The art of keeping the talented people at viet hoa joint stock company

My topic is that "The art of keeping the talented people at Viet Hoa GlobalJoint Stock Company" aiming to discover the reasons for the employees'leaving work as well as the retention pol

ACKNOWLEDGEMENT

First of all, I would like to spread me gratitude to all lecturers ofInternational Business Administration Department of HCM city ForeignLanguages and Information Technology University (HUFLIT) whosupplied me with invaluable knowledge as well as experience during thepast 4 years More sincerely, I would like to express my deep tribute to mylecturer Hoang Huan, who have constructed and provided usefulsuggestions to help my research be implemented perfectly

My topic is that "The art of keeping the talented people at Viet Hoa GlobalJoint Stock Company" aiming to discover the reasons for the employees'leaving work as well as the retention policy the company applied toovercome the alarming high turnover; at the same time, my givingevaluation and some suggestions to this art at Viet Hoa Co By this paperresearch, I have not only gained more understanding about workingenvironment, business way, and corporate culture, but put my knowledgelearnt at school in practical situations, creating the most stable steps beforedebuting into the school of hard knocks

Besides, I also show my thanks to the board of directors, and all the staff ofViet Hoa Co who supplied all materials as many as possible for me toperform the work reasonably

Finally, I would lik~ to pay the highest respect to my mother, relatives, andclose friends who have encouraged and supported me to do this work

papers a form of upgraded essay or just a compendium of what they haveread and then collected, I found that there is a great strive on the part of thestudents involved for their elaborate work of research By strive, I mean thatthey carry out the work - their research papers - in a very hard way for thefact that they have to work in a very difficult situation: the school's humblelibrary, both in size and in space, and their being busy (almost allHUFLIT's students are rather busy - fulfilling their studies as well asmaking their living at the same time) and therefore preparing their papers inhaste

From such an understanding, I do not see any reason to make the studentswork harder for a better paper In other words, striving in such a difficultsituation, they can not avoid any shortcomings and limitations And, thisliterary work of Nguyen Thi Phu Thu, the writer of the paper you arereading, makes no exceptions In my eyes, her work should be regarded as'good' for the reasons already mentioned here above

So, please read Phu Thu's work and think of her strive in an understandingmanner instead of her being required to have a perfect research study.Anyhow, hers is a work of order, diligence, patience, and dedication, which

I feel admiration for

Hoang Huan, MBALecturer

•

• During the apprentice time at Viet Hoa Global Joint-Stock Company for two

months, Miss Nguyen Thi Phu Thu has got her best shot to inquire, attended allapprentice days, and fulfilled tasks assigned by the company In particularly,she has written a graduation paper with the topic "The art of keeping thetalented people at Viet Hoa Global Joint-Stock Company" that has been highappreciated The studied topic is practical to the company's human resourceposition She found out some main reasons that made Viet Hoa Company'semployees quit their jobs As for evaluation and suggestions, the company hasrealized that they can be put into practice to improve and enforce theperformance of the company If possible, the company would like her to stayand work at the company in order to collaborate with us for long time, pushingthe company up to the best place

Director

successfully, we commonly rely on its assets These assets might includecapital, land, plants, facilities, profits per year, and so on This has become aningrained viewpoint We will, however, make a big mistake if we ignore adeterminant That is HUMAN, regarded as the key to innovation that sets upcompetitiveness accounting for the survival and growth of the organization.Taking care of people is a critical way of taking care of the business to measure

a certain organization's performance Therefore, we must consider itsmanagerial technique, the art of keeping talented people in an organization.And through the report with theme "The Art of Keeping Talented People atViet Hoa Joint-Stock Company", I have discovered this area morecomprehensive

The report is divided into 5 chapters:

Chapter 1: Literature review & Management Overview- I identified someauthors who had studied several issues related to my field of study Next, Isupplied some major definitions and functions of management, especially ofHuman Resource management

Chapter 2: Viet Hoa Global Joint-Stock Company- presenting informationabout my studied company to help readers know particularly its backgrounds,services, past and current business activities

Chapter 3: Why people leave work- after conducting the survey to gather the

opinions of leaving staff as well as the existing workers, I show the mostcommon reasons leading to the state of giving up jobs of Viet Hoa's employeesthat becomes a burden to the company

Chapter 4: Retention and the art of keeping talented people at Viet HoaCompany- Some overviews referring to Retention, and from this, I detail themethods of keeping skillful workers that the company has applied

some suggestions with the purpose of enhancing the company's performance.

