Situation and evaluation of tan phat company limited exporting process

i TABLE OF CONTENTS TABLE OF CONTENTS .i ACKNOWLEDGEMENTS ii LIST OF FIGURES AND TABLES iii INTRODUCTION CHAPTER OVERVIEW OF TAN PHAT COMPANY LIMITED 1.1 Company Overview 1.1.1 History and general information 1.1.2 Vision, mission and core values .3 1.1.3 Organizational structures 1.1.4 Product lines and business performance 1.2 Internship activities CHAPTER CURRENT SITUATION AND EVALUATION OF TAN PHAT CO.,LTD'S EXPORTING PROCEDURE 2.1 Theoretical basis of exporting and exporting procedure .9 2.1.1 Theoretical basis of exporting 2.1.2 A standard export prodedure 2.2 Evaluation of Tan Phat Co.,ltd exporting process 12 2.2.1 Current situation of Tan Phat Co.,ltd exporting procedure 12 2.2.2 Comparison between Tan Phat Co.,ltd Export Procedure and Standard Export Procedure 15 2.2.3 Evaluation of Tan Phat Co.,ltd exporting procedure .16 CHAPTER RECOMMENDATIONS TO IMPROVE THE EXPORT PROCEDURE AT TAN PHAT CO.,LTD 19 3.1 Focusing on marketing activities 19 3.2 Do market identification and market analysis 20 3.3 Making active offers and improve employee skills .21 CONCLUSION 22 REFERENCES 23 ii ACKNOWLEDGEMENTS The internship opportunity I had in Tan Phat Company Limited was a great chance for my learning and professional development I am also grateful to receive so much help from wonderful people and professionals who guided me through this internship period First and foremost, I would like to express my greatest gratitude towards my supervisor, Mrs Nguyen Thi Hien Hanh (MA) – the lecturer at the Faculty of Business English Without her detailed instructions and sound advice during the planning and development of this report, I cannot complete my report smoothly Furthermore, I would like to give great thanks to my instructor at Tan Phat Co.,ltd, Ms Nguyen Thi Dung – the head of the Finance and Accounting Department, who gave me such an ideal chance to be an intern and also enthusiastically guided me with my tasks at the company And of course, I could not deny my gratitude towards my colleagues at the Department of Finance and Accounting at Tan Phat Co.,ltd and my friends, who encouraged and helped me a lot during my internship Along with the lessons that I have learned to help me in the future, working with you is one of the most memorable experiences in my life iii LIST OF FIGURES AND TABLES No Figure Page Figure 1.1 Vision, mission and core values of Tan Phat Co.,ltd Figure 1.2 Organizational Structure of Tan Phat Co.,ltd Figure 2.1 A Standard Export Procedure 10 Figure 2.2 Tan Phat Co.,ltd exporting process 12 No Table Page Table 1.1 The company's revenue results in 2020 Table 2.1 Comparison between the two export procedure models 15 Table 2.2 Exporting activities result of Tan Phat Co.,ltd from 2017-2020 16 INTRODUCTION Vietnam has gained positive changes in recent years, from a centrally planned economy to a market economy with the management of the government In the situation of both economic innovation and globalization, exports are incredibly important to modern economies because they offer people and firms many more markets for their goods Companies that export spread business risk by diversifying into multiple markets Exporting into foreign markets can also reduce per-unit costs by expanding operations to meet increased demand Finally, companies that export into foreign markets gain new knowledge and experience that may allow the discovery of new technologies, marketing practices and insights into foreign competitors In July 2021, as a third-year student, I was recruited as an intern at Tan Phat Company Limited in Thai Binh During my internship, I was engaged in all the stages of the exporting process in reality and was able to draw some overall evaluations based on what I have learned about exporting at Foreign Trade University Against this backdrop, I have chosen “Situation and evaluation of Tan Phat Company Limited exporting process” as my field report’s topic The main objective of conducting this research is to understand the export procedure of Tan Phat Co.,ltd and compare that model to what I have learned at the university so as to evaluate the real export process of the company With this topic, the report is divided into three main parts: ● Chapter - Overview of Tan Phat Co.,ltd: This chapter provides some general information about Tan Phat Co.,ltd as well as my job position, my experiences during my internship ● Chapter - Situation and evaluation of Tan Phat Co.,ltd exporting process: The second chapter discusses the situation, comparison and evaluation about the exporting process ● Chapter - Recommendations to improve the exporting procedure at Tan Phat Co.,ltd: The last chapter gives out some proposals of Tan Phat Co.,ltd exporting process based on what I have learned CHAPTER OVERVIEW OF TAN PHAT COMPANY LIMITED 1.1 Company Overview 1.1.1 History and general information Tan Phat Company Limited was granted investment license and business license by the Department of Planning and Investment and the People's Committee in December 2007 The company has a total leased land area of 14.325 square meters (sqm) in Dong Co Commune Industrial Park, Tien Hai District Here are some general informations of the company: ● English name: Tan Phat Company Limited ● Abbreviated name: Tan Phat Co.,ltd ● Business code: 1000432386 ● Date of issue: 21/12/2007 ● Address: Tien Hai Industrial Park, Dong Co Commune, Tien Hai District, Thai Binh Province ● Director: Mr Duong Van Viet ● Tel: 02273650609 – Fax: 0363654686 At the early days of its foundation, the company operated in the sector of manufacturing ceramic products that are fired from materials such as kaolin, marble, clay In this first step, there are only 60 workers, and the output is 5,000 products per month After more than years of operation, the company has a nationwide product distribution network Therefore, the company decided to build one more factory in 2013 with a total estimated cost of 15 billion VND In 2017, Tan Phat Co.,ltd started to seek and link with new overseas partners The company exported mostly to Asian countries, such as China, Malaysia, Korea and so on Up to now, Tan Phat Co.,ltd has successfully adapted to international customer’s taste and improved products’ quality as well as lowered cost 1.1.2 Vision, mission and core values Tan Phat Co.,ltd’s first mission is to help the customers adopt a comfortable and sustainable lifestyle while fostering innovation It is necessary for the company to develop products in this way because the living condition in the area is changing positively, while local people are in need of technology improvements Besides, the company also focuses on developing products’ quality while lowering costs, making them accessible to more markets Obviously, in the era of modernization and globalization, low cost will be a huge competitive advantage for the company, especially in exporting and trading with other countries In addition, the company has the vision to be in the top biggest suppliers of porcelain products in Thai Binh province by 2024, also in the top 10 of Northern Vietnam by 2027 Moreover, Tan Phat Co.,ltd also aims to become a trusting and famous company in Vietnam as well as in the area These visions guide ambition, inspire and motivate the staff and management to concentrate and work with common goals To achieve these missions and visions, the company has chosen core values as follows:  Quality: maintaining rigorous standards for all of the work Customers can find good quality products at a price that reflects the low quality  Empathy: truly understanding customers’ needs and providing real solutions for them Within the company, empathy is that all the employees can feel supported and respected  Sustainability: managing the business to protect the environment and preserve the earth’s natural resources, both for today and future generations Figure 1.1 Vision, mission and core values of Tan Phat Co.,ltd (Source: Tan Phat Company Limited) 1.1.3 Organizational structures Tan Phat Co.,ltd has more than 200 employees with factories in Tien Hai district, Thai Binh province Although the second factory is larger, the first factory also the main office still has more employees because all the departments work here In specific, more than 200 employees are divided fairly into departments and factories The organizational structure diagram of Tan Phat Co.,ltd is illustrated below: F igure 1.2 Organizational Structure of Tan Phat Co.,ltd (Source: Tan Phat Company Limited) Tan Phat Co.,ltd’s organizational structure reaches the required national standard However, its structure is still quite simple and not particularly divided Here are the functions and duties of each department: ● Board of directors: is legitimately representative of the company, manages and controls operation of the company, is responsible for providing leadership and direction for departments ● Administration Department: administering the company’s production process, keep track and report other departments the required information, prepare monthly human resources reports to Board of directors and have a plan for recruitment and signing labor ● Finance and Accounting Department: involving in financial and accounting tasks in order to utilize the company’s capital and investment, investigating and assessing overseas markets, monitoring the performance of import and export business ● Sales Department: exploiting the market, set up long – run and short – run production plans, are in charge of market research, marketing and deal with problems arising from customers ● Technical Department: is responsible for technical issues in the company In conclusion, the departments organization of Tan Phat Co.,ltd are generally effective with recent targets of the company In this form of organization responsibilities are fixed and defined; therefore, communication gets channeled along defined and predictable paths Moreover, this arrangement divides these areas of concern into various departments that specialize Specialization allows organizations to concentrate particular skill sets and resources to achieve maximum efficiency On the other hand, this type of organization also reduces interdepartmental cooperation and communication To solve this barrier, the company often organizes events or projects to strengthen the bond among departments 1.1.4 Product lines and business performance ● Product line In general, the company joins in many areas of investment, services; however, it mainly focuses on: - Manufacturing ceramic products, most of them are bathroom supplies (including washbasin, washbasin