Internship Report Song Con Sugar JSC

TABLE OF CONTENTS PREFACE CHAPTER 1: INTRODUTION TO SONG CON SUGAR JSC 1.1 History and development of Song Con Sugar JSC 1.2 Organizational structure 1.3 Overview of Song Con Sugar JSC’s business activities 1.4 Song Con Sugar JSC’s business performance from 2011 to 2013 CHAPTER 2: ANALYSIS OF RELATED DIVERSIFICATION STRATEGY AT SONG CON SUGAR JSC 2.1 The current situation of application and development of related diversification strategy at Song Con Sugar JSC 2.1.1 Implementation of related diversification strategy in recent years 2.1.2 Development of related diversification strategy by formulating new project in capacity increase 10 2.2 Evaluation of implementing related diversification strategy at Song Con Sugar JSC 12 2.2.1 Strengths 12 2.2.2 Weaknesses and causes 13 CHAPTER 3: RECOMMENDATIONS FOR RELATED DIVERSIFICATION STRATEGY IMPLEMENTATION AT SONG CON SUGAR JSC 15 3.1 Strategic business units’ development orientation 15 3.2 Recommendations for Song Con Sugar JSC 16 3.1.1 Human resources 16 3.1.2 Accounting system 17 3.3 Recommendations for Vietnam Sugarcane & Sugar Association (VSSA) 17 CONCLUSION AND SUMMARY OF INTERNSHIP 19 REFERENCES 21 PREFACE As one of the investment policies of the Vietnamese government to develop the economy in Tan Ky, which was a poor mountainous district in the west of Nghe An province, Song Con Sugar Factory (today is Song Con Sugar JSC) was established to produce sugar from sugarcane in order to change the scattered, backward, selfsufficient thoughts of farmers and at the same time create job opportunities for local people Therefore, the exit and development of the company has not only an economic signification but also a remarkable social meaning However, in the present context when the globalization and integration bring a lot of opportunities and threats to Vietnamese enterprises, Song Con Sugar JSC has to be more careful to find out the most suitable direction to drive the enterprise to the common goals In such case, the business strategy becomes vital than ever before: “without a strategy the organization is like a ship without a rudder, going around in circles” (Joel Ross & Michael Kami) According to the schedule of Foreign Trade University, I spent a five-week internship at Song Con Sugar JSC, which majors in producing and selling sugar and microbiological fertilizers Under the training of my direct instructor, Mr Nguyen Khanh Hung, as well as the condescension of the company’s staffs, I have been given a great opportunity to apply my academic knowledge to practical problems and compare with the theories I have learned at the university Based on my background knowledge and the experience I gained during my internship, I decide to choose the topic for this report as “Related diversification strategy at Song Con Sugar JSC” The report consists of three separate parts: Chapter 1: Introduction to Song Con Sugar JSC Chapter 2: Analysis of related diversification strategy at Song Con Sugar JSC Chapter 3: Recommendations for related diversification strategy at Song Con Sugar JSC Due to my limitation of knowledge, skills and experience, mistakes and faults are inevitable I welcome all comments, advices and suggestions that help me improve the quality of the report Finally, I would like to express my gratitude to my instructors and Song Con Sugar JSC’s staffs for helping me complete my mid-course internship CHAPTER 1: INTRODUTION TO SONG CON SUGAR JSC 1.1 History and development of Song Con Sugar JSC International transaction name: Song Con Sugar Joint Stock Company Headquarter: Tan Ky Town - Tan Ky District - Nghe An Province Tel: 0383 882 214 - Fax: 038 882 200 Song Con Sugar JSC was formerly known as a sugar production workshop of Song Lam Sugar Factory (Hung Nguyen - Nghe An) established in 1971 After that, because of war, it was moved to Tan Ky District, merged with Tan Ky alcohol production workshop in order to build Song Con Sugar - Alcohol Factory In 2001, it was renamed as Song Con Sugar Company operating in accordance with Decision No 2466/QD-UB dated December 28th 1992 issued by People’s Committee of Nghe An Province; Business License No 106713 dated December 26th 1993 issued by Economic Arbitrator of Nghe An Province According to Decree No 187/2004/ND-CP dated November 16th 2004 of the Government on transformation of state-owned companies into join-stock companies and Circular No 126/2004/TT-BTC dated December 24th 2004 providing guidelines for implementation of Decree 187/2004/ND-CP, People’s Committee of Nghe An Province issued Decision No 3724/QD-UBND-DMDN