internship report on enhancing business management for tan an company limited

Business: Hydro power plant, Ferro production, MDF manufacture, Import and export row material, chemical, industry machine, testing & measurement equipment... Trading division includes P

UNIVERSITY OF NICE – SOPHIA ANTIPOLIS

IAE School of Business Administration

&

THANG LONG UNIVERSITY

INTERNSHIP REPORT ON

Enhancing business management for Tan An company limited

Submitted by: Ngo Thi Ha

ACADEMIC SUPERVISOR COMPANY SUPERVISOR

Dr Tran Dinh Toan

Thang Long University

Mr Le Ngoc Son

Vice director of Tan An company limited Hanoi, August 2019

ACKNOWLEDEMENTS

Firstly, I would like to express my deepest appreciation to my supervisor Dr.Tran Dinh Toan for his warm and enthusiastic guidance during my internship period This support is very valuable to help me to complete my duties as long as gain my knowledge

Secondly, I would like to thanks Board of Management of Tan An whom always trust and support me to deep approach to the company system I also would like to thank for all managers of production and trading division who are willing to give me your best support

Furthermore, from depth of my heart; I would like to send thank you to all professors engaged in Master Affaires et Management International course, especial to Dr Tony Brooking, Dr Nadine Tournois for their invaluable lectures and instructions

Finally, I would to thanks all the students in AMI course for their support during Master AMI course

ABSTRACT

This report is a result of the 4-months internship period at Tan An limited company The aim of this work is to enhancing business management of company dealing with changing of globalization economy that affect to Vietnam market To achieve the mission, I have practiced the theoretical knowledge that I gained from the AMI course as long as from many other reference books I chose the application of tools, such as PESTL and SWOT to analysis the internal and external factors that influence the Tan An company business, then to revise the current strategy Otherwise, I have worked with all departments of Tan An company to sort out the limitation of management system and improve it

TABLE OF CONTENT

2.1 Organizational structure of Tan An limited company 9

3.2 The Relationships between the Subject Matter and the Mission 16

INTRODUCTION

In recent years, the Vietnamese government has been making great efforts to reduce trade barriers to attract foreign investment Besides, the Government of Vietnam also negotiated and signed a series of free trade agreements with countries in the region and the world It promotes Vietnam's economy into a free economy and joins the global market

With the trend of globalization, the wave of FDI investment in Vietnam has increased This has just boosted the domestic economy but also poses great challenges for domestic enterprises in the context of increasing competition when tariff barriers are gradually removed

In Vietnam, Tan An Co., Ltd is one of the active company with more than 24 years history success in import and export and production with revenue up to 36 million US dollars in 2018 However, in the trending of global, the company may face with difficult when the investment from the government customer reduces as long as increase competitive from foreign enterprises It is necessary to Tan An to analysis and revised its strategy as long as enhancing its business management to maintain and grow its wealthy

This report focused on analyzing external environment, internal factor of company and revising the strategy Besides that, the report also concern about outstanding limitation in business management system and sort out by the solution

My report consists of five chapters and presents following steps in order to get the goal:

Chapter I: main information about Tan An Co., Ltd that include brief history and its main business, customers and financial situation

Chapter II: Tan An’s organizational chart and departments’ functions; Chapter III: My tasks assigned and goals during the internship period Chapter IV: Development the issue and solution

Chapter V: Suggestion recommendations and overall conclusion

CHAPTER I: COMPANY BACKGROUND

1.1 Brief introduction about Tan An limited company

Tan An company limited was established on 25/3/1995 This time its business focused in: importing raw material of chemicals, metallurgical material, equipment and machines for industry

2004, Tan An started build a group of small hydroelectric power plant in Lao Cai province 2008 three small hydroelectric power plants completed and went in to operation Total capacity is 5.6 MW

During this year, the company has a joint venture with the Vietnam Forestry Corporation to build Medium density fiberboard (MDF) with capacity up to 54.000 m3 per year, and labor 190 people Tan An own 51% shareholder

