To understand the combination between theory and practice, between elements of management and business, between businesses with reality of society in the process of innovation, I have ch
COMPANY BACKGROUND
FOUNDATION AND DEVELOPMENT
Hop Phat Printing and Media Joint-stock Company was established in 2007 and its headquarter is in apartment 807, the N2D, Trung Hoa Nhan Chinh Ward, Thanh Xuan District, Hanoi city, Vietnam
The company has a printing factory locating in Quoc Oai Industrial Zone, Quoc Oai town, Hanoi city Mr Hoang Anh Duong is General Director
The company operates mainly in the field of commercial printing and print-related services, in addition, it does furnishing works of civil constructions…
Some general information about Hop Phat Printing and Media Joint-stock Company:
- Account: Industrial and Commercial Bank 10201-0001081349 Hoan Kiem
Within 07 years of operation, Hop Phat Printing and Media Joint-stock Company has grown and developed more sectors and more partners in many provinces and cities nationwide The company has built 02 design studios and advertising designer with a professional skilled
3 design team of long experience in the field of design, meeting all production requirements of organizations, local firms and foreign enterprises
Printing Factory of Hop Phat Printing and Media Joint-stock Company possesses skilled workers, responsible employees at work
In Printing Factory, management is streamlined with economic engineer team and high- rank professionals The company is always willing to create favorable conditions for all customers In the field of printing, the company regularly updates information and invests in modern machinery and training staffs Therefore, the printed products of the company always satisfy customers all over the country Over the years, Hop Phat Printing and Media Joint-stock Company has placed basic foundation in the field of design, prepress, prototyping printing The company has created the largest credibility and still attracted a large number of loyal customers
So far, under the impact of the economic crisis on world markets in general and Vietnam’s one in particular, like many other companies, the business of the Company slowed down in 2013, 2014 but remained profitable Joining the TPP means more competition and efforts of the TPP member countries and their enterprises So, Hop Phat Printing and Media Joint-stock Company must seek the way to increase profits This is why I did choose a private company with 200 employees to do the thesis To do it I have implemented the knowledge learned from the master’s program of business and international management.
ORGANIZATION STRUCTURE
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Layout 1.1: Structure of Hop Phat Printing and Media Joint-stock Company
1.2.2 Functions and duties of each division
Director of Hop Phat Printing and Media Joint-stock Company is the owner, who is also the legal representative of the company running the daily business and making decisions
In a knowledge-based economy and a society with experience and business acumen, the director who directly makes decisions in the operation of the Company has to urge employees to complete their work Besides, the Director of Hop Phat Printing and Media Joint-stock Company must still check, direct supervise work of each department at the company and receive regular reports from drivers while keeping in touch with customers
The company belongs to small and medium-sized enterprises, so the level of direct management between the Director and departments is relatively high, also, the work has always been guaranteed under close supervision
Vice Directors of Hop Phat Printing and Media Joint-stock Company works under the authority given by the director and take responsibility before the Director on the missions
5 assigned; and in addition, they must also help the Director performing general targets of the company
The first vice director is in charge of the Printing Factory, the second vice director is in charge of the Advertising Design Department Both vice directors operate directly the duties assigned by the Director
The main task of the Survey Division is to check the operational status of all equipment in Hop Phat Printing and Media Joint-stock Company It means following and checking regularly the operational status of equipment in the company on regular periodical of the producer and of each important equipment parts
The other task is to advise the leadership of the Company to decide on the repair, replacement and upgrading of equipment system of Hop Phat Printing and Media Joint-stock Company
The next task is to advise the Directors of the Company in deciding on putting devices into operation after the devices have been repaired, replaced, and maintain testing over time
Finally, this division is very important because it determines the time limit for completing the product The work that is completed on time relates to this division tightly The company always takes care of and regularly trains to upgrade skills of its workers
The Financial – Accounting Department is responsible for advising and assisting the leader board on financial management Its main function is:
- Managing all financial activities of the Company
- Organizing the accounting work which must be suitable for conditions of the Company management organization
Financial – Accounting Department is also responsible for following and reporting on the process, economic activity, finance of the Company; responsible for making financial reports for the Board of Directors; following and keeping compliance with all regulations on accounting books and establishing financial reports, accounting balance sheets at the end of each accounting period; identifying and reflecting accurately, timely, periodically inventory results of assets and capital In addition, the Accounting Department also stores and preserves documents, accounting
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6 records, confidential financial accounting data under the provisions and regulations, performs other duties assigned by the Director
General Administration Department has the function of advising and assisting the Director in the field of management plans and governance organization – the human and administrative governance The main tasks are:
- Building and managing business plans, operational plans of the Company