dated October 18th 2006 approving equitization: transforming Song Con Sugar Company into Song Con Sugar JSC, directly under the Vietnam Sugarcane & Sugar Association (VSSA) In recent years, Song Con Sugar JSC has expanded its materials area, invested more capital in local farmers and provided new sugarcane varieties with high yield, good quality for the farmers Besides expanding the materials area, Song Con Sugar JSC has also focused on machine investment in which company increased the capacity of production line gradually: 15 tons of sugarcane per day at the starting point, 30 tons/day in 1980, 100 tons/day in 1990, and 200 tons/day in 1995 In 1997, Song Con Sugar JSC implemented the new project constructing a modern production line, using synchronous equipment with the capacity 1,250 tons of cane per day from Spain, applying sugar production technology from Cuba which have longstanding reputation in sugar production This project was under the program named 1million tons of sugar per year of Vietnamese Government, using the combination of Spanish ODA and OECD capital with VND 230 billion of the total initial capital In March 2001, this line was completely installed and upgraded every year and has reached 2,500 tons of sugarcane per day in 2009 This capacity brought high economic efficiency and has been maintained until now Song Con Sugar JSC has developed for 43 years, completed all plans and duties well and positioned itself in the market Song Con Sugar JSC’s success has been recognized through some following significant rewards: - Vietnam Association of Food Science and Technology (VAFoST) awarded the Gold Cup of food quality and safety in 2003 - Ministry of Agriculture and Rural Development rated as efficient company contributing a significant portion to sugar and sugarcane industry of Vietnam - Song Con Sugar has applied quality management system ISO 9001 - 2000 since 2004 and now switches to ISO 9001 - 2008 1.2 Organizational structure The organizational structure of SONG CON SUGAR JSC is illustrated as follow: Chart 1.1: Song Con Sugar JSC’s organizational stucture Annual General Meeting Board of Supervisors Board of Directors Executive Director Deputy Director of Business Planning Department Market Department AccountingFinance Department Deputy Director of Materials Deputy Director of Technology Agriculture Department Technology Department Deputy Director of Production Sugar Factory Human Resources - Administration Department Microbiological Fertilizer Factory Functions and duties of each department:  Annual General Meeting: is the highest power position in the company, is held annually Sometimes, it could be organized extraordinary meetings in compliance with the company’s charter  Board of Directors: is a body of elected or appointed members by General Meeting of Shareholders, has 5-year tenure  Board of Supervisors: is body that operates objectively, honestly, independently, and is responsible to General Meeting of Shareholders for its inspection contents and results  Executive Director: is appointed by Board of Directors, is legitimate representative of the company, manages and controls the company operation since the appointment decision comes into force; four Deputy Directors assist Executive Director and are responsible for providing leadership and direction for directly under departments These people are five members of Board of Managers  Planning Department: is in charge of long-term and short-term business plans and strategies for the whole company  Market Department: is in charge of market research, marketing and deals with problems arising from customers  Agriculture Department: is in charge of sugarcane material areas, supports farmers by providing them with capital, cultivation techniques, sugarcane varieties…  Technology Department: is in charge of production line and technology system which support other departments and factories  Sugar Factory: produces cane sugar (sucrose) from sugarcane  Microbiological Fertilizers Factory: produces microbiological fertilizers from filter cake (the residual after finishing sugar processing)  Accounting - Finance Department: advises Executive Director on financial management, is responsible for recording, codifying and processing financial information, preparing financial statements  Human resources - Administration Department: advises Executive Director on the organizational structure of business, arranges the human resources appropriately with the company’s business requirements 1.3 Overview of Song Con Sugar JSC’s business activities According to establishment