34 a STUDY ON FACTORS AFFECTING BUSINESS ACTIVITIES AT GLOVIMEX COMPANY LIMITED

MINISTRY OF FINANCE ACADEMY OF FINANCE Student: ĐỖ THỊ NGỌC Group: CQ55/51.05 GRADUATION THESIS TOPIC: “A STUDY ON FACTORS AFFECTING BUSINESS ACTIVITIES AT GLOVIMEX COMPANY LIMITED” Major : Faculty of foreign language Student code : 17522202010154 Supervisor : M.A Bui Thi Tuyet Mai Hanoi – 2021 Academy of Finance Graduation Thesis DECLARATION I, Do Thi Ngoc, hereby declare that this thesis and the study presented in it are my own and have been generated by me as a result of my own original research, no copying on any prior work Thesis: “The study on factors affecting business activities in Glovimex company limited” Hanoi, May 2021 Student Đỗ Thị Ngọc Đỗ Thị Ngọc CQ55/51.05 Academy of Finance Graduation Thesis ABSTRACT The study researched the factors affecting business activities in Glovimex Company Limited The paper aims at finding out the achievements and drawbacks in Glovimex Company limited business activities, and more importantly, suggesting main methods to improve the business’s value and efficiency in general and Rattan and bamboo products in particular In order to achieve these aims, the graduation paper surveys the current performance of export activities in the company and point out whether it is effective or not From received results, the study argues the most practical implications in Glovimex Company Limited to improve the efficiency of export activities at the company in the future years Đỗ Thị Ngọc CQ55/51.05 Academy of Finance Graduation Thesis ACKNOWLEDGMENTS I would like to express my deep gratitude to all those who have given me the possibility to complete this graduation thesis In preparing this graduation thesis, I have had generous help and advice from my teachers, my colleagues, my family and my friends I would like to express my great thanks to all of them To begin with, I would like to express my deepest gratitude to my supervisor, M.A Bui Thi Tuyet Mai, lecturer of Academy of Finance, for her guidance and instructions It is whole-heartedly appreciated that your great advice for my study proved monumental towards the success of the study Besides, I wish to show my sincere thanks to all my teachers at Academy of Finance, who have provided me with worthy lessons throughout years of study Moreover, I am indebted to the staffs of Glovimex Company Limited for their valuable supports during the internship I am extremely thankful and indebted to them for sharing expertise, and sincere and valuable guidance and encouragement extended to me Furthermore, I would like to send my loving thanks to my family whose great love and care in both spirit and health to encourage me to complete the thesis Last but not least, I also place on record, my sense of gratitude to one and all, who directly or indirectly, have lent their hand in this thesis Đỗ Thị Ngọc CQ55/51.05 Academy of Finance Graduation Thesis LIST OF ABBRIVIATION GDP: Gross Domestic Product NTFPs: Non-Timber Forest Products SBV: State Bank of Viet Nam VND: Vietnam dong USD: United States Dollar Đỗ Thị Ngọc CQ55/51.05 Academy of Finance Graduation Thesis LIST OF FIGURES AND TABLES List Figure 2.1: Organization of management of Glovimex company Đỗ Thị Ngọc CQ55/51.05 Pag e 27 Academy of Finance Graduation Thesis TABLE OF CONTENTS Đỗ Thị Ngọc CQ55/51.05 Academy of Finance Graduation Thesis INTRODUCTION Rationale of the study Economic development is always the top target of all countries in the world Especially, in the current process of economic integration, stable development is a crucial goal for each country in order to improve its competitiveness in the international market It can be seen that enterprises are not only business entities, but also decisive factors for the development of the country Production and business activities of enterprises are the factor driving the national economic growth And one of the most effective forms of business is the importexport activity Import-export business is an indispensable activity in the development process, which is an inevitable result of the trade liberalization Therefore, any country that wants to be powerful must join this field In Vietnam, in recent years, there are many small and medium enterprises participating in this field As a business operating in import-export business, GLOVIMEX company limited has achieved certain successes in the economic market With the goal of becoming a big domestic enterprise, the Company has been doing its best to be able to improve efficiency for the business But in reality, during my training time and experiences I got from the internship, I find that there are still certain difficulties and the less optimal business efficiency Therefore, I have chosen the topic "a study on factors affecting business activities in Glovimex company limited" With the hope that the factors mentioned in the thesis will help partly find the shortcomings, then offer timely solutions and improve the efficiency of business activities Aim of the study The aim of this study is to