BUSINESS PLAN FOR FLEXIBLE PACKAGING AT BAC NINH FACTORY OF TAN TIEN PLASTIC PACKAGING JSC... Finally, I would like to thank the brothers and sisters of the sales department of Tan Tien
History of Establishment and development
Tan Tien Plastic Packaging Joint Stock Company was established on 20 th June 1966 under the name Simiplast
After the reunion in 1975, Simiplast continued to be managed by the state and renamed as Tan Tien Plastic Packaging Joint Stock Company (JSC) following the Decision No.45/CNn/TCQL dated 13/01/1977 by the former Minister of Light Industry (currently Ministry of Industry)
On 7 th May 1993, Tan Tien Stated Owned Plastic Packaging Company was officially established via the Decision No.451/CNn/TCLD by the former Minister of Light Industry
On 29 th April 1994, the company was renamed as Tan Tien Plastic Packaging Company via the Decision No.449/QD-TCLD by the former Minister of Light Industry
In order to realize the Decision No 624/QĐ-TCCB dated 23th October 2002 by the former Minister of Light Industry on the privatization of Tan Tien Plastic Packaging Company, on
28 th December 2004 Ho Chi Minh City department of planning and investment issued to the company the Business License where the company name was officially changed as Tan Tien Plastic Packaging JSC
In December 2002, Tan Tien Plastic Packaging JSC was certified ISO 9002: 1994
In early of 2003, the company put into operation a new factory located in Tan Binh industrial park, with total area of 50,000 m2
In June 2003, Tan Tien Plastic Packaging JSC was certified ISO 9001:2000
On 9 th November 2006, the State Securities Commission of Vietnam issued the Decision No.70/UBCK-GPNY on licensing of Tan Tien Plastic Packaging JSC to list their securities at
Ho Chi Minh Stock Exchange The number of listed stock is 10,655,000 with total value of VND 106,550,000,000 (denomination: VND 10,000 /stock)
On 24 th November 2006, Ho Chi Minh Stock Exchange issued the Certificate No.46/2006/GCNCP/CNTTLK confirming Tan Tien Plastic Packaging JSC has registered to securities deposit service at Ho Chi Minh Stock Exchange as of 5 th December 2006 (Stock code: TTP)
In 2007, company officially operated the expanded packaging factory No 2 in Tan Binh industrial park On 14 th September 2007, the State Securities Commission of Vietnam issued the Decision No.172/UBCK-ĐKPH allowing Tan Tien Plastic Packaging JSC to issue stocks
Paper 8 to increase its charter capital from VND 106,550,000.000 to VND 150,000,000,000 In Oct,
2015 Tapack Plastic Packaging JSC was officially owned by Dongwon Systems Dongwon Systems which was established in 1977 is Korea’s leading packaging company in areas of packaging material, such as flexible packaging, bottles, cans, industrial films, and aluminum foils
Tan Tien Plastic Packaging JSC has actively produced complex plastic packaging material The company products are provided to many industries such as:
Product and services
Food packaging solution for instant Noodle: Powder, Paste, Vegetable, Soup, Retort pouch, Noodle cup Lid, Noodle, Oil sachet
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With years of experience, we provide our customers with the know-how and the ability to innovate to provide them with the best coffee packaging solutions A special care is taken to comply with our customers
Specifications whether they are degassing bags, laminates or lids for coffee capsules Food packaging solution for instant coffee: Outside bags, Packages
Retort-able Food Packaging is used to extend usage time Retorting in industrial food production is very difficult and requires the highest quality packaging solutions Increasing consumer’s demand for convenience and instant food products has required
Paper 10 modern, flexible retort-able packaging solutions and Tan Tien has met these conditions
The snack packaging is Specialized in combining film materials Hermetic seal quality Manufacturing on specialized printing lines and laminating lines
Tan Tien Packaging JSC is ranked as one of the leading suppliers of confectionery packaging Company supplies the market with a variety of packaging materials, including multi-layer packaging, both film and paper
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Tapack's providing some structures: PET / MPET or aluminum / PET inside face to coating heat seal lacquer to seal with PS plastic by heat.