decision, Song Con Sugar JSC was certified the business license No 2703000988 by People’s Committee of Nghe An Province Under that Decision, there are two main business sectors: producing sugar from sugarcane what has been deemed as the main raw materials and producing microbiology fertilizer from the byproducts of sugar processing Because sugarcane is one kind of short-term industrial trees, the sugar production is highly seasonal Therefore, Song Con Sugar JSC has diversified its business by producing microbiological fertilizer for both utilizing the byproducts after producing sugar and creating more job opportunities for the local employees when finishing crushing seasons This related diversification also generates more revenue for the company and the workers 1.4 Song Con Sugar JSC’s business performance from 2011 to 2013 Table 1.1: Business performance of Song Con Sugar JSC form 2011 to 2013 Unit: VND No Criteria Sales Revenue deductions Net sales Cost of goods sale Gross profit Financial activities income Financial activities expenses in which: Interest expense Selling expenses General&administration expenses 10 Net profit 11 Other revenues 12 Other expenses 13 Other profit 14 Profit before taxes 15 Profit tax expense 16 Profit after taxes 2011 2012 2013 262,574,884,847 265,213,927,640 288,684,812,690 5,250,000 - 37,500,000 262,569,634,847 265,213,927,640 288,647,312,690 238,546,426,670 210,712,101,993 254,913,096,917 24,023,208,177 54,501,825,647 33,734,215,773 1,499,608,808 1,849,840,356 1,416,423,732 13,301,451,924 33,674,340,291 19,221,795,510 - 7,154,070,483 8,391,688,610 2,220,554,198 2,139,998,441 1,040,881,791 7,954,088,270 11,857,060,386 13,236,270,675 2,046,722,594 8,680,266,885 1,651,691,529 194,690,972 1,424,683,218 162,672,201 724,324,601 - 38,053,130 (529,633,629) 1,424,683,218 124,619,072 1,517,088,965 10,104,950,103 1,776,310,601 - 689,585,792 222,038,825 1,517,088,965 9,415,364,312 1,554,271,776 Source: Song Con Sugar JSC’s Accounting - Finance Department Table 1.2: Some criteria for evaluating business performance Changes Criteria 2011-2012 Total revenues 2012-2013 1.6% 8.1% -1.7% 11.6% 520.6% -83.5% Total expenses (exclude taxes) Total profit after taxes Source: Song Con Sugar JSC’s Accounting - Finance Department It can be seen that among three years from 2011 to 2013 Song Con Sugar JSC generated the highest profit in 2012 From 2011 to 2012, because total revenue increased and total expenses decreased, the profit climbed sharply by VND 7,898,275,347 (520.6%) The main reason of this significant increase was the considerable reduction of cost of goods sold, which resulted from the following context: 2011-2012 crushing season was evaluated as the most successful crop in five recent years thank to high quality and quantity of sugarcane in almost of cane material areas in Vietnam Nevertheless, high sugarcane yield lowers the cane’s price in the market At that time, in Tan Ky town, Nghe An, two big floods at the end of 2011 and early 2012 destroyed the sugarcane material areas dramatically, which leaded to the shortage of sugarcane in Tan Ky where Song Con Sugar JSC has committed to purchase sugarcane at high price (VND 900,000/ton) from January 1st 2011 to April 30th 2013 Therefore, Song Con Sugar JSC could buy a big amount of sugarcane at market price from other areas This helped the company to reduce the cost of materials remarkably CHAPTER 2: ANALYSIS OF RELATED DIVERSIFICATION STRATEGY AT SONG CON SUGAR JSC 2.1 The current situation of application and development of related diversification strategy at Song Con Sugar JSC 2.1.1 Implementation of related diversification strategy in recent years Nearly ten years ago, Song Con Sugar JSC applied diversification strategy by producing and selling a bundle of products processed from sugarcane such as cane sugar (the main product), molasses, ethanol and microbiological fertilizers However, because of variety of products, company could not manage efficiently; the economic effectiveness of extra products was very low and affected negatively to the productivity of sugar production In that circumstance, a meeting of shareholders was held and the company decided to cut down the ineffective strategic business units, maintained only two divisions: sugar and fertilizers Song Con Sugar JSC gathered its resources and capacities to redesign its business operation, concentrated on two independent factories: Chart 2.1: Song Con Sugar JSC’s Strategic business units Sugar Factory Production Shifts Microbiological Fertilizers Factory Production Teams Song Con Sugar JSC Under the direct