Báo cáo thực tập tiếng anh INTERNSHIP COMPANYINSTITUTION tan an company ltd

Business activities by functions...16 Board of Director:...16 Export – Import department:...16 Hydroelectric Project department:...16 Financial and Accounting department:...16 General Tr

GRADUATE INTERNSHIP REPORT

INTERNSHIP COMPANY/INSTITUTION: Tan An Company Ltd.,

Address: 9th Floor, JSC Building 34, Lane 164 Khuat Duy Tien, Thanh Xuan,

Hanoi

Supervisor: Ms Hoang Kim ThuStudent’s full name: Hoang Thi Van AnhStudent’s ID: 11071368

Major: International BusinessClass: IB2012B

Hanoi, 11/03/2016

I would like to express the deepest appreciation to the Tan An company havingcreated an opportunity for my to work as an internship at the company Especiallymany thanks to my mentor, Mr La Nhat Tan who had helped me so much incommunicating with other employees and specific works; to my Head ofdepartment, Mr La Viet Anh who had always been welcome me at work, alwaysenthusiastic to guide me, and provided me documents when needed; to my co-workers, Mr Truong Manh Linh and Mr Nguyen Huy Hoang at Export – ImportDepartment, those who had lead me through the internship period with export-import techniques

I would like to acknowledge extremely the support of my instructor, Ms HoangKim Thu, a lecturer at International School, who always raised my work of writingthis report and also inspired me to complete the work She always devoted all herbest to help me to understand what was going on and what I needed to repair

Finally, I would like to show my gratitude to International School havingintroduced me to Tan An company and help me experience the wonderful anddynamic internship period Also to my friends, my teammates who have supported

me while writing this report

Internship student

Hoang Thi Van Anh

PART 1: MAIN CONTENT INTERNSHIP REPORT

Table of Contents

A CHAPTER 1: INTERNSHIP COMPANY / INSTITUTION OVERVIEW:

TAN AN COMPANY 6

1 General information 6

1.1 Name of the company 6

1.2 Headquarter and other branches 6

1.3 Legal representative of the company 6

1.4 Industry and Activity fields 6

1.4.1 Exploitation 7

1.4.2 Manufacture 7

1.4.3 Business 7

1.4.4 Investment and construction 8

2 Company’s milestones 9

3 Mission, Vision and Core value 9

4 Operation of the Company 10

5 Marketing mix analysis 12

5.1 Product and Place 12

5.2 Customers 13

5.3 Promotion 13

B CHAPTER 2: COMPANY’S BUSINESS ACTIVITIES REPORT 14

1 Financial statement analysis 14

2 Business activities by functions 16

Board of Director: 16

Export – Import department: 16

Hydroelectric Project department: 16

Financial and Accounting department: 16

General Trading department: 16

Test and Measurement Equipment department: 17

3 The company’s value chain 17

3.1 Exploitation and Importation 18

3.1.1 Sources of resources 18

3.1.2 Standard of importing 19

3.2 Production 19

Ferro Manganese factory: 20

Phu Mau hydroelectric plants: 20

MDF wood factory: 21

3.3 Distribution 22

3.3.1 Wholesale domestically 22

3.3.2 Exporting 22

4 Major activity analysis: Exporting Low Carbon Ferro Chrome 23

4.1 Ore exploitation 23

4.2 Resources procession 23

4.3 Exportation 24

Main partners: 24

Exporting execution: 25

C CHAPTER 3: INTERNSHIP OBJECTIVES, CONTENT OF SPECIFIC WORKS, WORKING METHODS 27

1 Internship objectives 27

2 Assigned tasks at the company: Importing turf grass seeds 27

2.1 Finding general information about some kind of turf grass seeds 27

2.2 Contacting with foreign partners 28

3 Difficulty while implementing assigned tasks 30

D CHAPTER 4: ACHIEVEMENTS AFTER THE INTERNSHIP PERIOD 31 1 Book knowledge and gained practical knowledge 31

2 Gained skills 31

3 Gained experiences 32

4 Contributing to the company and results 32

REFERENCES 34

A CHAPTER 1: INTERNSHIP COMPANY / INSTITUTION

OVERVIEW: TAN AN COMPANY

Tan An Company Limited was licensed numbering 1714/GP-UP on 10/03/1995 by

Tax code: 0 1 0 0 3 7 9 7 7 6.