In 2008, Tan An formed a joint venture with Chinese partner to build Ferro Manganese producing factory Our main products are low and average Ferro manganese carbon, high carbon ferromanganese, silinco manganese alloy; these products are main materials for foundry industry and steel casting production The total output is about 100,000 tones / year Now business of Tan An includes two majors, trading and manufacturer Trading division located in JSC34 building, 9th floor, 164 Khuat Duy Tien Street, with more than 70 staffs Manufacturers locate in several provinces and they are independent to trading division, and report their own balance sheet as long as duty with the government In other word, Manufacturers include Hydro power plant, Ferro manufacture, MDF manufacture are independent companies in registering system

Name of company: Tan An company limited

Revenue: up to 36 million USD (only trading division) Human resources: 500 people

Business: Hydro power plant, Ferro production, MDF manufacture, Import and export row material, chemical, industry machine, testing & measurement equipment

Headquarter: 9th Floor, JSC Building 34, Lane 164 Khuat Duy Tien, Thanh Xuan, Hanoi, Vietnam

Telephone: +84-24- 2225.0749 Fax: +84 -24 - 2225 0750 Website: tanangroup.com

1.2Products and Services

Business of Tan An contains two division: production and trading Production division includes Ferrosilicon, Ferromanganese factories, Phu Mau Hydropower Plants, MDF wood producing factory Trading division includes Power plant project center, Measurement testing

equipment center and Raw material & chemical center 1.2.1 Products and services of Production division 1.2.1.1 Ferrosilicon, Ferromanganese factories

In 2008, Tan An formed a joint venture with Chinese partner to build Ferro Manganese producing factory in Hai Duong and Ninh Binh province Our main products are low and average Ferro manganese carbon, high carbon ferromanganese, silicon manganese alloy; these products are main materials for foundry industry and steel casting production The total output is about 100,000 tones / year

Currently, Tan An products high carbon Ferro Manganese and Silicon Manganese quantity reaches around 35,000 tons / year Typical products are FeMn78C8.0 and FeMn65Si18, supply mainly for steel production domestic and export partly

Tan An also are going to study the production technology line of Low and average Carbon Ferro Manganese, typical products are FeMn80C0.5, FeMn80C2.0, FeMn 80C1.0, FeMn 80C0.7, FeMn78C1.5, FeMn75C2.0; including 2 refining furnaces of 1800KVA reaching the total output of 28,000 tons / year

Products:

Silica manga : Mn60Si14, Mn65Si17, Mn72Si16 Ferro Chrome: FeCr60

FeMn78C8.0, FeMn65Si18 Market:

Export to Japan, Korea Domestic (steel production)

1.2.1.2 Phu Mau Hydropower Plants

Phu Mau Hydropower plants include three sub plants Sub plants 1: Capacity 1,4MW

Sub plants 2: Capacity 1,8 MW Sub Plant 3: 2,4 MW

With total capacity 5,6MW, Phu Mau Hydro plants sell from 21million kWh to 22 million kWh for Vietnam Electricity Corporation

1.2.1.3 MDF wood producing factory

MDF wood production plant Tan An - Vinafor Hoa Binh started constructing from 2009 and ran at full capacity in 2013

Main products of the Company are synthetic flooring MDF with thickness from 8 ÷ 25mm Length of 2.440mm, width of 1.220mm it is very convenient for the construction, interior and exterior design for works It is also the primary material for producing furniture MDF is very favorable for foreign processing work as window frames and doors for the building, produced from all kinds of other household products Total capacity of the plant is 54.000m3 / year

Market: Export and Domestic

1.2.2 Product and service of Trading division.1.2.2.1 Power plant project center

Scope of activities:

Construction of the entire power plants system

Corporation with overseas partners in production, supply and installation of the entire system of mechanical equipment, hydraulic, electrical equipment, measurement and control of hydro-power plants

Target Customers:

System customers Tay Nguyen hydro-power plants where gathers many small and medium hydro power plants in country Example: Daklay, Dakpsi, Dakpone, Dakne and so on

The large hydro-power plant: Thac Ba Hydro-power plant, Hoa Binh hydro-power plant, Yaly hydro-power plant