control of Board of Management, each factory has their own specification, technical system, duties and totally is responsible for its operation Besides that, these two factories have the interconnected relationship: Sugar factory’s output becomes microbiology fertilizers factory’s input Microbiological fertilizers factory uses products of the sugarcane processing except cane sugar (sucrose) as the materials to produce fertilizers The main raw material in microbiological fertilizers production is filter cake which is the final residual after sugarcane processing Moreover, bagasse, the residual dry fiber of the cane juice has been extracted, is used as fuel source for the boilers in the generation of process steam in sugar plants and for the dryer in microbiological fertilizers processing The combination of these two strategic business units helps Song Con Sugar to manage its resources effectively, make use of byproducts from cane sugar processing in order to save the materials cost in microbiological fertilizers production The operation results of these two factories in last three years are presented as follow: Table 2.1: Yields of sugar factory and microbiological factory from 2011 to 2013 Unit: ton Year Sugar Fertilizers 2011 2012 2013 36,000.0 40,441.5 39,342.0 3,690.0 4,627.5 4,707.0 Source: Song Con Sugar JSC’s Accounting - Finance Department On average, sugar factory operates appropriate six months per year (crushing season lasts for a period of six months from October of this year to April of the following year) With the maximum capacity is 2,500 tons of sugarcane per day, it is impossible to produce more than 45,000 tons of sugar per year So, it can be seen that sugar factory have already operated at nearly full capacity The yields of microbiological fertilizers factory depends on the amount of filter cake after each crushing season The more filter cake produced, the higher yield is In the three-year period from 2011 to 2013, the fertilizers quantity increased by 1,017 tons (about 27.6%) 2.1.2 Development of related diversification strategy by formulating new project in capacity increase Despite the fact that the sugar factory ran at high capacity utilization, the microbiological fertilizers factory’s operation is still disengaged because the filter cake produced from sugar processing only provides a small proportion of microbiological fertilizers factory’s capacity Furthermore, the current capacity of sugar factory is not great enough to take advantage of the large sugarcane material areas in Tan Ky district According to the 10 Decision No 732/QD-UBND dated 9th March 2009 issued by People’s Committee of Nghe An Province, until 2015, the total area of sugarcane in Tan Ky is expected to expand to 5,500 hectares with the average productivity will be 75,000 kilograms of cane per hectare However, up to early 2014, Tan Ky have already completed this planning scheme and continues enhancing the quality of sugarcane in the local materials areas in order to increase the average sugarcane productivity The development of sugarcane material areas requires the upgrade of production system and the increase of factory’s capacity Therefore, Song Con Sugar JSC has a plan to increase the capacity of sugar factory for taking advantage of the huge sugarcane material areas and maximizing the microbiological fertilizers factory’s capacity Now, Song Con Sugar JSC is in the initial steps of implementing this plan by formulating a new project in capacity increase The project is expected to make the sugar factory’s capacity to double (from 2,500 tons of sugarcane per day to 5,000 tons/day) This development is evaluated as a perspicacious decision of Board of Directors and Managers, which would help Song Con Sugar JSC to keep on pursuing the related diversification strategy effectively and efficiently In addition, the new project also applies the technology innovation called “cleaner production” including four groups of solution:  Good housekeeping: Well-maintaining and immediately repairing all steam leaking points, substituting all faulty steam traps  Equipment modification: Substituting the machinery parts made of normal steel (which contaminates products) by the stainless ones, regularly checking and maintaining the strainers, regularly maintaining the rollers, upgrade the filtering equipment 11  Onsite recovery: Installing a recovery system of cooling water, making use of filtration mud and sludge as composite to provide for the raw materials supplying areas and sell to the market  End-of-pipe: Installing a SO2 treatment system in the production workshop