understand the current factors affecting business activities in Glovimex company limited and therefore, to suggest strategies and solutions to improve and strengthen the efficiency of Exporting activities in Glovimex company Đỗ Thị Ngọc CQ55/51.05 Academy of Finance Graduation Thesis Research question of the study The following question guide the study: What factors affecting business activities in Glovimex Company Limited? What strategies are being used by the company that have effective and viable exporting activities? How to improve the efficiency of exporting activities in Glovimex Company Limited? Methods of the study Based on knowledge at university, books and self-accumulation and to these above objectives, several methods of studying the thesis are used as follow: - Figure collection: from websites of Glovimex company limited, books, internet and - internal information of the corporation Inductive, deductive and statistical method Figure comparison, data evaluation, judgment and conclusion Method of analyzing, summarizing, synthesizing materials and books from the theoretical background Scope of the study The study is performed at Glovimex Company Limited, No 47 Nguyen Hong Street, Dong Da District, Hanoi city, Vietnam The study is based on data provided by the company from 2017 to 2020 The object of the study is business activities at Glovimex Company Limited Organization of the study Besides the Introduction, Conclusion and References, the thesis includes chapters: Chapter1: Theoretical background of import – export activities; General overview of bamboo rattan handicraft products export Đỗ Thị Ngọc CQ55/51.05 Academy of Finance Graduation Thesis Chapter 2: Factors affecting to business activities in the company: The main part of the thesis which gives the general overview of business activities and the factors affecting business activities in this corporation Chapter 3: Some solutions to improve efficiency of business activities in Gloximex company limited: This chapter gives the orientations for the future development of Glovimex Company and provides some practical recommendations and solutions to improve the efficiency of export activities of this company Đỗ Thị Ngọc CQ55/51.05 10 Academy of Finance Graduation Thesis The marketing budget should be optimally allocated to target markets, based on market size, marketing medium and frequency, identity or identity required, products New products being introduced and marketing growth targets The marketing budgets of exporting bamboo and rattan enterprises can be planned from top-down or bottom-up methods Marketing Information System: Marketing Information System includes people, machinery and equipment used to collect, classify and process information and deliver reliable, meaningful numbers for business executives to get accurate marketing decisions in a timely manner  Examining and evaluating the implementation of the export marketing strategy In the process of developing a marketing strategy for export products, a solar enterprise should conduct regular and continuous inspection and evaluation the necessary jobs of any activity to help this person know the achieved results compared to the set target, and thereby also find out the cause of the problems faced by the business, The company can check the marketing strategy for export products oriented to the target market or not, the feasibility of the task, test the marketing objectives and targets, measure the results, test suitability of marketing objectives with firm's competitive position, resources and opportunities, check the clarity and convincing level of export marketing strategy, suitability of the strategy to stages different segments in the product's life cycle 3.3 Improving customer service Currently, the company sells mainly through the Alibaba e-commerce site, so a customer care policy before and after sales is very important in developing customer files as well as maintaining relationships with customers Customer care after sales or after-sales service (remarketing) are activities that take place after a sale These activities take place after the customer has purchased or used the services of the business with the aim of ensuring final Đỗ Thị Ngọc CQ55/51.05 61 Academy of Finance Graduation Thesis customer satisfaction, retaining the customer and increasing the ability of the customer to buy back After-sales customer care - Remarketing is the different activities to ensure that customers are as satisfied as possible with the products and services of the business, thereby stimulating acquisition and promoting the brand Remarketing is an important stage of the sales process and cannot be ignored Why need customer care after sales?  