Figures

Figure 1 : Job Description of Viet Hoa 9

Figure 2 : Structured verus Unstructured Inteview 11

Figure 3 : Exempt Job and Non-exempt Job 13

Figure 4 : The Organization Chart 23

Figure 5 : Profit Comparision of Logistics Team in 2006 24

Figure 6 : Sales Performance in 2006 27

Figure 7 : Income Statement of Viet Hoa from 2004 to 2006 30

Figure 8 : Expectations of Manager and Employees 36 Figure 9 : The Turnover of Viet Hoa Co 41

Illustrations Illustration 1 :Viet Hoa Company's Profile 17

Illustration 2 : Logistics Departmant 25

IIIustration 3 : Marketing Department _ _ 26 Illustration 4 : Account and Finance Department 26 Illustration 5 : Sales Department 27

o Scope of the research 2

o Structure of research 3CHAPTER 1: LITERATURE REVIEW & OVERVIEW OF

CHAPTER 2: BACKGROUND INFORMATION 16

A.About Viet Hoa Global Joint Stock Company 16

VI Main Services of Viet Hoa Co 20 VII The Organization Chart 23

B The Business Activities in The Past Three Years

I The SWOT Analysis 28

II The Business Situation of the Company from 2004 to 2006 30

II The Essential Needs of the Staff 33

CHAPTER 4: RETENTION AND THE ART OF KEEPING

THE TALENTED PEOPLE AT VIET HOA CO 39

1 Why Retention is a Needed Issue 39

II The Art of Keeping The Talented People At Viet Boa Co 41

Evaluation 52

Viet Nam's entry to World Trade Organization on November 1st, 2006 is the great happiness for Vietnamese people, especially for Viet Nam enterprises This has also, however, become a vain challenge to them Vietnamese enterprises see that it is a jungle over there; they knock their selves out to get down to brass tacks They not only compete with domestic businesses, but also with foreign competitors So, the question raised is that which competitive advantages do the Viet Nam enterprises use to beat foreign ones without being ripped off and so that the former can survive stably? We have to realize that Science and Technology, Informational Technology and Capital, which are commonly considered as necessary elements to create a business' success, are those we can not surpass But we hand in one thing that plays a crucial role and can not be absent in the battle of business That is HUMAN The scene is beautiful, but it gets meaningless if there are no men in it The same thing goes for business Although an organization has advances and a strong finance source, it is still bad if there are drawbacks in Human Resource, specifically, in keeping talented staff of an organization.

The purpose of the research

Every company wants to be known by everyone For this, it is necessary to

master and use its comparative advantages effectively In other words, the

managers have to own its differentials Businesses might have the same managerial techniques because of standardization, the same amount of capitals, economic scale, but there is only one thing that makes it different from others, that is Human Resource So, the Human Resource is likely the most crucial role that determines the success or failure of an organization.

Now that Vietnam has joined the World Trade Organization, a major question plaguing many corporations is how to keep their talented staff Global

becoming less loyal to their companies, so corporations will have to give ittheir best shot to draw and keep talented staff members, especially at localcompanies because of the situation of the "drain of brain" which often occurs atViet Nam enterprises due to poor management and it is a headache for almostmanagers What a highly appreciated view when they know how to keep thesededicated people for a long time aiming to bring benefits for company Wewould lose time, money, energy if the situation of turning over of the staff.Sensing its importance, Viet Hoa Global Joint-Stock Company has especiallypaid attention to the retention program since it suffered significant damagefrom high turnover ratio And that is the reason why I choose 'The Art of theKeeping Talented Personnel at Viet Hoa Global Joint Stock Company." as myessay's topic The findings aim to analyzing, evaluating the measures applied

by the company to keep the skillful labors, giving some suggestions in order toenhance efficiency of the human resource at this company

Scope and Limitation of the research

My research studies only the retention program of a domestic company; it isnot likelihood of far-reaching applying to all organizations Besides that, as Ihave worked as an apprentice at Viet Hoa for less than 2 months only, thereport's outcome is limited to my experience and proficiency

Research Methodology.