Main customers
Top companies in Vietnam always select Tan Tien Packaging JSC is their trust worthy partner Because Tan Tien Packaging JSC has many years of experience in flexible packaging The Quality control system always guaranteed about lead time delivery as well as quality goods
Oversea Market
Tapack has exported to other countries in the world, provide good products for value customers
Some of company’s main export market are Myanmar, Philippines, Lao Because Tapack has already signed cooperate on the globally with Unilever, Unilever Myanmar, Philippines, Lao… will import from Vietnam to produce
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In addition, Tapack belong to Dongwon Group also helps Tapack gain more new markets from the US, Korea, Russia, Canada and a many other countries.
Intergrated management system
Tapack builds and develops quality standard systems to meet the highest requirements from top firm domestic to multinational corporations the specific such as:
- ISO 17025 International standard for testing laboratories
- FSSC 22000 - ISO/TS 22002-4 Food safety Management system
- SEDEX Sedex Members Ethical Trade Audit
- OHSAS Occupational Health and Safety
Tapack must meet some requirements when entering the US market: Must obtain a number of certificates according to Walmart standards, then they will provide ID to enter Walmart
Financial data about the company
The general overview of the financial status of Tapack in last 08 years can be presented in Income Statement below:
In the table, the annual income statement has shown two-stage before 2015 and after 2015 Before 2015 stage: the profit is fine with the firm The raw material price is stable, the labor costs still low, the economy is growing up Therefore, profit also increases This stage, Dongwon group is dealing to take over Tapack
After 2015 stage: When the Dongwon system completed take over Tapack, the first stage sill the stability and Labor cost, raw material… still stable But, stage 2016-2017-2018 is unstable about the raw material price Therefore, the chart has shown that profit is going down
Figure 1: Chart of Tapack annual income statement
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COMPANY STRUCTURE AND ORGANIZATION CHART
The Tan Tien Oganizational structure current as below
General shareholders
Because Tan Tien is a Joint Stock Company, all the highest decisions must be approved by shareholders
However, after the Korean Dongwon System Group holds more than 95% of the share All of current decision by Dongwon system are the final decision
“Dongwon Systems is a Packaging Korean Company that produces packaging materials such as: flexible packaging, Industrial films and aluminum foil With our advanced systems and expertises”
Mr.Cho Jum Kun – Chairman
Mr.Jo Jeong Kook – Member
Mr.Le Van Nhan – Head
Mr.Choi Sang Woo – Member
Mr Jo Jeong Kook – General Director
General Managers of Tapack have tasked with overseeing daily business activities, improving overall business functions, training heads of departments, managing budgets, developing strategic plans, creating policies, and communicating business goals, control all factories to meet productivity and volumes
Sales director, who manages three departments
Sales director has some tasked important: implement the sales strategy of the firm, setting revenue target for the company and setting key performance The management and support all staff in dept to meet the job requirement Analyzing trends market and coordinated with other depts to complete the job Sales Director will have to manage Account receivable
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Paper 17 together Accountant collects AR overdue for company Make a forecast regarding to raw material …
Chief Financial Officer is an officer of a company whose primary responsibility is in managing the company's finances, including financial planning, financial risks management, record-keeping and financial reporting In some area, the CFO is also responsible for data analysis
Production Director is in charge of operating the factory (2 locations in HCM - Bac Ninh) Implementation of the Directive and monitoring of a company's production processes Oversees equipment purchase, maintenance and layout Monitoring and evaluating workflow and assembly methods and makes recommendations for process improvement Oversees human resource monitoring, planning and training for production Ensures manufacturing performance and quality goals are met Prepares production
Management and implementation of production target every weekly, monthly, yearly
Hear office and Branches
Head office and factory in Ho Chi Minh city:
Head office and South factory: 50,000m2
Address: Lot II, Group 4, Road 13, Tan Binh
Industrial Zone, Tay Thanh Ward, Tan Phu Dist,
Address: Tan Hong Industry Park, Expanded
Hoang Son area, Bat Lu, Hoan Son, Tien Du, Bac
Human Resources
The total number of staff and employees of Tapack Company is
814 persons including technicians, experts, officers and technical workers In particular, the number of professionally trained staff at universities and colleges accounted for 20.8%, intermediate technical accounted for 34.9%, and high school level accounted for
Most of employees have been trained in packaging producing technology at the company and have many years of experience in the field of packaging
Managers and supervisors of the company have many years of experience in the industry and especially were trained in management skills, supervised by professional training organization, consultants such as Le&Associate, Toppion, Brain Mark.