- Building and consolidating the model organizational structure, organizing management
- Building mechanisms and policies for the operation of the Company
- Undertaking the labor organization, management and labor protection, policies, health care for workers, training and recruitment
- Carrying out foreign affairs, transactions, relations with local authorities
- Being responsible for allocation of officials and employees and issues related to their salaries
The Manufactory is a main and important unit of the company in manufacturing operations The main function of the manufactory is to create products of high quality under the guidance of the Board of Directors and the relevant departments
The main tasks of the manufactory are:
- Directing the printing of products and repairing the equipment according to the production plan of the Company
- Using and maintaining machinery and equipment to be delivered, ensuring machinery and equipment to be always in a state ready for use
- Planning investment and equipment renewal plan for use of machinery equipment most effectively
- Ensure absolute safety of the production
The organizational structure of the Company is under the online - function model in which the Board of Director has an important role in governance activities, asset management
On the other hand, each of departments receives missions from the Board of Director and tasks in each field
OVERVIEW OF BUSINESS ACTIVITIES
Hop Phat Printing and Media Joint-stock Company is specialized in printing business forms, invoices and receipts, books, brochures, calendars Business publications are allowed to be circulated, printed packing labels and commercial labels Besides, the company is permitted to:
- Prepress services, production of zinc;
- Trade printers, print supplies and accessories; doing agency sale and buy of goods
Other businesses of the company are :
- Activity design: activity decoration of civil construction works;
- Keeping service transportation vehicles, producing machines for textile and leather industry, trading machinery, equipment and devices textile industry, producing basic chemicals, carpets, blankets, readymade garments, complement textile products, fiber and advertising
It can be said that printing under contract brings the biggest revenue source for the company But now the company is making the majority of function in some sectors but Company isn’t going into work which is exploring market research, thus the other business sectors account for only a small proportion in the areas of operations of the company, however, bring extra revenue to the company The company is striving to implement fully and effectively the tasks and their functions
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CONCLUSION
Hop Phat Printing and Media Joint-stock Company is a dynamic and flexible company Therefore, it can stand steadily before any changes of the market The stability of the company is major sources and motivation of income to ensure the standard of living of its employees, even in the current depression stage of world’s economy Production and management organization of the Hop Phat Printing and Media Joint-stock Company is very streamlined, the Board of Directors has given fast and right decisions, so saving huge amounts of money Moreover, production capacity has been leaped by continuous investment in machinery and upgrading technology innovation chain In addition, the Board of Directors consists of high qualified and experienced people This has enabled Hop Phat Printing and Media Joint-stock Company to print magazines and books of high quality and in large volume that help company withstand many rivals and competitions
CONTEXT OF JOINING TPP
Hop Phat Printing and Media Joint-stock Company (Hop Phat Company) is a small and medium enterprise In the context of joining the TPP Agreement, Hop Phat Company must pay attention to the main features of the TPP Agreement, namely:
- First, accessing to the market in a comprehensive way Basically, TPP Agreement will cut tariffs and non-tariff barriers for most traded goods and services And, it adjusts all the fields of trade, including goods trade, services and investment to create new opportunities which the businesses from TPP countries will benefit
- Second, approaching in regional is making commitments The TPP Agreement guarantees the implementation of commitments in a regional market by facilitating the production extension and supply chain expansion as uninterrupted trade It also promotes efficiency, supports the goal of creating jobs, raising living standards, promotes conservation efforts and facilitates cross– border integration as well as opening up the domestic market
- Third, solving the new challenges to trade TPP Agreement promotes innovations and productivity, boosts competitiveness among business rivals by dealing with a number of problems which include the development of the digital economy and new technologies for enterprises
- Fourth, developing all elements related to trade TPP Agreement develops new elements to ensure that all TPP economies at all levels of development and their businesses belonging to all sizes can benefit from trade It includes the commitments to help small and medium enterprises understanding the agreements and taking advantage of the opportunities that the TPP Agreement brings
Hop Phat Company is a small and medium size enterprise (SME) The company should focus seriously on joining TPP Once tax rate decreases to 0%, it will get equal competitive opportunities like other companies in TPP area
It is, however, to note that capital size and financial capacity of an SME are weak and it lacks skilled and experienced employees Most of SME leaders have not been trained properly in business and management, so they lack business knowledge and strategy And, because of
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10 lacking international business management skill and incapability of catching up with new business trends, they do business basing merely on their own experiences and limited international economic horizons Low labor productivity, high production costs and high product prices have weakened the competitiveness of the SMEs Hop Phat Company is not an exception Moreover, the company has not built a strong brand, large reputation and intense competitiveness in the regional market and the global market as well.
