Báo cáo thực tập tiếng anh HP MEDICAL EQIUPMENT AND TRADING JOINT STOCK COMPANY

Functions and duties of each department…………....8 1.6 General Product/ Target Market / Business process………...………...10 CHAPTER 2: BUSINESS ACTIVITIES OF HP MEDICAL EQIUPMENT AND TRADING

INTERNATIONAL SCHOOL

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GRADUATE INTERNSHIP REPORT

HP MEDICAL EQIUPMENT AND TRADING JOINT-STOCK COMPANY

Address: No 34 Alley 64/55 Kim Giang Street, Kim Giang Ward, Thanh Xuan

District, Hanoi, Vietnam

Supervisor: PHẠM HƯƠNG TRANG Student’s full name: LÊ MAI MAI Student’s ID: 1107 1278

Major: International Business Class: IB2012B

Hanoi, 11/03/2016…

Bearing in mind previous I am using this opportunity to express my deepest gratitude and special thanks to Mr.Do Manh Hung of HP JSC who in spite of being extraordinarily busy with his duties, took time out to hear, guide and keep me on the correct path and allowing me to carry out my project at their esteemed organization and extending during the training

I express my deepest thanks to Ms Huong Trang – my supervisor from IS-VNU for taking part in useful decision & giving necessary advices and guidance for me to complete this Internship report I choose this moment to acknowledge her contribution gratefully

I perceive as this opportunity as a big milestone in my career development I will strive to use gained skills and knowledge in the best possible way, and I will continue

to work on their improvement, in order to attain desired career objectives Hope to continue cooperation with all of you in the future

Sincerely,

Le Mai Mai

LIST OF FIGURES, TABLES AND CHARTS

Figures:

Figure 1: Organizational management chart .Page 8 Figure 2: The company’s current distribution system ., Page 12 Figure 3: Sales process diagram……… Page 18

Tables:

Table 1: The number of retailers of of HP Medical Equipment and Trading JSC

period 2012-2015……… … Page 13 Table 2: Some results of the company operations through the years 2013-2015

……… ……….Page 15 Table 3: Comparison of the results of the company operations……… Page 15-16 Table 4: Value and proportion of the turnover from the market sectors of the HP

Medical Equipment and Trading JSC for the period 2012-2015… Page 22

Charts:

Chart 1: Revenue from product sales……… Page 13-14 Chart 2: Density of Financial and enterprise management expenses over revenue of the

firm (2013 – 2015) ……… Page 17 Chart 3: Contribution percentage to the revenue of four main product groups at the

company period 2013-2015……… Page 19 Chart 4: Consumption structure at HP Medical Equipment and Trading JSC for the

period 2013-2015……….Page 20 Chart 5: The results of Grow-lex product consumption at HP Medical Equipment and

Trading JSC for the period 2013-2015……….Page 21 Chart 6: Market share of the Grow-lex compared to the competitors’ at three major

hospitals in Hanoi for the period 2013 -2015……… Page 24

TABLE OF CONTENTS

ACKNOWLEGDEMENT……….1

LIST OF FIGURES AND TABLES……… 2

TABLE OF CONTENTS……… 3

CHAPTER 1: THE OVERVIEW OF HP MEDICAL EQIUPMENT AND TRADING JOINT-STOCK COMPANY ……… ………… …………5

1.1 General information of the company……… ………… …… 5

1.2 History of the company……… ………… 5

1.3 Mission and Vision of the company……… 7

1.4 Core Value of the Company……… …7

1.5 Organizational Structure of the company 8

1.5.1 Organizational management chart………8

1.5.2 Functions and duties of each department………… 8

1.6 General Product/ Target Market / Business process……… ……… 10

CHAPTER 2: BUSINESS ACTIVITIES OF HP MEDICAL EQIUPMENT AND TRADING JOINT-STOCK COMPANY ……… 10

2.1 General business activities information……… 10

2.1.1 Main business activities 10

2.1.2 Main product line ……….……… 10

2.1.3 Strategic / business plans ……….……11

2.1.4 Business activities ……….………13

2.1.4.1 Sales ……… 13

2.1.4.2 Financing ……….…….16

2.1.4.3 Distribution ……… …… 17

2.2 Business strategy analysis……… …… 19

2.2.1 Grow-lex consumption situation compared to other products …………19

2.2.1.1 Grow-lex Revenue and Profit……… ………19

2.2.1.2 The structure of Grow-lex product consumption 20

2.2.1.3 The target sale and results of Grow-lex product consumption at HP Medical Equipment and Trading JSC ……….……… 21

2.2.1.4 Consumption Situations of Grow-lex medicinal products by region 2.2.1.5 The target customer of Grow-lex product ………… … ………22