Song Con Sugar JSC makes a big effort to execute the new project in order to produce more, cleaner and save costs in the future This project is expected to complete in early 2017 It promises a new development stage of company with an effective related diversification strategy and two strategic business units that are productive and environment-friendly 2.2 Evaluation of implementing related diversification strategy at Song Con Sugar JSC 2.2.1 Strengths  Leveraging competencies: “Leveraging competencies involves taking distinctive competence developed by a business unit in one industry and using it to create a new business unit or division in a different industry” (Charles W L Hill & Gareth R Jones, 2008: 315) Song Con Sugar JSC leverages its skills in manufacturing and marketing some kinds of products originated from sugarcane to create a business unit in a microbiological fertilizers industry  Sharing resources and capabilities: In case of Song Con Sugar JSC, the second business unit (microbiological fertilizers) was created to take the cost-based competitive advantage from making use of byproducts and existing information technology system of the first business unit (sugar) Thus, the production costs of microbiological fertilizers factory would be saved considerably Moreover, two factories share and utilize expensive resources or capabilities, such as skilled people, equipment, facilities, distribution channels… Because Song Con Sugar JSC can share resources or capabilities across two business units, it lowers their cost structure 12 compared to a company that operates in only one industry and has to bear the full costs of developing resources and capabilities  Utilizing general organizational competencies: Effective organizational structure and controls of Song Con Sugar JSC create incentives that encourage business unit managers to maximum the efficiency and effectiveness of their units Superior strategic management capabilities of managers are advantage of Song Con Sugar JSC, which is showed through the ability to diagnose the underlying sources of the problems of a poorly performing business unit (microbiological fertilizers factory performed at very low capacity) and understand how to proceed to solve problems 2.2.2 Weaknesses and causes  The bureaucratic costs of diversification results from coordination between strategic business units: An enormous amount of managerial time and effort required to accurately measure the performance and unique profit of a business unit that is transferring, leveraging or sharing resources with another Sometimes, bureaucratic costs obstruct the performance measurement, so that lead to the wrong evaluation for the results of each business unit Furthermore, the coordination between two business units at Song Con Sugar JSC is not only the simple relationship on production (sugar factory’s byproducts are raw microbiological fertilizers factory’s materials) but also complicated incorporation because they coordinate with each other through other departments such as marketing, human resources, technology… This indirect collaboration increases the bureaucratic costs that lower the effectiveness and efficiency of the coordination between sugar and microbiological fertilizers factories  Inaccurate performance measurement is due to some shortcomings in company’s accounting system: Song Con Sugar JSC’s accounting system hitherto is simplified like when it was in the early stages Company only applies financial accounting to calculate the financial indicators and prepare the required financial statements However, the financial accounting is still weak and can not describe the 13 true financial situation of company in detail For example, today Song Con Sugar JSC is applying straight-line method to calculate the depreciation of tangible assets This method is very simple, easy to computerize, saves time and costs but it doesn’t take into account the fact that machine and technology will be depreciated more in the first phases and obsolete soon Therefore, a big amount of depreciation expenses would be compute at the inaccurate value by this way, which leads to the inexact measurement of each factory in production costs, in current situation of machines and so on Furthermore, the managerial accounting is virtually disregarded although it is a critical factor “which is a profession that involves partnering in management decision making, devising planning and performance management systems, and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organization's strategy” (Institute of Management Accountants 