COMPANY BACKGROUND
Company introduction
Founded in 1854 in Bünnigheim, Germany, the Amann Group is a global leader in manufacturing and distributing sewing and embroidery threads across various industries, including clothing, footwear, leather goods, home textiles, and technical applications With a presence in over 100 countries and a workforce of more than 2,300 employees, the Group operates production facilities in Europe and Asia, ensuring maximum flexibility and proximity to customers.
Picture 1: Amann headquarter in Bửnnigheim
1.1.2 Overview about Amann Vietnam Co., Ltd
Amann Vietnam Representative Office was founded in June 2011 and has been functioning as a trading company since August 2012 The sales office is currently located at a specified address.
1 st Floor, Aloha Building, 68 Hong Ha Street, Ward 12, Tan Binh District, Hochiminh City
Picture 2: Amann Vietnam Sales office in Hochiminh City Amann Group organized a groundbreaking ceremony for its Vietnam factory covering 45,000 square meters at Tam Thang Industrial Park (Quang Nam) on July 27,
The facility is set to produce sewing threads for the garment, leather, and footwear industries, with an annual capacity of 2,300 tons by 2023 The initial investment for phase one is US$13.8 million, which commenced operations in June 2019 with a capacity of 1,000 tons per year Phase two, scheduled for 2023, will require an additional investment of US$6.2 million, bringing the total investment to US$20 million.
The Vietnam factory will manufacture premium sewing threads that meet European standards, ensuring that all Amann production facilities globally adhere to the same quality benchmarks This commitment allows Amann's customers to rely on consistent product quality, no matter where they are in the world.
Amann Vietnam (AVN) serves prominent brands including Adidas, Puma, Nike, Hugo Boss, Prada, and Coach, showcasing its strong position in the textile industry.
Organizational structure of Amann Vietnam
AVN is under the progress of setting up new factory in Tam Thang, Quang Nam Its current Hochiminh office will operate as sales office right after factory construction complementation
AVN is enhancing its human resources by recruiting qualified and experienced sales team members from the thread manufacturing industry, in preparation for local production of its products.
Amann Vietnam's Hochiminh office comprises five key departments: a Sales & Marketing department, which includes the Global Key Account Team, Industrial Sales Team, Technical Advisory Services Team, and Customer Services Team; an HR department; a Finance and Accounting department; a Production department; and a Project department.
Diagram 1: Organizational structure of AVN in 2019
AVN has established a functional organizational structure that clearly delineates roles and responsibilities by function This traditional framework enhances communication between departments, ensuring that all functions are aligned with the company's mission and strategy.
Sales turnover of AVN has continuously increased for the last 4 years from
2015 to 2018 with the average growth rate at 150% as the figure below:
Figure 1: Sales turnover of AVN from 2015 - 2018
Manager tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
AVN expects when it has local production in Tam Ky, its turnover will achieve the figure as 5-year sales plan below:
Figure 2: 5-year sales plan 2018-2022 of Amann Vietnam
Because Amann Vietnam will officially have local production from June 2019, it sales forecast increases significantly from June 2019 and in 2020, then the growth will be slow down in 2021 and 2022
Amann specializes in the manufacturing and supply of polyester and nylon thread for the garment, textile, footwear, and leather industries These sectors are vital to Vietnam's economy, ranking as the second and fourth largest industries, respectively, and contributing to 23% of the country's total export turnover.
Sales Target Growth (%) tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Figure 3: Vietnam export structure of goods in 2016
Threads account for 1% of the total FOB price of garments and shoes, leading to a potential demand of US$240 million for garments and US$160 million for footwear in the Vietnamese market, resulting in an overall thread demand of US$400 million.
Jumping into Vietnam market quite late after Coats, Amann as well as other companies enjoy a small market share in both apparel and footwear sector
Table 1: Export Turnover of Vietnam by Commodity Group in 2016
Telephones, mobile phones and parts thereof Textiles and garments
Computers, electrical products, spare-parts & components thereof Footwear Machineries Wood & wooden product Sea food
Telephones, mobile phones and parts thereof 34.32
Computers, electrical products, spare-parts & components thereof 18.96
Total 176.67 tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Figure 4: Segmentation and value proposition
Symptoms
In the financial year 2018, the company's performance fell short of expectations, reporting a net loss after tax of 3,714,477,737 VND, compared to a positive net profit of 2,604,318,251 VND in the previous year.
Local supplier s tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Figure 5: Income statement of AVN in financial year 2018
2.2 Decrease in gross profit margin
The financial report 2018 also recorded that profit margin of the firm had fall down 8% to 26% from 34% previous year
Net Sales (VND) 22,277,483,578 34,922,963,518 COGS (VND) 14,766,095,499 25,887,504,047
In 2017 and 2018, AVN's gross profit margin demonstrated significant trends, reflecting the company's financial performance during these years The data indicates fluctuations that are crucial for understanding AVN's profitability and operational efficiency.
Figure 6: Gross profit margin of AVN in 2017 and 2018
The gross profit margin experienced a decline beginning in May 2018, with a notable drop to 16% in August 2018 The average gross profit margin for the first half of the year was 31%, but it decreased to an average of 21% in the second half.
Figure 7: Gross profit margin of AVN phasing by month 2018
Gross Profit Margin (%) tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Table 3: Gross profit margin of AVN by month 2018
In 2018, Amann Vietnam's gross profit margin was only 26%, falling short of the company's expectations and below the industry average for thread manufacturing The minimum target profit margin for Amann is set at 30% In contrast, other production sites within the Amann Group achieve profit margins of approximately 30% to 35%, while industry leader Coats Phong Phu excels with a profit margin ranging from 40% to 42%.
Breakdown to products, the company has suffered extremely low profit from SabaTEX, Isamet, especially Universal with negative profit margin of -13%
8,584,711,293 25% tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
In 2018, the gross profit margin of AVN varied by product type, highlighting the company's financial performance across different categories.