II Headquarter and other branches

Tan An’s headquarter located initially on 129B / 11B - group 12A - Thuong DinhWard - Dong Da District - Hanoi Now it moved the headquarter to 9th floor, JSCBuilding 34, Lane 164 Khuat Duy Tien, Thanh Xuan, Hanoi

The company has broadened both Hanoi and Ho Chi Minh city – the 2 biggest andmost developed cities in Vietnam and a small branch in Lao Cai province The ironfactory in Ninh Binh province and a group of small hydroelectric power plants inVan Ban district of Lao Cai province had been started to operate as well

III. Legal representative of the company

From the birth of Tan An Company Limited, there are 2 members operated thecompany with the authority capital of 150,000,000 VND After 15 years ofoperating, the company raised its capital up to 32,253,000,000 VND which means215.02% increasing At the present, the legal representative of the company is:

Mr Truong The Son

Position: General Director

IV. Industry and Activity fields

Within 15 years (until 2010), the had gained many achivements and developed itself

in infrastructure, work-forces, scale, business activities and management level Bynow, there are over 70 business lines, divided mostly into Construction industry andCommercial industry In this report, there will be subdivided into 4 main activities:

1.1.1 Exploitation

In order to serve for the manufacturing procedure and exporting raw materials toforeign countries (especially to China), Tan An company registered to exploitingsome natural resources legally:

- Wood and forestry products;

- Coal, peat, iron ore and mental ore;

- Sand, stone, gravel, clay

Those resources are used for the manufacturing activities of the company as listedafter

- Other products.

In addition, there are two researching centers aiming to develop its projects andproducts:

- Projecting center;

- Testing measurement equipment center

1.1.4.Investment and construction

Besides above business activities, the company penetrated into investment with thelaunching of:

- Building Phu Mau hydropower plants;

- MDF wood and furniture factories;

- Iron and Ferro Manganese factories

And the construction of:

C Company’s milestones

25/3/1995: Established in Hanoi Capital

1998:

Tan An Co., Ltd has built a production factory of High Ferro Chrome Carbon inNinh Binh to supply the nationwide market and completely replace import of suchgoods from abroad.

2004: Tan An Co., Ltd started building a group of small hydroelectric power plants

in Van Ban district of Lao Cai province

12/2007: Ho Chi Minh branch of Tan An company had been launched

2008:

+ Launched Lao Cai branch

+ Three small hydroelectric power plants went into operation and activities inaccordance with the designed capacity to synchronize into the national grid.+ The company has a joint venture with the Vietnam Forestry Corporation to buildthe MDF wood processing factory with a capacity of 54 thousand tons per year inYen Thuy district of Hoa Binh province

2009: The company has a joint venture with a China partner to build the

Feromangan (FeMn) producing factory with a capacity of 100 thousand tonsper year which is considered as the largest factory in Vietnam now

2010: Company’s capital raised up to 32,253,000,000 VND; in comparison with thebeginning capital, it had increased 215%

D Mission, Vision and Core value

With the motto “Cooperation - Development”, Tan An Company expresseddetermination to quickly make Tan An Co., Ltd become a powerful company

The work of Tan An Company is to import raw materials of chemicals,metallurgical materials, machines and equipments to serve for the domesticindustry

E Operation of the Company

Beside headquater at Hanoi city, Tan An has representative office in Ho Chi Minhcity and some factories, hydropower plants, warehouses, estate property in otherprovinces In order to manage the whole company, Tan An required itself tocontinous level up its management system Therefore, the structure must be clear,each department must be in charge of specified works to be easier in solving The main structure of the whole company (including 2 big branches and otherfactories) will be illastrated as the map below:

Diagram 1: structure of the whole company.

Diagram 2: Headquater’s structure – Hanoi Capital.

Export-Import Department

Financial &

Accounting Department

Financial &

Accounting Department

Human Resources Department

Human Resources Department

Ninh Binh iron and Ferro manganese factory

Lao Cai branch

Lao Cai branch

Lao Cai Hydroelectric Plants

Lao Cai Hydroelectric Plants

Hoa Binh MDF wood factory

Hoa Binh MDF wood factory

Diagram 3: Ho Chi Minh’s office structure.