2008.) Now, Song Con Sugar JSC have not reported the business performance for each kind of product, not focused on clearly making the boundary between fixed costs and variable costs and not analyzed deeply the origins of expenses occurred and revenues generated in individual strategic business units It’s clear that the managerial accounting in Song Con Sugar JSC is the considerable weakness that need to be improved as soon as possible 14 CHAPTER 3: RECOMMENDATIONS FOR RELATED DIVERSIFICATION STRATEGY IMPLEMENTATION AT SONG CON SUGAR JSC 3.1 Strategic business units’ development orientation In general, the related diversification strategy at Song Con Sugar JSC have achieved some initial successes which prove the fact that the two strategic business units under this strategy was an intelligent choice of the company In the next five years, Song Con Sugar JSC continues execute this business strategy and expand the scale of two units: Song Con Sugar JSC makes much progress in implementing the new project which increases the sugar factory’s capacity and applies the technology named “cleaner production” The company expects that this project will be completed in 2017 and reach the full capacity in 2020 On the other hand, Song Con Sugar JSC will continue signing the agreement with local farmers in sugarcane’s price commitment in order to encourage farmers to be loyal with sugarcane, maintain the current cane material areas Besides, the company also doubles the current fund for agriculture department to enhance the staffs’ knowledge and to guide the local farmers about farming techniques, fertilizers usage or new varieties cultivation… All of these are forward to the orientation of sugarcane’s quality development at 5,500 hectares of the current material areas Song Con Sugar JSC assigns microbiological fertilizers factory to raise the productivity and try to operate at 100% capacity when completing the project in sugar factory Simultaneously, microbiological fertilizers factory orients to cut down the emissions to the allowed standard in 2015 in order to ensure the environmental and social benefits 15 3.2 Recommendations for Song Con Sugar JSC 3.1.1 Human resources It can be seen from chart 2.1 that sugar factory manages its employees by production shifts while the microbiological fertilizers factory control by production teams I recommend Song Con Sugar JSC to combine flexibly these two ways in order to create a stable number of skilled people that contribute significantly to the production efficiency in both factories Specifically, the company should train a group of employee about basic skills applying in both sugar and fertilizers factories During the time of crushing seasons, when the sugar factory has to operate at the peak production, the work usually tops out at three shifts per day; this group could work at sugar factory as part-time employees After six months of a crushing season, this group should be transferred to microbiological fertilizers factory because it’s time when the fertilizers factory operates at peak production This method will help the company reduce the number of extra labors, who are low-skilled, need to hire every crushing season Therefore, Song Con Sugar JSC can maintain the stability of quantity and quality of workers and improve the productivity of each strategic business unit easily and timely Now, the production activities of both factories are managed by the Deputy Director of Production, other fields such as marketing, sales, technology of each factory are executed together by specialized departments Song Con Sugar JSC should assign at least one person to be responsible for one field of each strategic business unit in order to increase the specialization, promote the effectiveness of every single field in each business unit 16 3.1.2 Accounting system As mentioned above, Song Con Sugar JSC has had some problems in its accounting system both financial and managerial accounting About financial accounting, Song Con Sugar JSC should modify some methods in the current accounting as follow: - Replace the straight-line depreciation method with productive-output method of depreciation in order to have the better overview of tangible assets such as machines, facilities, factories… - Separate health insurance, unemployment insurance, social insurance should be separated into three accounts in order to monitor the deductions and other entitlements explicitly instead of gathering in only one common account as currently About managerial accounting, I emphasize that company has to keep an eye on constructing a full managerial