PRODUCTION AND BUSINESS CHARACTERISTICS
Diagram 2.1: The process of business operation of Hop Phat printing and Media joint-stock company
Step 1: Making a contract with partners and customers
Customers or enterprises can come to the office or contact someway for an order to the Company to make a request Business staffs will exchange directly or send mail to answer questions, providing them all necessary information about available services If the customer/the company are agreed on the terms applied in the process of cooperation between the two parties, the Company will start negotiating, quoting and signing contracts The Customer/the partner must deposit a certain amount of money depending on the contract signed
Step 2: Carrying production under the contract signed
As usual, printing import–export companies give orders to manufactory companies (under principle contracts of the company signed with materials printing suppliers) Materials and production materials must follow the strict management process put by the company related to quality and quantity Hop Phat Company have just signed importation contracts with the
Step 3: Check the Quality of the Products
Shipping and Payment for Goods
11 powerful suppliers at competitive prices and quality assurance On the other hand, the Company has built specific plans, balancing large contracts to import paper and printing equipment in large quantities It means that the summary cost which has been mentioned in the contract or been dealt between Hop Phat company and the client for each order always include a considerably reduced price of paper and supplies
Therefore, supplies and raw materials to serve production in Hop Phat company always ensure adequate response After signing a contract with the client, the company will carry out the production of printing products according to customer samples or basing on the idea offered by them, the company will design products for the customer Each product category is carried out during the production following printing technology and different processes We can describe the production process in the order as follows:
Diagram 2.2: The process of business and production of the Hop Phat Printing and Media joint-stock company
The production process is divided into five production teams These production teams follow a logical sequence, science, consistency with technological assembly lines In the other hand, the company has also transport parts (subparts production) to serve all of the needs of transportation in the company and electromechanical parts for production
Step 3: Checking the product quality
After completion, the product will be checked again to ensure quality, the defective products will be removed or repaired promptly before delivery to the customer
Step 4: Shipping and paying for goods
The company lines packaged goods carefully, loads up trucks, delivers to the customer and then requests payment for goods plus shipping costs
Design patterns Up Ink Print
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The business process mentioned above is organized quite simple The Company has had a number of measures to reduce the procedures and shorten the business process Moreover, shortening the business process has also contributed to reducing the capital turning time, and increasing effective use of capital.