legs, toilet, bathtub) - Wholesaling these products - Offering import and export services ● Business performance In 2020, Tan Phat Co.,ltd had total revenue of 48 billion VND with the number of products as below: Table 1.1 The company's revenue results in 2020 (Unit: VND) Type of product Quantity Unit Price Total amount Toilet 36,000 950,000 34,200,000,000 Washbasin 54,000 150,000 8,100,000,000 Washbasin leg 24,000 120,000 2,880,000,000 Bathtub 28,200 100,000 2.820,000,000 Total 142,200 48,000,000,000 (Source: Tan Phat Company Limited) It can be seen from the table that Tan Phat Co.,ltd has four main types of products with different quantities The number of each type is based on the company’s analysis of customer demand in the area as well as potential international markets According to Finance and Accounting Department, with more than 140 million products in 2020, the company could provide up to more than 20 partners in both domestic and foreign market This help the company reduce business risk by diversifying into multiple markets and keep stable situation in the outbreak of the Covid-19 pandemic In 2021, the company expects the estimated revenue to be 60 billion VND This increase is due to the improvement of the production process with more modern technologies, which can help to maximize the capacity up to 150% compared to the current one Although having difficulty in the outbreaks of the Covid-19 pandemic this year, Tan Phat Co.,ltd has already had plans to allocate resources more efficiently With new technologies, the company can reduce the number of workers, but it still can operate automatically 1.2 Internship activities As an intern at the Finance and Accounting Department of Tan Phat Co.,ltd, I had the first opportunity to experience a professional environment As a newbie in the job, I have not worked much on finance but mostly supported the Department for the exporting process In five weeks working here under the manager’s supervision, I have gained valuable experience of both hard and soft skills In terms of work, my main tasks are described below: My first duty was to support the department manager with export documents and monthly export data analysis reports To this, I studied the accounting system, the budgeting process, and some international trade compliance requirements Moreover, it was also necessary for me to be familiar with technology tools supporting the task, such as inventory management software and project management tools In the first place, it was pretty complex, but with many instructions from the company, I am used to these tools now Another duty of mine was to translate some documents needed in the exporting process and the materials about the company’s new technologies Besides, I needed to put them into slides or make videos under the manager’s instruction so CHAPTER CURRENT SITUATION AND EVALUATION OF TAN PHAT CO.,LTD'S EXPORTING PROCEDURE 2.1 Theoretical basis of exporting and exporting procedure 2.1.1 Theoretical basis of exporting According to an article in investopedia.com of Troy Segal (2021), who has more than 20 years covering finance and business news: “Exports are goods and services that are produced in one country and sold to buyers in another Exports, along with imports, make up international trade.” It is obvious that exports are incredibly important to modern economies because they offer people and firms more markets for goods Moreover, one of the core functions of diplomacy and foreign policy between governments is to foster economic trade, encouraging exports and imports for the benefit of all trading parties Therefore, it is necessary for a company to consider exporting activities, the following are few of the major advantages of exporting Firstly, selling to multiple markets allows companies to diversify their business and spread their risk Companies will not be tied to the changes of the business cycle of domestic market or of one specific country Moreover, capturing an additional foreign market will usually expand production to meet foreign demand Increased production can often lower per unit costs and lead to greater use of existing capacities Besides, going international can yield valuable ideas and information about new technologies, new marketing techniques and foreign competitors The gains can help a company’s domestic as well as foreign businesses In conclusion, exports can help the company spread business risk, increase sales and profits as well as gain new knowledge and experience, such as marketing practices and insights into foreign competitors 2.1.2 A standard export prodedure In order to evaluate the export process of Tan Phat Co.,ltd, a comparison is made between the company’s model and a standard export procedure introduced at 10 Foreign Trade University The comparison will show the drawback of Tan Phat Co.,ltd's export model The standard model is summarized as follow: Figure 2.1 Standard Export Procedure (Source: Vu Huu Tuu, 2002, 386) Step 1: Market identification and Market analysis: First selecting the channel: Agents/ Distributions/ Wholesalers, then identifying potential customers/ buyers via trade fairs/ internet/ Personal visits/ Personal Contacts/ Personal agents and going for procuring orders Step 2: Negotiating and signing of contract, including: Agreeing upon pricing, document, freight