Thesis for the Degree of Master Improvement of efficiency in capital use in Thanh Hoa medical materials equipment joint stock Company June 2017 Department of Business Administration Graduate School of Soongsil University BUI XUAN TAN Thesis for the Degree of Master Improvement of efficiency in capital use in Thanh Hoa medical materials equipment joint stock Company June 2017 Department of Business Administration Graduate School of Soongsil University BUI XUAN TAN Thesis for the Degree of Master Improvement of efficiency in capital use in Thanh Hoa medical materials equipment joint stock Company A thesis supervisor : Professor Ho Chul-Shin Thesis submitted in partial fulfillment of the requirement for the Degree of Maste June 2017 Department of Business Administration Graduate School of Soongsil University BUI XUAN TAN To approve the submitted thesis for the Degree of Master By Tan, Bui Xuan Thesis Committee Chair Kim Kun Bae (signature) Member Kwak Won Jun (signature) Member Le Hoang Ba Hung (signature) June 2017 Graduate School of Soongsil University ACKNOWLEDGEMENTS I would like to thank my supervisors Prof Ho Chul Shin, who gave me valuable assistance and advices in completing the dissertation and MBA course. I also thank to all lecturers and staff of Soongsil University and Hong Duc University for their supports. Thanks to Thanh Hoa Medical care and material equipment Joint stock Company who provided me information to fulfill the research. Specially thanks to my wife and my friends for their encouragement during the time to study and do the research.
TABLE OF CONTENTS ABSTRACT. iv CHAPTER 1: INTRODUCTION. Reason for choosing the topic. Objectives of the study.
Object and scope of the research. THEORETICAL BACKG ROUND. Overview of business capital. Concept of business capital.
Classification of capital of the business. The role of capital for business activities. Necessity to improve the efficiency in capital use in business. Efficiency in capital use of enterprises.
Concept of efficiency in capital use of enterprises. The neccessity for improving the efficiency of business capital use. System of indicators to assess the efficiency of use of business capital. Factors impacting on efficiency of use of business capital.
The objective factors. Time and location of the research. Data analysis methods. Situation of efficency of use of capital in Thanh Hoa Medical.
Overview of Thanh Hoa Medical Materials Equipment. Situation of efficient use of capital in Thanh Hoa Medical. Evaluating the efficiency of capital use in Thanh Hoa. Some solutions to improve the efficiency of capital use in.
Development orientation of Thanh Hoa Medical. Some solutions to improving the efficiency of capital use. CONCLUSION AND RECOMMENDATION. 92 -ii- LIST OF TABLES [Table 2-1] Flow method of capital …………………………………………11 [Table 4-1] Movements in labor forces of the Company …………………….43 [Table 4-2] Asset structure of Thanh Hoa Medical Materials Equipment Joint Stock Company………………………………………………….45 [Table 4- 3] Structure of current assets of Thanh Hoa Medical Materials……………………………………………………….46 [Table 4-4] Structure of non-current assets of Thanh Hoa Medical Materials Equipment Joint Stock Company……………………………………….51 [Table 4- 5] Structure of fixed assets of Thanh Hoa Medical Materials…………………………………………………………………….52 [Table 4- 6] Movements in capital soruces during 2013-2015…….58 [Table 4-9 ] Items to asset efficiency of use of total business capital…….…59 [Table 4-10]Indicators reflecting efficiency in use of working capital in Thanh Hoa Medical Materials Equipment Joint Stock Company…………….61 [Table 4-11] Items reflecting efficiency in use of fixed assets and long-term investments in Thanh Hoa Medical Materials Equipment Joint Stock Company.63 -iii- LIST OF FIGURES [Figure 4- 1] Organizational structure of Thanh Hoa Medical Materials Equipment Joint Stock Company…………………………………………….36 [Figure 4- 2] Size of cash and cash equivalents………………………………….47 [Figure 4-3] Size of short-term receivables…………………………….…………49 [Figure 4- 4] Size of inventories………………………………………………….50 [Figure 4- 5] Movements in resources of Thanh Hoa Medical Materials Equipment Joint Stock Company in 2013-2015……………………………….…56 -iv- ABSTRACT IMPROVEMENT OF EFFICIENCY IN CAPITAL USE IN THANH HOA MEDICAL MATERIALS EQUIP MENT JOINT STOCK COMPANY TAN, BUI XUAN Graduate School of Soongsil University Department of Business Administration Improving business efficiency is always a top concern of businesses.
Enhancing business efficiency helps new businesses survive and grow, thereby expanding new production, improving the lives of officials and employees and make solid growth of the business. In which, efficient use of capital is one important part of the production and business efficiency, which is considered as the most important factor of all production and business processes and is a prerequisite for the survival and development of the business. Improving efficiency in use of capital is one of the key tasks in the financial management of the business. Therefore, along with the development of the national economy and the rapid progress of science and -v- technology, fixed capital in the business keeps growing and increasingly accounting for a large proportion of business capital.
