internship report vũ thị minh hải

Despite many difficulties and the fact that Chevrolet Newway has juststepped into Chevrolet dealer market of GMV, the company has made considerableprogress and proved potential growth in

NATIONAL ECONOMICS UNIVERSITYCENTRE FOR ADVANCED EDUCATIONAL PROGRAMS

CENTRE FOR ADVANCED EDUCATIONAL PROGRAMS

INTERSHIP REPORT CHEVROLET NEWWAY

Student: Vu Thi Minh HaiMajor: Finance

Class: Finance 56CStudent’s ID: 11141172Supervisor: Pro Dr Bui Huy Nhuong

HÀ NỘI – 2017

TABLE OF CONTENT

TABLE OF CONTENT i

ACKNOWLEDGEMENT ii

STATUTORY DECLARATION iii

ABBREVIATIONLISTS OF FIGURES AND TABLES iv

INTRODUCTION 1

CHAPTER 1: OVERVIEW OF CHEVROLET NEWWAY 2

1.1 History of the company 2

1.2 Organizational structure 3

1.3 Functions of departments 3

1.4 Mission and codes of conduct 5

1.5 Industry and strategy analysis 5

CHAPTER 2: COMPANY’S BUSINESS PERFORMANCE 8

2.1 Service offferings 8

2.2 Financial analysis of Chevrolet Newway 9

2.2.1 Revenue 10

2.2.2Expenses 11

2.2.3Liquidity ratios 11

2.2.4Profitability ratios 12

2.2.5 Activities ratios 13

2.2.6 Solvency/ Structure ratios 14

2.3 Assessment on company’s performance 14

CHAPTER 3: RECOMMENDATIONS AND DEVELOPMENT ORIENTATION 17

3.1 Company development orientation 17

3.2 Recommendations 17

CONCLUSION 19

REFERENCES 20

Firstly, I would like to express my deepest thanks toward Pro Dr Bui HuyNhuong in National Economics University for his devoted guidance and supervision,which have been extremely valuable for my study and help me a lot inaccomplishing this internship report.

During the internship time in Chevrolet Newway company, I am so grateful

to be provided with an opportunity to be a part of the organization and I would like

to send my special thanks to Ms Ta Thi Minh Phuong - the CEO and all the otheremployees of the company in allowing me to carry out this internship project andgiving necessary advices

With all your willing help, I have completed the report successfully andexperienced a meaningful internship

In addition, the internship report also uses some comments, reviews as well as data

of other authors, other organizations which have cited and annotated the source

If there are any fraud detected, I will take full responsibility for the content

National Economics University is not involved in copyright infringement in the course of implementation.

ABBREVIATION

LISTS OF FIGURES AND TABLES

Figure 1: Organizational Structure of Chevrolet Newway 3

Figure 2: Expense of Chevrolet Newway from 2014 to 2016 11

Figure 3: ROA and ROE of Chevrolet Newway from 2014 to 2016 13

Figure 4: Numbers of car sold in 2016 of three largest dealers in Hanoi 15

Table 1: Income Statement of Chevrolet Newway from 2014 to 2016 9

Rationales

In such a fast-paced and modern world, the requirements of transport haveincreasingly more demanding People are in need of a vehicle, which not only helpsthem to move fast and enjoy the convenience but also reflect their characteristics It

is the reason we have been witnessed fierce competition between various companieswhich manufacture and sell cars To stand firmly in such a competitive market likethat, one business confronts a lot of challenges and obstacles It requires eachcompany to constantly innovate, improve professional services and promotemarketing campaigns to attract customers and then boost sales

Despite many difficulties and the fact that Chevrolet Newway has juststepped into Chevrolet dealer market of GMV, the company has made considerableprogress and proved potential growth in the future It always invests in building andmaintaining the value of trust and satisfaction of customers with the best productsand services possible This internship report summaries my knowledge andexperience during time in Chevrolet Newway

 Evaluating the business effectiveness through financial analysis

 Proposed recommendations to enhance the efficiency of the business

CHAPTER 1: OVERVIEW OF CHEVROLET NEWWAY

1.1 History of the company

Chevrolet Newway is the 3S-standard agent of GMV (General MotorVietnam) Located in the center of Hanoi, the company is designed modernly with afull range of Chevrolet products, accessory showcases, repaired and guaranteedservices that meet all the highest standards of Vietnam Register Chevrolet Newwaycurrently has two branches:

The company’s headquarter lies on 183 Yen Lang Street (intersection with

378 Lang street), Thinh Quang ward, Dong Da district, Hanoi It is built on an area

of over 2000 m2 with: a full display of current vehicles, a separate service area, avariety of accessory exhibits and a repair shop with a modern system of machineryand equipment