charges, currency, delivery…; determining the payment terms After that, the importer have to send purchase order Step 3: Preparing exporting goods, including: 11 Classifying the export product sources, researching the export product sources, choosing the way to obtain products, signing contracts to call for export products, paying for export products, putting export products into warehouse Step 4: Delivery notification, L/C checking, including: Notifying the importer the delivery and checking L/C terms Step 5: Examining the quality of the goods: This step may be implemented by the exporter (factory), or Science and Technology Minister, or Inspection company Step 6: Quarantine of animals and vegetables: Checking the law of quarantine – plant, animal, food to ensure that the exporting items are permitted into the importing country: ● Vegetables - Phytosanitary Certificate ● Animals including seafood - Veterinary Certificate ● Instant food - Sanitary Certificate Step 7: Obtaining export license: Submitting an application for a license and the fee for the service Step 8: Chartering the ship: First finding a ship broking company Then the ship broking company contacts the ship’s owner for an available ship on a certain period Finally, confirming the reservation, sign and return the booking note Step 9: Getting customs formalities Completing and submitting an export declaration sheet, then submitting a full dossier to authorities The dossier includes: ● Bill of lading ● Certificate of origin ● Export license (if any): copy ● Commercial invoice (if any): origin, copy ● Customs export declaration sheet ● Packing list ● Technical standard certificate (if any) Step 10: Delivery through forwarder: 12 Submitting documents to the carrier and receiving the stowage plan in return, then contacting the port for ETD and ETA, transporting the goods to the port and supervising the loading process Step 11: Claim handling (if any) Receiving the Claim Notice and investigate the files, then collecting necessary shipping document and completing the investigation and forwarding the report to a concerned agency Lastly, taking action to avoid inevitable frustration of delay 2.2 Evaluation of Tan Phat Co.,ltd exporting process 2.2.1 Current situation of Tan Phat Co.,ltd exporting procedure The role of export in the economic development of a country can not be denied Directly related to growth, exporting has greatly transformed some nations in Southeast Asia, including Vietnam For long, the practice of selling goods across borders has played the lion's share in Vietnamese business The export process, however, is rather complicated and risky Well-informed of this, Tan Phat Co.,ltd has always been following a seven–step export process after the procedure of the manufacturer The Finance and Accounting Department monitors the performance and supervises this activity The practice is described below: Figure 2.2 Tan Phat Co.,ltd exporting process (Source: Tan Phat Company Limited) Step 1: Obtaining export license 13 The company needs an export license when selling its products across borders because those items are subjected to sanction A person must complete and submit a signed application and a fee for the license to export with the Ministry of Industry and Trade’s Office Step 2: Confirming payment The company makes payment by a letter of credit The department presents the necessary documents to the paying bank (normally a confirming bank); the bank checks the documents If they are in order, the banks pay the full face value of the letter of credit Step 3: Preparing products for export After signing the contract, the company boosts the production process When the order arrives, the factory begins to pack and label the products while the employees of the Finance and Accounting Department arrange shipment, prepare export documentation All the products are processed before the date of invalidity of the Contract and before the date of payment In this stage, to check the process of production, Importer may: ● Assign staff to check the process of processing products, or ● Require Exporter to send images of production process, or ● Let them finish this stage then hire a company to this job Step 4: Checking goods for export Tan Phat Co.,ltd must invite a quality control office to check products and decide whether products are good enough to export Then Importer assigns an investigation company to investigate shipments The cost is paid by the Importer The manager organizes to check shipments for the last time according to the exporting schedule and report the result to the Board of Directors During this last checking stage, an employee is in charge of recording the result and another prepares to investigate containers or trucks The latter will make a decision if the containers are qualified enough to load the goods Step 5: Chartering the ship and sending notifications to the buyers This step requires the company to contact the carrier and ask them for the Estimated Time of Delivery (ETD) and the Estimated Time of Arrival (ETA) The 14 manager then books rooms for loading cargoes After that, the company emails the buyer a notice of the shipping schedule Buyers pay for shipping and loading costs as well as freight Based on the ETD and ETA, the company sends the Importer the documents so that they can prepare in time The