2.2.1.6 The achievements of Grow-lex product……… ……… 25

2.3 Shortcoming and causes of the business activities……… ……… 25

2.3.1 Sale activity challenges …….……… 25

2.3.2 General weaknesses of the enterprise ………… ……… 26

CHAPTER 3: INTERNSHIP TARGET, THE ASSIGNEDWORK CONTENT AND METHODS OF IMLIMENTATION ……….28

3.1 Graduation internship objectives………28

3.2 Contents of the assigned work……….28

3.3 Implementation methods……… 30

CHAPTER 4: ACHIEVEMENTS FROM INTERNSHIP 31

4.1 Accumulated experiences ( knowledge, skills gained )……… 31

4.2 Matching between academic at school and real practice……… 32

4.2.1 Apply academic knowledge into practice ……….…32

4.2.2 Differences between school knowledge and lessons got from internship.… 33 CONCLUSION……….…………36

REFERENCES……….…………37

CHAPTER 1: THE OVERVIEW OF HP MEDICAL EQIUPMENT AND TRADING JOINT-STOCK COMPANY

1.1 General information of the company

Company trading name: HP MEDICAL EQUIPMENT AND TRADING

JOINT STOCK COMPANY

Headquarters: No 34 Alley 64/55 Kim Giang Street, Kim Giang

Ward, Thanh Xuan District, Hanoi, Vietnam

Trading Office: 5th floor, Block 5 of 46 Den Lu 2 Urban Living

Quarter, Hoang Mai District, Hanoi, Vietnam

1.2 History of the company

HP MEDICAL EQUIPMENT AND TRADING JOINT STOCK COMPANY is the company having 3 capital contributors, was established on 27/12/2006 registered under the business license number 0104959591 by Department of Planning and Investment in Hanoi with the capital of 2.000.000.000 VND During almost 8 years entering into pharmaceutical business market, HP Company has achieved many accomplishments but also faces many difficulties in business development process The process of the company's operations can be divided into two main periods:

• The very first established period (2006 - 2009):

HP medical equipment and trading Joint Stock Company was found on the basis of the links with Thong Nhat pharmaceutical joint stock company, and its parent company is

Limited Liability pharmaceutical ShinPoong DaeWoo Company In its early days, the

firm faces many difficulties and challenges due to lack of brand and position in the market Main activities of the company based on the relationship with the former agent

of the parent company and continue to distribute the main kind of drugs as Grow -Lex, Rigocef 750 At the same time, the company also created strong ties to the hospitals and private pharmacies Thanks to the branding building campaign of the business to large hospitals such as Vietnam-Germany Hospital, Bach Mai Hospital, Central Hospital of Gynaecology, Oncology Central Hospital that now the firm has not only the distributed network expansion quickly but also to overcome difficulties during the economic crisis of 2008, the growth made momentum for the future development

• Period from 2010 to present

Compared to the early days of establishment, the amount of employees of the company has increased significantly By the end of 2013, the total number of staffs in the enterprise has more than 50 people Also, besides the traditional line of pharmaceuticals from its early days, now HP could expand the numbers and types of products to more than 20 pharmaceutical line

With the principle of "sales only good quality, reasonable price, professional distribution," the company has always focused on quality issues to ensure the absolute safety of the health of consumers Thanks to the always perform distribution operations and ensure the best quality, the enterprise has always been the priority medicines and hospital product selection Although, the scale of the company is only medium, business has been increasingly expanding development more stable and potential

1.3 Mission and Vision of the company

During the development process, the company has always focused on expanding its cooperation with schools and academic institutions; research and development of large and small projects with domestic and foreign prestigious partners to create the best products for the target community

With the desire to improve better and better quality of life for Vietnamese people, in general, HP Medical Equipment and Trading JSC is proud to be one of the leading units in the research and distribution of products that help support human health And, especially with the motto "Vietnamese people use Vietnamese goods", the company has been aiming to " Vietnamese drug honor"

1.4 Core Value of the Company

• Creating a professional working environment, dynamic and favorable conditions for each member’s self-promoting creative thinking abilities

• Paying attention to the training and development of staff of highly qualified personnel, integration with the regional and international levels

• Constructing distribution channel management and customer care systems

• Making financing activities for the social community with the motto "For the health of Vietnamese people" to develop and promote the brand

• Business philosophy of the company:

+ Customer orientation

+ Prestige, quality to mature

+ Cooperation for success

+ Human resources development

+ Orientation of a beautiful healthy Vietnam

1.5 Organizational Structure of the company

1.5.1 Organizational management chart

Organizational apparatus of the company is an important factor determining the survival and development of the company In order the get highly effective operation, the organizational factors that constitute the apparatus must be respected aiming at the highest efficiency Stemming from specific business sectors and sizes of business type, the management of the company are held as follows:

Figure 1: Organizational management chart

(Source: Administration and Finance Department of the company.)