Increase sales: After-sales customer care will create a large number of loyal customers by pleasing them and the possibility of redemption is huge The value of this group of customers to the business cannot be denied That's why the saying "keeping old customers is more important than having new customers"  Brand promotion: When a customer has been satisfied with the company's products and services for a long time, they will talk well about that brand to those around him, thereby promoting the brand of the business more widely  Better Customer Relationship: A thank you email for a purchase or a happy birthday message is enough for a relationship between the customer and the business to become close Maintaining a sustainable and long-term relationship with customers is something every business wants to achieve The secret to effective customer retention Easy to say, but very difficult to Start with the smallest things is to keep and track customer information such as customer details, especially phone number, email, date of birth, customer transaction documents Here are a few tips for effective after-sales customer care:  Customer satisfaction survey Đỗ Thị Ngọc CQ55/51.05 62 Academy of Finance Graduation Thesis There should be a separate section on the website of the business so that customers can submit their reviews and comments Build a dedicated mobile phone number for customer care, where customers can call and answer questions so that they can find out customers' attitudes towards products and services Send an automatic email to customers each time they complete a purchase so that customers can leave feedback on products or services they just bought  Comply with commitments The sales team, marketing often tend to "overstate" about the features and quality of the product to be able to sell This is completely not good at all Always make sure that the products you sell are exactly what your customers promise you These commitments include all issues related to product quality, service quality, warranty policy, and return of goods This is the source of a good relationship between customers and businesses  Show gratitude to customers “Thank you very much for using our service" "Thank you for purchasing our products" "Thank you for believing in our products" The sentences seem simple but will bring effective after-sales that you did not expect here Or more simply, just a message of thank you to customers enough to see that you truly respect and care for them And if you want to take care of your customers more, find yourself a customer care system where you can send thank you messages, birthday email messages and so on automatically but still contain your interest to your customers Đỗ Thị Ngọc CQ55/51.05 63 Academy of Finance Graduation Thesis  Stay in touch and never forget the customer After a long sales period, get back in touch with your customer and find out about the usage status of the product or service you have sold to them Resolve all the problems they encounter, if any, to make sure they are comfortable using them And make sure you don't ignore any customer calls, texts or emails  Incentives for loyal customers There should be incentives, promotional products for longtime customers or perhaps a small gift to them to feel that their loyalty is valuable That must be a reward for loyalty We can refer to some strategies for building incentives and promotions with: • Earning points and classifying customers on the system • Membership card program, loyal customers • Manage promotions and offers  Help customers to solve problems Whether you wish your birthday a hundred times or send dozens of gifts and the customer's problems are not resolved, everything will become meaningless Sometimes your customers will have complaints, frustrations or even anger, so quickly soothe them "Very sorry about the problem you have, we will forward it to the technical department now" "Please don't worry, we can solve this problem." "We would be more than happy to exchange for you another similar product with a better quality" Đỗ Thị Ngọc CQ55/51.05 64 Academy of Finance Graduation Thesis Absolutely avoid the argument with customers that give customers a feeling of comfort as possible 3.4 Recommendation policies to facilitate export activities In addition to the tax benefits from free trade agreements, the bamboo and rattan export industry also has great potential thanks to high world demand However, there are still many barriers that make it difficult for this industry to rise in the near future In recent years, in order to promote all economic sectors to develop, the National Assembly and the Government have issued a number of legal documents with many supportive policies for rural occupations, including industry crafts The State encourages, creates favorable conditions and supports rural trade promotion establishments in accordance with the current provisions of the National Trade Promotion Program The State organizes related trade promotion activities to support rural business establishments, including: Building a website to introduce products and sell goods online; Designing product models, packaging; Branding, geographical indication of origin of goods, trademark ownership protection; Vietnam Handicraft Products Contest Rural establishments participating in trade promotion activities specified in this Decree are supported by the state budget: Expenses for hiring consultants and direct support for rural business establishments The maximum level of support is 50% of the cost, but not more than 50 million VND / facility Support 100% of the cost: Rent a product demonstration space; organize contests; accommodation, travel Science and technology: The rural industries in general, the handicrafts in particular have the drawback of slow innovation in product designs, low quality, diverse adaptability to gas environments low end Accordingly, the issue of Đỗ Thị Ngọc CQ55/51.05 65 Academy of Finance Graduation Thesis bringing science and technology into production to overcome the shortcomings is essential in order to increase competitiveness in domestic and foreign markets, especially when Vietnam is a member of many trade agreements new generation Decree 152 stipulates quite specifically the support policy on science and technology for rural occupations, specifically as follows: Rural industry establishments, when implementing activities of applying scientific and technological results, innovating technologies, producing new products and performing science and technology services or receiving scientific progress Learning techniques from domestic and foreign organizations and individuals will enjoy preferences according to policies and financial mechanisms that encourage enterprises to invest in scientific, technological, agricultural and rural activities Rural industry establishments conduct research projects independently or coordinate with scientific research institutions to create new technologies, perfect research products with commercialization in the agricultural sector The village is supported by the State with funding from the funding for the cause of science and technology according to the current regulations Law to support small and medium enterprises The law provides for the principles, content, and resources to support small and medium enterprises; Responsibilities of agencies, organizations and individuals related to SME support Enterprises established, organized and operated in accordance with the law on enterprises, meeting defined criteria SMEs in accordance with this Law and agencies, organizations and individuals involved in assisting SMEs As can be seen, for the handicraft industry, only establishments producing and exporting handicraft products are established, organized and operated under the Đỗ Thị Ngọc CQ55/51.05 66 Academy of Finance Graduation Thesis Enterprise Law, meeting the criteria specified in the Law on support for small and medium-sized enterprises to enjoy the support policies of the Law Support policies are specified in the Law Regarding credit access support: In each period, the Government decided to support policies to support credit institutions to increase outstanding loans for small and medium enterprises; encourage credit institutions to provide loans to small and medium-sized enterprises based on their credit rating and other suitable measures; encourage the establishment of an independent advisory organization to give credit rating to small and medium-sized enterprises; Get support from agencies, organizations and individuals to develop feasible production and business plans, enhance corporate governance, management skills and financial transparency to improve accessibility Credit; To be provided with a credit guarantee at the Small and Medium Enterprise Credit Guarantee Fund in accordance with Article of this Law The small and medium enterprise credit guarantee fund is an off-budget state financial fund, operating not for profit, established by the People's Committee of the province; Performing the function of providing credit guarantees for small and medium enterprises; Based on collateral or feasible production or business plan or credit rating of small and medium enterprises; To properly and fully comply with the committed guarantee obligations; may not refuse to sponsor small and mediumsized businesses to sponsor Tax and accounting support: Small and medium-sized enterprises are allowed to apply for a limited time the corporate income tax rate lower than the normal tax rate applicable to enterprises according to the provisions of the law on corporate income tax Tax and accounting support: Small and medium-sized enterprises are allowed to apply for a limited time the corporate income tax rate lower than the normal tax rate applicable to enterprises according to the provisions of the law on Đỗ Thị Ngọc CQ55/51.05 67 Academy of Finance Graduation Thesis corporate income tax ; Micro enterprises are allowed to apply simple tax administrative procedures and accounting regimes according to the provisions of the law on tax and accounting Support for production premises: Based on the actual land fund conditions in the locality, the People's Committee of the province shall submit to the People's Council of the same level for decision on the allocation of the land fund to form and develop the industrial cluster; Concentrated area for processing agricultural, forestry, aquatic and marine products