The second establishment is based in Lai Xa Industrial Park, Kim Chung,Hoai Duc, Hanoi with an area of over 4,000 m2, divided into separate repaircompartments, which ensures the best standards in all dealers of GMV and fullymeet all technical requirements and repair quality of customers when using theservice

These below are the significant milestones in the development road ofChevrolet Newway:

21/07/2010: The company is originally founded namely Autonewway At the

early stage of development, the brand Autonewway had been known mainlythrough the supply of the totally new imported cars such as Toyota, Honda, Nissan

…

11/08/2011: Autonewway had been granted Certificate of maintenance and

warranty cars number 019 / VAQ10-01/11 of Vietnam Register The currentmachines meet all the standards of automobile warranty and maintenance ofimported cars according to Circular No 43/2011 / TT-BGTV

22/01/2014: In order to serve the customers better, the company decided to

invest in building a new facility – Hoai Duc Autonewway with a large scale of 4000m2 and full modern equipment

At the same time, in pursuit of providing a perfect car service to customers,Autonewway had officially launched its used car business, specializing inTOYOTA vehicles (both domestically assembled vehicles and imported cars)

28/08/2014: To maximize the utility of the customers in providing services

for luxury cars, Autonewway officially deployed the Lexus Service Center, which

was equipped with specialized diagnostic equipment and instruments, a team ofhigh quality technicians and all genuine oil as well as engines.

08/10/2015: Autonewway had officially become Authorized Dealer of

General Motors Vietnam, with a new name: Chevrolet Newway, a distribution ofChevrolet car products and services – a global brand name originating from theUnited States

2015-present: Chevrolet Newway continues to grow and develop to serve the

most satisfied services to the customers and has reached many impressiveachievements

Chief Executive Officer: The CEO has full responsibility for planning,

monitoring and integrating the strategic direction of the company This includescontrolling and managing the whole activities of the company for all componentsand departments Besides making important decisions related to production andbusiness activities, the CEO influences the whole organization in building theculture, mission, vision, code of conduct or leadership style that all these values areapplied consistently from the top to the bottom, making people feel safe andrespected, enabling them to perform at their best CEO plays a key role in whetherand how well the business will prone to succeed

Director of service workshop: The director has to warrant that the customers

are received the best services in each step related to car purchase, maintaining andrepairing

Car Accessories: The department is responsible for technical managing

compartment, assuring that all the machinery equipment and car accessoriespurchased or imported for sale are updated and meet high quality standards and It isrequired to fix and reform components based on the distribution and orientation ofthe company

Production Plant: The function of this department is assembling, installing

and distributing cars to the customers

Business Executive: The business development executive will combine sales

and marketing department in order to create growth and help company attract morecustomers The responsibilities include planning marketing campaigns, maintainingexisting customer relationship, immersing in new market, finding potentialcustomers…

Finance and Accounting department: The main purpose of this department is

to summarize and report financial activities of the business in the balance sheet,profit and loss statement and cash flow statement, take responsible for themanagement of accounting under the regulation of the company and ensure thecompliance with laws and legislations It also directs and supervises the process ofimplementing finance at both headquarter and the second branch office As for theaccounting, it is subdivided into two basic categories– managerial accounting andfinancial accounting The former one is in charge of dealing with information which

is used by owners and managers of the company to help them manage the operationmore efficiently and make decision such as salary expenses for the staff, cost ofgoods sold or anticipated profit The latter one, on the other hand, engages indealing with information that is released to the public, such as creditors, suppliers,customers…

Human Resource department: Since people are the main ingredient of every

organization, this department is formed to concern with the management ofemployees from recruitment to retirement The two main functions are motivatingemployees to perform the best in their ability and maintain their commitmenttowards the company From the process of recruitment, training and orientationcourses, ensuring healthy working environment, managing employee relations…,

HR department has to take the full responsibility

1.4 Mission and codes of conduct

The company’s vision:

 Becoming and sustaining the Chevrolet No.1 Dealer in Vietnam

 The best used car dealer in Hanoi, through quality products with warrantyand professional after-sale services

 A trusted brand name for service, repair and maintenance of high quality carswith the most dedicated and professional service attitude

Mission: Building and maintaining the value of trust and satisfaction of

customers with the best products and services in Vietnam

Core Value:

 To the customers: Mission to serve with quality and prestige

 To the individual staff: Respect, discipline, effort and dedication

 To the cooperation: Solidarity and sharing for development

Business motto

 Quality products and services are the top priority

 Customer is first and always right

 Corporate culture creates a sustainable Chevrolet Newway home

 Constantly increasing the benefits and credibility of customers, employees,shareholders and partners

