-up problem of Vietnamese young people is currently facing many difficulties because of the reverse process of countries, which makes Vietnamese people start their businesses more slowly. With many current limitations, Startup Vietnam is very difficult to call for investment capital, there are no reputable mentors. Startup’s leaders, besides passionary, must know how to operate, understand about legal, and financial problems to create a successful.

We can affirm, Startups always start with passion, new ideas, they are passionate and highly creative. However, Start-up is not just an idea, it must include stages: Discovery > Validation => Efficiency => Scale

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According to the start-up support department, 80% of startups cannot survive more than two years, the first part of Startup, from Discovery to Validation. The first two years seemed to be the hardest, and in these two years it could even kill the original startup ideas. Startups gone through this first step, that means they have created the product and are accepted by the market and demonstrate the product's ability to grow and have the ability to raise capital to continue the project. Therefore, after passing these two years, Startup will enter the next stage: approaching Efficiency. That means doing business effectively and moving to expand business. Reaching this step does not mean that the difficulty is not over. The statistics show that only 3% of businesses achieve actual success.

In the early stages, successful Startup forced to focus on product development to gain market recognition. Some young people - those who startup think that rise funds from the investment fund is successful. In fact, this is just the beginning of a new and arduous road. In the next phase, they need to pay attention to efficiency, which means that beginning needs to build a more professional system than the early attempts to confirm the product at the beginning. How to do business effectively and expand the market. We can see that most Founders’ startups are also Leaders and Managers of businesses. So, what factors do these leaders of each business need to help their businesses grow sustainably? People who are already full of creativity and enthusiasm still need these factors to lead their businesses grow: The spirit of continuous studying; visionary and persistent perseverance to achieve goals; Building a sustainable, suitable corporation culture.

THE SPIRIT OF CONTINUOUS STUDYING

"To be successful, startup founders need to have willing to listen, study, persevere and the ability to convey their ideas to others," said Christian Busch - CEO of German Accelerator Tech NY.

What’s certain is that leaders cannot operate well if they do not know anything about their field of activity. In addition to the basic knowledge in the field of their activities, the leaders have to read a lot and always have the spirit of learning to constantly improve their knowledge, recognize and update new information and knowledge. Especially in Vietnam, when there is no supporting ecosystem, Start-up leaders need to study constantly to avoid making wrong decisions that cause businesses to collapse. They need to study essential knowledge and skills such as management skills, communication skills and inspiration, empowerment skills…

Management skills: Whether Startup with a large capital or a small amount, startup companies need to carefully manage their assets. Startup is like a gamble but discerning leaders always know how and when to invest money. They don't waste any money and know when to spend a lot of money. This is an indispensable skill of the leader. They build a strategic for the company, and also manage the goals that the company needs to achieve. Being able to manage and plan, leaders can maintain, develop and change strategic when necessary. Leaders are decision makers and the entire of the company will act according to that decision. The decision of the manager greatly affects the fate of the business. A wrong plan will most likely lead to unpredictable consequences. So, Management skills are very important to ensure that leaders can make reasonable plans and direct all employees to work according to the objectives. When the plan is completed, the leader must transfer the plan information to the upper and lower levels for consultation. During the implementation, the leaders will need tools to solve the problem and, when necessary, must make decisions in his authority.

There are people who think that Money and Creativity are the keys to Startup. However, without the skills, the business will soon collapse. The Kafe is a good example. In 2013, The KAfe emerged as a phenomenon among young people. The KAfe comes from Hanoi, that popular by extremely attractive space in industrial style, the dishes are eye-catching, satisfy “sefie” demand of young people. With the Knowleadge in Mass Media, Mrs. Dao Chi Anh – founder of The Kafe, brings the images of The Kafe quickly spreading to facebook, instagram. The KAfe became No.1 hot trend at that time. In 2015, after 2 years of operation, CEO Dao Chi Anh called for $ 5.5 million from investment funds in London and Hong Kong. Following, the continuous expansion of business with 26 branches in Hanoi and Ho Chi Minh City. However, the end of the startup was not success when the CEO had to leave, the whole system was closed. When receiving investment money, the pressure to quickly increase the number of stores makes the co-founder team change the way it works. Not all members were able to adapt when they had to work on a larger scale. The specificity of F&B industry is difficult in coming up with quality management process (service, product) and searching for personnel. The creativity in the original menu structure became quite complicated making dishes, which would be made more difficult by the chef at other branches. The increasing rapidly in the number of stores when not found the process, tables, rules of management, quickly made the quality of service as well as The KAfe products were difficult to stabilize. They made the customer becomes even more frustrating. F&B is not only a business selling food and drinks, but also selling services and selling experiences to customers. The Kafe officially closed in 2016, regretfully. The hot development but limited in management skills has collapsed a potential Startup.

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