(Luận văn thạc sĩ) impact of goods distribution system on financial performance the case of minh thai co , ltd

VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL *************** PHAM VAN NHUNG IMPACT OF GOODS DISTRIBUTION SYSTEM ON FINANCIAL PERFORMANCE: THE CASE OF MINH THAI Co., LTD MASTER THESIS HA NOI - 2021 VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL *************** PHAM VAN NHUNG IMPACT OF GOODS DISTRIBUTION SYSTEM ON FINANCIAL PERFORMANCE: THE CASE OF MINH THAI Co., LTD TÁC ĐỘNG CỦA HỆ THỐNG PHÂN PHỐI HÀNG HĨA ĐẾN HIỆU QUẢ TÀI CHÍNH: TÌNH HUỐNG TẠI CƠNG TY TNHH MINH THÁI Major: Financial Management Code: 8340202.01QTD MASTER THESIS Supervisor: PhD.Mai Anh HA NOI - 2021 DECLERATION I hereby declare that this is my graduation thesis The results in my graduation thesis are true and have never been published in any other study I hereby declare that this Master thesis entitled “IMPACT OF GOODS DISTRIBUTION SYSTEM ON FINANCIAL PERFORMANCE: THE CASE OF MINH THAI Co., LTD ” was carried out by me for the degree of Master of Financial Management under the guidance and supervision of PhD Mai Anh – Head of Office of Academic Affairs of International School, Vietnam National University, Hanoi The interpretations put forth are based on my reading and understanding of the original texts and they are not published any where in the form of books, monographs or articles The other books, articles and websites, which I have made use of are acknowledged at the respective place in the text For the present thesis, which I am submitting to the University, no degree or diploma or distinction has been conferred on me before, either in this or in any other University Hanoi, August 2021 Pham Van Nhung ABSTRACT Thesis Title: Impact of goods distribution system on financial performance: case of Minh Thai Co., Ltd Pages：67 University：International School - Vietnam National University Date：August, 2021 Degree：Master Researcher：Pham Van Nhung Advisor：PhD Mai Anh The thesis focuses on researching and examining the effects of the goods distribution system on the financial performance of Minh Thai Co., Ltd in the period 2018 - 2020, as well as the means to achieve innovation and financial performance Data used in the analysis in the thesis in addition to the company's report data, there are also 150 questionnaires to conduct the survey at Minh Thai Co., Ltd This study proves that internal factors are directly related to the financial performance of the company and indirectly related to the distribution system The company needs to have solutions to improve the problems affecting the distribution system to improve financial efficiency This study wishes to contribute to understanding the premises and results of distributed systems by providing empirical evidence on distribution forms at Minh Thai Co., Ltd to improve financial performance Keywords: Financial performance; Distribution system ACKNOWLEDGEMENT During the time of preparing and completing my thesis, I received numerous support and encouragement from many people This is hereby to express my sincere gratitude to them First and foremost, I would like to give my sincere thanks to the lecturers, especially to my supervisor Dr Mai Anh for their devoted attention, lessons and guidance, which have equipped me with key knowledge and essential skills throughout the course More importantly, everything I have learned here would undoubtedly help me tremendously in my work Second, I wish to express my gratefulness to my colleagues at Minh Thai Co., Ltd for their enthusiastic support and creating favorable conditions for me to have more useful information to complete this thesis I would also like to thank International School - Vietnam National University, for useful supports during studying and researching to complete this paper This course has equipped and improved and added a lot of knowledge about the different areas In addition, the course also helps me to have a relationship, have the opportunity to share information and learn from other students in the program Sincere thanks Pham Van Nhung CONTENTS DECLERATION ABSTRACT ACKNOWLEDGEMENT LIST OF TABLES LIST OF FIGURES .7 LIST OF ABBREVIATIONS .7 CHAPTER 1: INTRODUCTION .8 1 Background of the study 1.2 Questions of thesis Objectives and scope of thesis 1.4 Research Methods 1.5 The structure of study 11 CHAPTER 2: LITERATURE REVIEW 12 2.1 Financial performance 12 2.1.1 Definition of financial performance 12 2.1.2 The indicators for evaluating the financial performance 13 2.1.3 The meaning of financial performance .16 2.2 Distribution Systems 16 2.2.1 Definition of Distribution Systems .16 2.2.2 Distribution System and Distributor 17 2.2.3 Functions and Role of Distribution System 17 2.3 Relationship of Distribution system and financial performance in business activities .19 CHAPTER 3: RESEARCH METHODS 21 3.1 Research Methods 21 3.2 Hypotheses 21 3.3 Designing questionnaire .22 3.4 Sample and Data Collection .23 3.5 Analyzing data plan 23 3.6 Reliability analysis by Cronbach’s alpha 25 3.7 Exploratory factor analysis (EFA) .25 3.8 Regression analysis 26 CHAPTER RESULTS AND FINDINGS .28 4.1 Overview about Minh Thai Co Ltd 28 4.2 Analysis of financial performance of Minh Thai Company Limited in the period of 2018 - 2020 30 4.2.1 Analyze business results 30 4.3 Research results and analysis 39 4.3.1 Data description 39 4.3.2 Reliability analysis and scale 4.4 Exploratory Factor Analysis 4.4.1 Exploratory Factor Analysis of Affecting Factors Scale 4.4.2 Exploratory Factor Analysis of the financial performance Scale 4.5 Regression Analysis 10 4.5.1 Regression Analysis 10 4.5.2 Research model and hypotheses tested result 14 CHAPTER IV: RESULTS AND FINDINGS 16 5.1 Assessment of the