The report is performed with the information, figures, materials supplied by thecompany and a few reference books In addition, surveying opinions ofwo~king staff during the time I had a chance of associating with them is theinvaluable material used in the research

Structure of the Research

My research is divided into 5 main parts

4 Retention and the art of keeping talented people at Viet HoaGlobal Joint-Stock Co.

5 Evaluation and Suggestions

Chapter 1: LITERATURE REVIEW &

MANAGEMENT OVERVIEW

I LITERATURE REVIEW

After looking for references at HeM city and its university's libraries and oninternet as well, I collected some works relating to my subject One with thetopic "How to apply effectively human resource planning, recruitment, andselection to Viet Nam" presented by author Pham Quynh Nhu Morespecifically, the topic: "Evaluating the role of Human resource Department ofGarden Plaza Parkroyal & New World Hotel" is studied by author Nguyen ThiHong Nhung and that of author Dang Nhu Trang entitled "Analyzing thecurrent Recruitment and Selection process in the Saigon Joint-Stock company"and some other authors on human resource However, almost all those authorshave not yet focused on showing some practical methods to maintain skillfulworkforce for businesses This became a great concern to me and therefore 1decided to study mainly this area of the subject

II MANAGEMENT OVERVIEW

Part 1: Management

1 Management: is the process from which the work is completedefficiently and effectively thanks to the efforts of all the people in theorganization In details, it needs the combination of all resourcesthrough the process of planning, organizing, influencing andcontrolling to reach expected objectives

a Planning: The process of setting up goals and working outstrategies to reach stated goals

b Organizing: The process of prescribing formal relationshipsamong people and resources to determine what needs to be done

by whom in what order

c Influencing: The process of determining or affecting the behavior

of others by motivating all involved parties and dealing withcontroversy This refers to motivation, leadership, andcommunication

d Controlling: The process of evaluating actual performance andtaking any necessary corrective action in order to ensure that thework is done as originally stated

2 The environment ofthe management

a The External Environment

• The Economy: the state of recovery or recession

• Culture: a system of beliefs, symbols, customs, shared values,assumptions determining human behaviors

• Society: the attitudes and beliefs of the public can affect firm'sbehavior and profits Nevertheless, the company needs toconsider the so-called Social Responsibility

• Legal Consideration: refers to federal, state, local legislation andthe many court decisions interpreting this legislation

• The Labor force: the pool of individuals that an organization canobtains its workers

• Union: a group of gathered employees that has the same purpose

of dealing collectively with their employer

• Stockholders: the owners of a corporation that have the right toelect the board of directors who appoint or elect the top managerand make major decisions regarding company operations

• Competitors: When a company thinks of competitors, it meansmaking decisions to protect it and these may affect thecompetition

• Customers who increasingly demand high-quality products andafter-purchase service

• Technology: is changing rapidly, so a company has difficulties inkeeping track of it.

1. The Internal Factors

• Mission: the organization's purpose in succession and reason forbeing

• Policy: the predetermined guide established to provide direction

• Labor agreement: The managers must implement the agreements

Part 2: Human Resource Management

Definitions:

o Human resource management (HRM) is the utilization of individuals to achieve organizational objectives (*) However,there is a difference between HRM (a major managementactivity) and HRD (Human Resource Development, aprofession) HRD includes the broader range of activities todevelop personnel inside organizations It includes careerdevelopment, training, organization development, etc

o Human resource managers are individuals who normally act in

an advisory capacity when working with other managers to helpthem deal with human resource matters (* *). However, to

become a good manager, he/she needs to combine bothmanagement and leadership skills

Functions:

It is a good idea to only regard the key functions are decidingwhat staffing needs we have and whether to use independentcontractors or hire employees to fill these needs, recruiting andtraining the best employees, ensuring they are high performers,dealing with performance issues, and ensuring our personnel andmanagement practices conforming to various regulations.Activities also include managing employee benefits andcompensation, employee records and personnel policies

1 Staffing: The process through which an organization ensures that italways has the proper number of employees with the appropriate skills

in the right jobs at the right time to achieve the organization's objectives(* * *).