Hydro-Financial &

Accounting department

General Trading department

Test & Measurement Equipment department

Head of representative office

Export-Import Department

Financial &

Accounting Department

Financial &

Accounting Department

Human Resources Department

Human Resources Department

F Marketing mix analysis

Tan An has both Export and Import activities with the main product lines arewooden finished froducts and natural mental ores and divided clearly into 2departments that focus on 2 big markets: China and Western countries + USA

I. Product and Place

In importing, the main object aiming to is woods while Ferro manganese andhandicraft are the targeting commodity for exporting

Table 1: Tan An products and markets.

- Woods for materials;

- Raw materials of chemicals;

- Metallurgical materials;

- Machines and equipments;

- Small hydropower equipments

- Handicraftitems

USA, Britain, Japan,China and Canada

- FerroManganese

USA, Japan, Germany

Tan An Company’s products spread widely from diverse aspects and focusedmainly on Construction and Commercial products Its raw materials of chemicalsand metallurgical materials are used for manufacturing constructional devices andmaterials then export those finished products or being sale inside the country Itsmachines and equipments are used for both selling domestically and supportingfactories, plants and other properties of Tan An Company

Tan An is the leading Handicraft company in Viet Nam with more than 10 years ofexperience and always a pioneer in the field of handicraft and now have 3considerably large specializing in ceramics, bamboo, rattan Their products areavailable in more than 10 countries throughout the world such as US, Canada,Japan, China, Taiwan, and Germany There is a remarkable collection of handicraftproducts made of many kinds of materials ranging from Bamboo, Rattan, Palm

Leaf, Sea grass, Jute, Fern, Glass to Ceramic, and Lacquer All of them are inunique designs Feromagan – a proof by the strength of natural resources, aiming toexporting to USA, Japan and Germany It can be seen that USA and Japan are 2biggest target market of Tan An with the amount of exporting products are highestamong listed markets

II. Customers

In doing business, firstly, there cannot help to mention about the company’scustomers It is based on different products lines, then the target customers must bedifferent Normally, Tan An company distributed its products by B2B model themost (Business to Business):

- Other companies and manufacturers both in Vietnam and foreign countries:Construction companies, International companies;

- Retailers: Electronic shops, home center shopping mall, etc.;

- State institutions: National power grid, Educational and Medical institutions.About Handicraft products, if customers make up their own products’ designs, thecomany could turn all the ideas into the real products with high quality and hotteststyle, surely satisfying the most fastidious requirements With 03 factories located

in the traditional villages, Tan An have the excellent showrooms with thousands ofdesigns to serve customer in experiencing in person all real products made fromskillful handicraft men

G CHAPTER 2: COMPANY’S BUSINESS ACTIVITIES REPORT

1 Financial statement analysis

Initially, Tan An capitalized with 150,000,000 VND until 2014 the total assets hadraised significantly up to 260,100,895,554 VND (Appendix 1: Declaration offinancial capacity) which meant increasing 1734 times Also based on thisdeclaration, over three years (from 2012 to 2014), the company was in the highlyeconomic growth in general with the jumping outstandingly of its revenue from 344billion up to over 548 billion VND

Table 2: Declaration of financial capacity (extracted from Appendix 1).

In the period 2013 – 2014, although that Tan An company had reduced its Costs ofgoods sold but it was only 0.2%; therefore, with the decrease of revenue by 0.88%,Tan An’s gross profit had lost 14.9% in comparison with the year of 2013

Table 3: Income statement (extracted from appendix 2).

1 Revenues from sales 1 VI.10 543,820,640,645 548,662,181,579

3 Net revenue from sales and services

(10=01-02)

10 543,803,640,645 548,662,181,579

4 Cost of goods sold 11 VI.11 521,811,016,337 522,817,956,124

5 Gross profits from sales and services

13 Other profit (40=31-32) 40 -114,897,354 616,743,157

14 Earnings before taxes (50=30+40) 50 VI.13 6,747,908,674 7,394,368,744

17 Earnings after income tax

(60=50-51-52)