for small and medium-sized enterprises in accordance with the approved land use planning; Based on local budget conditions, the People's Committees of provinces shall submit to the People's Councils of the same level the decision to subsidize the rent for small and medium enterprises in industrial parks, hi-tech parks, and public clusters industry in the area The maximum support period is 05 years from the date of signing the lease contract; The support for ground rent for small and medium-sized enterprises specified in Clause of this Article shall be done through price compensation for investors in infrastructure of industrial parks, hi-tech parks or industrial clusters to reduce prices for renting the premises for small and medium enterprises The price compensation amount is subtracted from the land rent amount or supported from the local budget; The support for production premises specified in this Article does not apply to small and medium-sized foreign-invested enterprises, small and mediumsized enterprises with state capital Technology support; Support for incubators, technical establishments, and co-working areas: The State adopts a policy to support small and medium-sized enterprises in researching, renewing technologies, receiving, improving, perfecting and mastering technologies through research, training, consulting, search, decoding, technology transfer and the establishment, exploitation, management, protection and development of corporate intellectual property; Ministries, ministerial-level agencies, and provincial-level People's Committees establish or Đỗ Thị Ngọc CQ55/51.05 68 Academy of Finance Graduation Thesis participate in the establishment of public-private partnerships at incubators, technical establishments, and working areas Other enterprises and investment and business organizations may set up incubators, technical establishments and coworking areas; Incubators, technical establishments and co-working areas are entitled to: Exemption or reduction of land rent, land use levy, and non-agricultural land use tax in accordance with the law; Exemption or reduction Definite term corporate income tax in accordance with the law on corporate income tax Support for market expansion: Ministries, ministerial-level agencies, provincial People's Committees establish or participate in establishing product distribution chains in the form of public-private partnerships Other businesses and investment and business organizations may set up product distribution chains; Enterprises and organizations investing in and trading in product distribution chains with at least 80% of small and medium-sized enterprises participating in the supply of the chain of products manufactured in Vietnam are entitled to the following supports: Exemption or reduction land rent, land use levy, non-agricultural land use tax in accordance with the law, and exemption or reduction of corporate income tax for a definite period in accordance with the law on corporate income tax; Micro enterprises and small enterprises are entitled to incentives in the selection of contractors in accordance with the bidding law Legal, advisory and information assistance: The following information is published on the National Small and Medium Enterprise Support Portal, websites of ministries, ministerial-level agencies, and People's Committees Provincial people, social organizations, socio-professional organizations: Information on plans, programs, projects, and activities to support small and medium-sized enterprises, business guidance information; information on credit, market, products, technology, business incubation; other information according to the needs of the enterprise in accordance with the provisions of law Đỗ Thị Ngọc CQ55/51.05 69 Academy of Finance Graduation Thesis Ministries and ministerial-level agencies shall, within the scope of their duties and powers, build a network of organizations and individuals that provide consultancy services to small and medium enterprises (called a network of consultants) Small and medium-sized enterprises are exempted or reduced consulting costs when using consulting services belonging to the network of consultants Ministries, ministerial-level agencies, agencies and organizations, within the scope of their respective tasks and powers, carry out activities to provide legal support to SMEs such as: Construction, management and maintenance maintain, update, exploit and use legal database; develop and organize the implementation of legal assistance programs to provide information, foster legal knowledge, legal advice Support for human resource development: Small and medium-sized enterprises are exempted from and reduced costs to participate in training courses using the state budget on business start-up and corporate governance, vocational training for employees jobs in small and medium enterprises; The State organizes the implementation of online training programs, training programs on other mass media for small and medium enterprises; support direct training activities at small and