VNU- UNIVERSITY OF ECONOMICS AND BUSINESS FACULTY OF BUSINESS AND ADMINISTRATION SOLUTIONS TO IMPROVE BUSINESS EFFICIENCY IN VASC SOFTWARE AND MEDIA COMPANY Supervisor’s name: Dr. Duc Truong Minh Student’s name: Hang Nguyen Thi Student ID: 09050278 Intake: 2009 - 2013 Hanoi — May, 2013 ACKNOWLEDGEMENTS First and foremost, I wish to express my sincere thanks to my advisor Dr. Truong Minh Duc who was thoughtfully guiding me in writing this thesis. Secondly, I would like to thank VASC Software and Media Comapany that gave me an Internship chance in the company.
I especially thank Mr. Nguyén Hoang Vinh and Mr.Vu Tung who were directly guiding me as a telesale man in the company. Besides, I thank to all specialists of the company for their whole- hearted guides during my internship at Business Department in VASC Company. Last but not least, I’m grateful to the numerous people in other departments who provided sincere helps through all my internship time.
I cannot thank them enough for study environment they provided. Hang Nguyen Thi Hang TABLE OF CONTENTS AKNOWELEDGEMIBNTSGiicennaeinsenirivinaaninstnaosesssagslSG tnxipEESKE1Ic63E0898EX099580013 0280;u18 i LIST OF TA E.159540639888801 1503378 vi LIST OF FIGURES ssissssversessvesnsononsersueeneaneoneactscazeseuastrartaereuensestaseoveseessonwecensonnnsd 817548018 vii ABS TRAC D úccxccgisescnig5975115585505E1585555E131039/0855385555918998515056033355E18G12180000E131113089500104044196001E4 Viii j1 §;46)818ƒ/8940//0)10002357. | CHAPTER 1: LITERATURE REVIEYW.S Ăn ng HH HH Hư, 4 1. Theoretical background on business efficiency in enf€rpriSeS.
Concept of business efẨICI€TCyy. Concept of business aCfIVIẨY. cà cà sS se 4 1. Concept of business efficiency.
Criteria to evaluate business efficiency .- -- -----+ss sec ssehsrieeriee 6 1. Criteria for evaluating profitabilIty. Profit based Off S8ÌE§:sssessssssesksssseksrsannsnssasiBriitrtrEiSg1000180109. Profit based on net r€V€TUC.
Profit based on total aSS€S.- ---Ă- 2 SH nS*SH*HHHH HH ri 6 l„l„2›1x4, Profit DASEd OM CQUIEY: suseessrsninenesnrinsosliitiRiDGGGEEENEUEAGOiSLEthvdgEotisxidixesere 7 1. Profit baséd on total. Criteria for evaluating the efficiency of using capifal. Working capital CYCÌ€-.- «SH HH HH ng HH HH ng gi ưu 7 1.
Number of days of a working capital fturnOV€F. Criteria for evaluating prOodUCfIVIY. Factors affecting business efficiency in enterprises. Legal and political environment.
Economic environment sssssssasssssssnsissssssssasniL61166350302061858161930838599036g030 88 10 I2 8i. TRS Cain dOR MAR ERENSESIOSE 11 1. Economic and technological environmenI. Natural environment and social infrastructure facÏities.
Microenvironmental ÍaC{OTS. Intrinsic factors: Of Enterprises s.2/2: Suppl Oi vrcccarossecrarvesuvsssaoenornssesespeeesnadsunscesnessostnonennnneueenaib sii 553 35187178508 14 1.onsannssonbaE56121101510130038101381598555855808ES505590850888308861100981906986 15 CHAPTER 2: ANALYZING BUSINESS EFFICIENCY IN VASC SOFTWARE AND MEDIA COMIPANY.---------2- S2 Lang ABC Lá no ku SEN GÀ5Bã S55 0540538355 295058 15 2. Overview about VASC Software and Media Company. Introduction about Vasc Company.
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-- - -- «+ S9“ ng HH ngư 19 2. Functions and duties of member units. Factors affecting business efficiency in VASC Software and Media company ES258274070/023848275H52.38:78003020805E030321eairlBn2t5S7EĐ2TEviVEES 20GL2001/đEx Laueiits,gi. Legal and political environmenI(L.
