The urgency of the research subject Financial activities have a direct relationship with business activities, it is crucial in the formation and survival of businesses. Therefore all business activities influence the financial situation of the business. Whether good or bad financial situation has a motivating or constraining effect on the business process. In the context of the current economy, enterprises that want to stand firmly in the market need to innovate quickly in which analyzing business efficiency through analyzing several financial indicators to improve business performance.
is a matter of top concern and directly affects survival for many Vietnamese businesses. This can only be done based on analyzing business performance so that enterprises can identify strengths and weaknesses based on which to plan appropriate action plans for the future and at the same time propose effective solutions to stabilize and enhance financial situations to improve business quality. Understanding the importance and necessity of businesses to analyze business activities to improve the business performance, and the advice of instructor Pham My Hang Phuong, I chose the topic: "Improving business performance of LCI Investment and Trading Joint Stock Company ” to identify some of the strengths and weaknesses, as well as limitations and difficulties that exist, and then propose solutions to improve the business efficiency of the business. Research objectives The main objectives of this research is to proposing solutions to the company.
In order to achieve the main objectives, the following: - Construct the common theoretical basis of business performance in businesses. - Analyze the business performance of LCI Investment and Trading Joint Stock Company in the period of 2014 - 2018 - Evaluating the business performance of the Company in the past 5 years. - Proposing solutions to improve the business performance of the Company. Research objects and research scope - Research object: Business performance of LCI Investment and Trading Joint Stock Company.
- Scope of the research: In-depth report on business performance at LCI Investment and Trading Joint Stock Company for the period of 2014-2018 4. Research Methodology: Thematic reports using statistical SWOT analysis methods, comparing the ratio method and the Dupont method. Data analysis, data collection from newspapers, internet, field research methods. Besides that combined with experimental research: practical observations to collate theory.
Structure of the topic: In addition to the introduction, conclusions, references, thematic reports are structured including 3 chapters: Chapter 1: General theoretical basis for business performance of the enterprise Chapter 2: Current situation of business efficiency at LCI Investment and Trading Joint Stock Company Chapter 3: Assessment of the current situation and orientation to promote the business performance of LCI Investment and Trading Joint Stock Company Luan van CONTENT CHAPTER 1: GENERAL THEORETICAL BASIS FOR BUSINESS PERFORMANCE OF THE ENTERPRISE 1.1 Definition of business performance of the enterprise 1.1 Business performance definition Business efficiency is an issue for all businesses in a market economy. So far economists have come up with many different concepts about business performance of businesses. In the current market economy of our country, the long-term goal that encompasses businesses is to do business efficiently and maximize profits. The changing business environment requires each business to have appropriate business strategies.
Business is an art that requires quick calculation and recognizes the problem at a strategic level. Business performance is always associated with business operations, so it can be considered in many ways. To understand the concept of business performance, it is necessary to consider the economic efficiency of a phenomenon. "The economic efficiency of an economic phenomenon (or process) is an economic category that reflects the level of resources (talent, talent, material resources, capital) used to achieve the exact goal intended " It shows the correlation between the results obtained and the total costs paid for that result, reflecting the quality of that economic activity.
From the definition of economic efficiency of such a phenomenon, we can understand that business performance is an economic category, reflecting the level of using resources to achieve the set goals. It shows the correlation between the results obtained and the costs spent to get those results. The greater the difference between these two arguments, the higher the efficiency. From this perspective, the effect is consistent with the profitability of the business and the ability to meet the quality of the product with the needs of the market 1.2 the essence of business performance The essence of business efficiency is to improve social labor productivity and save social labor.
In order to achieve the business goals of enterprises, it is Luan van imperative to focus on internal conditions, promote the capacity and efficiency of business elements and save all costs. Therefore, the requirement of improving business efficiency is to achieve maximum results and save all costs. Therefore, the requirement of improving business efficiency is to achieve maximum results with certain costs and achieve certain results with minimum costs. The cost here is understood in a broad sense: the cost of creating resources and the cost of using resources simultaneously include the opportunity cost.
The return cost is the value of the best option that has been overlooked, or the value of sacrificing another business to carry out this business. Opportunity costs must be added to the accounting costs and removed from accounting profit to see real economic benefits. Such calculations will encourage traders to choose the best business direction. Business performance and business results are very closely related.
To achieve good business performance, the business must be effective. Business results are what an enterprise achieves after a business process, which is an essential goal in every business activity of the business in each business period. The results are reflected by qualitative indicators such as the number of products consumed, enterprises, profits. and can also be reflected by quantitative indicators such as prestige and product quality.