Based on the theory of efficient use of capital, analysis and evaluation of the factors affecting the efficiency of capital use of Thanh Hoa Medical Materials Equipment Joint Stock Company, thereby offering solutions to improving the efficiency of capital use of Thanh Hoa Medical Materials Equipment Joint Stock Company. Formalizing theoretical basis for effective use of business capital by analysis and evaluation of factors affecting the efficiency of capital use of Thanh Hoa Medical Materials Equipment Joint Stock Company and recommending strategic directions and some solutions to improve the efficiency of capital use of Thanh Hoa Medical Materials Equipment Joint Stock. This research and survey was conducted in Thanh Hoa Medical Materials Equipment Joint Stock Company from 2013 to 2015. In the course of the study, the authors used the following analytical methods: Methods of collecting information, Methods of synthesis and balance sheet, Methods of analysis and evaluation.
After collecting the data, it is needed to conduct analysis, split the issues to be studied, so that complex issues will become more simple, thereby having good judgment. Through the analysis, we will see the advantages and disadvantages of the management and use of business capital in Thanh Hoa Medical Materials Equipment Joint Stock Company, give comment and provide solutions for completion. -vi- CHAP TER 1 INTRODUCTION 1. Research background Market commerce is the organization of the social economy based on a foundation of commodity production.
The market has always opened new business opportunities, but also contained the threats to businesses. To be able to withstand before the harsh competition of the market economy, it is required that enterprises must always make efforts to explore all appropriate directions. Therefore, businesses must pay attention to, find ways and means to improve the efficiency of their manufacturing business. That is the way of survival and development of enterprises to avoid bankruptcy.
Improving business efficiency is always a top concern of businesses. Enhancing business efficiency helps new businesses survive and grow, thereby expanding new production, improving the lives of officials and employees and make solid growth of the business. In which, efficient use of capital is one important part of the production and business efficiency, which is considered as the most important factor of all production and business processes and is a prerequisite for the survival and development of the business. Improving efficiency in use of capital is one of the key tasks in the financial management of the business.
Therefore, along with the development of the national economy and the rapid progress of science and technology, fixed capital in the business keeps growing -1- and increasingly accounting for a large proportion of business capital. Big or small capital size will affect the level of technical equipment, technology and production capacity of an enterprise and be decisive to labor productivity, quality of products. Stemming from the enormous role of business capital in the operation of enterprises in particular and the economy in general and over a period of study and research of the actual situation in Thanh Hoa Medical Materials Equipment Joint Stock Company, I would like to study in depth the topic: "Solutions to improving efficiency of capital use in Thanh Hoa Medical Materials Equipment Joint Stock Company" in the hope of contributing ideas to further improve the efficiency of business operations at the company. Objectives of the study Overall objective: Based on the theory of efficient use of capital, analysis and evaluation of the factors affecting the efficiency of capital use of Thanh Hoa Medical Materials Equipment Joint Stock Company, thereby offering solutions to improving the efficiency of capital use of Thanh Hoa Medical Materials Equipment Joint Stock Company.
Specific objectives: - Formalizing theoretical basis for effective use of business capital - Analysis and evaluation of factors affecting the efficiency of capital use of Thanh Hoa Medical Materials Equipment Joint Stock Company. - Recommending strategic directions and some solutions to improve the -2- efficiency of capital use of Thanh Hoa Medical Materials Equipment Joint Stock Company in the near future. Object and scope of the research Research subjects: In the thesis, a system of basic theories relating to capital use and indicators to assess capital use was presented. The situation of the capital managed and used by Thanh Hoa Medical Materials Equipment Joint Stock Company was described.
Many measures were suggested to improve the situation by the Company in the current conditions Scope of the research: The study is implemented in Thanh Hoa Medical Materials Equipment Joint Stock Company with the data from 2013 to 2015. Contributions - The paper has analyzed clearly theoretical bases of capital and efficient use of capital. - The author expected to provide with a specific point of view on capital use in Construction Machinery Company, through which to propose several solutions of improve the capital use in Construction Machinery Company during its equitization. The structure of the subject The thesis consists of five chapters.
In chapter 1, the author presents the overview of this research. Next, in chapter 2, the author shows the theoretical background of capiatl, the efficiecy use of capital Then, the research methodology is indicated. Afterthat, in chapter 4, the author presents research results. Final chapter is conclutions and implications.
CHAP TER 2 THEORETICAL BACKGROUND 2. Overview of business capital 2. Concept of business capital In order for businesses to operate, the prerequisite is to have capital. Manufacturing and business capital is regarded as a precondition for any process of production and business of a business, it is the financial strength of a business.
Business and production capital has a lot of categories, physical forms, different measures scattered everywhere in the scope of business activities. According to, Author K.Mark, capital is capitalist, the value to bring surplus value, an input of the manufacturing process. According to David Begg: Capital is the category including physical -4- capital and financial capital of the enterprise. Physical capital is the reserve of goods to produce other goods.
Financial capital is money and valuable papers of the business. These are the classic concepts of capital in economic theories. These points of views, though expressed the role and effect of the capital in the specific historical conditions, in accordance with the requirements and research purposes, there are restrictions on the consistency between the capital and assets of the business. Currently, there are several other concepts that are more specific and clearer: - Capital is money so that businesses are engaged in the production of business or can be considered as the amount of advance for business.
- Working capital of the enterprise is the entire assets of the enterprise existed in different forms to be used for the purposes of manufacturing and business to generate profit to the business. Thus, it is seen as identical with the property to serve production and business of enterprises. - Capital is the amount accrued in the form of cash, but not yet used. - Capital is one of the basic material conditions combining labor and other factors as inputs for production and business processes.