accounting system First of all, Song Con Sugar JSC should recruit a skilled managerial accountant who is in charge of managing the business team and at the same time having to report relationships and responsibilities to the accounting - finance department This accountant would work as a strategic partner and provider of decision based on financial and operational information The activities’ managerial accountant provide inclusive of forecasting and planning, performing variance analysis, reviewing and monitoring costs inherent in the business are ones that have dual accountability to both finance and the strategic business teams 3.3 Recommendations for Vietnam Sugarcane & Sugar Association (VSSA) VSSA operates in producing, processing, consuming, importing and exporting sugarcane and sugar, coordinates effectively the business activities in Vietnam and overseas In other words, VSSA is practically concentrating on the sugar production and sugarcane consumption activities of members and ignoring other activities of all its 17 members In fact, VSSA has not supported and helped Song Con Sugar JSC’s microbiological fertilizers factory to develop producing and selling fertilizers I recommend that VSSA should pay attention on other related business units of its members in general and on microbiological fertilizers factory of Song Con Sugar JSC in particular Of course, VSSA is not able to cover all strategic business units of all members but it should spend a certain proportion of time, money and efforts in different business units related to sugarcane In case of Song Con Sugar JSC, VSSA ought to be the connection among members which also produces fertilizers in order to create the opportunities for them to help each other enhance production technologies, improve product quality, prevent risks, expand market and promote the relations Thus, VSSA can accomplish its responsibilities entirely 18 CONCLUSION AND SUMMARY OF INTERNSHIP I have had opportunity to research the business strategy at Song Con Sugar JSC thank to the schedule of mid-term internship It’s hard for me to understand deeply about an abstract term like “strategy” but 5-week internship helped me improve my knowledge in strategic management and gave me a chance to practice at the same time apply my knowledge in writing report During my internship, I was assigned to the following tasks: - Entering data of absent days of staffs and employees - Recording other expenses from bills such as electricity, water and telephone bills in June and July 2014; bills incurring in the business trip from 10th July to 13th July 2014 of Board of Managers - Translating weekly reports of foreign engineers who are formulating the new project about capacity increase in sugar factory - Making photocopies It was very hard for me to the translation job because the documents are relating to technical issues that are unfamiliar to me However, the interpreters of the company have helped me a lot in finishing my work They give me suggestion on how to translate complicated sentences and some special terms This job helped me a lot in improving my English and broadening my vocabulary Making photocopies was hard for me for the first time because I had never used a photocopy machine before However it was not a complicated task, I have now known how to it skillfully Other tasks such as entering data or recording fees from paper into the computer were not difficult but they took time and easy to make mistakes, so they required me to work hard, patiently and carefully 19 Finally, the whole internship gave me an exposure to the working environment and condition It helped me improve my soft skills and understand what I have learnt at Foreign Trade University deeper In addition, I know how to get on well with colleagues, how to dress appropriately, how to communicate properly In conclusion, the internship was a good experience for me and helped me to be well-prepared for the future 20 REFERENCES Charles W L Hill & Gareth R Jones, 2008, Strategic management: an integrated approach, 9th edition, Mason: South-Western Cengage Learning Institute of Management Accountants, 2008, Definition of Management Accounting, available at http://en.wikipedia.org/wiki/Management_accounting [accessed 20 July 2014] Ly Hoang Anh Thi, 2013, Bao cao nganh mia duong, available at http://lyhoanganhthi.files.wordpress.com/2013/01/bao-cao-nganh-mia-duong-vu-1112.pdf [accessed 15 July 2014] Supporting Office for the Cleaner Production Strategy in Industry to 2020 CPSI, Case study: Song Con Sugar JSC, 20 February 2012, available at http://sxsh.vn/viVN/CaseStudy/Details.aspx?ID=44 [accessed 17 July 2014] Vietnam Sugarcane & Sugar Association, Member Detail, available at http://vinasugar.vn/hoi-vien/chi-tiet/Cong-ty-CP-Mia-Duong-Song-Con.html [accessed 15 July 2014] Vietnam Sugarcane supplementing), & available Sugar at Association, Charter VSSA (amending and http://vinasugar.vn/tin-tuc-vinasugar/chi-tiet/Dieu-le- Hiep-Hoi-Mia-Duong-Viet-Nam.html [accessed 24 July 2014] 21 [...]