Real situation and recommendation to enhance efficiency of import operation in TSG service and trading limited company

Nguyen Thi Ngoc - CQ532743 - Business English 53A ACKNOWLEDGEMENT This report would not have been possible without sincere guidance and continuous support of several individuals whose direct and indirect assistance helped me finish my report in time Firstly, I would like to express my warm and sincere thanks to all lecturers of the Faculty of Foreign Languages of National Economics University for their teaching and encouragement Secondly, I am heartily thankful to my supervisor, Ms Le Thi Thu Ha, who has directly guided me during my study Her support, patience, motivation, enthusiasm, and immense knowledge are not only necessary but also helpful to the completion of my report From bottom of my heart, I honestly wish her the best health and more success in her life as well as career Thirdly, I also would like to show my deep gratitude to TSG staff in general and Mr Bui Duc Son, Director of TSG service and trading limited company, in particular They have shared about their experience and knowledge in import business along with supplied me the helpful documents , data related to my research I will never forget their assistance Finally, I owe my deepest gratefulness to my family and my friends who always stand by me and inspire me to complete this report i Nguyen Thi Ngoc - CQ532743 - Business English 53A TABLE OF CONTENTS TABLE OF CONTENTS ii TABLE OF FIGURES v EXECUTIVE SUMMARY vi RESEARCH PROPOSAL I, Title II, Background III, Rationale IV, Purpose V, Scope VI, Research question VII, Methodology .2 CHAPTER I: INTRODUCTION OF TSG SERVICE AND TRADING LIMITED COMPANY AND ITS IMPORT BUSINESS I.1 Introduction of TSG service and trading limited company I.1.1 The establishment and development I.1.2 The organizational structure I.2 Introduction of TSG’s import business I.2.1 Business area I.2.2 Typical foreign suppliers and customers of the company CHAPTER II: THEORETICAL FRAMEWORK .9 2.1 Terms and definitions 2.1.1 Concept and characteristics of import .9 2.1.2 Roles of import .10 2.1.2.1 The role of import for national economy: 10 2.1.2.2 The role of import for enterprises: 11 2.1.3 Types of import 11 2.1.3.1 Direct import 11 2.1.3.2 Commission import 12 2.1.3.3 Reciprocal trade .12 2.1.3.4 Temporary import or re-export 12 ii Nguyen Thi Ngoc - CQ532743 - Business English 53A 2.2 Factors affecting import operations 12 2.2.1 External factors .13 2.2.1.1 Political and legal environment 13 2.2.1.2 Fluctuations of exchange rates .13 2.2.1.3 Competitors 14 2.2.1.4 Other factors 14 2.2.2 Internal factors 14 2.2.2.1 Financial resource 14 2.2.2.2 Human resource .14 2.2.2.3 Management level 15 2.2.2.4 Target customers 15 2.3 The importation process 15 CHAPTER 3: ANALYSIS AND FINDINGS 17 3.1 The real situation of TSG company from 2012 to 2014 17 3.1.1 The company’s capital 17 3.1.2 Business results in recent years .18 3.1.3 Result of implementation of import contracts .19 3.2 The real situation of the company’s import business during the period of 2012-2014 20 3.2.1 Import turnover .20 3.2.2 Import items 21 3.2.3 Import markets 23 3.2.4 Distribution channels of import products 24 3.3 Overall evaluation 25 3.3.1 Achievements .25 3.2.2 Drawback 26 3 Causes 27 3.3.1 Internal causes .27 3.3.2 External causes 27 CHAPTER 4: RECOMMENDATIONS TO ENHANCE EFFICIENCY OF IMPORT OPERATIONS OF TSG SERVICE AND TRADING LIMITED COMPANY 29 4.1 Recommendations for the company 29 4.1.1 Researching and expanding market 29 iii Nguyen Thi Ngoc - CQ532743 - Business English 53A 4.1.2 Improving efficiency of raising and utilizing business capital 30 4.1.3 Improving the quality of human resources 30 4.1.4 Improving the way of import 31 4.2 Recommendations for the government 31 CONCLUSION 33 REFERENCES APPENDIX iv Nguyen Thi Ngoc - CQ532743 - Business English 53A TABLE OF FIGURES Chart 1: TSG service and trading limited company organizational structure Table 1: Total business capital of the company from 2012 to 2014 17 Chart 1: Total business capital of TSG company between 2012 and 2014 17 Table 2: Results of the company’s import business from 2012 to 2014 18 Table 3: Result of implementation of import contracts of the company from 2012 to 2014 20 Table 4: Import turnover of TSG company (2012-2014) 20 Chart 2: Import turnover of TSG company (2012-2014) 21 Table 5: The main import items of TSG company from 2012 to 2014 22 Table 6: Import markets of TSG company from 2012 to 2014 23 Table 7: The value of import goods of distribution channels of TSG company from 2012 to 2014 24 v Nguyen Thi Ngoc - CQ532743 - Business English 53A EXECUTIVE SUMMARY In recent years, in the context of blooming globalization and deep integration of countries into the world’s economy, import and export business in Vietnam is significantly considered as an effective tool to promote growth and economic development of the country, expand integration into the international trade market As a young company in the field of import of energy -supported equipment, the TSG service and trading limited company is constantly developing to confirm its reputation in the domestic market However, during global economic crisis, the business activities of company especially import faced many difficulties and obstacles The import business‘s efficiency of the company influenced by many inside and outside factors was not maintain stably and not improved significantly Consequently, assessing its import activities and providing some useful solutions to promote its business’s effect is seemed to be necessary and practical That’s the reason why I chose “Real situation and recommendation to enhance efficiency of import operation in TSG service and trading limited company” as the subject of this report Apart from the introduction and conclusion, the final report is divided into