Breakdown to customer, in top 20 customers, the company has lost when supplying products to Maxport and very low profit margin at Theu DJ and Bodynits
Table 5: Gross profit margin of AVN by customer in 2018
CONG TY TNHH ECCO (VIETNAM)
CONG TY TNHH DINH VANG
CONG TY TNHH MASTER SOFA INTERNATIONAL
CONG TY TNHH MTV THEU DJ
CÔNG TY TNHH MTV LONG HƯNG
CN CTY TNHH NGUON A CHAU – XUONG MAY XUAT KHAU BEN TRE
CONG TY TNHH THUONG MAI VIET VUONG
Cong ty TNHH BL Leatherbank
CONG TY TNHH SAO VANG
CONG TY TNHHCN ORIENTAL SPORTS VIET NAM
CONG TY CO PHAN KET NOI CHAU AU
CONG TY TNHH DUC THANH
CONG TY TNHH MAXPORT LIMITED (VN)
CONG TY TNHH SHINTS BVT
CONG TY TNHH HSE VIET NAM
CONG TY TNHH TAN DAI HUNG
CONG TY TNHH LOGISTIK UNICORP VIET NAM
CONG TY TNHH OKTAVA VIET NAM
91,291,871 31% tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
As table 2 in page 8, COGS has increased 75% in 2018 to 25.89 billion VND from 14.77 billion VND in 2017 while sales turnover increases by 58% only, which makes profit margin decrease
In summary, three interrelated symptoms significantly impact the firm's business performance and warrant the Board of Directors' attention The most critical issue is the decline in gross profit margin in 2018, attributed to rising costs of goods sold, which requires further investigation.
The initial cause-effect map
In order to explore the problem and the cause of problem, the depth interview has been conducted with related people in AVN
The initial team of five from the sales department comprises Mr Chuong Vu, the Sales Director; Mr Duc Le, the Deputy Sales Manager; Mr Duy Vo, also a Deputy Sales Manager; Mr Luan Dao, the GKA Manager; and Ms Hang Nguyen, who serves as both Sales Support and Marketing Executive.
- The second group of 2 people from Customer Service Department including Ms
Diep Huynh – Customer Service Manager and Ms Hien Nguyen – Customer Service Executive
- The third group of 2 people from HR & Admin Department including Ms Vy Nguyen – General Manager (left the company from 30 March 2019) and Mr
In 2018, Mr Chuong Vu, Sales Director, reported a sales turnover of US$1.5 million, reflecting a 25% increase over the sales target of US$1.2 million Despite this growth, the profit margins remain low compared to other production sites like Bangladesh and the leading competitor, Coats Phong Phu, which boasts a profit margin of 40% - 42% This presents a significant challenge for Amann Vietnam in the upcoming four years (2019 – 2022) Mr Vu identified several potential factors contributing to the decrease in gross profit margin and the negative profit experienced in 2018.
1/ Cost increase including tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
- Transportation cost: especially air shipment for urgent orders and urgent samples
The cost of shipment increased much in the last months of 2018 which impacts gross profit margin significantly
Recent months have seen a rise in sales expenditure due to increased costs associated with visiting customers This surge is attributed to the sales team's ineffective and inefficient visit planning, leading to underutilization of vehicles for customer visits.
The employee expressed concerns over the frequent need to sign overtime proposals for the customer service and admin departments, questioning the time management skills of the staff and the effectiveness of the company's system management He emphasized the necessity for an investigation into this issue, as he believes employees should be able to complete their tasks within regular working hours without the need for additional overtime.
OT He wants them to be able to balance among work, family and individual
- Taking about work efficiency, he shared that the sales forecast is not accurate due to sales people’s lack of forecast experience
The sales plan has fallen short of expectations due to inadequate selling and time management skills There is a significant discrepancy between the monthly sales projections and the actual sales recorded, particularly in the North area Furthermore, there appears to be a lack of proactive action plans from the sales team in the North Achieving sales targets requires deliberate effort rather than relying on chance.
The customer service department often requires employees to work overtime due to unclear job descriptions and competencies This lack of clarity leads to confusion regarding job requirements and the company's systems and standard operating procedures (SOPs).
- Finally, he is wondering about recruitment process of AVN Is it really the reason for underperformance results
To successfully expand in Vietnam's apparel sector, establishing local production is essential to compete with domestic suppliers Additionally, the shift in customer behavior has heightened the demand for faster market delivery, making lead time a critical factor Manufacturers are increasingly seeking quick delivery services to meet these evolving customer expectations.
AVN currently lacks a factory in Vietnam, necessitating the import of threads from Yancheng, China, and Germany to meet the demands of the Vietnamese market This reliance on imports results in a lack of competitiveness in both pricing and lead times for customers.
Ms Hang Nguyen – Sales Support & Marketing Executive who is in charge of care arrangement for sales team replied that:
1/ The cost of renting car is different depending on the time and the location of customers that sales people visit
2/ Regarding cost increase in using car, she said that only one case happened in the North Salesmen requested car urgently without plan in advance so the company has to accept high cost for that visit Later on, there are always car visit booking in advance
Interviewing Deputy Sales Managers, both Mr Duy Vo and Mr Duc Le have similar comments on product range, thread sizes, price approval process as well as segmentation positioning
1/ Product range: Amann does not have enough product ranges to compete with competitors in Vietnam market, especially closed competitors such as Coats Phong Phu, A&E, Gunzetal and other local competitors such as Phong Viet, Toung Loong, Gitai, Khoi Chi Hung, Hung Long, Chin Shin, etc
2/ Thread sizes: There is no the middle sizes from the thinner to the coarser ones
Major product types as below table are lack of thread sizes needed
- SabaC: no middle size between Tex 105 and Tex 200 such as Tex 120, Tex 150, Tex 180 for jeans/denim
- Rasant: no coarser sizes from Tex 105 to Tex 240 for jeans/denim
- Universal: no middle size between Tex 150 and Tex 170 such as Tex 180 for jeans/denim or heavy garments
SabaTEX and SabaSOFT do not offer sizes Tex 21 or Tex 24, which are highly sought after in the Vietnamese market for overlock and cover seams.
Table 6: Amann available thread sizes 3/ Price proposal
The sales team in Vietnam must consult with Global Key Account Management (GKAM) for every new customer to determine if a global offer exists If a global offer is available, it must be adhered to; otherwise, GKAM will propose a selling price based on local sales input or their own calculations, which can take several days Disagreements between local sales and GKAM regarding pricing can result in lost business opportunities Additionally, prices must align with those in other countries, leading to GKAM at Headquarters setting the price for Vietnam This situation disadvantages the local sales team, as the prices may be uncompetitive, resulting in lower profit margins for existing customers due to global agreements and high transportation costs from China or Germany to Vietnam.