document set includes: ● Commercial Invoice ● Packing List ● Certificate of Origin ● Bill of Lading Step 6: Doing customs procedures Following customs procedures when exporting goods in Vietnam is one of the vital aspects of doing business in a country where manufacturing costs are leveraged to its favor Goods for export are subject to customs clearance that checks on the quality, specifications, quantity, and volume of goods Our department submits a customs dossier to authorities that includes the company’s business registration certificate and the certificate of export business code registration The documents to be presented for exporting goods are: ● Bill of lading ● Certificate of origin ● Commercial invoice ● Customs export declaration ● Packing list ● Technical standard certificate The Vietnam Customs website says that companies regularly exporting the same goods within a given period, if under the same purchase and sale contract, may use a single customs declaration for carrying out customs procedures This is if the exportation of such goods is within the delivery time determined in the purchase contract Therefore, normally if exporting the same goods, the company will practice this customs procedure Step 7: Delivering and exporting Goods 15 The company delivers a full container load (FCL) to the carrier at the port The carrier loads containers on board and takes charge of shipments When commodities have been on vessel and left the port, the company has responsibility for notifying the buyer to track delivery progress Then the company prepares documents and sends them to partners so that they can receive the goods on schedule At this point, the company has fulfilled its responsibility 2.2.2 Comparison between Tan Phat Co.,ltd Export Procedure and Standard Export Procedure Table 2.1 Comparison between the two export procedure models Similarities Tan Phat Co.,ltd Export Procedure Standard Export Procedure Step 1: Obtaining export license Step 7: Obtaining export license Step 2: Confirming payment Step 4: Delivery notification, L/C checking Step 3: Preparing products for export Step 3: Preparing exporting goods Step 4: Checking goods for export Step 5: Examining the quality of the goods Step 5: Chartering the ship and sending notifications to the buyers Step 8: Chartering the ship Step 6: Doing customs procedures Step 9: Getting customs formalities Step 7: Delivering and exporting goods Step 10: Delivery through forwarder Differences The Standard Export Procedure have more these steps: - Step 1: Market identification and Market analysis - Step 2: Negotiating and signing of contract - Step 6: Quarantine of animals and vegetables - Step 11: Claim handling (if any) The procedure from Tan Phat Co.,ltd’s model does not completely resemble the theoretical framework They maintain a different order with the steps cut down and simplified Tan Phat Co.,ltd does not investigate the market and proactively look for business partners The company usually takes orders and does trading with 16 regular customers instead of making offers to new ones As a result, contracts are not often renegotiated Tan Phat Co.,ltd is a porcelain product – exporting company; consequently, quarantine of animals and vegetables is unnecessary Step from the standard model is not included in Tan Phat Co.,ltd’s export procedure In summary, despite the differences between the process in theory and application, the steps are basically similar The process in reality is straightforward and less obscure 2.2.3 Evaluation of Tan Phat Co.,ltd exporting procedure 2.2.3.1 Exporting activities of Tan Phat Co.,ltd from 2017-2020 Table 2.2 Exporting activities result of Tan Phat Co.,ltd from 2017-2020 Year Number of exporting products Increase/decrease compared to last year 2017 2018 2019 2020 14,521 25,578 33,839 31,624 + 76.1% + 32.3% - 6.5% (Source: Statistics of Tan Phat Co.,ltd’s Finance and Accounting Department ) The table gives information about exporting activities result from 2017-2020 and also the changes over the years of Tan Phat Company Limited In the 20172018 period, the number of exporting products increased up to 76.1% because, after the first year of struggling, the company had gained many valuable experiences in exporting procedure In the next year, this proportion still went up to over 32% It is clear that the company established a standard export process and also found more potential overseas partners There is a slight decrease in 2020 at just 3.5% when the company suffered from the COVID-19 pandemic However, the company still maintained good relationships with old partners and had enough profits to pay employees’ salaries From this exporting activities result, it can be seen that the company has chosen an effective export procedure Some advantages and disadvantages are shown below: 17 2.2.3.2 Advantages of the export procedure The organization of export transactions at Tan Phat Co.,ltd is plain and efficient The company is flexible in applying the export procedure It reduces the eleven – step model to only seven steps in order to boost the process faster However, all of the major steps remain and are strictly and legally followed All of the papers and documents are genuine, legal, and trustworthy The preparation phase is done carefully so as to make sure of customers’ satisfaction The company