financial performance through the distribution system at Minh Thai Co.,Ltd 16 5.2 The affecting factors on the performance of finance activities at Minh Thai Co.,Ltd 16 5.3 Suggestions to improve the financial performance at Minh Thai Co.,Ltd 17 5.3.1 Improve the inventory 17 5.3.2 Improve the operating expense 17 5.3.3 Improve the average collection period 18 CONCLUSION 20 REFERENCES 21 APPENDIX A: QUESTIONAIRE – VIETNAMESE VERSION 23 APPENDIX B: QUESTIONAIRE – ENGLISH VERSION 25 LIST OF TABLES Table 3.1 Hypotheses Table 3.2 Encoded Data Table 4.1 Minh Thai’s key performance indicator in the period of 2018-2020 Table 4.2 Revenue growth of Minh Thai Company Limited from 2018 – 2020 Table 4.3 The revenue stucture from sale of Minh Thai Co.,Ltd from 2018 – 2020 Table 4.4 Profit growth of Minh Thai Co., Ltd in the period of 2018 – 2020 Table 4.5 Structure of the company's profit before tax from 2018 – 2020 Table 4.6 The ability to generate profits of Minh Thai Co., Ltd from 2018 – 2020 Table 4.7 The performance of using asset of Minh Thai Co.,Ltd from 2018 – 2020 Table 4.8 The influence of factors on the efficiency of using fixed assets of the company in the period of 2018-2020 Table 4.9 The influence of factors on the efficiency of using short-term assets of the company in the period of 2018-2020 Table 4.10 The profitability of Minh Thai Co.,Ltd in the period 2018 – 2020 Table 4.11 The influence of factors on the profitability of assets at Mainh Thai Co.,Ltd in the period 2018-2020 Table 4.12 The influence of factors on the ratio on sales at Minh Thai Co.,Ltd in the period 2018-2020 Table 4.13 The influence of factors on the profitability of equity at Minh Thai Co.,Ltd in the period 2018-2020 Table 4.14 The indicators of financial performance at Minh Thai Co., Ltd in the period 2018 – 2020 Table 4.15 Descriptive Analysis Table 4.16 Reliability of scale Table 4.17 Exploratory Factor Analysis of affecting factors to the financial performance at Minh Thai Co.,Ltd Table 4.18 Reliability statistics and exploratory factor analysis of affecting factors to the financial performance, 2nd time Table 4.19 Exploratory Factor Analysis of the Financial performance Scale Table 4.20 Table 4.21 Table 4.22 Partial correlation of regression coefficients – 1st time Table 4.23 Partial correlation of regression coefficients – 2nd time Table 4.24 Adjusted R square Table 4.25 ANOVA analyzing Table 5.1 The result of regression coefficients model – 2nd time Hypotheses Tested Results The financial performance at Minh Thai Co.,Ltd LIST OF FIGURES Figure 2.1 Dupont analysis model Figure 2.2 Financial coefficient tower model Figure 3.1 Hypotheses Figure 4.1 Overview of the distribution system of Minh Thai Co., Ltd Figure 4.2 Research module result LIST OF ABBREVIATIONS ROA Return on Assets ROE Return on Equity ROS Return on Sales ACOP Average Collection Period CPVs Critical Profit Variables INV Inventory SAG Sales growth OPEX Operating expense ACOP Average collection period FP Financial performance CHAPTER 1: INTRODUCTION 1 Background of the study In order to stand firmly in the market and constantly develop under increasingly competitive conditions and scarce resources, a business needs to make effective use and evaluate their efficiency in using resources Among businesses, financial resources are always number one The financial resources to ensure the business operations to achieve the goals Or understand correctly, financial resources are the ability to mobilize capital to meet the business’ activities and the ability to ensure financial safety of the business From the perspective of capital management, the financial structure of the business is the ratio between Debt and Equity A financial structure is considered optimal when the average cost of capital is lowest, and at the same time the maximum value of the business Corporate financial efficiency is the efficiency of mobilizing, using and managing capital in business (Truong Ba Thanh and Tran Dinh Khoi Nguyen, 2001) In order to assess whether the financial structure of a business is optimal or not, whether to bring maximum value in financial performance or not, it is necessary to have targets to measure and evaluate financial indicators and financial performance logically The relationship between distribution system and financial performance of a business was very positive and getting a lot of attention from academics Anderson et al (1997) suggests that the good performance of the distribution can reduce costs, increase revenue and efficiency and effectiveness of business assets used Better distribution system can assist the business in maintaining its relationship with customers by reducing cycle time required (Lambert and Pohlen, 2001) Other studies supporting the relationship between distribution and financial performance concluded that the cost of inventory and the quality very big influence on retail agencies (Schramm-Klein and Morschett, 2006) Meanwhile, research Shang and Marlow (2005) concluded that the financial performance of manufacturing firms increased due to their distribution system are improved Thus, the company can have more benefits from the improvement of logistics performance Some problems in the distribution network might occur, such as, production, inventory locations, and the placement of the warehouse Therefore, the decision- making process should take into account all the factors and improve coordination with all entities in order to improve business performance, the author chooses the topic: Impact of goods distribution system on financial performance: case of Minh Thai Co., Ltd” in order to propose suggestions to further improve the business results of the business as a research topic for my graduation thesis