Amann Group is concentrating on high segmentation for new business development, particularly with its flagship product Serafil and specialized offerings like SabaSOFT, SabaFLEX, and IsaMET However, the demand for these products in Vietnam is limited To effectively expand and capture a larger market share, the company should consider targeting middle segmentation with more popular products such as SabaC, Universal, and SabaTEX.
The competitive pricing of popular threads in Vietnam is driven by numerous suppliers in the market, leading to a decrease in the average selling price for AVN Additionally, Amann's imports of threads from China and Germany further lower prices, intensifying competition with local suppliers As a result, AVN faces significantly reduced profits, and in some cases, negative profits, in its efforts to secure new business.
Ms Diep Huynh – Customer Service Manager said that:
1/ Transportation: there are 3 methods of transportation: ship by sea from Germany or China, ship by truck from China to the Northern of Vietnam, ship by air for urgent cases Ship by air has increased recently because sales requested urgent delivery to maintain key customers and to develop new business
Updated cause-effect map
In 2018, Amann lacked a factory in Vietnam and relied on importing threads from China and Germany, leading to significant transportation costs that affected profit margins Vidal et al identified key factors and opportunities for studying global logistics systems, emphasizing the importance of strategic and tactical methodologies Critical decision-making elements include the selection of transportation methods, allocation of transportation costs, and management of inventory costs.
In today's globalized economy, companies must distribute their products to distant markets beyond their local factories or warehouses Additionally, the rapid advancement of information technology has introduced innovative go-to-market strategies, such as e-commerce, which has significantly enhanced the mobility of goods.
Distribution logistics is a crucial factor in determining the competitive advantages of industrial firms, especially as markets and production systems evolve The shift from make-to-stock manufacturing to just-in-time (JIT) and quick response paradigms has heightened the importance of continuous material flow in the global supply chain Additionally, the trend of localizing production in low labor cost countries has increased goods mobility As customer expectations for delivery lead-times rise, supply chains face greater pressure, making transportation and associated costs increasingly vital for firms' competitive advantage.
Amann Vietnam imports threads from China and Germany via sea, truck, and air In 2018, total transportation costs rose by 18% to US$40,000, up from US$34,000 the previous year, according to Ms Hang – Sales Support From January to July 2018, air shipments increased significantly, primarily to accommodate new clients like Viet Vuong and Maxport, while also supporting existing customers such as Bodynits and Ecco However, from August to December 2018, under the direction of the new Sales Director, the Customer Service Manager consolidated urgent bulk and sample orders for air shipment to reduce costs, resulting in a notable decrease in both the number of air shipments and associated costs in the latter part of the year.
4.2 Recruitment process is not good
Amann Vietnam operates as a small trading office with just four members: a General Manager, a Customer Service Manager, a Customer Service representative, and a Logistics Officer Given its limited size, the company lacks a formal recruitment process that aligns with the standards typically required for a minimum-sized factory of 200 workers.
Luftman et al emphasized that recruitment is a critical challenge for management, ranking it as the top issue The recruitment process is notably time-consuming and costly compared to other HR activities, and small and medium-sized enterprises (SMEs) face significant difficulties in both recruiting and retaining qualified employees, as highlighted by Kim et al.
In the initial interview, Mr Chuong, the Sales Director, expressed concerns about rising selling expenses, attributing this increase to the ineffective visiting plans of the sales team He questioned the qualifications of certain team members, indicating a need for evaluation.
Research on selling expenses highlights the importance of budget allocation for advertising and sales personnel, as noted by Nordin Additionally, Oliver identifies selling expenses as a variable cost Consequently, follow-up interviews included inquiries about advertising costs, sales compensation, and the correlation between selling expenses and pricing.
Enterprise system software packages play a crucial role in business development by providing essential information that enhances operational efficiency These software solutions are not only used for document management and administration but also for addressing significant issues that require timely and preventive actions As customer expectations for product delivery and aftersales services continue to rise, businesses face increasingly fierce competition in the market Consequently, effective and integrated management has become more vital than ever for organizational success.
AVN utilizes the HOSTrade system for processing customer purchase orders; however, this system lacks essential functionalities needed by the Customer Service (CS) team to efficiently manage the growing volume of orders Key features such as estimated delivery dates, back order calculations, credit limits, and payment status are missing, forcing the CS team to manually track their tasks and leading to daily overload Typically, employees leave the office between 6:00 and 7:00 PM, but during peak seasons, they often work overtime until 9:00 or 10:00 PM Notably, the majority of overtime occurs in the second quarter (March) and fourth quarter (December), coinciding with increased administrative tasks before the Lunar New Year holidays.
Daniel 12 demonstrated that overtime is assumed to be additional working hours that employees work more than standard or normal hours Overtime is paid at a higher rate than regular hours However, the limitation on hours leads to some questions in the second round of interview relevant to the influence of overtime on cost, price and profit 13
Table 7: Overtime payment for employee in 2018
Date Overtime hours Payment 8-Dec 15-Dec 22-Dec 29-Dec
Total 11,147,727 tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Setting clear objectives is a top priority and a crucial responsibility of the Board of Management (BOM), as highlighted by Henry et al 14 Following this, the BOM must develop plans to achieve these objectives, typically over a one to five-year period In manufacturing enterprises, the sales plan plays a vital role, providing essential information that enables the production team to align capacity with the demand forecast, as noted by Jan et al 15.
The sales plan, production plan, and financial plan are essential inputs for achieving the organization's profit objectives, with the sales plan serving as the primary source of information for production and financial planning A well-structured sales plan is typically divided into product lines, distribution networks, research needs, quotas, market research, and advertising strategies It provides critical insights into both product and market information, facilitating the establishment of a distribution network that ensures timely product delivery to customers Additionally, quotas set primary sales targets for the sales team, which, when combined with advertising efforts, help to fulfill the overall sales objectives.
The article discusses the planning outputs as outlined by Henry et al It emphasizes the importance of effective strategies in achieving successful outcomes Additionally, it mentions the availability of the latest full version of the thesis for download, providing valuable resources for further research.