The intern’s position
The intern’s position in new project team belongs to the Domestic sales department This team has the responsibility and some activity:
- Market research, Products, Technologies, investment and analysis Result and all report to send directly to General Director and Sales Director
- Coordever with other departments to deploy build up and complete this plan to submit up Board of Director
- Contact with partners and look for suppliers about Machine and raw material for the project
- The calculate profit/loss projected for three years
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Task assigned
With 7 years experience in Pharmaceutical packaging field Therefore, I assigned as a project admin in Tapack's new business team, is suitable and meet the requirements for this position Main Responsibility of this position
Coordinate with the new business team members to implement the following main items:
Market overview analysis to (Market capacity, business plan)
To make a market overview, I have to implement some goals regarding Market research, Price analysis, Build a business plan, Prepare and calculate manpower…
Main activity above help Tapack could true evaluate pharmaceutical packaging market, before joint to this market
Supplier for this new business
Looking for and analysis suppliers regarding company product provide for customers with purpose provide information to prepare for firm negotiate before cooperate
The standard system for factories
Build and research about some standard apply for factory when operation
Human resource system and ERP system implementation in production The certificates are requested from Government as well as standard industry Tapack must know about it to give in the factory.
The link between the subject matter and the mission
Tapack was established in 1966, is one of the leading plastic packaging company in Vietnam and South East Asia Specialized in manufacturing various flexible packaging products for food, for Homecare and Personal care…
Firstly, I have to understand well about the goals of the new business team, they deploy and develop new business section Besides, I also need to understand clearly about other business runs in the company, organizational structure, departments…
Secondly, identify items to be implemented, such as:
- Developing Pharmaceutical packaging market overview, among including market capacity, competitors, business plans (Take data from Constantia Vietnam, where I have worked for 7 years to analyze)
- Looking for suppliers of machinery and raw materials
- Building factory and standards for the development of pharmaceutical packaging
- Working with ERP software vendors to standardize work processes
All of the above work items need to be coordinated with the finance department, to make analysis effective business plan, and analysis profit - loss, depreciation, as well as capital options, calculate.
Individual Schedule
The internship will be taken within 4 months but to be helpful in this new business, I still have to understand the company and the project as a member of Tapack Thus, I do have to get to know clearly about the company, its organizations, products, financial condition, and it’s business After that, I can do market research and take part in analyzing the information The goal to reach until the end of September is built up a detailed business plan for a new business section to submit to the Board of Director
The table bellow is my individual working plan:
Analysis of Market Analysis competitor Market volume Price
Look for suppliers Build suppliers standard
Analysis of suppliers Give competitive price
Machine for project Build up Machine system
- To meet requirements of produce
- Time to delivery machine for a project
Build Burget for investment Research regarding Certificate,
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Paper 21 standard Research ERP Software
Contribution to the company
During my internship, I found that the Company had a lot of competitive advantages when the firm enter the pharmaceutical packaging market
With the build up market information, analysis as well business plan, it helps the firm has a effectively plan to participate in this very potential pharmaceutical market
The true evaluate the capacity and market capacity helps the company save a lot of market survey costs and avoid risks
Experience and understanding regarding machinery and plant systems help the company build workshops according to industry standards, investing in each stage helps to use financial resources effectively.
