Increase the profitability by improving supervisor’s management and leadership skills – the case of Pomina 2 Steel JSC

Abstract

Pomina Steel Joint Stock Company (POM) is a joint stock company producing and trading steel, mainly steel used in contraction and sheet. Pomina is a well-known brand with a leading market share of construction steel nationwide. For many years, their product quality is the most important value that keeps the brand growing. Currently, it‘s one of the leading steel manufacturers with revenue ranking top among the biggest 3 steel producers in the Vietnam market. But despite the steady growing revenues, there’re a lot of managerial problems happened inside the company. Work-place-accidents, waste of materials, constant decrease in net profit, as well as complains about ecology for the harmful effects to the environment. Mid of 2019, an serious work-place accident happened and caused big losses. Pomina Steel 2’s factory had to shut down for more than 6 months, and could open again only in October of 2019. This was a recent accident we have to remember that in the previous years, 2016,2017 similar disasters already happened with more serious damages. These accidents made a hard impact on the company, cost many lives of workers and a lot of money. They made the net profit gone down dramatically but until now the management still couldn’t decide for a reliable solution to solve the deep root of it. This thesis would like to focus on formulating suggestions to improve the profitability starting from analyzing facts to find the causes of “ why would the accidents happened” and hopefully suggest of applicable solutions. The methodology is identifying the problems based on empirical analysis, process-oriented analysis from the interview of key-person, as well as survey processes. The validation of this thesis would base on analyzing the company’s data, process audit and literature support. From those analyses, the poor quality of the supervisors’ management and leadership skill was identified as the main problem to make the accident happened, consequently brought down their net-profit to negative.