Amann Vietnam has set a strategic sales plan for the period of five years from
From 2019 to 2023, the sales plan outlines targets in sales value (USD), sales volume (units and kgs), and net revenue per kg, detailing the brands, customers, and product types the company will prioritize, along with strategies to meet these targets However, there is a significant gap between the sales plan and actual performance, primarily due to two critical issues Firstly, the Amann Vietnam factory project is behind schedule, with completion expected in August or September 2019 instead of the planned April deadline.
A discussion to eliminate some potential central problems and focus on a
5.1 A discussion to eliminate some potential central problems 5.1.1 Expanding local business by import goods
Mr Chuong highlighted the challenges of expanding local business through imported goods, noting that the Vietnam factory is set to begin local thread production in June 2019 To prepare for this, the company must secure additional customers throughout 2018 to ensure a higher volume of orders in 2019, which is essential for the new factory's operational capacity While expanding through imports may incur short-term losses, this strategy is only a temporary solution, as the production issues will be resolved once the factory is operational.
5.1.2 Recruitment process is not good
Amann Vietnam functioned as a trading company with a small team of fewer than 20 employees until the end of 2018 Prior to June 2018, the company comprised just five staff members, including a General Manager, a Customer Service Manager, and a Customer Service Officer.
Increase in cost of goods sold
Apply price centralized decision- making structure
Decrease in average selling price Local sales people do not decide price offer
Unreasonable selling price compared with local cost
Trade-offs (high-end products vs low-end products)
Diagram 4: The updated cause and effect map
Shorten lead- time by air shipment
Lack of middle thread sizes
The company experienced a significant turnover, with one Secretary, one Logistics Officer, and three sales members leaving In response, a Sales Director was recruited in June 2018 to establish and strengthen the sales team starting in September.
From 2018 to April 2019, the Sales Department comprised 9 members, including 1 Sales Director, 3 GKA Managers, 3 Deputy Sales Managers, 1 TAS Manager, and 1 Sales Support Officer In July 2018, Shafiq Zaman, a new Managing Director from Bangladesh, arrived in Vietnam to oversee the factory construction project, leading to significant changes within the organization Amann established the branch of Amann Vietnam Co., Ltd in Tam Ky, Quang Nam, and began expanding its workforce By early 2019, the company had developed into 5 departments, as illustrated in Diagram 1 (page 4).
Mr Shafiq Zaman highlights the challenge of finding qualified individuals with extensive experience in thread manufacturing for central and sales positions As a solution, the company opts to hire young, dynamic candidates who can be trained and coached to fulfill the job requirements This issue is not unique to Vietnam; it also affects countries like China and Bangladesh.
In an interview with Ms Hang, the Sales Support responsible for managing selling expenses for the sales team, she highlighted a specific incident involving a salesman in the North The salesman urgently used a car without a prior visit plan, resulting in an additional cost of 2 million VND.
The high cost spending for recruitment in the central is higher than selling expenses including:
• Sales team: training cost for three people of sales team in China
• Production department: training cost for one Dyeing House Manager in Bangladesh and house re-arrangement package from Hochiminh to Quang Nam for him
• HR department: Travelling between Danang and Hochiminh and accommodation for HR Manager for handover from General Manager in Hochiminh sales office
Every new business must bear initial setup costs.
AVN currently relies on the HOSTrade system for customer management, which primarily supports the customer service department in entering purchase orders and generating sales and credit reports However, this system lacks comprehensive functionality for the sales, customer, and financial teams, necessitating manual efforts to produce essential reports, ultimately leading to decreased employee productivity and unavoidable overtime during peak seasons Despite the overtime costs being relatively low and not significantly affecting profits, a new SAP system is set to launch in June 2019, promising enhanced efficiency across all departments by providing integrated solutions and facilitating information sharing among various business functions, including finance, production, logistics, and distribution.
5.2 A discussion to focus on a central problem
After considering all the potential problems, “inefficient sales plan” has been selected as the central problem The reasons for this selection are explained as following:
Amann targets the high-end market by supplying premium threads for renowned brands like Prada, Barbour, and Hugo Boss, as well as specialized programs for leading sportswear retailers such as Adidas, Nike, and Puma Their product line includes high-quality threads like Serafil, SabaSOFT, SabaFLEX, and Strongfix, which outperform competitors in strength, softness, elongation, and melting ability, justifying their higher price point Additionally, Amann offers TechX threads designed for protective wear, catering to professionals in hazardous environments In Vietnam, the garment industry primarily produces jackets (22%), T-shirts (21%), pants (17%), shorts (6%), and other types (34%), with limited manufacturers focusing on specialized protective garments.
Figure 8: Key garment types of Vietnam Textyle & Garment export 2017
To successfully expand in the Vietnamese market, which primarily targets the middle-end segment, Amann must consider shifting to lower segmentation by offering popular thread types such as Universal (Spun Polyester A), SabaTEX (Texturized Filament Polyester), SabaC (Corespun Polyester), and Crown (Spun Polyester C) at competitive prices The demand distribution in Vietnam indicates that 50% of the market prefers Spun Polyester A, followed by 17% for Texturized Filament Polyester, 14% for Core Spun Polyester, 12% for Spun Polyester C, and 7% for other types A critical challenge for Amann's top management will be to navigate this transition to lower segmentation without compromising the brand's positioning.
The interview with the Global Key Account Manager revealed that 61% of sales come from Global Key Accounts, 23% from Cross Borders, and 16% from Local accounts, indicating that a significant portion of AVN's business is driven by global nominations Consequently, the Global Key Account Management and Cross Border teams at Headquarters oversee pricing strategies across regions where brands are produced However, there is a lack of understanding regarding the implications of offering prices that are lower than local market rates, which can adversely affect AVN's profitability While AVN is accountable for its operational profits, it lacks the authority to set customer selling prices.
Table 9: GKA forecast of AVN from 2020 to 2024
The textile and garment industry in Vietnam comprises approximately 6,000 enterprises, with 62% situated in the South, 30% in the North, and only 8% in the Central region Amann's factory, located in the Central region, faces less competition for deliveries to the South and North compared to rivals like Coats, A&E, and Gunzetal, which have factories in both key regions.
