VIETNAM GENERAL CONFIDERATION OF LABOUR TON DUC THANG UNIVERSITY DEPARTMENT OF BUSINESS ADMINISTRATION CURRENT STATE AND RECOMMENDATIONS TO IMPROVE EXPORTING ACTIVITIES OF BUILDING STONE AT F-C LIVING STONE VIETNAM CO., LTD Thesis submitted as a requirement for the degree Bachelor of Business Administration Supervisor: MA. HA NGOC MINH Student: HUYNH THI THANH THAO Student ID: 70900379 Intake: 13 HO CHI MINH CITY, 2013 ACKNOWLEDGEMENT ---0--- In my honor, I express the gratitude to Ton Duc Thang University’s teachers who have given me the most basis professional knowledge of International Business Administration with whole hearted instruction. I especially give my appreciation to my instructor – Mr. Ha Ngoc Minh, MA who has instructed and helped me to complete this internship report with his enthusiasm.
I want to express my gratitude to the Board of Director at F-C Living Stone Vietnam Co. as well as the staffs at all Departments especially to the staffs at Department of Export – Import who helped me when I studied at the company. I give my appreciation to Mr. Do Kim Luon who gave me helpful advice to complete this graduation thesis.
Because of limitation of the major knowledge as well as experience, I could not avoid mistaking so the contents of my graduation thesis also have a lot of shortcomings. Thus, I hope to receive sympathy and strictly suggestions from Mr. Ha Ngoc Minh, MA, as well as other teachers, Board Of Director of F-C Living Stone Vietnam Co., Ltd and the staffs at all Departments to improve myself. Finally, I would like to give my special thanks to my parents who always give me the best conditions to complete this graduation thesis.
Ho Chi Minh City, 9th July 2013. Student: Huynh Thi Thanh Thao WORK IS DONE AT TON DUC THANG UNIVERSITY I assure this is my own research and with the scientific guidance of MA. Ha Ngoc Minh. The contents of the study, the results of this topic are truthful and are not published in any form before.
The data in the tables for analysis, assessment, evaluation is collected from various sources and stated clearly in the references. In addition, the thesis also uses some comments, evaluations as well as the data of other authors, other agencies which are cited and annotated the sources. If having any fraud, I completely bear responsibility for the content of my thesis. Ton Duc Thang University does not involve in fringement of copyright.
Ho Chi Minh City, 10th July 2013 Huynh Thi Thanh Thao COMPANY’S COMMENTS Student: Huynh Thi Thanh Thao Student ID: 70900379 Class: 09070101 Intake: 13. SUPERVISOR’S COMMENTS Student: Huynh Thi Thanh Thao Student ID: 70900379 Class: 09070101 Intake: 13. EXAMINER’S COMMENTS Student: Huynh Thi Thanh Thao Student ID: 70900379 Class: 09070101 Intake: 13. TABLE OF CONTENTS INTRODUCTION.
Reason for choosing the topic. Objective and significance of the study. Scope of the thesis .2 CHAPTER 1: LITERATURE REVIEW. Entry strategies in foreign markets.
Foreign Direct Investment. The Marketing Mix. The Gravity Model in international trade. The contents of exporting products.
Investigate, research export market. Selecting the export market. Selecting commodities to export. Selecting business partner in market research.
Setting up plans and export projects. Setting up plans to export goods. Building up export projects. Transaction, negotiation about export contract.
Performing export contracts. Building stone market and factors affect building stone export activities. Building stone exporting market. Types of building stone exported.
Factors affect building stone export activities. Factors outside the enterprise environment. Factors inside the enterprise environment .20 CHAPTER 2: ANALYZE CURRENT STATE OF EXPORTING ACTIVITIES AT F-C LIVING STONE VIETNAM CO. Overview about F-C Living Stone Co.
General information about F-C Living Stone Co. About the corporation. About F-C Living Stone Vietnam Co. Company’s field of operation.
Management system of the company. Function of each department. Characteristics of resources of the company. Capital of the company.
Human resources of the company. The market of the company. Financial situation of the company. Some key results of the company from 2010 to 2012.
Current state about export activities at F-C Living Stone Vietnam Co. Products of the company. Price of the product. Current state about export markets of the company.
Organize to perform export building stone of the company. Resources for exporting. Method of Payment. Analyze SWOT matrix of F-C Living Stone Vietnam Co.49 CHAPTER 3: SOME RECOMMENDATIONS TO IMPROVE EXPORT ACTIVITIES OF BUILDING STONE AT F-C LIVING STONE VIETNAM CO.
Forecast the development trend of building stone market and exporting orientation of the company. Forecast the development trend of building stone market in the world ………………………………………………………………………. The orientation of exporting building stone of the company. The goal of exporting building stone of the company.
The orientation of exporting building stone of F-C Living Stone Vietnam Co. Some recommendations to promote export activity of the company. About the product of the company. Improve the quality of products.
Selecting strategic commodity. About the exporting market. About the price of the product. Sales promotion strategy.
Setting up marketing system, strengthening the researching and improving the collecting and processing information system. Researching the market. Perfect information collecting and processing system. Improve exporting process.