60 6,346,963,752 6,938,057,227

Above all, in a bigger range of development, Tan An Company raised its profitsignificantly throughout many years of doing business as can be seen in theAppendices Thereby, the earning before tax had 8.74% reduction because of fallingoff in other income while there were many other expenses had to pay out leading to8.52% reduction of earning after tax (different tax expenses) – appendix 2

According to the audited balance sheet in year end of 2014 (Appendix 3: Balancesheet), the total asset continously increased 68,567,336,655 VND (from 260 billion

up to 328 billion VND) Cash and cash equivalents reduced remarkably through thebeginning to the ending of this year, however, there was incresed in investment andshort-term receivables which meant the company used cash for investing in otherfinancial projects and long-term assets and cash on selling were not collected fromcustomers yet

Table 4: Cash flow statement (extracted from appendix 4).

I Cash flows from operating activities

Net cash flow from operating activities 20 -59,607,236,132 18,002,249,490

II Cash flows from investing activities

Net cash flow from investing activities 30 -35,376,171,892 910,785,737

III Cash flow from financial activities

Net cash flow from financial activities 40 79,889,301,019 -15,021,390,542 Net changes in cash and cash equivalents 50 -15,094,107,005 3,891,644,685 Cash and cash equivalents at the beginning of

the period

60 18,600,923,282 14,709,287,597

Differences in exchange rate affection 61

Cash and cash equivalents at the end of the

period

70 3,506,816,277 18,600,923,282

As can be seen from the table of Cash Flow Statement above, the company had paid

a much bigger amount of money for operating and investing activities in 2014 than

2013 which meant that Tan An was investing in some big investments and projects

Together with the raised capital spectacularly indicated that the company wasneeding a huge amount of money for the above operating and investing activities

H Business activities by functions

As mentioned, Tan An company has 1 headquarter, 2 branches and some otherfactories, hydroelectric plants which are shown the structure above (in chapter 1,part 4: operation of the company) Although, there are many offices and plants, allTan An’s branches are organized simply as 6 main departments which havedifferent responsibilities as follows:

Board of Director: Controling the whole Tan An’s business activities; directlymanaging works, employees; making decision on distribution methods, inventorieslevel, invesments and scale of invesment

Export – Import department: Doing market research (both domestic and foreignmarkets), finding material resources and then making import-export plans; advisingthe Director of international business, Vietnamese and international import-exportpolicies; implementing the contracts, negotiating price and other related, preparingrelevant foreign trade documents, performing international payments, etc

Hydroelectric Project department: Focusing on managing hydropower plants, andplanning long-term, short-term projects; distributing electric power to nationalelectric network; forecasting inbound and international prices for response timely tothe trend; assuring information to be confidential toward those who are notresponsible for

Financial and Accounting department: Managing all financial matters at Tan Ancompany: judging the assets and capital using following the State financialmanagement; making financial plans; responsing capital matters periodly aiming tohelping the Director changing the way in using capital resources efficiently

General Trading department: Being responsible for selling within Vietnameseboundaries: advising the Director of business strategies and policies; signing inlandtrading contracts, transportation, packaging when being authorised; co-workingwith Import-Export department for finding other commodity resources.

Test and Measurement Equipment department: Researching and testingmeasurement devices and providing devices for education, medical, scientifictechnology; system integration, technical services for industrial factories

Diagram 4: Tan An value chain.

In Tan An company, all staffs and workers including engineers, universities,colleges, secondary and technical workers from grade 3 to grade 7, are selectedbased on different positions that each individual is responsible for Basically, thereare two main flows of standard for choosing work forces to work at Tan An:

- Blue-collar workers: Generally, there is no need to have education-based or mayhave graduated from vocational schools for those who want to work in the sites,

as long as their health are good enough, having experiences and especiallyclearly understand about the objects they are working for (normally nativespriority) For example, for the exploiting labors, they need to deeply understandabout the way of cutting trees, digging soils for getting the mental ores; and forthose who work at hydro power plants, they need to be good at electrical aspect

Exploiting

n

Distribution

Wholesale domestically

Wholesale domestically

Importing

Exporting

- White-collar employees: Those who work in offices at different departments, act

as supervisors at sites, engineers, factories and plants In Tan An, all thoseemployees have to get at least a bachelor degree and are trained professionallybefore working officially for Tan An company For those who are the managerssuch as head of departments, directors, they must have a higher education degreeand are experienced for years in the same fields