Theoretical Knowledge Applied
- Understanding the important differences between international and domestic commercial contracts;
- Understanding usual model contracts of international standards (issued by ICC and other international commercial organizations);
- Understanding and dealing with “pitfalls” in international commercial contracts;
- Preventing and resolving disputes relating to international commercial contracts;
- Understanding intercultural communication and differences between legal systems, to avoid misunderstanding in dealing with international commercial contracts
- To help to plan to calculate asset depreciation effectively When selecting equipment to investment, as well as Business Plan
The selection suppliers regarding machinery and materials in territories and countries are much more related to taxation, so International trade taxation knowledge is applied, it helps for company to select good suppliers, low tax, increase profit for the company and more advantage competitive
The incoterm knowledge applied to understand suppliers regarding many problems such as trading, delivery, quality of goods, packaging it creates safety and assurance for businesses
5 Internationa trade payment Knowledge of international trade payment, helping to ensure safe
Paper 22 options and effective transactions Creating tighter international transactions and diversifying forms of payment and transactions in international markets
To understand how to solve problems and how to negotiate in an international and intercultural context;
- To know how to communicate, cooperate, compete and engage in conflict with people from other cultures;
- To know how to develop a business relationship across cultures;
- To evaluate the potential outcome of problem solving or negotiation with people from other culture
- To understand how to work with individuals and groups with diverse backgrounds;
- To become familiar with problem-solving or negotiation approaches from other cultures;
- To negotiate effectively with Americans, Arabs, Asians, and Europeans
- To be able to understand and use the principles of Financial Management on an international basis Understanding how large multinationals manage their budgeting and financial control in many countries
- Understanding the impact of capital, commodities and foreign exchange markets on an international company’s business
- Will have a good understanding of the subject and understand how international companies function
- Summarise the strategy of an organization in a ‘strategy statement’
- Distinguish between corporate, business and functional strategies
- Identify key issues for an organization’s strategy according to the Exploring Strategy Framework
- Understand different people’s roles in strategy work
- Appreciate the importance of different organizational contexts, academic disciplines and theoretical lenses to practical strategy analysis
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External factors affecting FLEXIBLE PACKAGING business at Bac Ninh factory
In order to analysis Pharmaceutical market, in this section I apply Business strategy subjects and according to PEST model, highlight 4 environmental factors in particular: political, economic, social, and technological ones
In Vietnam, the central government agency responsible for health care in general and pharmaceutical management in particular is the Ministry of Health (MoH) Basic functions, powers and responsibilities of the Ministry of Health are stipulated in the Government's Decree No 15 / CP of February 3, 1993 Specifically in 1996, the Vietnam Drug Administration of Vietnam (DVA) was established It was responsible for state management of pharmaceuticals Since then, DVA has served as a pharmaceutical regulatory body under the supervision of the Ministry of Health
Overall, the ultimate goal for the development of the pharmaceutical industry in Vietnam is to fully meet domestic needs, reflecting the role of an essential industry instead of a profit- seeking industry To achieve this, the government, along with MoH and DVA, has administered short-term policies based on long-term development strategies until next 2020 years
In addition, the government also stipulates that medical examination or distribution of drugs will be paid by state-appointed insurance It also has a major impact on the domestic pharmaceutical industry
High economic growth and increasing personal income: In the past 20 years, Vietnam's economy has rapidly expanded with an average annual rate of 7% At the same time, GDP per capita increased from USD 288 in 1995 to USD 2110 in 2015, equivalent to a nominal growth of more than 10% per year Strong income growth and increased health awareness are favorable conditions for increasing health care spending in general and in pharmaceutical products in particular
Vietnam's economy is growing rapidly, which also helps people pay more attention to health care This is a factor that gives the pharmaceutical industry a lot of opportunities to grow
Population growth and rapid urbanization: Over the past two decades, Vietnam has experienced a dramatic increase in population, moving from 72 million in 1995 to 91 million in 2015 and leading to the biggest expansion Consistent in the size of the domestic market