Enhance e-commerce application. Improve efficiency of using business capital. Improve organizational management system and human resources ………………………………………………………………………. Improve organizational management system.
Solutions to develop human resources in the company. Some recommendations to the State .65 LIST OF ABBREVIATIONS ASEAN Association Southeast Asian Nations EAT Earnings after tax EU European Union L/C Letter of Credit T/T Telegraphic Transfer UK United Kingdom WTO World Trade Organization LIST OF TABLES Table 2. Total capital and capital structure of the company. Human resources of the company.
Some business performance items. Total export turnover of the company from 2010 to 2012. Export turnover of stone products classified by commodities. Total export turnover according to market.
Export turnover in Asia market. Export turnover in ASEAN market.41 LIST OF FIGURES Figure 1. The stages of work to implement an export contract. Management system chart of the company.
Revenue and Earnings after tax of the company. Total export turnover of the company from 2010 to 2012. Total export turnover classified by commodities. Total export turnover classified by market.
Export turnover in Asia market. Export turnover in ASEAN market. Method of payment applied in 2012. Reason for choosing the topic Today, with the trend of globalization and internationalization of the economy, the business activities of enterprises are not confined within a region, a country.
They are being extended through export and import activities in the world market. Through export activities, the country is exploiting its comparative advantage in the international division of labor, creating important source of foreign currency for the country, restructuring the economy and creating jobs for workers. Vietnam is a developing country with a low starting point so the export activities really make sense in the strategy of building and developing the economy. In 2007, Vietnam joined the WTO and in 2020, intended to become an industrial country.
This brings opportunities as well as challenges for businesses in Vietnam, which requires businesses in Vietnam dynamic and creative in business activities to assert themselves, especially the businesses operate in the field of import and export. Manufacturing and processing activities of building stone have long history in Vietnam. It reflects every stages of history development of Vietnam. Currently, producing and processing building stone not only serve the domestic demand but also for exporting.
With large export markets, exporting building stone has brought substantial revenue for the country and created jobs for the labors. Recognizing the roles and importance of exporting building stone, as well as the opportunities and challenges when Vietnam is a member of WTO in building stone export activities combined with the knowledge I got at school, I decide to research the topic: “Current state and recommendations to improve exporting activities of building stone at F-C Living Stone Vietnam Co. Through this topic, I want to understand clearly about the activities that has contributed to the growth rate of Vietnam economy. Therefore, research the exporting activities to understand more about the current state and propose some recommendations to enhance business effectiveness in any enterprise is really necessary.
Objective and significance of the study The report aims to learn and analyze exporting activities of building stone at F-C Living Stone Vietnam Co. From the study of practical activities of the company will help find out causes that influence to exporting activities. Recommendations to improve exporting activities will be recommended through those causes. Finally, seeking suitable strategy in order to enhance competitive ability of the company in the domestic as well as international market.
Scope of the thesis About location: the thesis is researched at F-C Living Stone Vietnam Co. About time: the thesis researches about the exporting activities of the company from 2010 to 2012. The analyzed figures are used mainly from 2010 to 2012. Methodology Search information through Internet and study the exporting activity at company through intranet of F-C Living Stone Vietnam Co.
Collect information by communicating directly with staffs of the company. Implement and analyze actual work, handle and select information. Data source This thesis is based on the secondary data which is the information existing in the company system, public media. Furthermore, articles, books, public media are useful source for this study.
Thesis structure The thesis includes 3 chapters: Chapter 1: Literature review Chapter 2: Analyze current state of exporting activities at F-C Living Stone Vietnam Co. Chapter 3: Some recommendations to improve exporting activities of building stone at F-C Living Stone Vietnam Co. 3 There are also the appendixes of related documents to explain and help readers understand clearly about exporting activities of building stone at F-C Living Stone Vietnam Co. 4 CHAPTER 1: LITERATURE REVIEW 1.
Entry strategies in foreign markets The decision of how to enter a foreign market can have a significant impact on the results. Expansion into foreign market can be achieved via the following two mechanisms: Exporting and Foreign Direct Investment (FDI). Exporting Exporting is the direct sale of goods and / or services in another country. It is possibly the best-known method of entering a foreign market, as well as the lowest risk.
It may also be cost-effective as you will not need to invest in production facilities in your chosen country – all goods are still produced in your home country then sent to foreign countries for sale. However, rising transportation costs are likely to increase the cost of exporting in the near future. The majority of costs involved with exporting come from marketing expenses. Usually, you will need the involvement of four parties: your business, an importer, a transport provider and the government of the country of which you wish to export to.
Indirect export The market-entry technique that offers the lowest level of risk and the least market control is indirect export, in which products are carried abroad by others. The firm is not engaging in international marketing and no special activity is carried on within the firm; the sale is handled like domestic sales. There are several different methods of indirect exporting: Domestic sales organization: The simplest method is to deal with foreign sales through the domestic sales organization. For example, if a firm receives an unsolicited order from a customer in Spain and responds to the request on a one-off basis, it is engaging in casual exporting.
Alternatively, a foreign buyer may approach to the firm. Products are sold in the domestic market but used or resold abroad.