In the B2B industry, renting a booth at an exhibition can effectively introduce your company to new customers, but its benefits are primarily limited to initial market entry Relying on traditional relationship-building with high-level contacts often yields better results than exhibitions for securing orders A strategic approach that involves analyzing market information to develop a targeted plan for reaching new customers proves to be more effective in driving business growth.
PROBLEM JUSTIFICATION
Problem definition
“A sales plan is a strategy that sets out sales targets and tactics for your business, and identifies the steps you will take to meet your targets” 16
The rapidly changing international business environment necessitates continuous adjustments in sales management strategies to maintain competitiveness (Cravens et al 17) In this highly competitive landscape, companies are focused on cost reduction and profit enhancement A well-structured sales plan is essential for manufacturing firms, as it directly influences capacity management and operational planning According to Jan et al 15 (p215), an effective sales plan supplies crucial input information regarding demand forecasts, which is vital for production planning.
Based on that, both sales plan and operations plan have relative relationship for the long-term production within the framework of production plan and control system
To evaluate process performance, researchers often utilize the Balanced Scorecard or Neely's framework, which focuses on two main aspects: effectiveness and efficiency Effectiveness measures how well customer requirements are met, while efficiency assesses the economical use of resources in achieving customer satisfaction The Cambridge English Dictionary defines "inefficient" as failing to maximize productivity and wasting resources Consequently, an "inefficient sales plan" is one that does not achieve the desired results.
1.2 Measurement to measure the degree of the problem in the organization
An effective sales plan is ultimately one that maximizes bottom-line revenue To ensure your sales strategy remains responsive to market changes, it's essential to utilize various tools that assess its adaptability and leverage optimal strategic approaches.
Sam 22 found “an obvious tool for measuring the effectiveness of a sales plan is to set goals, then track them during the year” Normally we use historical selling record data combined with the analysis of current market trends to establish realistic goals that we think we can reach by products, prices, distribution channel, and sales forecast
• Products: specific products or products mixed
• Price: measure sales by price to deliver a “more optimal marketing strategy”
Effective distribution is crucial for determining the optimal locations for selling your products It involves strategically selecting channels to ensure that goods reach consumers efficiently.
• Sales forecast: forecast the market demand to support operation planning.
Problem existence
To determine the reasons lead to the main problem of inefficient sales plan, I conducted several surveys for all staff of Sales Department and analyzed collected data
Amann's entry into the Vietnam market is delayed, facing significant challenges due to fierce competition The simultaneous launch of major competitors A&E and Gunzetal complicates Amann's sales strategy, creating obstacles in reaching its business objectives.
While almost thread suppliers have local production for years, Amann is too late to set up the factory in Vietnam compared with its competitors
Name Capacity Factory location Year of factory operation
HCM factory: 1989 Hung Yen factory:
2 Toung Loong 1 factory in Binh Duong 1998
3 Dung Dong 1 factory in Hanoi 2001
4 Trung Dung 1 factory in Hanoi 2003
5 Chin Hsin 1 factory in Binh Duong 2004
Haram 1 factory in Hung Yen 2005
7 Silsarang Vina 1 factory in Hoc Mon,
8 Khoi Chi Hung 1 factory in Dist 9, HCM 2010
9 Hung Long 1 factory in Thu Duc, HCM 2010
10 Phong Viet 1 factory in Thu Duc, HCM 2012
12 Amann 4 tons/day 1 factory in Quang Nam 2019
13 Gunzetal 50 tons/day 1 factory in VISIP 2 Binh
14 A&E 20 - 30 tons/day 1 factory in Nhon Trach,
Table 10: Competitor list of Amann Vietnam
Sales Director has begun to make detail sales plan 2019 and 5-year sales plan
From June 2018 to 2023, the sales figures have undergone 19 revisions, yet these adjustments lack realistic information or market analysis to support their achievability, as noted by GKA Managers and Deputy Sales Managers Consequently, they are compelled to modify the sales plan, including adjustments to target customers, product types, and pricing, to align with the assigned sales figures.
Problem importance
Amann Vietnam has recently established a factory in the central region, making the sales plan a crucial component to support its operational strategy An effective sales plan, coupled with an accurate demand forecast, will deliver precise input data essential for the supply planning of the operations department.
Figure 9: Sales-Operation-Planning Framework
An improper sales plan can lead to an inaccurate demand forecast, which significantly affects supply chain operations This misalignment often results in increased total costs, including higher inventory expenses and reduced productivity Additionally, it can elevate other operational costs and diminish service quality for customers, ultimately jeopardizing the company's competitive position, as noted by Javier 23.
The local production schedule is delayed to September 2019 instead of April
In 2019, significant factors are impacting sales performance for this year and the next Amann faces stiff competition from A&E and Gunzetal, which entered the Vietnamese market simultaneously, offering popular threads at competitive prices This situation poses challenges for Amann's business expansion Without proactive measures to address potential issues, such as price wars, the company could face serious repercussions in the near future.
Amann China exemplifies the challenges faced by garment manufacturers that concentrate solely on high-end market segments, highlighting the adverse effects of the current economic climate.
Amann is compromising its global brand positioning by aggressively pursuing orders and offering extremely low prices for low-end products.
CAUSES VALIDATION AND SOLUTIONS
List of real causes
Several key factors significantly influence the effectiveness of a sales plan According to Mark 24, these include competitors, the industry landscape, external elements such as economic conditions and legal regulations, timing, and the dynamics of both your customers and their customers, as well as your customers' competitors Additionally, Henry et al highlight essential activities within a sales plan, which encompass market research, product development, sales forecasting, promotional strategies, and pricing.