WORK DESCRIPTION OF THE ACCOUNTING-FINANCE DEPARTMENT
Diagram 2.3: The work of the Accounting – Finance Department
- Check the Balance of the early day: it is to check the balance when receives and expenses of the previous day have been completed and then converted into the balance of the next early day
- Synthesize costs incurred in the day:
Gather data receives and expenses accounts, bill of finished products to be handed to the relevant department
For amounts have discovered errors, these errors need to synthesize again to perform the test related items
For receives and expenses accounts have risked a high potential, setting its own to recommend to Chief accountant or experienced staff to check again
Receive all accounts, enter invoices and accounting software
Expense all accounts, enter invoices and accounting software
- Finishing fund at the end of the day: After a day of work, through the receives and expenses accounts of the Company, accounts close in the end of the day Below, there are the results of the specific business activity of the Hop Phat Company
Check the Balance of the early Day Synthesyze Cost
Finishing Fund in the end of the Day
Revenue from sales of goods and supply of services: Revenue 16.916.271.257 VND in
2014 and in 2015 increased to 25.957.299.993 VND, an increase compared to 2014 is 9.041.028.740 VND, so the revenue increase is 53,44% 2015 witnessed a great upsurge of revenues of the Company, partly, due to the improvement of the country’s economy Besides, after many years, until 2015, the company has confirmed its reputation in the market This attracted a highly increased number of domestic customers In addition, the company has also attracted them by offering incentive policies when signing the contract, boosting the demands from customers
Net sales: The increase in sales with the non-existent deductions revenue made net sales increased significantly over the previous year In 2015, net sales of the company reached VND 25.957.299.993, increasing of VND 9.041.028.740 compared to 2014 increased by 53,44% the same as the sales and provider service
Cost of goods sold: In 2015, sales of provider service increased rapidly Along with, the economic situation faced many changes that led to sharp rise in the cost of gasoline, so the cost of materials and cost of transportation also increased Therefore, the cost of goods sold increased, in 2015 it was 22.419.218.087 VND, increased 8.055.488.100 VND, equivalent to 56,08%
Gross profit rate: The increase in net sales and cost of goods sold made gross profit rate in 2015 change a lot, especially reaching 3.538.081.906 VND, increased of 985.540.629 VND compared to 2014, equivalent to 38,61%
Financial expenses: In 2015, Hop Phat Company decreased 142.924.696 VND in financial cost targets This shows that the company did not make payment discount for customers by early payment Though, the Company might use short-term loans of which main capital came from members contribution into the Company So the Company didn’t pay interest This was an advantage which the company wasn’t under pressure to pay interest
Enterprise management cost: During the year, the company invested more office supplies, hired more employees, along with that, depreciation of fixed assets increased from investments by adding more new items This has made enterprise management cost increased from 1.434.838.972 to 2.062.650.697 VND, equal to 43,75%
Profit/(loss) from operating activities: Profit of the Hop Phat Printing and Media Joint- stock Company increased significantly in 2015, an increase 497.917.074 VND compared to 2014,
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14 equivalent to 326,92% This shows that the company has done business production more effectively and its position in the marketplace has risen significantly
Other income: in 2015, the Company did not have any income from the liquidation of assets as in 2014 But, the Company had additional income from taking care of vehicles and machinery trading Therefore, the Company’s other income in 2015 increased 3.213.515.248 VND
Other expenses: in 2015, other expenses of the Company increased by 3.644.603.202
VND, equivalent to 26,410.17% This was a sharp rise because in 2015 the Company had received tax inspectors, and the other cost was short-term investments by the Company This was a “cavity” in the cost management of the Company: cut a few costs, but other costs increase
Other profit: In the two year 2014 and 2015, the company did not undertake liquidation or sale of fixed assets Thus, other expenses items of the Company did not move So, other profits was the result of main changes in income indicators from other activities In 2015, income from other activities of the company decreased 32.602.944 VND, equivalent to 14,06% The cause of the movement was mainly due to the source of income from the operational leasing of fixed assets, differences from the evaluation of materials and goods, fixed assets having been contributed to the joint venture, the investment in associated companies, and other long-term investments
Profit after income tax: Profit after tax of 2014 and 2015 was 63.634.158 VND, and
114.170.017 VND, an increase 50.535.859 VND over the previous year, equivalent to 79,42% due to the opening wide business of the company in more and more effective area and attracting many customers as well as local firms
Through the above analysis, we can conclude that the year 2015 was a year of positive activity of Hop Phat Printing and Media Joint-stock Company The business situation of the company was improved significantly Although the global economy is now at the difficult stage (high inflation and economic depression), the company has made certain progress, improving business operation and growth However, it certainly must take constant efforts to maintain this growth and boost interests and profits in the next coming years