In this day and age, the production of material goods and services is closely linked to the life of the people, and the production is favorable when the products created are accepted by the market. In order to do so, the producers that conduct production must be able to do business. "If eliminating the different parts of the mode of means and specific results of the business activities, it may indicate that the business is economic activities aiming at the profitability of business entities in the market". Business performance has the following characteristics: - Firstly, it is done by an entity and is called a business entity.
Business entities may be individuals, households or businesses. - Secondly, business must be tied to the market, business entities have a close relationship with each other, that is the relationship with customers with input suppliers, with customers, with competitors. contention, with the state. These Luan van relationships help business entities maintain their business activities and help their businesses grow.
- Thirdly, business must have capital mobilization: Capital is a decisive factor for a business, without capital, it is impossible to conduct business. Business entities using capital to buy raw materials, production equipment, hire labor. Finally, the main purpose of business activities is profit.3 The role of business performance Business efficiency is an effective tool for business executives to perform their business administration tasks: When conducting any production and business activities, enterprises must mobilize and use Using resources that businesses are capable of producing results consistent with the goals that the business set out. At each stage of development of an enterprise, there are many different goals, but the ultimate goal covering the entire production process of the business is to maximize profits on the basis of maximum utilization.
the resources of the business. To achieve the goal of maximizing profits as well as other goals, businesses must use many different methods and tools. Business performance is one of the most effective tools for executives to perform their governance functions. Through the calculation of production and business efficiency, not only allow administrators to check and evaluate the effectiveness of production and business activities of the enterprise (whether or not the operations are effective and effective).
To some extent, it also allows the analytical managers to find out the factors affecting the business operations of the enterprise, thereby offering appropriate corrective measures in both aspects. reduce costs to increase results to improve the efficiency of business activities of the business. As an effective business management tool, business is not only used to check, evaluate and analyze the general use of input resources throughout the enterprise, but also used to check and assess the level of use of each input element throughout the enterprise as well as each component of the enterprise. Therefore, in terms of theory and practice, the category of production and business efficiency plays a very important and indispensable role in checking, Luan van evaluating and analyzing in order to provide the most optimal solutions.
select the most reasonable methods to implement the objectives of the business. In addition, in many cases, managers consider economic efficiency as the goals and objectives to accomplish. Because for managers, when it comes to production and business activities, they are all concerned about its effectiveness. Therefore, the production and business efficiency plays a role as a tool to carry out business administration tasks and at the same time is a goal for business administration.2 Analyze business performance of enterprises 1.1 Analyze business performance of enterprises Business performance shows the correlation between outputs and input resources used in the business operation of the enterprise.
To achieve high business efficiency, businesses need to maximize the outputs in the context of their limited resources. Analyzing business performance helps interested subjects measure profitability of enterprises. This is a decisive factor for long-term financial potential - one of the important goals of business operation. Analysis of business performance also helps interested parties measure the effectiveness of business management.
The outcome of a business operation depends greatly on the competence, skills, talents and motivation of the managers. The executives are responsible for the operations of the business making financial investment decisions and building business and executing business strategies of the business. The success or failure of operating an enterprise is directly reflected in the analysis of business performance. Business performance analysis is also useful in planning and controlling business activities.
Business performance is analyzed from different perspectives and aggregated from the performance of each division in the business, so it will be a basis for evaluating and adjusting specific activities and components in the business. business and business planning in accordance with the strategic goals for the next period.2 Objects and objectives of business performance analysis Luan van - Balance Sheet: is a general financial statement used to generally reflect the entire existing assets and sources of assets of the enterprise at the time the report is established. The balance sheet is very important in the management, based on which we can know the entire existing assets of the enterprise, physical form, asset structure, capital structure. - Income Statement: is a general report reflecting the overall situation and results in a business period of the enterprise.3 Content of business performance analysis 1.1 The analytical indicators general assessment of business performance General assessment of business results of enterprises is conducted by analyzing and examining the fluctuation of each financial indicator on the Income Statement between this period and the previous period based on the comparison of both absolute numbers and each index.
At the same time, analyze the indicators reflecting the use of expenses, business results of the business. Pay special attention to the fluctuations of net revenue, total profit from business activities, profit before tax and profit after tax. In order to make general comments on the company's business performance, financial indicators are indispensable. Here are some important indicators: - Return on Asset (ROA) Return on asset is the net income on total assets.