In summary, from the theory of the literature review, the consolidated reasons are showed as following:
- External causes: market, competitor, customer
- Internal causes: capcity, product, price, service
1.2 List of the new caused obtained from the company (via interviews)
From the interview with all sales members in sales department, there are 4 reasons that make sales plan inefficient:
- Lack of middle thread sizes
- Applying price centralized decision-making structure
- No local production in Vietnam These causes also mentioned in the theory of sales and marketing so it can be applied for further study
1.3 A full list of real causes of the central problem
Based on the theory review and the informationed collected from the company via interviews, there are a full list of real causes of the central problem showing as follows:
- Market: Lack of market orientation tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
- Product: Lack of middle thread sizes
- Price: applying price centralized decision-making structure
- Capacity: no factory in Vietnam
1.4 The relative importance of the real causes 1.4.1 Lack of market orientation
The updated cause and effect analysis reveals that a lack of market orientation leads to an ineffective sales strategy, particularly in target segmentation, product focus, and pricing Concentrating solely on high-end segments, as seen in the German market, does not align with the current realities of Vietnam's textile and garment industry While the Chief Executives aim to uphold brand positioning, the Global Key Account Director prioritizes maximizing sales figures, and the Managing Director seeks to emulate product types from the Bangladesh market This misalignment in business priorities among top management creates confusion in the execution plans at the lower management level.
A solid understanding of marketing principles is crucial for effective implementation, yet it often receives minimal attention Barksdale et al emphasize that the marketing concept serves as an essential philosophy for businesses, guiding company policies and influencing all organizational activities Consequently, market orientation becomes the foundation for all implementation strategies within a company Ajay's research identifies three key components of market orientation: customer focus, coordinated marketing, and profitability, with customer focus being the primary driver that enables companies to make informed decisions.
Market intelligence encompasses various factors, including competition and regulation, that influence customer needs and preferences, as well as their future demands Coordinated marketing emphasizes that market orientation is a shared responsibility across all departments, not just the marketing team, as it relies on marketing intelligence to define customer needs Profitability is viewed as a result of market orientation rather than a fundamental aspect of it.
Market orientation requires collaboration among marketing and other departments to enhance understanding and create execution plans that address the needs of targeted customers, ultimately driving profitability.
Sales and marketing department can conduct the further study on the market conditions and customers’ demands as well to have a full report for market orientation
1.4.2 Lack of middle thread sizes
Firms have long leveraged product variety to boost performance, as noted by Ho et al A diverse product selection allows companies to attract a broader customer base, ultimately increasing market share In marketing literature, high product variety is recognized for its ability to meet the diverse needs of customers, thereby enhancing sales performance through effective customer segmentation and attraction strategies.
AVN offers a diverse range of products for the Vietnamese market, but faces challenges due to a lack of middle thread sizes, particularly Tex 21 and Tex 24, which are essential for overlock and flat seams According to Ms Liana Tran, Technical Advisory Manager of AVN, this gap makes it difficult for Amann to convince customers to switch to the available Tex 18 size Customers are accustomed to using these middle sizes, which allow sewing machines to operate at higher speeds of 3500-4000 stitches per minute, while switching to Tex 18 would reduce productivity to 2500-3000 stitches per minute Although offering a higher thread size, Tex 35, could be a solution, customers are typically unwilling to pay the increased price Consequently, AVN risks losing business or accepting lower margins by providing thicker sizes at the same price as smaller ones.
The challenge of increasing thread sizes has been repeatedly communicated to top management; however, this may lead to trade-offs that significantly affect the success and advantages of the business strategy regarding product variety, as highlighted by Xiang et al.
1.4.3 Applying price centralized decision-making structure
Research indicates that while centralized decision-making structures are often preferred, decentralized structures can yield better profits under certain conditions, as noted by Anderson et al Pelin et al also highlight that although decentralized strategies may not always maximize profits, they can serve as an equilibrium strategy, particularly under tight lead-time requirements Moreover, decentralized approaches do not necessarily lead to higher prices or longer lead times In the competitive landscape dominated by fast fashion brands like Zara and H&M, companies such as Adidas and Gap are striving to reduce lead times, making it a critical factor in differentiated competition, especially for "make-to-order" businesses This is particularly relevant for garment manufacturers, as consumers increasingly demand immediate availability, shifting towards a "see now, buy now" mentality.
Anderson et al demonstrated that a decentralized strategy can yield higher profits compared to vertical integration Additionally, Pekgün et al found that centralized decisions regarding price and lead-time consistently outperform decentralized approaches; however, in competitive market conditions, decentralized decision-making may prove more profitable Furthermore, decentralized companies can more easily offer higher prices or shorter lead-times than their centralized counterparts Consequently, companies can enhance profitability by adopting a global perspective and coordinating their decision-making on price and lead-time.
The current market dynamics are driving a trend towards decentralization, as many brands shift their sourcing and development functions from headquarters or traditional centers like Hong Kong and Korea to Vietnam Centralized pricing decisions at Amann Headquarters are becoming less advantageous for production countries, as each market possesses unique characteristics that are best understood locally Consequently, adopting a decentralized approach to pricing may prove more effective than Amann's existing centralized pricing strategy.
Since its establishment in 2011, AVN has been a trading company, and its factory in Vietnam is nearing completion, with production expected to commence smoothly in September 2019 Recognizing the significance of a local factory, Amann aims to expand its business presence in the Vietnamese market.
From all the above analysis, the final cause-effect map is shown as below:
The set of solutions
To address the central issue, it is crucial to resolve two primary causes: the lack of market orientation and the implementation of a centralized price decision-making structure.
Solution 1: Narrow the gap between what top managers say and what they do
The lack of consistency among top executives, including the Chief Executive, Global Sales Director, and Managing Director, leads to confusion and disrupts the execution plan.
Diagram 5: The final cause and effect map
Applying price centralized decision-making structure
A lack of market orientation does not imply that a company is unaware of market conditions, customer needs, or future trends The sales team, comprised of individuals with 10 to 20 years of extensive experience in the textile and garment industry, possesses in-depth knowledge of AVN products and maintains a broad network of customer connections Consequently, the proposed sales plan is comprehensive, detailing brands, customers, and products However, it has required multiple revisions to align with the adjustments made by top management.
Ajay et al (25, p 6) identified that the key antecedents to market orientation are organizational factors, which encompass senior management influences, interdepartmental dynamics, and organizational systems Among these, the role of senior management is crucial in enhancing market orientation.
Numerous studies highlight the crucial role of top management in fostering market orientation According to Webster, market orientation originates from top managers, who bear the unique responsibility for instilling customer-oriented values and beliefs Similarly, Felton emphasizes that a successful market orientation relies on a conducive "state of mind," achievable only with the support of the board of directors In conclusion, the commitment of top managers is essential for establishing a market-oriented approach.