THE TASKS ASSIGNED TO MY POSITION
During three months of Internship as a business assistant, I have to hold a certain amount of responsibilities as follows: work directly in the Business Department, connect with Marketing and Design Department, the Accounting Department, and finally assist the Board of Directors
My work in the Business Department is to:
- Collect information about products and printing works
- Aggregate information about competitors and competing printing products
- Meet and sign contracts with certain customers
- Help to take care of some large potential customers
- Answering telephones, office machine operation, and documents storing
My work for the Marketing and Design Department is to
- Collect market information, assist to perform public relations-related tasks to advertise and promote brand image of the company
- Maintain networking of printing customers and potential customers, maintain customer domestic relationships
- To brainstorm ideas in designing print models oriented under contract
My work for the Accounting Department is to
- Update detailed daily and weekly tasks for the business department
- Describe the revenues, expenditures and debts
- Assist to build a business plan periodically depending on the actual number
My assistance to The Board of Directors is
- Report weekly, monthly business activities
- Assist a number of office tasks
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THE LINK BETWEEN THE SUBJECT MATTER AND MISSIONS
First, as a business Intern, I had to learn to understand the company’s operation and perform certain tasks in relation to other departments
The jobs relating to the Relation to the Business Department are:
I worked directly under this department, therefore, I had the chances of connecting with almost all of the employees in the company and get to learn more about a complete operation of a company and to approach business procedures
During my internship, I conducted some researches on different information that could help with the trading planning process and spent time observing different subjects The researches that I made during my internship are based on the deal between my company and some important clients which consist of:
Researching on venues: what is the best venue that suits the client needs depending on the budget
Providing samples for the clients (if needed)
Checking and guaranteeing that the printing materials that the client requires are still sufficient
Aggregating all the requirements that the clients demand to deliver to each related department before start producing
After that, a hands-on research is going to be conducted where the following activities are involved:
Attending a tour of the venue
Attending meeting with the suppliers and caterers to check the quality and the quantity of equipment and materials before printing
After producing, attending a meeting with the printing department to make certain that the products are complete in both quality and quantity before delivering
- On the other hands, I performed some other tasks including:
Per week, I attended meetings two times to help my department resolve the difficulties and knots in the signing of contracts, witness superior leaders encouraging the spirit of employees
Updated daily the number of products printed and report how the products were completed on the request of customers, especially its quality focusing on color and forms
The jobs relating to the Design and Marketing Department are:
- Immediately move the request of the customers to the design department once the contract has been signed
- Remind the designers to keep up with monthly progress, rapidly to complete promptly orders and transfer to the printing department
- Always attend training hours and update new marketing strategies of the company
The jobs relating to the Accounting Department are:
- Communicate regularly to the accounting department for the signing business contract Update overdue payments and expenses
- Contact the accounting department for invoices and vouchers
For the Board of Directors, I assist to:
- Help to get direct command instructions from the directors to other departments
- Help the business department to implement new policies issued
- Participate in building upcoming business plans periodically.
THE GOAL I AM ASKED TO REACH
Before my internship began, I set up personal development targets to practice, improve and develop I wanted to observe and research subjects, prepare plans, research the market and learn how to operate a business company, how to follow trading procedures properly and correctly I have worked and practiced all these targets and skills during the specific assigned projects that I have worked on during my internship Working on the business projects has definitely helped me improve my others skills such as communication and presentation skills, my observing, researching and analyzing skills.
WHAT CAN I BRING TO THE COMPANY?
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The role that I fulfilled during my internship in the planning process of the events was a business assisting role I have been assigned to assist the management of business activities of the company The activities that I was assigned to were helping to maintain business relationships for the company I based on financial analysis of the accounting department to guarantee the payment progress for partners and caterers, provide invoices and vouchers as a gift for the customers Also, I supported the design and marketing team, promoted advertising strategies boosting the company’s brand image
I also created more competition for the company by creating customer confidence when signing the contract and collect information about strengths and weaknesses of the rivals.