1.5.2 Functions and duties of each department

* Board of Directors: Consisting of directors and the union; leaders in charge of

ADMINIS

TRATION

FINANCE AND ACCOUN- TING

BUSINESS MARKE-

TING

WARE- HOUSE AND SALES

SALE OUTLET

DRUG DEALER AND PHARMACY BRANCH

HOSPITAL PHAMARCY

MANAGEMENT

overall direction and departments

- Director: the head of the leadership, the legal personnel representative of the

company, legally responsible for directing all production and business activities in the company

+ Director must be a qualified pharmacist with a University Degree, at least + He/she is the representative of the company in relation to transactions of concluded economic contracts, and has the right to the company organizational structure, staffing, salaries based on the result of business activities

* Department of Administration - Human Resources: responsible for all the work

on organizational management, personnel administrative and executive of the company; combining the administrative organization and periodical report to the board

of directors

* Financial -Accounting Department : responsible for the whole of the financial

management, and accounting work; statistics and products test - imported, the voucher bill; tracking goods, inventory reporting and tracking imports liabilities

* Business Divisions: responsible for branding promotion, market development,

market segments analysis, building long-term and short-term business strategies, distributing drugs to pharmacies, establishments, and agents of the distribution company

* Marketing Department: responsible for the planning and implementation of the

marketing plan of the company's brands; collecting information of the needs of the market that would lead to serve the urgent needs for the development of new products; implementing the marketing plans for business and sale support programs; monitoring effective marketing campaigns

* Warehouse and sales department: responsible for taking orders, management,

preservation and inventory of goods in stock; reporting the daily monitoring of goods

in stock

1.6 General Product/ Target Market / Business Process

The company specializes in the distribution of pharmaceutical products of the manufacturing company reputed in the market such as: Imexpharma, Traphaco,

Mediplantex, JSC Central Pharmaceutical III , represents as level 1 distribute agent

Currently, the Company is distributing more than 50 products, many products have been doctors, pharmacists and consumers appreciated the quality as Uniferon - blood tonic, Luber - products treating osteoarthritis, Superkan - treatment cerebral circulatory insufficiency ,etc

The company has a wide distribution network with sales teams in almost major cities in the country

During the development process, the company has always focused on expanding cooperation with schools, academic institutions, research and development of large and small projects with prestigious partners at home and abroad to create products best for the target community

CHAPTER 2: BUSINESS ACTIVITIES OF HP MEDICAL EQIUPMENT AND TRADING JOINT-STOCK COMPANY

2.1 General business activities information

2.1.1 Main business activities

HP medical equipment and trading Joint Stock Company is now operating in the field

of pharmaceutical wholesalers The Input supply is imported from foreign pharmaceutical companies and other pharmaceutical wholesaler firms The product lines are mostly imported from abroad mainly France, Italy and the US Organizations implementing drug distribution activities to the health facilities and private pharmacies

in Hanoi and surrounding areas such as Bac Ninh, Hai Phong, Nam Dinh

2.1.2 Main product line

Three main product lines are deployed from the early stages of incorporation is

- Antibiotics (Rigocef 750; Lasoprol; Itadixic )

- Medicines Patent (Grow- Lex; Reamberin and Cytoflavin)

- Vitamins and minerals (Nutravit, DHA Emulsion )

In addition to 3 main product lines mentioned above, the firm is also conducting to launch a product line of medical nutritional foods into the market since the middle

of 2011 Though the new products, the potential of this product is very large and

it gradually contribute a significant proportion to the annual turnover of the company

2.1.3 Strategic / business plans

With the aim of widely distributing its products on the market, HP Medical Equipment and Trading JSC has always perceived whether or not the information of corporate brands and products can come to consumers primarily lies in the distribution of goods Therefore, the company has built a distribution system with high efficiency to ensure that the products can quickly reach consumers' hands at a minimized cost In the pharmaceutical business sector, the direct delivery to consumers is often difficult because the demand for health care drugs of every individual is different, and to meet this demand businesses need a diversified product system with uneven quantities, leading to the inefficiency with its self-realization Therefore, the goods distribution of businesses is often done through the intermediaries

Below is a diagram of the company distribution system:

Figure 2: The company’s current distribution system

(Source: Sales Department of the company)

As can be seen in the diagram, the main function of HP Medical Equipment and Trading JSC is carried out similarly to the role of an intermediary trader and pharmaceutical distributor from the producer to the consumer as a wholesaler Thus, for a company specializing in pharmaceutical wholesale, the marketing and distribution issues are very important Had it not been for this stage implemented properly, it would be impossible for the company to get such achievements as today