To enhance market orientation, top managers must effectively communicate their ongoing commitment to the market concept throughout the organization As Webster emphasizes, CEOs should provide clear signals and establish strong values and beliefs centered on customer service.
Therefore, the researchers agreed that besides commitment to market orientation, the top managers must communicate their commitment to all other related departments in the organization
Further investigation aims to uncover more intriguing findings Argyris (37) highlights that the disparity between what top managers communicate and their actual actions significantly impacts lower-level managers For instance, while they may advocate for market orientation, they simultaneously reduce the budget for market research or stifle innovation This inconsistency between rhetoric and action creates uncertainty regarding the allocation of efforts and resources by lower-level managers for market orientation activities, ultimately resulting in diminished market orientation.
Senior management factors play a crucial role in shaping market orientation Understanding the influence of leadership on strategic direction can enhance organizational performance and responsiveness to market demands.
Top managers play a crucial role in fostering market orientation through their commitment and ensuring alignment between communication and action To enhance this alignment, managers can implement several effective strategies.
Top executives, including the CEO, CFO, COO, Global Sales Director, and Managing Director of AVN, convened to discuss a unified business strategy aimed at enhancing market orientation in the Vietnamese market.
• Second, Global Sales Director and Managing Director communicate the solid message to entire departments in AVN about the business strategy based on market orientation.
• Third, sales team revise sales plan in details and propose set of execution plan to achieve sales target.
Top management is implementing a new market-oriented direction for AVN, necessitating revisions to the sales and production plans These changes may face resistance, but it is crucial to adjust supply and demand in line with the updated sales strategy A comprehensive business plan will be developed, focusing on capacity arrangements and production reviews For the organization to succeed, it must prioritize market orientation, ensuring the right products are offered at appropriate prices to target customers If all executives agree on these solutions, it will minimize political conflicts and benefit all functions within the company.
These suggested solutions is likely to brings some benefits and costs described as follows:
- Enhance communication among chief executives, junior managers and staff
- Strengthen the consistency in communication and action of the top managers
To eliminate confusion among junior managers and various departments regarding the organization's business strategy, it is essential to establish clear communication and provide comprehensive guidelines This clarity will ensure that all team members are aligned with the strategic objectives, fostering a more cohesive and effective work environment.
- Promote the solidarity between departments within the company for a common goal of the organization ỉ Quantitative
- Improve gross profit margin from 26% to 30% in 2020
- Increase the number of customers from 150 to 200 in 2020 and to 300 in
- Achieve CAGR at 38.5% for the period of 2019 and 2024
No Types of costs Estimated costs Note
Organize meeting for chief executives USD 4,500
Including flight ticket, accommodation, transportation, visit fee, lunch, dinner
Organize meeting between top managers and junior managers USD 4,000
Including flight ticket, accommodation, transportation, visit fee, lunch, dinner
Revise sales plan and propose execution plan USD 2,500
Table 11: Estimated costs for organizing meetings among top managers and junior managers
Solution 2: Propose price decentralized decision-making structure
The company's centralized decision-making structure regarding pricing is leading to low profits and negatively impacting service quality due to increased waiting times.
While centralization can foster beneficial collaboration, decentralization is crucial for swiftly adapting to ongoing technological and environmental changes This is particularly relevant in the context of Industry 4.0 and the rapid advancements in globalization and integration.
AVN is nearing the completion of a factory in the central region, which will produce both global products like SabaC, Serafil, and SabaTEX, as well as local brands such as Universal, Crown, and Synton to cater to local demands This situation at AVN exemplifies how diverse market conditions can drive decentralized decision-making structures, which are essential for adapting to local product ranges The challenges posed by varying local demand have prompted multinational companies to centralize certain decision-making aspects at the country level for quicker responses.
In this industry, with analyzed information, applying decentralized decision- making is reasonable to flexibly serve the local market and local customers
Decentralized structure, off course, still has the supervision of head quarter but local managers can have the authority to make decisions for local market 40
Some solutions should be taken as following:
• First, analyze comprehensive data on current global price offer, local market price, closed competitors’ price, COGS and profit margin
• Second, make a professional proposal about applying price decentralized decision making
• Third, discuss about this proposal in annual GKAM meeting where all GKAMs meet to discuss about sales strategy
• Forth, get approval for this proposal on as much aspects of local decision making as possible
This set of solutions may cause other potential issues such as people resistance and political conflicts
Action plans
Based on the above analysis, Amann Group and AVN needs to take action as follows:
1 Action plans PIC Timeline in 2019
Jul Aug Sep Oct Nov Dec
Top executives, including the CEO, CFO, COO, Global Sales Director, and Managing Director of AVN, convened to discuss a unified business strategy aimed at enhancing market orientation in the Vietnamese market.
Analysis VN market industry information about apparel and footwear GKA
Overall information on Vietnam market Sales
Global Sales Director and Managing Director communicate the solid message to entire departments in AVN about the business strategy based on market orientation
Making announcement on top managers’ direction Sales
Send the announcement to all departments Managing
Sales team revise sales plan in details and propose set of execution plan to achieve sales target
Consolidate revised sales plan for AVN GKA
Send consolidated new sales plan for approval Sales
Director tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
2 Action plans PIC Timeline in 2019
Jul Aug Sep Oct Nov Dec
Running sales report to get current selling price for every brand/ factory/ product item Sales
Support Comparing current selling price to market prices, closed competitors' prices Factory
Sales Comparing global price offers to market prices and closed competitors' prices GKA
Consolidating analyzed information to have an overview of current situation GKA
Making a proposal based on consolidated analyzed information GKA
Revise the proposal if needed GKA
Discuss about this proposal in annual GKAM meeting
Present the proposal in Annual GKAM
Director tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Discuss about the proposal: objectives and benefits Sales
Get approval for this proposal
Follow up the proposal GKA
Got approval of this proposal from
Communicate to subordinators for implementation Sales
Applying new decentralized decision- making structure
Sales Depart- ment tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
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I don't know!
I would like to thanks for your time in my interviewing today
Firstly, I would like to talk about present situation of our company Follow the financial report of financial year 2018, you may know that the profit is negative in
2018, gross profit margin decreases and average selling price decreases compared with previous years Therefore, I would like to discuss some questions with you about this situation
The interview will last approximately 10-15 minutes, during which I will record our conversation to ensure that all the information you provide is accurately captured for my analysis afterward Thank you for your support!