Customers of the energy sector: Electricity; Testing Center; power plants

1.2.2.2 Measurement testing equipment center

Scope of activities:

Delivery of equipment and solution for measurement and testing

Delivery of analysis equipment of Science, technology, education, health Equipment, technical service and systems integration for industrial plants Equipment and solution for Information Technology and Telecommunications Target customer:

Measurement Standard System (STAMEQ): Vietnam Metrology Institute, Center for Quality Measurement Standards 1, 2, 3, 4 (Quatest 1, 2, 3, 4); 63 departments in 63 provinces, the Vilas of organizations, large factories

Ministry of Defense: The system of quality measurement criteria and factories of the Ministry of Defense

Airline: Vietnam Airlines, Vietjet, Jetstar

Industry: Large industrial plants, thermal power, fertilizer, cement, steel, foundry, mechanics and so on

1.2.2.3 Raw material & chemical center.

Scope of activities:

Import chemical and supply for Vietnam market

Import raw material and supply for domestic metallurgy industry Target customer:

Government customer: Ministry of Health, Ministry of Defense

Industry customer: Large company in many field such as beverage, painting, fertilizer, metallurgy, oil processes

Laboratory: The Vilas system

1.3 Financial figures

BALANCE SHEET ASSETS

Current Assets: 398,465,810,862 269,456,315,198 206,277,711,228 Non-current assets 100,618,882,146 110,833,630,894 73,265,665,961 Total assets 499,084,693,008 380,289,946,092 279,543,377,189 LIABILITIES AND EQUITIES:

Current liabilities 322,490,958,880 220,617,635,130 136,715,131,296 Non-current liabilities: - 396,949,410 915,228,745 Total liabilities 322,490,958,880 221,014,584,540 137,630,360,041 Equity

Ordinary share capital 100,000,000,000 100,000,000,000 100,000,000,000 Retained earning 76,593,734,128 59,275,361,552 41,913,017,148 Total equity 176,593,734,128 159,275,361,552 141,913,017,148 Total liabilities and equities 499,084,693,008 380,289,946,092 297,543,377,189

INCOME STATEMENT

Net Revenue 833,924,507,044 458,382,390,961 524,654,334,072 Cost of Goods Sold 777,171,895,774 419,432,545,579 475,462,708,591 Gross profit 56,752,611,270 38,949,845,382 49,191,625,481 Operating expense 13,170,984,392 13,706,449,125 12,836,189,247 Income from operation 43,581,626,878 25,243,396,257 36,355,436,234 Other revenue and expense (24,738,055,557) (6,917,759,050) (19,391,317,753) Income before taxes 18,843,571,321 18,325,637,207 16,964,118,481 Income taxes 1,111,823,545 963,292,803 871,447,602 Net income 17,731,747,776 17,362,344,404 16,092,670,879

Table 1: Financial performance of Trading division from 2016 to 2018

The table shows the company’s revenue 2017 decreased 12,6% compared with 2016, but its recovered roared up 58% in years 2018 when compared it with revenue 2016 The reason explains for that big changing is the Tan An’s revenue depend on the big project with the state customer During there year 2016 to 2018, there were many big and long projects, and many of them completed in years 2018 In general, the average revenue of the company around 20 million US dollars and grows 10% to 15% per years The real operate profit as long as net profit also increases respectively

In conclusion, not just base on final report but also base on real business operating, Tan An have good business with abundant financial resource The company also has many advantages to call capital from the bank as long as from individual investors

Figure 1: Revenue of trading division from 2016 to 2018 (unit billion VND)

CHAPTER II: COMPANY STRUCTURE AND ORGANIZATION CHART

2.1 Organizational structure of Tan An limited company

Figure 2: The organization chart of Tan An company 2.2 Description

2.2.1 The Board of Management:

The board of management comprises three members who are owners of Tan An limited company: Chairman, Director, and Vice Director They are the highest decision - making

authority of the Company

The Chairman is responsible for strategic of the company He gives the strategic decision to