Staffing involves job analysis, human resource planning, recruitment, andselection Managers have to implement these so that their employees workproductively at present and in the future

a First of all, clarifYing some terms referring to the Job Analysis isessential They consist of

Job descriptions are typically used to

• Drive recruitment campaigns

• Set expectations for new workers

• Establish salary grade levels for groups of jobs

• Align individual goals and activities with an organization'sstrategic objectives

• Decide on the training and development programThey mainly include two parts; the first is Job specification whichshows job title, the department, and position, areas of responsibility,main tasks, and separate description of main tasks, special

requirements, location, and special circumstance The second is

Personal specification covering education, qualifications, training, experience, work based competencies, behavioral competencies.

Job analysis includes examining the tasks and sequences of tasks necessary to perform the job The analysis looks at the areas of knowledge and skills needed by the job.

Note:

(*), (**), (***), (****), (*****): Human Resource Management-Overview

by R Wayne Mondy, Robert M Noe, and Shane R Premeaux at page 2, 7, 3,4, 5, respectively.

Job Description of Viet Hoa Company-a sample

The Title: Manager Department: Domestic Logistics

Full Name: TRAN V AN THUC

Report to: Director NGUYEN VAN THUC

Tasks:

1 Develop market, seek customers to increase company's sales, profit

2. Set up actions complied with guideline stated by board of directors

3 Assure employees to perform as given regulations and support them

4 Deal with arisen problems occurring in contract performance

5 Complement work that director requires

6 Estimate transportation costs to make high profits

7 Manage employees effectively

8 Draw up operational system to follow up Domestic Logistics

Department's staffs implementation

9 Discuss company's operation with board of directors

Personal specification

1 Education : Bachelor

2 Experience : At least 2 years

3 Training : Professional Logistics

4 Skills : Proficient, active, innovative, up-and coming

Figure 1:Job Description a/Viet Hoa Co

b Human Resource Planning: making up how many people should beemployed, but ensuring that all members of staff are making an effectivecontribution and what are the skills that will be required, and how theywill be acquired in the future.

c Recruiting Promising Candidates

Gaining access to qualified candidates is critical to the success of our hiringeffort That means creating a pool of qualified applicants

We can use agencies, newspaper ads, referrals from colleagues, trade publications, professional associations, nenvorking, campus recntiting, and the Internet to inform recruitment. In addition, we can enhance the number ofqualified candidates through programs such as internships and partnershipswith colleges, universities, and community organizations

+ Screening Resumes

We will have choices in the hiring process through a sizeable pool ofcandidates It also means that we will have more sifting to do in finding thebest choice And that sifting begins with resume screening

+ Job Interviewing

A primary purpose of job interview is to provide both the interviewer and thejob candidate with an opportunity to obtain the information they need to makethe best possible decision If we have a well organized approach, this helps usmake the most of that time, yielding more and better information

When we are selecting someone for an important position, we will probably gothrough at least two of the following stages for every job opening In somecases, we may even go through all three

1 Telephone-screening interview

2 Initial in-person interview

• Second interview

Structured versus Unstructured Interview

Structured interview Unstructured interview

Ask all the candidates the same Be individual conversations thatquestions so we can compare their follow lines of inquiry We mayanswers Structured interviews are learn more about the candidates,used in order to be fair and objective, but it will be more difficult tobut they may not elicit as much compare their responses We mayinformation from the candidates miss key information needed III

order to make a decision

Figure 2: Stnlctured verus Unstnlctured Interview

The best way for us to steer a middle path between these two approaches is to

be flexible in your line of inquiry, but be sure that all the interviewees respond

to a core set of questions

• Evaluating the Candidates

Once we have interviewed all the candidates, we and others involved inthe hiring decision must conduct an objective evaluation of each one

+ References Checks

In checking references, we have two aims The first is to clarify what theapplicant has told you about his or her work experience: where, howlong, last position held, and particular assignments The second aim is tolearn about the applicant's successes and failures, work habits, strengthsand weaknesses, and so forth