1 Personal information Your job/ responsibility/position within the company?
2 How long have you been working in Amann Vietnam?
1 In your opinion, which reasons lead profit in financial year 2018 negative?
Why does gross margin decrease? Why does average selling price decrease?
And what is the main reason and why?
2 How do you evaluate current staff’s working efficiency?
3 Do you have recruitment process? How do you think about the current recruitment process?
4 What is your company’s value proposition?
5 What are difficulties of the company facing in the current situation of your business field? tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
6 How is your evaluation of your competitors?
7 What are the product ranges of your company in positioning with your competitors?
8 What are your difficulties in expanding customers?
9 How do you think about the current process?
10 How does the lack of middle thread sizes impact on your business in term of technical point? Do you have any solutions?
1 As feedback from Sales Director, sales expenditure has increased recently
As a person who monitor sales expenditure, how is your though about it?
2 Can you share the specific cases?
3 How is the quotation from supplier?
4 How much transportation costs in 2017 and 2018?
1 Where do your company import threads to supply in Vietnam market?
2 What is the transportation methods you are applying at the moment?
3 How useful the system that you are working on is?
4 How is the workload of CS?
5 Do you usually do overtime? Why?
1 How is the OT payment for staff currently?
2 How often does your staff work OT?
1 What are current difficulties for AVN?
2 What products will be produced in Vietnam? tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Personal Question and Answer Note
Can you introduce your name and position?
Mr Shafiq Shafiq Zaman – Managing Director
Mr Chuong Vu Hoang Chuong – Sales Director
Mr Luan Dao Dao Thanh Luan – GKA Manager
Ms Liana Tran Tran Thi Lieu – TAS Manager
Mr Duy Vo Truong Duy – Deputy Sales Manager
Mr Duc Le Quang Duc – Deputy Sales Manager
Ms Hang Nguyen Thi Le Hang – Sales Support
Ms Diep Huynh Ngoc Diep – Customer Service Manager
Ms Vy Nguyen Thuy Thao Vy – General Manager
How long have you been working at Amann Vietnam?
1 In your opinion, which reasons lead profit in financial year 2018 negative? Why does gross margin decrease? Why does average selling price decrease? And what is the main reason and why? tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Mr Chuong Sales turnover in 2018 reached USD 1.5mil, an increase of
25% compared with sales target 2018 of USD 1.2mil
Amann Vietnam faces a significant challenge in the next four years (2019 – 2022) as its profit margins are considerably lower than those of competitors like Coats Phong Phu, which boasts a profit margin of 40% - 42%, and production sites such as Bangladesh.
There are some probable reasons of the decrease in gross profit margin and negative profit in 2018
- Transportation cost, especially air shipment for urgent orders and urgent samples The cost of shipment increased much in the last months of 2018 which impacts gross profit margin significantly
In recent months, I have approved several proposals for customer visits, but I am uncertain if the sales team is proficient in creating visit plans or if they struggle with time management Additionally, there has been a notable increase in urgent car requests for customer visits in the North area.
I have approved numerous overtime proposals for the customer service and admin departments, raising concerns about the company's time management and system efficiency It is essential to investigate this issue in your thesis and propose solutions that enable employees to complete their tasks within regular working hours Our goal is to ensure that employees can effectively balance their work, family, and personal lives without the need for overtime.
3/ Local production Amann is building the factory in the central of Vietnam Regarding expanding business in Vietnam in apparel sector, it is a must to have local production to compete with local suppliers Moreover, customers require speed to market due to the change in customer tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg behaviors so leadtime is very important and manufacturers request quick delivery service
2 How do you evaluate current staff’s working efficiency?
Mr Chuong - Sales forecast is not accurate due to sales people’s lack of forecast experience
The sales plan has not met my expectations, particularly in the North area, where there is a significant discrepancy between the projected monthly sales and the actual figures It is concerning that no action plan has been implemented by the sales team in this region Achieving sales targets requires deliberate effort rather than relying on chance.
- Customer service department usually works overtime
Does it caused because of employee competencies or job description unclear so they do not understand their job requirements or system/SOP of the company
3 Do you have recruitment process? How do you think about the current recruitment process?
Mr Chuong We are recruiting HR Manager and expect to have better recruitment process soon Admin and Customer Service employees were recruited before I join the company
4 What is your company’s value proposition?
Mr Chuong Amann focuses on high segmentation with flagship product Serafil and other special products like SabaSOFT, SabaFLEX and Tech-X products for outdoor, sportswear and technical application
Amann consistently prioritizes high product quality in its offerings.
5 What are the difficulties of the company facing in the current situation of your business field?
Amann faces challenges in the Vietnamese market due to its limited product range, which hinders its ability to compete effectively against rivals like Coats Phong Phu, A&E, and Gunzetal, as well as local competitors such as Phong Viet, Toung Loong, Gitai, Khoi Chi Hung, Hung Long, and Chin Shin.
- There is no the middle sizes from the thinner to the coarser ones Major product types as below table are lack of thread sizes needed
+ SabaC: no middle size between Tex 105 and Tex 200 such as Tex 120, Tex 150, Tex 180 for jeans/denim
+ Rasant: no coarser sizes from Tex 105 to Tex 240 for jeans/denim
+ Universal: no middle size between Tex 150 and Tex
170 such as Tex 180 for jeans/denim or heavy garments
+ SabaTEX and SabaSOFT: no sizes Tex 21 or Tex 24 which is very popular in Vietnam market for overlock and cover seams
6 How is your evaluation of your competitors?
Our direct competitors are Coats, A&E and Gunzetal They also have in nomination or approval list of Brand
Coats is the leader with around 40% market share
A&E supplies thread in VN market through import products
Gunzetal does not have representative office in Vietnam It has joined Vietnam market this year
Both A&E and Gunzetal have local factory the same time with Amann
7 What are the product ranges of your company in positioning with your competitors?
Mr Duc and Mr They offer a diverse selection of popular products, including the latest downloads and resources for academic theses and dissertations.
Duy Vietnam market from normal products to high quality products They have enough sizes to apply for a wide range of fabric types and garment types
8 What are your difficulties in expanding customers?