THEORETICAL KNOWLEDGE APPLIED
Studying Business & International Management has been a very good experience for me to apply in this internship
Because I have learned Financial Accounting, Management Accounting, so I have known considerably the concept of liabilities, intangible assets, balance sheet… That provided me a holistic view of financial planning
Learning this course helped me to understand the culture of how to negotiate with partners and how to be effective in negotiating
International risk management helped me understand the risks that the business might encounter in the business environment such as customer management, corporate operations, avoid unnecessary risks
This provided me with knowledge of principles in legally enforceable contracts which can be used in the most experienced interactions between buyer and seller Thereby, I could apply law understandings to avoid risks as much as possible when signing contracts
DEVELOPMENT
FINANCIAL EVALUATION
Financial evaluation plays an undeniable role in a company operation It can tell whether a project will contribute to a company's overall goals or be a drain on its resources It is necessary that a company decide how profitable a project has to be compared with other attractive projects Through several years, financial status can finally present for the company’s growth In this thesis, Hop Phat JSC’s financial evaluation can be divided into two parts: first, its assets situation and second, its solvency status
4.1.1 The assets situation evaluation of Hop Phat Printing and Media JSC
4.1.1.1 Assets situation a Current assets situation
The total of assets in 2014 was 24,781,889,840 VND and in 2015 30,000,260,061 VND respectively, which rose 21.07% Fluctuation in the structure assets was mainly due to the impact of current assets, an increase from 17,635,049,808 VND to 20,536,202,116 VND in 2014 Current assets include items:
Cash and equivalents cash: In 2015, the Company's cash decreased compared to 2014 due to revenue levels reduced in 2014; besides, cash earned from financial investments also decreased leading to a reduction in the Company's cash The Company cash in 2015 decreased 1,633,614,718 VND respectively 81.85% compared to 2014 The company’s cash wasn’t enough to meet promptly expenditures which served production business activities This was one of the negative points for holding large amounts of cash also means reduced cost of the company
Receivable: Includes customer receivables, advanced payments to suppliers and other receivables
Customer receivables: In 2015, Customer receivables decreased 66,983,564 VND equivalent to 1.55% compared to 2014 The main cause of this decline was that the Company has adopted policies to shorten the repayment time of customer to early revolving So that customers couldn’t meet the repayment time which the company launched
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Advanced payments to supplier: advanced payments to supplier of the Company in 2015 declined 1,067,955 VND, 94.04% lower compared to 2014 The factor causing this mobilization was that the Company has had new revenues and decreased the amount of cash So the payment for the seller was also one of the consequences
Other receivables: Other receivables of the Company in 2014 increased from
118,370,320 VND to 199,724,007 VND, equivalent to 68.73% This was explained by the company in 2015 that profits from the financial investment activities haven’t been recovered; on the other hand, the company also temporarily borrowed some assets without interest
Inventory: Inventories of the Company's principal were raw materials which were unused
In 2015, inventories of the Company increased 364,612,578, equivalent to 8.9% The increase in inventories made capital cycle slow down, storage costs increased causing the company's difficulties to exacerbate
Other Current Assets: In 2015, other current assets of the Company rose when compared to 2014 which boosted 87.41%, from 5,976,413,218 to 11,200,122,425 VND In 2015, other current assets of the Company included the short-term prepaid expenses, Deductible VAT and State receivables The cause of this increase came from the increase from State receivables and other current assets b Long – term assets situation
In 2015, long – term assets of the Company has little change compared to 2014 which was an increase of 2,319,558 VND In 2015, the Company invested an additional fixed asset which costs 10,302,611,060 VND, making the rate growing up to 24.47% compared to the original fixed asset cost in 2014
4.1.1.2 Criteria of determining the structure of assets and capital
Table 1: Criteria of determining the structure of assets and capital
Proportion of short-term assets
Proportion of long-term assets
Total long-term assets Total assets
Total owners' equity Total Capital
Proportion of short-term assets: In 2015 accounted for 68.45% For every 100 VND, there were 68.44 for short-term assets, down 2.71% compared to 2014 The cause of the fluctuations was due to cash and equivalents cash, short-term receivables were accounted for a large proportion of short-term assets which fell sharply in 2014 Besides, the item Inventories and other current assets increased more relatively So, short-term assets should be reduced by 2015 However, the Company's total assets also increased (6.26 billion) so Proportion of short-term assets did not fluctuate considerably
Proportion of long-term assets: In 2015, for every 100 VND, there were 31.55 for long- term assets In 2015, these share items were likely to increase compared to 2014 in which the portion was 2.72% Because long-term assets only account for a small portion of total assets, therefore long-term assets fluctuation did not affect the situation of the Company Long-term assets increased mainly due to depreciation coupled with an increase in total long-term assets, so long-term assets also tend to increase
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Comment: Over the two criteria above, we can see that in order to serve the industry printing, the asset structure of the company has to consist of consistent characteristics of the easily manufactured product