By using such strong labor forces like that, Tan An is partly successful in follows itsvalue chain:

I. Exploitation and Importation

For the purpose of doing business, every company need to find out the materialresources and then go to get that materials by any methods In Tan An company,there are two ways of taking the materials resources: Exploiting natural resources orImporting such kind of raw materials or products, machines, technologies, etc.From now, there will be described deeply about raw materials not machines andtechnologies (because of the use of supporting for producing)

3.1.1 Sources of resources

+ Exploiting: As registered to the Vietnamese law, Tan An company is allowed totake advantages of natural resources at Northern areas where are woods from timberforests and mixed forests with bamboo wood, pure bamboo forests and mixed woodforests; and ore exploitation mainly in Quang Ninh, Thai Nguyen and Ninh Binhprovince but it is just a small partial of mental ore and wood sources which are mainingredients for producing and doing business at Tan An

+ Importing: This is the main source of Tan An for distributing within boundary andproduction With the highly demand of woods domestically, the company has beenimporting woods from the Africa and the Americas for years in such countries as:the Republic of the Congo, Colombia, Gabon, Cameroon, Angola, etc; whereasChina is always the main land for Tan An company to import mental ores over adecade With storage system and distribution agents in many provinces and cities

nationwide, our company wishes to serve customers with products of high quality,reasonable price, and fully, on-time delivery.

3.1.2 Standard of importing

+ After many years, both parties are in close relationship and therefore raised thestandard of each importing contract: delivery commodity, international payment,incoterms or insurance are solved rapidly and fairly each time has any problem + About the products, after delivery, the foreign countries always sent the samples

to Tan An company for comparison afterward If there are any miss-matched withthe sample or any damage of goods, then both parties go to deal together In fact,this case rarely happens while trading between Tan An and foreign companies

II Production

After the first process, those raw materials will be transferred following 2 ways:distributing directly to customers (wholesale to other domestic companies) or beingprocessed until becoming finished goods The company focuses on production,because production is fundamental for the company to develop stably

Table 5: Production in 3 factories.

Steel, cast iron, other building materials and devices

Phu Mau

hydroelectric

plants

Lao Cai About 250 workers;

Annual power yield is 21-22 million Kwh per year

Electricity

MDF wood

factory-Vinafor

Hoa Binh Nearly 190 workers; Handicrafts, wooden

furniture, other wooden

Average capacity: 54,000 tons/year.

products

Ferro Manganese factory: was located in Ninh Binh province where processing themental ores to supply building materials such as steel and cast iron for theVietnamese market By using modern technologies and machines, together withover 400 workers, experienced engineering, manufacturing and working staff thefactory now has 2 mineral-heated furnaces with the capacity of 6300KVA, at theend of 2010, we will invest to build 2 new mineral-heated furnaces and 1 refinedfurnace, production will reach at least 100,000 tons per year

Illustration 1: Ferro production and package.

Phu Mau hydroelectric plants: was placed in Lao Cai province where supplies theelectricity for some institutions and companies Phu Mau group of hydroelectricpower plants comprise 3 plants with capacity of 5.6 MW Annual power yield is21-22 million Kwh per year The Phu Mau plants act as an up-growing electricplants with the increasing labors by years and now reached about 250 workers.Plant number 1: Installed capacity: 1.4 MW

Height of estimated water column: 80mPlant number 2: Installed capacity: 1.8MW

Height of estimated water column: 150mPlant number 3: Installed capacity: 2.4MW

Height of estimated water column: 250m

Illustration 2: Phu Mau hydroelectric plants.

MDF wood factory: was built in Hoa Binh province where processing MDF made fiber plywood with the thickness from 8 ÷ 25mm The lengths of 1.830mm,the width of 1.220mm are very convenient in the construction, interior and exteriordecoration to the building As the main material for furniture production, MDFwood is very convenient to processing work of window frame, door frame and otherhousehold products Vinafor factory gained only excess a half of capacity of theFerro manganese factory at about 54,000 tons per year The reason is this factoryhave only about 190 people including engineers, universities, colleges, secondaryand technical workers from grade 3 to grade 7

man-Illustration 3: MDF factory.