Economic and technological environmen(. | Natural environment and social infrastructure fac1litIes. Intrinsic factors of €nf€TPTIS€S. 29 iv 25 xốn (UIWDEHTSssoxumenssrneeuntttuatsrtooupnoseortosprrtvvevretersssersenevesseersexemesessrsreree 29 2.
Facts of business activities in VASC Software and Media company. Overview the situation of business activities in VASC. Actual results of business activities in VASC from 2007 to 2012. Human resource situation in VASC Company.
Actual using capital in VASC Company .nsscernnesintnnnnsisd snssievnenns shebaasstus axe HEESESSS282355959081538116 36 2. Acctual €XD€TS€S. HH TH TH ng TH TH ng KH ng 38 s„I NNnG 00 5. Evaluating the company’s business efficiency.
Evaluating the profitability of VASC Company over y€aFS. Evaluating the efficiency of using capital over years. Evaluating the efficiency of using human resource in company. General evaluation of business efficiency in VASC Company.
49 CHAPTER 3: SOLUTIONS TO IMPROVE BUSINESS EFFICIENCY IN VASC SOFTWARE AND MEDIA COMPANYY. Methods to enhance business efficiency in enf€rpTI1S€S. Methods tö: 1GHEASE TCV€TIŨE. Methods to decrease ©€Xp€TS€S.- -- Sàn n2 ng HH Hư 51 3.
Methods to enhance the efficiency of using capifalÌ. Methods to improve the efficiency of using asSefs. Methods to enhance the efficiency of empolying human resource. Development orientation of the company in the period from 2013 to 2015.
Solutions to improve business efficiency in VASC company. Solution of human resource. Solution to avoid risks related to e — commerce actIVItI€S. Solutions to expand operating actiVies 0.
eee cece eerseeeeeeeeeeeeceees 60 3. Solution development ofe-commerce utilities. Solutions for developing service package€s. Improving the quality of value — added Services.
Promoting market research 00. Promoting and propagating advertising activities and public relations 63 3. Increasing promotional aCfIVIẨIS. Expanding customer support activities.
Requesting supports from VNPTỈ. Recommendations for ØOV€TTIT€TIE. ---- G6 + 2< 3E vn tr rưn 65 (CONGELUSTONbic: cases.0eeeceen perry emeneeemeeverorerseeexmeearmeaan cesar 67 REFERENCES| sssise----ecseeeeeececeenSagi0208.08gSBAA4Ss28EusAÄi8 ihe Saha adeno oR VARTRTTRNOEND 68 vi LIST OF TABLES Table 2.1: Operation activities in VASC from 2007 to 2012.2: The total number employees of the company in 2007-2012.3: Capital structure of the Company.4: Capital structure of the Company.5: The deduction rate of funds in over Y€ATS.6: Revenue of the Company from 2007 to 2012.7: Actual expenses in VASC Company from 2007 to 2012.8: Expense structure in VASC Company from 2007 to 2012.9: The volatility of expenses Over Y€ATS.10: Actual profits in VASC Company from 2007 to 2012.11: The volatility of profit Over ÿ€ATS. Sàn sec 43 Table 2.12: Analysis Profitability Ratios over y€ATS.- cà e ee eesesenens 44 Table 2.13: The effciency of using working capital from 2007 to 2012.14: Analysis of using labor in VASC Company from 2007 to 2012.
48 vii LIST OF FIGURES Diagram 2.1: Organization structure of VASC Company.2: VASC revenue growth chart (2007-2012).3: Actual expenses in VASC Company from 2007 to 2012. 39 vill ABSTRACT Improving business efficiency is not a new phenomenon now but it is very necessary for enterprises to perform because of survival. This thesis will evaluate the business efficiency of VASC Software and Media Company from 2007 to 2012 through analysing the actual situation of business activities in the company. According to collected data from public and unpublic annual reports of VASC Company, the thesis base on criteria related to assessment business efficiency including the profitability and productivity to evaluate the operating activities over years.
Afterthat, based on these findings, the thesis also gives some solutions and recommendations to improve the business efficiency for VASC Software and Media Company in coming years. INTRODUCTION The rationale of this study Nowadays, more and more companies are established and have also many companies that go bankruptcy. The main reason why these companies collapsed is that they usually operated inefficiently. Besides, there are many factors including macro and micro environments which also impact on the existence of any enterprise.