The Proportion of debt was an indicator reflecting the capital structure according to forming sources The higher the proportion was, the greater the risks would be This would affect the ability to repay debt and reduce the reputation of the company In 2014, this indicator reached 35.86%, 2015 was 46.73%, increased 10.87% In 2015, the liability increase mainly came from the growth of prepaid buyers, suppliers so that the percentage of liabilities grew faster than total capital, leading to debt ratio tending to increase This increased the risk of additional payments for the company and thereby showed that the Company needed to reduce dependence on loans
Proportion of owners' equity: It reflects the proportion of owners' equity in the structure of total capital This proportion was as high as security for the debt Hop Phat Printing and Media JSC was a JSC, therefore, after many years operated, most of the capital of the Company was owners' equity accounting for 64.14% in 2014 and dropped 53.27% in 2015 due to the fact that the company did not distribute, this led to profits falling sharply With the proportion of large owners' equity, the company could be more active in decision-making and minimizing risks
Comment: The level of debt increased but remained at a quite lower level This suggests that the company had a lot of autonomy, the main capital was the owners’ contribution Besides, the share of owners’ equity decreased clearly but not significantly, therefore, the operations of the Company were still maintained in a stable situation Hop Phat Printing and Media JSC should strive to build and promote the structure of asset - capital in the coming years in order to be even more efficient
4.1.2 Solvency situation evaluation of Hop Phat Printing and Media JSC
Meanwhile the above part mentions asset situation of the company, this will clarify another aspect which has always been considered vulnerable and mostly dependent on the income of the company That is liability aspect and debt-related evaluation
POTENTIAL RISK EVALUATION
Although Hop Phat JSC operates as a media – advertising agency which has played an undeniable role recent years, however, risk management is still considered essential to the Company’s existence The Company focuses on printing facilities and materials to invest effectively with low compensation and high interest Thus, risk management gains special concern and the target of risk evaluation program is to ensure sustainable development, especially in this financial crisis era
4.2.1 Potential business risks of Hop Phat Printing and Media JSC
The integration can be very profitable but it will be a double-edged knife Because the new national economy is in the development stage, however, there have a lot of powerful nations such as the US, China, Japan having overcome this period During integration, Vietnamese enterprises could become the prey swallowed by other powerful enterprises
According to the global economic situation in general and national in particular, every economy has been still in crisis and gradual recovery Therefore, the economy with high inflation and escalating price may lead to a reduction in consumption Then it could lead to an unavoidable scarcity of investment resources for the company which influences directly its expansion
The company has come into operation for 7 years, although there have been successful accomplishments in national integration period but the company still can not avoid competition with other rivals To compare to other companies with long existence, Hop Phat Printing and Media JSC would still experience disadvantages in economic potential This is what creates certain difficulties for the company in winning projects from other rivals
Although the company has been operating for 7 years, work requirements are not too high the company has just 115 members completing secondary education Labor force was thin, therefore, the company will definitely experience a shortage of employees when it starts to come into competitive integration period
The labor of company was mainly working on the production However, the company still lacks talented and proficient employees with creativity and innovation This may make a backward development in comparison with the rivals Although, this might not happen at a high rate at the moment but entirely possible in the near future
The company set its headquarter in Quoc Oai District, Hanoi Capital Despite the fact that Quoc Oai is one of the most favorable traffic regions, the operation scale of the company is
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28 still small, lacks of branches and outlets over the country This has reduced considerably the competitiveness of the company when compared to other rivals
After more than 7 years, the company has a certain position in the market, attracted more customers and creating trust and quality Thereby, the company accumulated substantial financial terms, in order to serve to the expanding investment, minimizing financial risks and creates a solid foundation for future development
However, the company could not avoid a huge amount of existing difficulties That requires a big budget and a clear strategy specifically in accordance with the direction of the current society I would like to give some specific measures as follows:
4.2.2.1 The measures from Company's Leader Board
The Company's Leader Board must take advantage of the opportunity to choose the right profession for investment and development to create a monopoly on the whole area of manufacturing, printing
There should be a clear policy in recruitment to be able to recruit more resources It is necessary that the company not only make use of available resources but recruit more diverse resources as well, look for talented forces to make definite development and competitiveness policies