At the same time, urbanization has triggered a spatial and demographic expansion According to the World Bank, urban areas in Vietnam have developed space at 2.8% per year, which is one of the fastest rates in the World Bank in Asia As of 2015, the urban population growth rate is about 33.5% and is expected to reach 40% by 2020 and 50% by 2030 In these circumstances, the emergence of a new urban middle class accordingly arises The ability to relate to changes in people's behavior and consumption patterns positively affects demand for health care and pharmaceutical products
In the pharmaceutical industry of Vietnam, there are currently 03 main production and supply segments for the market: medicines, traditional medicines, and supplementary food
The medicine: production and manufacture technology is very difficult, almost all the production technologies are licensed to manufacture or to buy patents The market for imported drugs accounts for 70%, the remaining 30% is Domestic products Domestic
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Paper 25 pharmaceutical production technologies are popular products, and special treatment products must import technology and medicines directly from abroad
Vietnam only has strengths in making traditional medicines and supplementary foods, with simple preparation, according to traditional remedies, so now there are also the very highly developed technology of manufacturing and extraction in Vietnam
In order to analyze internally with regards to strength, weakness, opportunity and threat of the firm, we use TOWS analysis over internal environment, specifically as below
General knowledge about flexible Packaging
Initial big investment budget for the project
Reputation in the packaging industry
Non Experience in Pharmaceutical packaging
Understanding of business pharmaceutical packaging
Industry growth rate is over 10% / year
Competitors are not really professional
Take advantage of geographical and cultural to meet quickly customers’ needs
Investing professionally to meet market requirements
Recruiting manpower who have flexible packaging experience to quickly meet customer needs
Investing in machinery and techniques per each stage
FDI Enterprise invested in factories in the
Selling price and decreased profit
The Change of Government’s policy:
Rapid deployment the system to early operation
Provide products and services, to meet quick customers request
Looking for more suppliers to get the best input prices
Investing to main products that can control quality
Select suppliers that deliver best quality; avoid losing image when first penetrating the industry
Quality control systems must be standardized
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The Products chosen to develop for new Business plan
- These are main products will provide for Pharmaceutical customers, the products imported from many countries in the world to meet customers’ demand
- Products slitting roll: PVC, PVC/PE, Aluminum coldform
- Printing products: Aluminum blister, Paper/ Alu (sachet) and MultiLayer Packaging
Using hard Aluminum, heat seal lacquer to coating on surface to seal to PVC, PVDC, PE, PP and high-barrier base webs also peel available
- Thickness from 45 to 60 microns with three layers: OPA/ ALU/PVC, excellent to use for food and medicine packing which is require as barrier with moisture, oxygen, light…
PVC foil has thickness from 250 to 400 microns, good barrier to moisture and oxygen, can be sea led with
PVC / PE laminating is manufactured to make drinking tube in pharmaceutical industry
From materials such as: PA, PET, BOPP, Cellophane,
PAPER with other materials: LDPE, 6-9 micron aluminum foil, MCPP
The competitor on the market
Current competitors on the North market come from both the Northern and Southern parts However, the competitors come from the South is more professional than those from the North in terms of products and services as well scales
No Competitor name Scales Market share
Factory size: 03 sites in the North
Producing: Printing for Food, Pharmaceutical, Label, Tobacco industries
Factory size: 01 site in the North
Producing: Printing for Pharmaceutical and Food industries
3 Constantia Manufacturing liability limited company
Factory size: 01 site in the South
Producing: Film & Printing for Pharmaceutical
4 Tan Thanh Packaging Company Factory size: 01 site in the South
Producing: Film & Printing for Pharmaceutical
5 Kien Viet Co ltd., Factory size: 01 site in the South
Producing: Film & Printing for Pharmaceutical
Table 5: the Northern market share
Main products Price
In breaking down and comparing the price statistics of main products within 03 years, some prices went down However, some products saw a slight increase in price due to the influence of the world market on the price of input materials, as well as some market solutions executed by some firms
The price has increased than in the last few years, because the petrol price fluctuated in the martket, influenced PVC price
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The demand increased in 2017, however, in 2018 the number of customers went down so demand decreased