Therefore, to survive in a competitive business world enhancing business efficiency is very essential for not only enterprises but the whole economy. Particularly, in Vietnam, the fact of economic development is going more fiercing. Vietnam has suffered the consequences of war and is currently in gradually deep integration with the regional and world economy. Especially, after “Renovation Policy” in 1986, Vietnam started to intergrate with the business world, thus not only the whole economy but also enterprises face many difficulities and challenges.
Therefore, to be able to deal with all the changes in the business environment there is a requirement for enterprises to forecast, analyze and propose solutions to adapt to changes in the business environment. In other words, they must take measures to improve the efficiency of business enterprises. With the necessity of improving business efficiency issues, I select the thesis title during the internship in VASC Software and Media Company is “Solutions to improve business efficiency in VASC Software and Media Company” Research questions With the thesis title “Solutions to improve business efficiency in VASC Software and Media Company” the purpose of this study is analysing and evaluating the business efficiency of company in recent years and recommending solutions to improve VASC‘s business efficiency in the future. Together with this purpose, the research will answer two questions: - What is business efficiency? - From the actual situation in VASC company, how to improve business efficiency? Research Objective and Scope The subject and scale of this study: the busniess efficiency in VASC Software and Media Company in 97 Nguyen Chi Thanh, Dong Da, Hanoi.
Methodology To be consistent with the purpose and requirements set by the thesis research, the author used a number of scientific research methods including: ° Method of collecting secondary data: are collected from public sources and unpublic sources such as annual reports, corporate audit reports and data provided by VASC Company. ° Method of analyzing data: secondary data are processed by means of mathematical statistics in excel based on criteria and then analyze the correlation of each factor over years. ° Relative comparison method: Based on the actual data collected, the author compared the objectives and specific targets then find out the directions and solutions for improving business efficiency. Research Structure Besides this introduction part, the thesis is divided into 3 main chapters: e Chapter | This chapter will provide theoretical framework for the research.
It includes fundamental concepts about business efficiency as well as research model and its hypotheses used in this research. e Chapter 2 This chapter will describe the facts of business activities and business efficiency in VASC Software and Media Company. e Chapter 3 This chapter will present some solutions and recommendations to improving business efficiency in VASC Company from the analysis in Chapter 2. CHAPTER 1: LITERATURE REVIEW 1.
Theoretical background on business efficiency in enterprises 1. Concept of business efficiency 1. Concept of business activity In general, business is the economic activity to make profits that is conducted economic entities in market. Business activity is characterized by: Performance by an entity and named as business entity including individuals, households, enterprises Trading must be associated with the market, and the business entities can have closely relationships with each other such as with the customers, suppliers, competitors, and the governement.
These relationships can help business entity maintain the development of operating activities. There is a mobilization of capital when doing business because capital is the decisive factor in business, without it there does not present business activity. Businessmen can use capital to buy raw materials, production equipment or hiring labor, etc. The primary purpose of doing business is making profit.
Concept of business efficiency In current market, the long — term objective of enterprises is to maximize efficiency and profitability. The business environment in Vietnam is always changing, so every business must have appropriate strategy to improve business eficiency. As known, the business efficiency is always associated with business activities. Therefore, to understand the concept of business efficiency there needs to consider the economic efficiency of a phenomenon.
“The economic efficiency of a phenomenon (or a process) is an economic category reflects the level utilization of resources such as human and financial resources, material resources and capital to achieve the given objectives” According to the textbook: “Synthetic Business Administration in enterprises”, Scientific and Technical Publisher, in Hanoi, in 1997, page 408, the Prof. Ngo Dinh Giao said that the economic efficiency is “it expresses a correlative relationship between the obtained results and incurred cost to have these results and reflects the quality of the economic activity”. Since the definition of the economic efficiency, it can refer that business efficiency is an economic category reflects the use of resources to achieve the goals set out, it expressed correlation between results and the cost incurred to obtain the results and the greater difference between two variables is the higher the efficiency. e Business efficiency must be considered in a comprehensive manner: - Time: Enterprises are not as immediate interests while ignoring long-term benefits, not considered to reduce costs to increase profits is to increase business efficiency unscientific.
Improving business efficiency must be considered and carried out in a systematic manner and take into account the long-term benefits and social benefits. - Space: Business efficiency is considered comprehensive when all activities of departments and sections of the business are efficient and does not affect the overall performance.