medium enterprises in the field of manufacturing and processing Support for small and medium-sized enterprises converting from business households: Small and medium-sized enterprises converting from business households are supported if they meet the following conditions: Before establishing a business, a registered household business and operate in accordance with the law; A business household has been engaged in continuous production and business activities for at least year up to the date of being granted the first enterprise registration certificate Support for small and medium-sized creative startups if they meet the following conditions: Having an operation period of no more than years from the date of being granted the first business registration certificate; No public offering of securities for joint stock companies Đỗ Thị Ngọc CQ55/51.05 70 Academy of Finance Graduation Thesis Investments in small and medium-sized innovative startups: Investors for small and medium-sized innovative start-ups including innovative startup investment funds, domestic and foreign organizations and individuals conducting activities business through capital contribution to the establishment, purchase of shares, capital contribution of small and medium-sized innovative start-ups Support for small and medium enterprises to join industry clusters and value chains in the manufacturing and processing sector will be supported if they meet one of the following conditions: Creating products with a competitive advantage in quality and price; Innovating technological processes, materials, components, machines and equipment Đỗ Thị Ngọc CQ55/51.05 71 Academy of Finance Graduation Thesis CONCLUSION Good export activities bring huge benefits to exporters Being in the exporting industry, Glovimex has always understood the importance of marketing efficiency in its development process In recent years, the company always pays attention on improving the efficiency of marketing management, human resources management and customer services However, besides achievements, the company still has some limitations in the exporting activities Deriving from the actual situation in the company and the knowledge learning from university, I made the research on the application of expoting activities at the company Thereby, I boldly proposed some solutions to improve the efficiency of Exporting Activities at Glovimex Limited Company However, improvement of business activities in Gloximex company limited is a complex problem It needs investigating deeply and approaching realistically So during internship and writing this essay, mistakes are unavoidable I look forward to receiving valuable contribution from the lecturers and other readers Đỗ Thị Ngọc CQ55/51.05 72 Academy of Finance Graduation Thesis REFERENCE Kotler, Philip (1987) Marketing — An Introduction Englewood Cliffs, NJ: Prentice-Hall Wernerfelt, B (1989) "From critical resources to corporate strategy." Journal of general management Van Manen, M (1990) "Researching lived experiences." State University of New York Press, Albany Kaynak, E and W K.-y Kuan (1993) "Environment, strategy, structure, and performance in the context of export activity: an empirical study of Taiwanese manufacturing firms." Journal of Business Research https://vietnambiz.vn/xuat-khau-truc-tiep-direct-export-la-gi-thuan-loi-va-khokhan-20191202151546512.htm https://news.timviec.com.vn/xuat-khau-la-gi-vai-tro-cua-hoat-dong-xuat-khaudoi-voi-nen-kinh-te-55726.html https://text.xemtailieu.com/tai-lieu/cac-phuong-thuc-xuat-khau-chu-yeu-tai-vietnam-thuc-trang-va-giai-phap-189618.html http://6.https//dictionary.cambridge.org/vi/ Đỗ Thị Ngọc CQ55/51.05 73 Academy of Finance Graduation Thesis NH ẬN XÉT C ỦA ĐƠ N V Ị TH ỰC T ẬP Họ tên người nhận xét: Chức vụ: Nhận xét trình thực tập tốt nghiệp Sinh viên: Đỗ Thị Ngọc Khóa: CQ55 Lớp: 51.05 Đề tài: “A study on factors affecting business activities at Glovimex Company Limited” Nội dung nhận xét: Về tinh thần, thái độ thực tập sinh viên: Về ý thức kỷ luật, tuân thủ quy định đơn vị thực tập: Về kỹ giao tiếp, kỹ mềm: Về kiến thức chuyên môn: Người nhận xét (ký tên, đóng dấu) Đỗ Thị Ngọc CQ55/51.05 74 Academy of Finance Graduation Thesis CRITIC’S JUDGEMENT Critic: …………………………………………………… Student: Đỗ Thị Ngọc Group: 51.05 Intake: CQ 55 Topic: “A study on factors affecting business activities at Glovimex Company Limited” Mark: • - In number: • - In word: Critic Đỗ Thị Ngọc CQ55/51.05 75 ... villages are: Phu Vinh bamboo and rattan craft village; Tang Tien bamboo and rattan crafting village; Bamboo and rattan craft village in Ninh So; Thach Cau bamboo and rattan crafting village; Ngoc Dong... of Finance Graduation Thesis Americas such as America, Canada, Venezuela, Brazil, Chile, Baharnas , Asia as Japan, Korea, Hong Kong, Taiwan Sales and exports to the EU market have certain growth... recent years, the bamboo and rattan industry has added a handicraft product using water hyacinth in the Mekong Delta and it is considered as a new innovation in the condition that natural resources