four chapters The first chapter provides readers with the knowledge of the company’s establishment and development, organizational structure, and TSG’s import business The second chapter shows theoretical background which mentions basic theories about import activities and factors affecting the company’s import efficiency Chapter three copes with analysis and evaluation of import operations of TSG service and trading limited company The last chapter gives some recommendations to enhance efficiency of import operations of the company vi Nguyen Thi Ngoc - CQ532743 - Business English 53A RESEARCH PROPOSAL I, Title Real situation and recommendation to enhance efficiency of import operation in TSG service and trading limited company II, Background TSG service and trading limited company is one company which specializes in providing copyrighted software Through five years of development and growth, TSG has become a reliable address for many customers across the country to purchase licensed software To achieve the result, TSG had great support from customers around the country, the worldwide software suppliers, and the efforts of members in this company Currently TSG has been the silver partner of Microsoft in Vietnam market, and has partnerships with over 500 software manufacturers all over the world III, Rationale TSG is an importer of more than 1000 copyrighted software providers around the world Its functions are importing devices, checking the quality, and selling them to customers In the whole process of supplying products to customers, importing goods is one of the most important steps to decide efficiency of import operation as well as quality of service and products of TSG After more than four years of operation, TSG company gained many achievements but it faced so many difficulties as well That’s the reason why the author chose “Real situation and recommendation to enhance efficiency of import operation in TSG service and trading limited company” as the subject of the report In this report, the real situation about import activity will be performed and some recommendations will be given with an aim to enhancing efficiency of import operation of TSG IV, Purpose The goal of this paper is to: -To analyze import operation efficiency of TSG from 2012 to 2014 -To analyze factors which affect import operation of TGS -To suggest recommendations to enhance import efficiency of the company V, Scope - Scope topic: internship based on import activity of TSG - Object scale: TSG service and trading limited company Nguyen Thi Ngoc - CQ532743 - Business English 53A VI, Research question The research paper answers questions: -How has import activity of TSG operated during the period of 2012-2014? -What problems has import operation of TSG encountered? -Which recommendation will enhance import operation efficiency of TSG? VII, Methodology This research paper uses the method of finding, collecting, aggregating and analyzing secondary data of importing process of TSG Through results of the report, the author points out achievements and shortcomings in import operation of the company From that, there are some critical recommendation to enhance efficiency of import operation in TSG service and trading limited company Nguyen Thi Ngoc - CQ532743 - Business English 53A CHAPTER I: INTRODUCTION OF TSG SERVICE AND TRADING LIMITED COMPANY AND ITS IMPORT BUSINESS I.1 Introduction of TSG service and trading limited company I.1.1 The establishment and development  Trading name : TSG service and trading limited company  Head office : 17E, group 12A, Thuong Dinh ward, Thanh Xuan district, Hanoi  Telephone number: +84 2246 0785  Fax : +84 35 0145  Website : www.soft365.vn  Email : sales@tsg.net.vn Founded in 2010, TSG service and trading limited company operates in the field of consulting solutions and distributing copyrighted software, providing IT equipment, and providing scientific services with high technology in Vietnam TSG experienced in consulting and implementing solutions for customers in many different sectors: government agencies, corporations, telecommunications companies, production, trade, power, finance, banking, multinational corporations, small and medium-sized companies, representative offices in Hanoi, Ho Chi Minh City and many cities in the country Its vision and mission is to build TSG company become a leading company in providing products and services relating to copyright and software security solutions Core values are customer-centered, teamwork, professional, working with the highest responsibility In term of culture of the company, TSG maintains a working style, communication imbued human identity The company built a business atmosphere which expresses culture, with clear principles in all activities, communication and entertainment TSG is a group of rich cultural traditions, strong entrepreneurial spirit; members of the company are linked together to preserve and develop the traditional values TSG's culture expresses through the core principles: Profit- Nguyen Thi Ngoc - CQ532743 - Business English 53A effectiveness, keeping the word "Faith" with customers, specialization of technology and services, growth, management following objectives I.1.2 The organizational structure Chart 1: TSG service and trading limited company organizational structure As a small-scale enterprise, TSG management structure includes a director, a manager of business, a manager of technique, and a manager of accounting and administration The director, the head of the company, is responsible for controlling all activities of the whole company Three managers assist the director in running the company with their department The Director is legally responsible for the whole company as well as manages every activities of the company In particular, the director’s mission are:  Laying down the objectives and broad policies of the company