TANAN COMPANY

BOARD OF MANAGERMENT

ACCOUNTING DEPARTMENT

Trading Division

T&M centerHPP Project

Chemical centerHydro

power plant

Ferro production

MDF

production Production

ASSISTANCE DEPARTMENT

The Director is responsible for running and managing all the activities of the company production and trading

The vice Director is responsible for production division He manages activities of Board of Director of factories to maintain and grow profit as long as it’s development

2.2.2 Accounting department:

Planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the company;

Monitoring expenditure and revenue;

Making period report directly to the Board of Chairman and related department in trading division;

Monitoring period financial report from manufactures of production divion; Performing all other accounting transactions;

Structure of each manufacture:

Figure 3: The organization chart of each manufacture 2.2.5 Trading division:

Trading division includes three centers that are T&M center (Testing & Measuring equipment center): supply about testing & measurement equipment), HHP project center (Hydro power plant project): supply whole solution including technology and equipment for small hydro power plant; Chemical center: supply chemical and raw material Each center is independent business unit (BU) The company decentralized authority in high level to manager of each BU They have fully authority to decide their self-strategic, their sales activities, their staff, but the company monitors each BU via financial monitoring: gain or loss

Organizational structure for each BU

Board of Director

Accounting Department

Office &HR department

Sales & Marketing department

Production

Figure 4: Organization chart of each Business unit

Regarding accounting and other official work, each BU receives support from Accounting, Officer and Human resource departments

Sales manager:

- Responsible for all activities of the BU (business unit) - In charge for profit and loss of BU

- Decision strategic as long as all sales activities

- Decision number of staffs as long as recruitment and lay off - Sales team management:

+Training for newly recruited employee;

+Setting up standards to assess working effectiveness of employees +Making plans to develop sales team

+Motivating sales team improve sales results +Assess sales team work and results

Administrative Management:

+Administrative Management of sales office

+Monitoring compliance with company’s policies and regulations +Coordinating collaborations with other companies

+Holding company meetings with partners and customers Marketing Activities:

+Developing new sales and new products

Sales manager

Sales department Logistics

Department

Service Department

+Predicting of market trends

+Collecting and evaluating date on competition, rivals, customers and market +Being in charge of priority projects

+Creating, keeping and developing business relationships in priority projects to ensure success

- Competing with rivals to win orders;

- Following and making changes to orders (if necessary), placing orders with suppliers Dealing with any problems which may occur;

manager to find solutions and giving feedback to customers;

- Taking part in external affairs management; setting up cooperation with new suppliers

Service Department

- Delivering, commissioning equipment and training staff for customers

From my view, the organization structure of Tan An Limited Company is suitable to their business They organize their business to independent manufactures and Business Units They also decentralized authority to director of manufacture as long as manager of each BU That can shorten the decision-making process and help local manager flexibly adapt with market This organization structure also reduce management task for Board of Management because each department operate likely independent company However, this structure also has some disadvantage that is analyzing more detail in chapter III and IV

CHAPTER III: THE MISSION: ASSIGNED TASKS AND GOALS

3.1 My tasked assignment

In Tan An company, I am in charge in Testing & Measurement equipment center My center focuses on supply testing & measurement equipment in Vietnam market It works independently as a subsidiary of Tan An Co Ltd We are business partner with many famous branches in the world like Wika, HP Agilent, Fluke, and Thunder scientific and so on We import that equipment and supply to customer in Vietnam Our main customers are:

Directorate for Quality and Standards; Vietnam metrology Institute;

Quality Assurance Testing center;

Scientist and technology department in 63 provinces; More than 420 villas in Vietnam;

Research institution; Industry Aviation; Ministry of Defense;

Ministry of Science and Technology; Ministry of Education

My main duties: As normal management It included 6 main jobs;

Sales team management: training for new employee Making plans to develop sales team, encourage sales team improve their results Assess sales teams work and result Administrative management: monitoring sales team to make sure it compliance with

company regulations Hold meeting with supplier and customer

Marketing activities: collect information about market, customer competition for

supporting to predict market trend and develop new supplier and customer

Being in charge of priority projects: our customers are main state company and

doing business in this field is very different and has difference to normal business I need to keep up government policy, keep and develop business relationship with the