The company needs to link with supermarkets, food companies, cosmetic, shoes, clothes outlets This will help the company expand its major market, distribution force and increase share markets in the industry
There should be more appropriate measures in managing cash resources of the Company in order not to lose the profitability of money The Company should look for effective investment to make use of funding resources However, the Company has to ensure the solvency of the business
The company has to increase investment in machinery and equipment in order to improve productivity and quality of printing products Besides that, the company needs to pay attention to training and improving skills for workers
4.2.2.4 Political factors and the law measures
The State has created a stable legal framework for business activity, trade, particularly international trade In relation to enterprises, the government has acted as the one who controls, encourages, funds, regulates, prohibits, restricts, moderates as well as act as a provider of services to enterprises such as: information, orientation and other services Basically, government regulatory has little influence on the Company's operations
Economic factors: That Vietnam joined the WTO created more opportunities for domestic enterprises to cooperate and link businesses This would reduce risks and create more favorable conditions
Natural environmental and cultural factor: cultural- social factors often have long-term influence and more refined than the other elements It was an important basis for the regulators to plan business strategy
CONCLUSION
BUSINESS ENVIRONMENT
In recent years, Vietnam was considered one of the most dynamic economies in the Asia - Pacific Region as well as around the world with high growth and stability
However, the economy of our country has faced many difficulties and challenges 2014 and 2015 were considered difficult years for the whole economy and the business sector Rising inflation rates, rising interest rates and insecure foreign exchange market have increased the cost of production which creates difficulties for businesses in accessing loans According to assessments of international organizations such as WEF, WB, and IFC about competitiveness environment comparison between Vietnam and other countries in the world, Vietnam dropped 6 places in the competitiveness assessment and fell 8 ranks in the business environment assessment According to the assessment of the leading and fast growing enterprises, domestic business environment wasn’t more favorable due to a variety of factors mentioned above
Accordingly, the State Bank implemented tight monetary policy reducing the growth rate of money supply and limiting the credit to business activities in real estate and stock market These measures made interest rates rise This placed negative impacts on enterprise, real estate market and stock market, including Hop Phat Printing and Media JSC Therefore, the company needs to make further efforts in order to raise its competitiveness in this strict business environment today.
DEVELOPMENT ORIENTATION
A company wanted to survive and develop long - term, it was first necessary to have a proper orientation Recognizing this problem, Hop Phat Printing and Media JSC has built its growth path in the coming period as follows:
- People are always the key of every development steps Therefore, labor forces strategy is not limited to professional training but also to create awareness for their business and absolutely loyal to the company
- Maintain cooperation and boost further development with major partners to maximize operational efficiency of the company Ensure the balance of revenue and expenditure,
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32 make use of the company funding resources Create confidence for customers, partners and create advantages in raising capital for business as required
- Manage properly receivables, due or overdue amounts to take timely measures… avoiding the situation that company’s capital is occupied too long by customers
- Invest in equipment, machinery and technology
- Build company culture: civilization, democracy, built reasonable bonus and punishment
- Build working environment dynamic and professional The Company always had to improve the organizational structure and operation, create dynamism in the development of the Company in order to boost excitement for each employee Create effective competition in every position so that employees can make use of their capabilities.
THE GOALS THAT I ACHIEVED
I have achieved a large number of experiences which are simultaneously what the company must face They are extremely related to my mission during my internship time, namely:
- Effective using capital circulation which is the turnaround as quickly as possible
- Organize an operation process, make plans and report correctly
- Lower management costs and evaluate the cost of sales and pre-production These expenses should follow each plan which suits each specific stage
- To achieve the planned cost, human teams need to have self-consciousness and minimize wasting public property This requires the struggle to complete the plan with the capacity and determination of the individual characteristics Especially, it encourages leadership department
- There were also a number of measures to avoid overdue payments interest, breaking financial regulations with no penalty compensation
Following this internship time, I have been assessed as a successfully completed candidate In addition to the sections cited, all materials, results and comments in this thesis is absolutely authentic and never published in any other work
1 Damian Begg, Damin Ward (2008), Economics 8 th Edition, Thong Ke Publication
2 Gregory Mankiw (2014), Principles of microeconomics, Cengage learning
3 Le Van Te (2010), Financial market analysis, Phuong Dong Publication
4 N Gregory Mankiw (2014), Principles of macroeconomics, Cengage learning
5 Robert L Heilbroner, William Milberg (2011), The Making of Economic Society
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