+ Making the Decision and Offer

After Resumes, interviews, and reference checks made in turn to thedecision making process At that a question, "Do we have enoughinformation to make a good decision?" is offered If the answer is "yes,"then it's time to move ahead with making the hiring decision, giving thejob offer that made in person, and sending a written confirmation

2 Human Resource Development. It not only covers training anddeveloping but also individual career planning and developmentactivities, performance appraisal, and activity that emphasizes Trainingand Developing needs.(****)

+ Training: provides learners with the knowledge and skills needed fortheir present jobs Training usually refers to some kind of organizedevents - a seminar or workshop that has a specific beginning data andend date It is often a group activity, but the word training is also used torefer to specific instruction done one on one

+ Development: learns that this goes beyond today's job aims to bringmore benefit to the company Employee development, however, is amuch bigger, inclusive "thing" If a manager coaches employee in anongoing way, that is employee development Alternatively, employeesmay rotate job responsibilities to learn about the jobs of their colleaguesand gain experience so they might eventually have more promotionopportunities

3 Compensation and Benefits

a Compensation: Compensation is payment to an employee inreturn for his/her contribution to the organization, that is, fordoing his/her job Today, we need to think in terms ofcompensation packages - including salaries, stock options,employee stock ownership plans, pay-for-performance plans,bonuses, profit sharing, commissions, noncash rewards, variablepay, and much more

Compensation is usually provided as base pay and/or variable pay

Base pay is based on the role played in the organization and the market for

the expertise required conducting that role

Variable pay is based on the performance of the person in that role Forexample, for how well that person has achieved his or her goals for the year

Some programs include a base pay and a variable pay Organizationsusually associate compensation/pay ranges with job descriptions in theorganization.

We also need to consider to Exempt and Non-Exempt jobs to suggest compensations and benefits suitable to these two jobs

Exempt Job

+ Job: Professional management and

other types of skilled jobs

+ Compensation and Benefit: get a

salary, that is, a fixed amount of

money per time interval, usually a

fixed amount per month

+ Not uncommon to receive higher

compensation and benefits than

non-exempt jobs, although

non-exempt jobs often can make more

money than exempt jobs simply by

working more hours

Non-Exempt Job

+ Unskilled or entry-level jobs

+ Get a wage, or an amount ofmoney per hour So, they canget paid over-time, that is, extrapay for hours worked over 40hours a week or on certain days

of the week or on holidays

+ Each job must have the samepay range for anyoneperforming that job, that is, oneperson can't have a highermaximum pay than someoneelse doing that same job

Figure 3: Exempt Job and Non-exempt Job

b Benefits: are forms of value, other than payment, that areprovided to the employee in return for their contribution to theorganization, that is, for doing their job Prominent examples ofbenefits are Insurance (medical, life, dental, disability,unemployment and worker's compensation), vacation pay,holiday pay, maternity leave, contribution to retirement (pensionpay), profit sharing, stock options, and bonuses Some people

would consider profit sharing, stock options and bonuses asforms of compensation These are though as tangible benefits:Intangible benefits are less direct, for example, appreciation from

a boss, likelihood for promotion, nice office, etc

Nonfinancial rewards: nonmonetary rewards, such as enjoyment ofthe performed work, a satisfactory comfortable and flexibleworkplace environment

4 Safety and Health

Safety involves protecting employees from lilJunes caused by related accidents

work-Health refers to the employees' freedom from illness and their generalphysical and mental well-being (*****)

As an employer, it is our responsibility to maintain a safe and healthyworkplace A safety and health management system, or safety program,can help us focus our efforts at improving our work environment Ourorganization will have its own unique system, reflecting our way ofdoing business, the hazards of your work, and how we manage thesafety and health of our employees:

• If you manage a small business in a low-risk industry, your system maysimply involve listening to your employees' concerns and responding tothem

• A large business in a hazardous industry may have notebooks full ofwritten policies and procedures and a full-time safety director

5 Emplovee and Labor Relations

Labor relations refer to labor-management relations involving bothindividual and collective bargaining in order to bargain issues, negotiatethe agreement and breakdowns in negotiations Employee relationsinvolve internal employee relations that comprise the human resource

management activities associated with the movement of employees inthe organization They include promotion, demotion, transfer,resignation, layoff, discharge, retirement, disciplinary measures.