... DIVERSIFICATION STRATEGY AT SONG CON SUGAR JSC 2.1 The current situation of application and development of related diversification strategy at Song Con Sugar JSC 2.1.1 Implementation of related diversification strategy in recent years Nearly ten years ago, Song Con Sugar JSC applied diversification strategy by producing and selling a bundle of products processed from sugarcane such as cane sugar (the main product),... years, Song Con Sugar JSC continues execute this business strategy and expand the scale of two units: Song Con Sugar JSC makes much progress in implementing the new project which increases the sugar factory’s capacity and applies the technology named “cleaner production” The company expects that this project will be completed in 2017 and reach the full capacity in 2020 On the other hand, Song Con Sugar JSC. .. It’s clear that the managerial accounting in Song Con Sugar JSC is the considerable weakness that need to be improved as soon as possible 14 CHAPTER 3: RECOMMENDATIONS FOR RELATED DIVERSIFICATION STRATEGY IMPLEMENTATION AT SONG CON SUGAR JSC 3.1 Strategic business units’ development orientation In general, the related diversification strategy at Song Con Sugar JSC have achieved some initial successes which... study: Song Con Sugar JSC, 20 February 2012, available at http://sxsh.vn/viVN/CaseStudy/Details.aspx?ID=44 [accessed 17 July 2014] Vietnam Sugarcane & Sugar Association, Member Detail, available at http://vinasugar.vn/hoi-vien/chi-tiet/Cong-ty-CP-Mia-Duong -Song- Con. html [accessed 15 July 2014] Vietnam Sugarcane supplementing), & available Sugar at Association, Charter VSSA (amending and http://vinasugar.vn/tin-tuc-vinasugar/chi-tiet/Dieu-le-... Chart 2.1: Song Con Sugar JSC s Strategic business units Sugar Factory Production Shifts Microbiological Fertilizers Factory Production Teams Song Con Sugar JSC Under the direct control of Board of Management, each factory has their own specification, technical system, duties and totally is responsible for its operation Besides that, these two factories have the interconnected relationship: Sugar factory’s... benefits 15 3.2 Recommendations for Song Con Sugar JSC 3.1.1 Human resources It can be seen from chart 2.1 that sugar factory manages its employees by production shifts while the microbiological fertilizers factory control by production teams I recommend Song Con Sugar JSC to combine flexibly these two ways in order to create a stable number of skilled people that contribute significantly to the production... factory’s capacity Therefore, Song Con Sugar JSC has a plan to increase the capacity of sugar factory for taking advantage of the huge sugarcane material areas and maximizing the microbiological fertilizers factory’s capacity Now, Song Con Sugar JSC is in the initial steps of implementing this plan by formulating a new project in capacity increase The project is expected to make the sugar factory’s capacity... strategic business teams 3.3 Recommendations for Vietnam Sugarcane & Sugar Association (VSSA) VSSA operates in producing, processing, consuming, importing and exporting sugarcane and sugar, coordinates effectively the business activities in Vietnam and overseas In other words, VSSA is practically concentrating on the sugar production and sugarcane consumption activities of members and ignoring other activities... Utilizing general organizational competencies: Effective organizational structure and controls of Song Con Sugar JSC create incentives that encourage business unit managers to maximum the efficiency and effectiveness of their units Superior strategic management capabilities of managers are advantage of Song Con Sugar JSC, which is showed through the ability to diagnose the underlying sources of the problems... 4,707.0 Source: Song Con Sugar JSC s Accounting - Finance Department On average, sugar factory operates appropriate six months per year (crushing season lasts for a period of six months from October of this year to April of the following year) With the maximum capacity is 2,500 tons of sugarcane per day, it is impossible to produce more than 45,000 tons of sugar per year So, it can be seen that sugar factory