is serious about quality control and often has the work done by the authorized office The company believes having a proper and thorough examination can enhance its credibility In general, although the export steps taken by Tan Phat Co.,ltd are in different orders and content compared to the standard model, they have made regular contributions to the company’s success over the years, which is shown in the table above 2.2.3.2 Drawbacks of the export procedure The export process of seven steps has not been changed in many years Not only has it gained some achievements for the company but also creates few drawbacks First, the process lacks a marketing strategy The company does not have a Marketing Departments and expertise in marketing The company often has to outsource marketing, hence pushing up the cost of final products If the company wants to gain comparative advantage, it has to bear parts of this cost Moreover, the company has not taken advantage of the Internet Tan Phat Co.,ltd has not applied e–commerce into its business, which makes it difficult for the brand to reach international markets Second, there is no investigation in new markets The department does not research new potential markets, especially markets that can help them solve a major problem Tan Phat Co.,ltd mainly exports products to China and some Asia countries, to which Vietnam culture is familiar Yet, Tan Phat Co.,ltd has not planned any strategies to make inroads into other markets 18 Third, Tan Phat Co.,ltd usually has a lower voice when dealing with partners because most of the time Tan Phat Co.,ltd follows orders instead of offering, causing negotiation to be less effective It is often the passive side at the negotiating table and loses the bargain 19 CHAPTER RECOMMENDATIONS TO IMPROVE THE EXPORT PROCEDURE AT TAN PHAT CO.,LTD In the context of fierce competition in both domestic and foreign markets, every business, so as to achieve sustainable growth, has to adopt effective and appropriate strategies which are responsive to each stage of the country’s development Well–equipped with the right strategic orientations, companies will be able to develop detailed and feasible plans Exporting is a complicated activity and is strongly influenced by the export procedure If a company wants to boost its export activities, it needs to optimize an export model that best fits its goals On the ground of the analyzed advantages and drawbacks of Tan Phat Co.,ltd’s export procedure, the report may now discuss some proposals that the company can apply to its policy in order to improve the outcome profit 3.1 Focusing on marketing activities As the market economy increasingly prospers, marketing activities play a more crucial part in determining the success of a company A proper marketing plan will pave the way for Tan Phat Co.,ltd’s export activities to grow Over the past few years, marketing activities of Tan Phat Co.,ltd have mostly been implemented by the Sales Department, together with the Board of Directors’ direct guidance Therefore, the company’s marketing activities pale against other competitors of local brands and of foreign ones Following are suggested steps for an initial marketing plan: Firstly, improve product diversification strategy In order to optimize the market's potential, the company needs to create a feasible product diversification strategy, as well as extend its product lines This strategy should aim at the various designs of latest trends, investment in manufacturing products On the other hand, Tan Phat Co.ltd has to take feedback from customers so that its current designs can be improved 20 Secondly, establish flexible pricing policies Because it is hard for local brands to compete with foreign ones in terms of quality, bargain prices should be the main competing tool Although a lower price means lower revenue received per product, it results in higher quantity of products sold, (Madura, 2007) and thus promotes the company’s export activities Moreover, Tan Phat Co.,ltd can offer special discounts to special customers Common types of discounts are quantity discounts and trade discounts Quantity discount is offered to customers who purchase in large quantities With this discounting strategy, buyers receive a more favorable price for the goods, while the company can ship more goods at a time Another type is trade discount which is offered to a retailer or to a company in the same trade It creates an incentive for customers to continue doing business with the company Other than these two types of discounting schemess, Tan Phat Co.ltd can also offer lower prices to customers who submit orders online Third, enhance product promotions It is necessary that Tan Phat Co.ltd found a new marketing department Not only will this cut off the cost of outsourcing, but also form a department that works on the benefits of its own company Concerning a channel for customers to submit online orders, the company has to first make investment in its website since its existing one is no longer in operation A brand new website with an attractive, professional, and friendly interface is a useful channel for the company to provide extensive information to customers, answer their questions and receive feedbacks In addition, a company’s Facebook page should be launched since Facebook is now the foremost