Figures 3: PVC/PE price fluctuations
The profit of this product in 2016 & 2017 was very high However, each year there are more competitors to penetrate the market, the competitive make price go down therefore
Figures 4: Aluminum/ Coldform price fluctuations
The price of Printing on aluminum has increased, because the Government has requested printing technologies, ink printing, which help make increase price
The Pharmaceutical Packaging Market Volume
4.5.1 The Volumes of main products: PVC, PVC/PE, Coldform, flexo printing
Table 6: the main products in terms of volumes & value total Source: Constantia Vietnam and compare with other firms
4.5.2 The figures in revenue statistics
The revenue growth rate: 2017: ~10.5% and 2018 ~ 9.7% compared with the last year
Currently, Constantia has market share accounting for ~ 50% of the Northern market, so it can be estimated that the market capacity in the North ranges from 290 billion -> 360 billion / year 2018
Recommendation: Tapack should focus on developing before the Northern market
The statistics about revenue of Pharmaceutical Packaging market
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Figures 6: The revenue of Constantin within three years 2016-2018 (Unit: billion)
Manpower for new business sector
In order to implement new business sector, Tapack needs to prepare manpower to be trained before official run
Silting worker Production Person/machine/shift 2 2 3 3
Flexo printing worker Production Person/machine/shift 2 2 3 3
Prepare flexo ink Production Person/shift 1 1 2 2
Printing worker Production Person/machine/shift 1 1
Prepare ink Production Person/shift 1 1 2 2
Table 7: manpower need to be recruited for production
Delivery operating staff Sales Person 1 1 1 1
Table 8: manpower office dept’s need to be recruited
This is a separate undertaking, so the entire human resources system will operate independently with the old business section Sales, QA, QC accounting are completely independent
Some key positions need careful recruitment
This is a really important position in this project Because, to carry out this project, it requires people with thorough knowledge about products, techniques, relationships with customers in the pharmaceutical industry
To be responsible for managing the sales system and coordinating activities between departments
To achieve market goals, market share in the early stages of joining the industry
To be responsible for keeping the production stable, required for practical experience in 4 years or more, managing employees from 40 people more, having a clear understanding regarding the packaging and
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Paper 33 printing industry Have skills in arranging tasks, assigning tasks to achieve efficiency in productivity and delivery schedule to meet customers’ demands Maintain the standards of the quality systems
This position entails that, they have experience in packaging industry form 4-5 years or more in the same position
Have experience in quality management systems such as: ISO, FSSC 22000
Coordinate with production team to improve product quality
The sales plan and forecast from 2020 – 2023
Estimate revenue over the first 4 years, drawing on customer data and market capacity The revenue plan help make business plans become effective in which all the resource will be geared up to enable sales planning in terms of: Capital, working capital, manpower, investment
Forecast in 2020 will implement some activities: Invest in machinery, factory, working with suppliers about raw material, applying for certificates… it is planned to officially run in Sep 2020
Years from 2021, 2022, 2023 are the stage of entering market, therefore, all the manpower will focus on pushing products to market, customer acquisition and revenue growth
Table 9: The revenue plan from 2020 to 2023.
Financial for new business sector
In financial analysis table, to build financial plan within 3 years, new business team have used many financial knowledge and associate with financial & Accountant dept to enable this plan
Formula calculation for depreciation and amortization, EBIDA
The formula calculation for EBITDA:
Depreciation Expense = cost of the Asset – Salvage value
- Useful life of the Asset
Cost of the asset is the purchase price of the asset
Salvage value is the value of the asset at the end of its useful life
Useful life of asset represents the number of periods/years in which the asset is expected to be used by the company
Profit before Tax = Revenue – Expenses (Exclusive of the Tax Expense)
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4.8.1 The Financial analysis regarding to Business plan
Cost of Goods sold/ Revenue rate 113,05% 87,57% 83,51% 80,91%
General and Administrative expenses/ Revenue rate
Cost from financial activities/ Revenue rate -21,20% -8,14% -4,62% -3,70%
Total profit before tax/ Revenue -45,5% -2,4% 6,3% 10,2%
Table 10: Financial analysis from 2020 to 2023
Supplier
Suppliers must meet the entry standards by the pharmaceutical industry