6 Human Resource Research is not a distinct HRM function, it pervades

all functional areas It is clearly a necessary key to developing the mostproductive and satisfied workforce possible (*****)

Chapter 2: BACKGROUND INFORMATION

A About Viet Hoa Global Joint-Stock Company

1 The company profile

Business name: Viet Hoa Global Joint-Stock Company

License on: August, 20th, 1999 in accordance with regulation of theMinistry of Planning and Investment in Ho Chi Minh City

The Business legislation No: 4102000806

The General Director Nguyen Van Thuc once gave these statements

"Getting the success, we have to face with plenty of difficulties But there is no gain without any cost Furthermore, the success is easy to lead to arrogance and finally failure So, we should never be satisfied with our achievements and "sleep" on our victory Contrarily, we should always try to get any higher goal to pursue with the help of extensive overseas network; we commit to bring the world standard freight forwarding services to our clients "

Moreover, with the special motto "Let us take care o/your cargo" and

the commitment of building up the corporate culture, we hope that in the near future, Viet Hoa will step by step access to the world to continue to strive relentlessly to ensure quality, service when Viet Nam enters WTO.

To implement the above targets, Viet Hoa Co continuously creates relationship with enterprises to open the way so that the company can find partners, as well as expand market segments aiming to bring satisfaction to customers We strongly believe Viet Hoa Co is on the way to access win."

Illustration 1.1: Viet Hoa Company's Profile

II Achievements

Viet Hoa hand in prizes and titles:

• Being among the top five of the best cargo and logistics

enterprises chosen by "Viet Nam Freight and Logistics Network" and treated as a leading transport trade mark in Viet Nam.

• Being a leading transport trade mark in Viet Nam

Moreover, Viet Hoa Group with modem style have operated in 65 cities and provinces and operated as local office in nearly 350

countries in the world

III The Corporate Culture

Building a corporate culture is an essential task to develop the company's business operation This is the leading concern of all staff in the company.

A suitable corporate culture is the golden key in the company's future With the "family style" in management, every member is very friendly, supportive individual who is creating the strength of the company, helping

it get over impediments Beside that, the corporate culture is expressed in making the efforts to collaborate with customers and partners both domestic and oversea in order to implement the slogan the company put forward

"Customer's success is the Viet Hoa Company's prosperity."

IV The Meaning of the Logo

Logo of "blue line" is the copy of the Earth Sea, one of the main ways to transport the goods of Viet Nam Company.

The letter innovation V lays in the Earth is the image of Viet Nam country where Viet Hoa was born and grew up With this message Viet Nam would like to build up

the close relationship with all the countries in the world on the basis ofrespecting the sovereign, equality of all nations, no interference in thedomestic affairs.

The company trade mark put on the Earth describes the target andwishes of the company Viet Hoa hopes that it will be present inthe world and customers will regard Viet Hoa as a famoustransportation trade mark The logo also shows strength, potentialmarket and stable development of the company

With the above target, the company is always doing business with thesuitable parts and expanding the size and scope of its activities more

The company makes progress in choosing the market on the basis of thecharacteristics of each region After carrying out the market research, it willmake decision to put the representative office and agency abroad

Implementing some jobs related to transportation, shipping, and receivingand bringing goods to the required posts, and vice versa, Customsclearance, door-to-door delivery to customers according to the strict rules ofthe Government for the following goods:

Export: hand-crafts, wooden shoes, garment, hand-made pottery, etc

Import: machines, textile, chemicals, raw-materials, polystyrene, and so on

to serve exporting

In general, here is the scope of activities of Viet Hoa Co

• International sea/air freight forwarding

• Multi-modal transportation

• Marine broker and agency

• Project cargo handing

• Customs clearance and door to door delivery

• Consolidation/ entrusting import-export

• Trading

The company always puts its customer in the first place inmarketing strategy The company attracts potential customers bycreating belief in customers on its new services