channel of communication 3.2 Do market identification and market analysis Market is an important factor that affects the effectiveness of export activities Understanding its market can help a company identify factors that have impacts on customers, threats, opportunities, which reduces the risks involved in decision making The key point in market analysis is to identify the ability to consume a product or product line of a company, based on which the company enhances its response to the market and adjusts the manufacturing process to 21 produce what is needed Thanks to market analysis, the company can learn about its target consumers and its potential markets Market analysis requires the understanding of (Kotler & Armstrong, 2012): ● Current state of its industry ● Identification and forecast of market supply and demand ● Competitive analysis In order to get the hold of these items, Tan Phat Co.,ltd should implement the following tasks: ● Segment the market (Market Segmentation, n.d.): allows the company to precisely reach a customer with specific needs and wants ● Conduct customer satisfaction surveys: helps find out what customers think about the company’s products and how the products are compared to those of competitors 3.3 Making active offers and improve employee skills Active offers enable firms to gain a better voice at negotiating table because offers contain advantages for companies who make it The first offer has a strong influence on counteroffers and the final price (Negotiation Advantage, n.d.) Furthermore, making the initial move helps the company set up a good image of confidence and good preparation, hence, giving the company a strong bargaining position The opening offer can not be optimized if employees lack negotiating skill For this reason, the report suggests that the company runs courses in negotiating skill training for staff members doing exporting tasks Besides negotiating, employees also need to improve exploring knowledge, learn from other global brands’ methods 22 CONCLUSION Export plays an essential part in the economy of Vietnam It is the main engine of industrialization and modernization It makes an impact on the growth of GDP, the interest rate, the living standard of and the development of the country Vietnamese government, as a result, attaches strong importance to the role of export in economic growth and encourages enterprises to increase export business Since its operation in 2007, Tan Phat Co.,ltd has attained many achievements including expanding in manufacturing, breaking into new markets, and developing various products of better quality and sustainability However, the company still has to face many difficulties in its export process The lack of a marketing department and its absence in online communication channels cause the company to lose comparative advantages Market analysis has been done poorly, steering the business into having export off – season In addition, its weak position in negotiations due to not making the first move reduces the total revenues In the light of the findings and discussion in this report, some recommendations were made In the time coming, the company should establish a marketing department and set up marketing plans For now, it can start doing market analysis for long–term usage and opening offers to enhance its position in negotiations Tan Phat Co.,ltd needs to make use of its advantages and overcome drawbacks to reach greater achievement in export activities 23 REFERENCES Kotler, Philip & Armstrong, Gary (2012) Principles of Marketing (14th edition) New Jersey: Pearson Prentice Hall Lin, Geoff (2009) A Successful Marketing Strategy for Nike Inc.: The Story Behind and Its Analysis ) Viewed 05 August 2021 Retrieved from: http://ttqs.wda.gov.tw/Column_Files/3ffca119102a4fbdaef5ba32cc9064aa/A%20Successfu l%20Marketing%20Strategy%20for%20Nike%20Inc.%20The%20Story%20Behind%20an d%20Its%20Analysis.pdf Madura, Jeff (2007) Introduction to Business (4th edition.) Natorp Boulevard Mason, OH: Thomson South – Western Market Segmentation: Why Market Segmentation Are Important to Marketers – Video & Lesson Transcript (n.d) Viewed 03 August 2021 Retrieved from: http://study.com/academy/lesson/market-segmentation- why-market-segments-areimportant-to-marketers.html Negotiation Advantage: Make the First Move (Negotiation Advantage) (n.d) Viewed 10 August 2021 Retrieved from: http://executiveeducation.wharton.upenn.edu/thought-leadership/wharton-atwork/2012/09/negotiation-advantage Segal (2021) Export definition Retrieved from: https://www.investopedia.com/terms/e/export.asp Vu Huu Tuu (2002) Giao trinh ky thuat nghiep vu ngoai thuong Hanoi: NXB giáo dục Tan Phat Company Limited (2020) Annual Business Report 2020 ... chosen ? ?Situation and evaluation of Tan Phat Company Limited exporting process? ?? as my field report’s topic The main objective of conducting this research is to understand the export procedure of Tan. .. straightforward and less obscure 2.2.3 Evaluation of Tan Phat Co.,ltd exporting procedure 2.2.3.1 Exporting activities of Tan Phat Co.,ltd from 2017-2020 Table 2.2 Exporting activities result of Tan Phat. .. 9 CHAPTER CURRENT SITUATION AND EVALUATION OF TAN PHAT CO.,LTD'S EXPORTING PROCEDURE 2.1 Theoretical basis of exporting and exporting procedure 2.1.1 Theoretical basis of exporting According