In general, the distribution system that the company has applied is consistent with the ability of the company and market adaptation

Below is Table 4 showing the number of retailers of of HP Medical Equipment and Trading JSC period 2012-2015

Company

Sales Outlet

Drug Dealer Pharmacy Branch

Hospital Clinic

Table 1: The number of retailers of of HP Medical Equipment and Trading JSC period 2012-2015

(Source: Sales Department of the company)

Within 4 years, the number of retailers increased rapidly with 29 new retailers, which, however, are mostly private pharmacies Although hospitals accounted for the smaller numbers, but with a major contribution to the profitability of this channel, focusing on hospitals like Hanoi Gynaecology Hospital, Bach Mai Hospital, Central Materity Hospital This led to a major limitation for this distribution channel, which is largely dependent on the number of specific consumer base Therefore, thesefacilities have sudden change in buying or linking complex putting businesses under pressures, leading to lower revenues and disadvantage in business

2.1.4 Business activities

2.1.4.1 Sales

The revenue from product sales is expressed in the chart below:

Chart 1: Revenue from product sales

(Source: Sales Department of the company)

As can be seen from Chart 1, the year 2014 revenue and profits was higher than that

of 2013; the year 2015 revenue and profits was higher than that of 2014, thus making the workers’ income significantly increase with the minimum wage of 1 person / month

is VND 6,450,560 million The reason for that achievement is (1) the company market has been constantly expanded; (2) goods sold to customers ensure the good quality and right price; (3) the company prestige is always remained, leading to the steady increase

in revenues over the years

Let’s have a look at Table 2 and 3, showing some main results of the company operations through the years 2013-2015

Table 2: Some results of the company operations through the years 2013-2015

No Primary Targets Unit

(Source: Finance & Accounting Department of the company)

These two tables show that the results of the company operations in the last 3 years have been very good, settling stable jobs for a workforce in the society despite the low number of employed workers Full taxes have been paid to the State with the steady increase in profits year after year The reason for such results is owing to the company‘s correct policy, which is mainly the combination of promotions and reasonable discounting payment For the time being, people's income levels are relatively stable, the demand for tastes is increasingly diversifying, the markets are growing, and especially the people are paying more conscious attention to their health This is the reason for the company to develop the strength of tonic commodities, treatment adjunct, and functional foods

2.1.4.2 Financing

Financial and enterprise management expenses

For enterprises JSC commercial and medical equipment HP, financial expenses mainly just interest expenses on bank loans because there is no financial investment or business capital contribution, and stock exchange

In terms of corporate management costs, this is the general expenses of the entire enterprise include the cost of salaries and allowances of staff, social insurance, health insurance, unemployment insurance , the purchase of stationery expenses, provision for payments, essential services (electricity, water, internet)

Chart 2: Density of Financial and enterprise management exspenses

over revenue of the firm (2013 – 2015)

(Source: Financial and Accounting Department of the company)

Total financial expenses and enterprise management expenses compared to the revenue at the company is low, accounts for only 12% - 18% Because pharmaceutical products company have relatively high cost and the large demand to buy of consumers make the revenue grows faster than the growth rate of the cost of financial and business management

As for 2013, due to the expansion deploy business brands should now have to hire more staff, especially marketing and delivery team This is the main reason as total costs rose more than 18% is close to 1.5 times compared to 2012 While costs increased compared to previous years, but we can see this is essential for the development of enterprises

2.1.4.3 Distribution

Market activities of the company are carried out mainly through sales channels, commercial centers specializing in drugs, agent companies, pharmacies, and hospitals Currently, the company is distributing evenly over the provincial markets in all 3

regions throughout the country, but the company’s largest markets remain the major cities such as Hanoi, Hai Phong, Da Nang, Ho Chi Minh These are the cities with high population density, economic development and good income per capita Therefore, the company has had intensive investments, been researching and developing a great variety of unique products with quality assurance to consumers In addition, the company policy is to promote sales and expand markets in the northern mountainous region, Central South and Central Highlands These are the areas where the consumption is almost insignificant but full of potentials

Regarding the distribution channel of the company, the company's sales are made primarily by two distribution channels (1) OTC (pharmacy, pharmaceutical agents), and (2) ETC (hospital, clinic) Accordingly, the goods are shipped from the company

to the final consumers These two distribution channels are also commercially connected intermediaries between the company and the wholesalers, retailers, resellers and end- users

Below is the sales process diagram that clearly identifies what has been said above:

Figure 3: Sales process diagram

Orders

Đại lý

Logistics

Marketing & PR programs

Market access offer and sales order recommendation

Phamarcy warehouse Clinic Hospital

Business Dept

Marketing Dept

Logistics Department