Therefore, Tapack have to meet with suppliers to audit and evaluate, before adoption and cooperation In the Tapack processes when choosing suppliers, prospective Tapack suppliers must send the sample to be tested by R&D department, and the results will be the basis for purchase dept on the next working day Some conditions regarding purchasing such as: Payment time, lead time, after sales service will be made uniformly and after that will constitute parts of the official contract
ISO 15378/ GMP Pharmaceutical Standard/ ISO 22000 FSSC (Food Safety System Certificate)
PVC film PVC transparent film, thickness from 0,2mm – 0,25
PVC/PE film PVC/PE 250/50 film, brown, orange, transparent 01, thickness 0,300 mm China
Aluminum Coldforming (25/47/60), thickness 0.139 mm Aluminum Coldforming Coldforming (25/60/60), thickness 0.153 mm
Alu use Food and dairy industries Prime/ Alu/ Heatseal
Paper/Alu Paper 60.2/ alu 7/ LLDPE 37
Flexible packaging PAPER, OPP, CPP, MCPP, PET, ALU China
Table 11: Supplier provide Tapack in new business sector
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Machines investment
No Devices name Quantity Manufacturing Investment proposes
Gravure printing machine (09 colors) 01 machine
Using for many kind of materials
Laminate flim OPP/CPP, OPP/PE, PA/PE,
OPP/MCPP, OPP/AL/PE, PET/MPET/PE,
Using for both Food and pharmaceutical
Machines Slitting for many materials
Using in processes produce products
Fold many different type of bags
To produce bag using Pharmaceutical
4.10.1 Investment in machinery - Devices for manufacturing
Option 1: Tapack will invest in full machinery and factory system The Full investment help firm create more advantages on the market However, financial cost also will increase, and loan interest also influence the Business activity of firm
Option 2: Tapack will invest each stage, which will help alleviate loan interst and pressure from bank Because, Tapack will borrow 70% financial from bank, this way will be more suitable for the firm in this case
FACTORY SYSTEM
The pharmaceutical field is the one that requires high quality and clean environment in production in accordance with the industry standard Moreover, the government also asks producers to meet some production certificates
Tapack in entering this industry also must build factory system to meet industry requirements
Clean areas are to be used for producing food and pharmaceutical packaging
4.11.1 Build ISO 15378 system (Priority to do first)
ISO 15378: 2011 specifies the requirements over quality management systems to manufactur f major packaging materials for pharmaceutical and medical devices These organizations need to demonstrate their
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Paper 39 ability to appropriately meet customer requirements, including the international regulatory and standards requirements applicable to the main packaging materials for such drug products The standard describes GMP principles and specifies the QMS requirements that apply in major packaging materials for medicinal products
GMP is The Good Manufacturing Practices (GMP) system and ensures that products manufactured, like food, cosmetics and pharmaceuticals by Department of Drug
Administration, Ministry of Health issued
With the GMP system the Firm can be sales goods for
4.11.3 FSSC certification (if not yet made Food to do later)
FSSC 22000 is Food Safety Management System that can meet the requirements of your customers and consumers
4.12- Normal area: Non clean, to check goods
Non - clean area is outside area of clean room like: warehouse, cartons pack area, production operating room…
The pharmaceutical packaging market is a market of little competition, but there are many obstacles such as: Technology, production environment, products, capital however, the benefits of this packaging are numerous
Industry growth rate is over 10% / year The reports of some organizations have showed that, there are many opportunities and potentials to make use of The rate of drug usage / per Vietnamese people is still low compared to other countries in the region, while imported drugs account for 75% compared to domestically produced drugs Hence, there are potential opportunities for the supply of pharmaceutical packaging as well as enterprises entering this industry
In the current pharmaceutical packaging industry, almost all the main products must be imported from outside such as PVC, PVC / PE films True investment and good penetration strategy will bring in development opportunities for enterprises
Competitors in this industry are not really professional, whose knowledge and experience are not good Some big competitors focus in the south market, leaving the north market only to have two small factories, which is an element enabling Tapack to make plan of developing factories in the north
How the Internship work meet the Set Goals
After four months of internship at Tan Tien Plastic Packaging Company, I have gained vast experience and advices from colleagues in Inbound Department I have tried my best at work to accomplish assigned tasks and reach my goals Using valuable knowledge learned from AMI course, I have applied strategies to analyze the company’s chance in market expansion In order to achieve the set target, I have done several tasks as below:
- When I had to study overview of Tapak including organization structure and business area, main customers, it helped me understand about Tapaks business activity as well its history Therefore, I got to know the company’s strengths and weaknesses to evaluate its capacity and ability to meet its mission
- I work with new project team members to share and analyze market and product information to be able to effectively build this new engagement strategy and business
- In order to market research, I used Macro environment analysis to put to test in the environment where Tapack operates It represents the role of politics and law; Economical, social, environmental and technological factors have external features that affect the shape of the company and from there, the company can adapt to these changes
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- After that, I conducted a TOWS analysis as part of the Tapack's strategic planning process These analysis assess strengths and weaknesses, helping the company capture its core market advantage and future threats Through TOWS analysis, the company will clearly see its goals as well as the internal and external factors that can positively or negatively affect the business goals which have been set out In the strategic planning process, TOWS analysis serves as the most basic tool not only helping the company get the overview of the business environment but also identifying the factors that affect the success of the company
- The Business Plan, Capital Plan, the depreciation plan with the Finance Department help to achieve financial forecasts and also enhances the knowledge learned in the MBA program into practice It is really effective when applying financial knowledge
- My internship at Tapack, Bac Ninh branch also helped me develop a lot of presentation skills and skills in Word, excel, Power point, as well as Microsoft and ERP Software
Some limitations during internship at Tapack Bac Ninh branch are as below:
- The functional departments are concentrated in Ho Chi Minh City, so the communication has many limitations in terms of exchanging and taking data for analysis
- This is an intern position Therefore, when dealing with matters that have not been supported, responded promptly and are not from official employees, the results might not be specific enough
- The sector's professional knowledge is still limited, leading to the inadequate content of the internship report
- The missing data on the market report of an independent research unit leads to drawing on only one data source, therefore, there are still many individual subjects
- Not enough time to analyze other potential markets
Within the period of five month internship, it is not long enough to cover all related fields so I would like to make several proposals to play out the company’s strategy as below: the company should:
- Should improve in internal relations and working environment, especially for new staff
- Should enhance the interaction between departments in the company, when problems occur
- Review cultural issues in the Enterprises’ seminars and training courses for employees every quarter to update employees with the latest market trends and improve communication skills
- Keep close relationship with clients who have already used company’s products
At the end of my internship I see that, this new packaging product development plan is very potential and really a good opportunity for Tapack However, to do well, we should make good preparation in human
Paper 42 resources for this plan such as: experienced human resources with knowledge and understanding of packaging and printing industry and Flexo technology Regarding customer management, it is also required to really understand domestic customers, especially Vietnamese pharmaceutical factories, culture and capital appropriation of suppliers About cash flow management, if we manage not well about customer debt, it will be difficult for cash flow and working capital of the company
In order to maintain principles about environment, standards regarding cleaness to meet requirement industry is very important, the system manager must request related manpower to stick with strictly
Finally, the internship period at the company is a good time to learn and develop the knowledge which is a valuable experience for future development
Thư viện ĐH Thăng Long
Website Source: http://caprihansindia.com/products/rigid-pvc-films/pharma-packaging/sunplex-bilam-film.html http://tathaco.com.vn/ http://cflex.com/products-applications/packaging/pharma/oral-drug-delivery/constantia-coldform https://tapack.com.vn/ https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5615513/
Table 5 : The Northern market share
Table 6 : The main products in terms of volumes & value total Table 7 : Manpower production dept need recruitment
Table 8 : Manpower office dept need recruitment
Table 9 : The revenue plan from 2020 to 2023
Table 10 : Financial analysis from 2020 to 2023
Table 11 : Supplier provide Tapack in new business sector
Thư viện ĐH Thăng Long
LIST OF FIGURES Figures 1 : Chart of Tapack annual income statement
Figures 3 : PVC/PE price fluctuations
Figures 4 : Aluminum/ Coldform price fluctuations
Figures 6 : The revenue of Constantin within three years 2016-2018 (Unit: billion)