• The domestic customers from the North to South, fromHanoi to HCM city and nearby areas Partners combine withViet Hoa Company because they can not import or exportthemselves, they have a little experience in shipping andrecelvmg goods, Customs manifest, Customs clearance;door- to-door delivery, and so on

• Customers from the neighbor counties such as Laos,Thailand, Indonesia, China

• Customer are from other countries including North America,Asia, Europe, Scandinavia Peninsula are served according tothe requirements of each customer

VI The Main Services of Viet Roa Company

1 AirWay:

As an lATA air cargo agent, the company offers customers a worldwide

air cargo service that is rapid and economical Thanks to the relationshipwith major airlines, the company can supply the best services whateverthe weather condition Making good relationships and dedication to thework is the main factor to enhance its trading capacity and providing theservices at competitive price

4. Export-import goods in airway4; Provide professional advice to customers in planning anddocumenting for shipment

it Create enduring relationships with all big airlines

4,. Ensure cargo to be placed on board of reserved cargospace and arrive at customers given destination in time

2 Sea Way:

Viet Hoa Company provides comprehensive cargo sea way services at

competitive freight and as fast as possible by its all best efforts

The company nurses customer with services at main ports in the world

and at partners' offices abroad The major services are local trucking,

inland trucking, transshipment, sea-air combination transport The

company doesn't cover services that transfer from less than one

container to full container

4, Export-import cargo

clearance/Legalization/Original Certificate/Ins urance4 Door to door service

4;. Inland transport

'* Provide concrete schedules of major cities in Viet Nam toNorth America, Latin America, the Asia Pacific Region,Europe and Africa

,¥ Warehouse and transport facilities for rent

3 Global Services:

The company tries its best to meet customers' requirements, especially;

it owns a pool of staff experts in air and sea way cargo transport area to

satisfy individual projects The company not only provides services, but

hand in hand with customers in finding the best methods to deal

roadblocks of transport Simplifying procedure as much as possible is

Viet Hoa Company's top aim

¥ Set up plans with customers each other

,* Provide transport budget

At Supply logistic services

,,4; Instruct packing, shipping

*- Tracking and extending shipments worldwide

,\I.; Nominate vessels, aircrafts, and book cargo with sea! airearners

'* The company has an extensive network, and modemequipment, professional staff to satisfy customer's demand

VII The Organization Chart

GeneralDirectorBranch

ManagingDirector

Trade &

MarketingDepartment

Brachoffice inHai Phong

Personnel &

Administrati onDepartment

LogisticsDepartmel

1 The Personnel and Administration Department

This department plays a critical role to the success of the company They

brainstorm human resource policies to fish talented people and keep them

for a long time so that they devote their skills to the company These tasks

include recruiting, training, developing, keeping the talented people

2 The Logistics Department

This department was set up to implement all the work related to merchandise

exchange by air way, sea way, muitimodal transport

+ Get in touch with customers to receive contracts, commercial

invoices, and involved documentation

+ Consult customers about the schedule, insurance level and check the involved documentation, make Customs manifest and Customs clearance.

+ Work with the organizations concerned to the kind of goods in order

to get business legislation approved by the ministry of Health, Inspection, Viet Nam chamber and commercial industry

+ Transport the good from the warehouse of the company or of the client or of port to where offered.

Profit Comparision of Logistics Team in 2006

I Income Cost Profit I

Figure 5: Profit Comparison of Logistics Team In 2006

Illustration 2: Logistic Department

3 The marketing Department

Catching the schedule of the vessel (ETD, ETA) and notifying the customer about the sea freight forwarding, air freight, the procedure to bring goods to customers, voyage, etc.

With the purpose of serving all customers the best service with high quality and fastest time, the marketers continuously make efforts to find out the customers' trend, the geographical position of each partner not only in domestic but overseas market This act results in having more and more clients.

Illustrtion 3: Marketing Department

4 A ccount and Finance Department

The department has the task of carrying out the work involved in bookkeeping, recording all transactions, noting the payable and receivable accounts, reporting sales, income statement, balance sheet, cash flow In addition, it also has to forecast sales and profits, and the financial position

of the company.

Illustration 4: Account and Finance Department