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Restructuring is an essential process that a business must undergo at a certain stage of its development. TBS Group is no exception, with its rapid expansion in manufacturing and continuous diversification of business sectors. This has driven TBS Group’s restructuring to align with its growth rate and the leadership’s long-term strategic direction.
2021 – A Year of Memorable Milestones
TBS Group had a positive first half of 2021 with several significant events: the inauguration of a sole factory in TBS Kien Giang and a rebranding of two of its member companies, with TBS Sport becoming TBS Retail and Montgomerie Links becoming Montgomerie Links Vietnam – Golf Club.
Most recently, the successful acquisition and merger of the My Phong factory cluster in Tra Vinh into TBS Group’s production system was a major turning point for the group. This move expands both manufacturing capacity and product variety, moving closer to the goal of becoming an international-level enterprise.
These achievements are part of the restructuring process that TBS Group’s leadership has planned in phases. The upcoming phase, in particular, is being meticulously prepared in both breadth and depth. In this structure, TBS Group will operate as a parent company with its core business in fashion industrial production, supported by member brands such as TBS Land, TBS Logistics, and Mai House Hotels & Resorts, among others, reflecting the structure of a major corporation.
Restructuring for “Sustainable Development”
There are many reasons for a company to restructure, but the common goal is to improve and enhance the efficiency of its operational processes based on practical development needs. Guided by the principle of “Sustainable Development,” TBS Group is committed to improving its competitiveness with a vision of becoming one of the top five global fashion industrial manufacturers. To achieve this, the leadership recognizes the need to further expand production, diversify products in terms of types and designs. This raises questions about functional structure, organizational planning, human resources, processes, and tools, which all require restructuring across multiple dimensions.
To date, TBS Group has been, and will continue to, implement restructuring across various areas, including organizational structure, human resources, management and operational mechanisms, and other activities and resources. This process is being carried out through a series of phased procedures, ensuring commitment and understanding during the transition between levels.
At the highest level of integration, there are three types of restructuring: portfolio restructuring, financial restructuring, and organizational restructuring. Currently, TBS Group is focusing on portfolio and organizational restructuring.
Portfolio restructuring is the process of reshaping the company’s main business channels through mergers and acquisitions. This necessitates changes in the organizational and management structure to align with the new scope and scale of business operations. Therefore, with the current expansion of production, TBS Group’s leadership views organizational restructuring as an urgent necessity.
For this organizational restructuring, TBS is focusing on planning its key leadership team, which includes 7 committees, 5 chains, 15 zones, and 35 factories nationwide. This will establish a uniform system of job titles and clear policies. This new organizational structure will not only create a professional work environment and motivate employees but also enhance management capabilities at all levels. Furthermore, it will optimize the utilization of operational resources, preventing the dilution of the company’s key assets.
Thus, organizational restructuring and portfolio restructuring are always interconnected. Changes in strategic scope and company structure require corresponding changes in management and operational mechanisms.
Implementing Restructuring – The First Phase is Underway
As mentioned, TBS Group’s restructuring process is implemented in phases and levels, summarized by five key tasks:
After establishing these standard systems, the TBS leadership will proceed with implementation by group, starting with the high-level leadership, which includes the Board of Directors, the Executive Boards of the chains, and the Strategic and Macro-research Departments. This also includes the departments responsible for employee welfare and fire safety. These are considered the “passengers” on the first bus of TBS’s restructuring journey.
By decentralizing the functional and operational structure of each chain and factory, TBS is moving toward planning and developing human resource training. It is delegating authority to the chains and factories to enhance their proactive role in building and managing production plans to achieve set goals. It is also establishing and standardizing the tools used in the operational and production processes.
The restructuring process will then continue with the visual branding for the high-level leadership, followed by the second phase of reassigning and appointing specialized staff. TBS Group is also standardizing job titles and positions, and building a data system as well as policies for salaries, bonuses, recruitment, and training.
Therefore, the restructuring begins at the highest leadership level and extends down to department heads and various staff positions. It will continue with the direct production management team to ensure the entire process is synchronized, with a clear commitment and understanding across all levels and departments. This helps the key leadership team become aware of their role, acting as both a leader, a coach, and a learner.
TBS Group has spent over 30 years building its current network of 35 factories nationwide and employing over 40,000 workers. This is not an overnight achievement but the result of the leadership’s efforts in developing production from women’s footwear to athletic shoes, handbags, soles, and other support industries. Today, TBS Group has truly taken a huge step forward in realizing its goal of sustainable development and joining the top five of the fashion industrial manufacturing sector, with the most recent milestone being the merger of the My Phong factory in Tra Vinh province.
The My Phong factory currently has 40 synchronized production lines, with a peak workforce of up to 30,000 people and a production capacity of up to 45 million products per year.