1.5 Industry and strategy analysis

In each competitive market, there are many different factors determining thepower of a business Using Porter’s five forces framework (Kotler, 2008) will help

us a lot to evaluate the competitive strength and current position of ChevroletNewway

Supplier power: Because Chevrolet Newway is an authorized dealer of

General Motor Vietnam, its supply is quite stable and the company do not have tosuffer from the fluctuation in cost or have chance to switch to another supplier.However, the targets from GMV each month put the company into constantpressure It serves both as an incentive and also strain for the whole organization

Buyer power: Nowadays, the demand for buying cars of people has increased

a lot Furthermore, there are variety of choices for them in all kinds of cars and itcosts nothing for a customer to switch from one seller to another So, it is really achallenge for the business and it is almost a must-to-do thing that provides close-to-perfect service that could influence on not only their decision to purchase the carsbut also their recommendation with their friends and relatives Because there are alot of suppliers and if one business cannot serve the customers well, they will be not

hesitant to find better services in other businesses It is utmost important to sustainthe relationship with existing customers rather than finding new potential clients.

Threat of substitution: As for substitution, there are a number of ways that

other suppliers can imitate Chevrolet Newway’s products and lines of service thatcan weaken the company’s position and threaten the profitability There are alsodifferent brands that can substitute for Chevrolet cars and their promotion programsare so attractive like:

 Promotion in factory for vehicles: Accent & Creta

 Hyndai successfully increased the discount for two car models: Elantra: 4%(Last month 3%) / Santafe: 5% (Last month 3%) /

 Additional discounts for customers in the line: Elantra, Santafe, Tuscon,Starex, (even i10 stretch too much reduction)

 Suzuki: Promotion in factory at Ciaz: 10 million

 Honda: CRV is in the discharge line between the car and the head of themotorcycle The discount price is about 150-200tr over the newly adjusted listingprice

 Toyota: Toyota is currently donating registration tax to Innova and Vioscustomers

Competitive rivalry: Rivalry is extremely high among existing firms in this

industry The two other main competitors of Chevrolet Newway in Hanoi includeChevrolet Thang Long and Chevrolet Giai Phong

 Chevrolet Thang Long: The company was founded in 2012, 4 years earlierthan Chevrolet Newway and it is always on top of the list of the most profitable andefficient dealer of General Motor Vietnam in Hanoi It has affirmed its position inthe heart of Chevrolet’s professional dealer of Chevrolet Vietnam Chevrolet ThangLong has achieved four consecutive years as the leading dealer in sales and servicequality of Chevrolet in Vietnam In addition, for three consecutive years, ChevroletThang Long was also honored with the GM International Grandmasters program,the most prestigious award for GM dealers in the region leading sales, services,index Customer satisfaction as well as standard facilities Currently, the companyhas two showrooms located 2 prime location gateway capital, always ready to servecustomers with warranty service, maintenance and repair services, genuineChevrolet auto parts

 Chevrolet Giai Phong: The company is established nearly at the same timewith Chevrolet Newway, in 11/08/2015 It is also a standard dealer of global

Chevrolet with modern equipment and is built on an area of 3200m2 located inHoang Mai district, Hanoi Its lines of product is diversified and services include:repair, maintenance, accessories, insurance and rescue in emergency situation.Always coming behind Chevrolet Thang Long in ranking the best dealers of GMV

in Hanoi, Chevrolet Giai Phong is a redoubtable opponent of Newway

In 2016, compared with the two other large dealer of GMV in Hanoi to sellChevrolet vehicles, Chevrolet Newway’s numbers of car sold in 2016 are still quiteslow, only 492 relative to 663 and 813 of Chevrolet Giai Phong and ChevroletThang Long respectively

Threat of new entry: GMV is planning to expand Vietnamese market and it

may pose a threat to the current position of Chevrolet Newway when there are anumerous dealers of GMV growing

On the evening of April 26, 1977, General Motors Vietnam (GM Vietnam)and GM Thang Long Joint Stock Company officially opened Chevrolet Thang LongDai Viet dealership, the 22nd dealer of Chevrolet nationwide Chevrolet ThangLong Dai Viet is located in the center of Long Bien District at No 1, Nguyen VanLinh Owning a favorable position in the North East of Hanoi such as Hung Yen,Hai Duong, Hai Phong, Quang Ninh, Chevrolet Thang Long Dai Viet createfavorable conditions for customers in the area With a total investment of up to US

$ 2 million, Dai Viet Chevrolet Thang Long meets the rigorous standards of GMglobal human resources, facilities and equipment Exhibition space of 450m2 and2500m2 for repair workshop area, Dai Viet Chevrolet Thang Long operates with thefunction of a 3S dealer including: Sales, warranty, maintenance, repair and delivery

of genuine Chevrolet auto parts