Limitations, weaknesses and causes

CHAPTER 2: SITUATION OF BUSINESS PERFORMANCE AT HOANG

2.4 Assess the situation of business performance of Hoang Long Mechanics

2.4.2 Limitations, weaknesses and causes

Although the use of corporate capital in recent years has achieved certain results, but the business performance is not high, showing many limitations. These limitations have a negative impact on the development of the business. These restrictions include:

 The quality of some products is not high, the progress is slow, some projects do not ensure delivery time, do not keep up with customer requirements, contributing to the company does not comply with the contract. , increases the cost of contract violations,

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affecting the company's profits. Passive in participating in competition, seeking to expand new markets, not performing well management solutions to lower production costs, partners are still mostly traditional customers, new contracts through referrals. Import and export activities still rely heavily on intermediaries causing cost losses.

 Cost management is ineffective although the Company has built a system of standards, norms for materials use, consumption norms for each type of materials, procedures for allocation and use but in the past The process of implementing this system has some limitations, which are not suitable with the actual situation of enterprises, leading to unsuitable norms and norms, redundancy and redundancy.

 The management of receivables has not been paid due attention and has not been strictly implemented, bad debts and overdue debts still arise over the years. Although the Company has categorized debtors and debt groups to monitor and urge, it has not yet found an optimal plan, leading to some cases that may require an economic plan to cause loss of time. , effort of money. That has led to a large amount of corporate capital in receivables.

 The management of inventory is also not really close, causing many negative impacts on the Company, namely confined marketing forecast, leading to too much inventory and capital. Mobile stasis has decreased directly the performance of capital use.

In addition, the Company has not been able to fully handle the stagnant materials, which are ineligible for production and business, in order to recover the capital even more, this amount of materials accounts for a significant volume in photo storage affect the import and storage of raw materials and materials when the price is good.

 Advertising and promotion activities, preferential policies for customers who consume products of enterprises have not been paid much attention. Especially, in the time of fierce competition in the market today, reasonable trade policies such as reducing sales prices will attract more customers, reduce inventories, increase inventory turnover and improve performance. use capital. There is no specialized marketing department, the work of forecasting and analyzing marketing information is still weak, it has not been effective as a decisive basis in business, sometimes it misses opportunities or goes slowly compared to competitors. Not timely and timely reporting information regime.

 Qualifications and competencies of some employees are still weak, not on par with the scale and operational requirements of the Company, especially the ability to communicate in English, drafting skills, document transactions, computer software. There

is no good remuneration policy to retain talented people, especially for managers such as heads and deputy heads of Divisions.

 The company operates in the field of consultancy but rarely organizes seminars, workshops on the works to broaden the vision, enhance understanding as well as create opportunities for mutual learning. labor, especially scientific and technical officials.

 The analysis of accounting data has not been considered seriously, only reconstructed in the State Report, the analysis of data and techniques for management and devised an almost open strategy makes the Company losing an effective management tool.

Overview of business performance in the period 2016-2018

Analyze the performance of using labor