Solutions to improve the efficiency of the import process at LONG AN GENERAL IMPORT EXPORT DUCK FEATHER JOINT STOCK COMPANY (LADCO)

One of the most important activities, has the effect of ending the process of saving product information to the end consumer in the business process to collect money, turn capital quickly and continue the process of recycling. That social production is sales. Selling is a science and also an art. However, in each person, each object, each commercial enterprise has its own way of selling, but the basic purpose is the first and the last of all businesses is how to sell products, get high profit but must maintain credibility with customers. To achieve results in sales, sales management activities must be sensitive and flexible. Thuan Lien Company is a significant consumer goods firm, so improving business efficiency is critical; it has a direct impact on the Companys existence and development. Company. I chose the topic based on that awareness and my internship at Thuan

MINISTRY OF FINANCE INTERNATIONAL SCHOOL OF FINANCE – MARKETING

MINISTRY OF FINANCE INTERNATIONAL SCHOOL OF FINANCE – MARKETING

PRACTICUM REPORT Solutions to improve the efficiency of the import process

at LONG AN GENERAL IMPORT EXPORT DUCK FEATHER JOINT STOCK COMPANY (LADCO)

INSTRUCTURE: PhD Nong Thi Nhu Mai

RESPONSIBLE BY: LA GIA HUY

COURSE : IP_20DKQ

MAJORING IN: INTERNATIONAL BUSINESS

Ho Chi Minh city, April 20

TOPIC: Analyzing and improving sales efficiency of Thuan Lien Company

ACKNOWLEDGMENT

First and foremost, I would like to express my gratitude to all the esteemed

professors at the University of Finance and Marketing who have provided me with the opportunity to gain a better understanding and work within the business

environment.

Especially, I sincerely thank Professor Nguyen Phi Hoang for his kindness and guidance throughout my internship period, as well as for assisting me in

completing this internship report.

I also extend my heartfelt appreciation to the entire Thuận Liên Company for their support and guidance during my internship there The company's staff and

colleagues have helped me gain practical experience, learn from experts, and develop essential skills in the workplace.

Despite my diligent efforts in research and understanding, the limitations of time and knowledge have led to certain shortcomings in this report Thanks to all the guidance and feedback received, I have had the opportunity to improve myself and grasp crucial aspects in my field of work.

I sincerely express my gratitude.

TABLE OF CONTENT TABLE OF FIGURES LIST OF TABLE

OVERVIEW OF THE PRACTICUM REPORT

1 Reasons for choosing the topic

One of the most important activities, has the effect of ending the process of savingproduct information to the end consumer in the business process to collect money, turncapital quickly and continue the process of recycling That social production is sales.Selling is a science and also an art However, in each person, each object, eachcommercial enterprise has its own way of selling, but the basic purpose is the first and thelast of all businesses is how to sell products, get high profit but must maintain credibilitywith customers To achieve results in sales, sales management activities must be sensitiveand flexible

Thuan Lien Company is a significant consumer goods firm, so improving businessefficiency is critical; it has a direct impact on the Company's existence and development.Company I chose the topic based on that awareness and my internship at Thuan Lien

Company: “Analyzing and improving sales efficiency of Thuan Lien Company”.

2 Objectives of the study

Discover how Thuan Lien Private Company conducts sales activities and sales

management, and then propose some suggestions and recommendations to improve sales management

3 Objects and scope of the research

Due to knowledge and time constraints, the report only mentions the status of Thuan LienPrivate Company's business operations and sales administration, as well as transactiondata from 2019 to 2021

5 Report structure

In addition to the introduction, conclusion, the content reference includes 3 chapters:Chapter 1: General theoretical basis of sales activities

Chapter 2: Actual situation of sales activities of Thuan Lien private company

Chapter 3: Some solutions to improve sales activities of Thuan Lien private company

Chapter I GENERAL BASIS OF SALES ACTIVITIES

1.1 The concept, nature and role of sales activities

1.1.1 Concept of Sales Operation

Selling is an economic activity aimed at selling the producer's goods to all differentconsumers in society However, due to different approaches and different researchpurposes, in reality there are many different conceptions of sales

According to Philip Kotler, “Sales is a form of direct introduction of goods andservices through exchange and conversation with potential buyers to sell goods”

James M Comer defines "Selling is a process in which a seller discovers, elicits,and satisfies a buyer's needs or desires in order to satisfy the long-term interests of bothparties"

John W Ernest & Richard Ashmun once said that “Sales is the process ofidentifying the needs and wants of potential buyers, presenting the product in such a waythat it leads the buyer to a buying decision”

Thus, although there are differences in expression and scope, the above concepts also have many similarities And with the above approaches, we can understand: Sales is a process where the seller does not merely meet the needs and wants of the buyer, but includes the stages of understanding, discovering needs, even create demand and then satisfy the needs of buyers

1.1.2 The Nature of Sales Operation

The essence of sales activities is to protect not only the seller's interests but also the buyer's interests People in the sales force are given many titles such as salesperson, sales representative, director in charge of customers, and so on, but they all have one thing in common: they are in contact with clients and are directly responsible for selling a

company's products or services

Sales play an extremely important role in the operation of the business First, sales

is a basic business that directly performs the function of moving goods from places ofexcess to places of demand According to the law of supply and demand, where there is

an excess of goods, the price will be low, whereas where there is a shortage of goods, theprice will be high, so selling goods in places where there is a shortage of goods will earnhigher profits than in places where there is a shortage of goods have surplus goods This

is the driving force for businesses to move goods from places of excess, low price to sell

in places where goods are scarce, with high price to earn higher profits Therefore, selling

is an important stage associated with production and consumption, ensuring the balancebetween supply and demand for each specific item, contributing to stabilizing marketprices

Selling is also an important operation to fulfill the business purpose of theenterprise: profit, position, safety in business Therefore, for any business, profit isalways a business resource, a long-term and regular goal in business activities of thebusiness Therefore, sales promotion activities decide to increase profits for businesses.Selling goods, making a profit, having a position in the market will ensure the safety ofthe business Moreover, sales also decide and govern other operations in the businessprocess of the enterprise such as: market research, purchasing sources, service activities,and inventory

Salespeople serve as a vital link between companies and their clients, impactingtrust, reputation, and the reproduction of consumer requirements As a result, having aneffective sales team is a potent commercial competitive weapon

In summary, in the market economy, sales performance reflects the business results of thebusiness, the efforts and efforts of the enterprise in the market, and at the same timeshows the organizational level, capacity operating of the business Not only that, sales arealso the basis for comparison with other businesses in the same industry

1.2 Classification of sales options and sales forms

1.2.1 Classification of sales options

The sales force of an enterprise includes individuals and organizations directlyinvolved in the sales process of the business Sales force includes the sales force on thepayroll of the enterprise and the sales force outside the enterprise.

Sales force of the enterprise's payroll:

This force includes all employees who are directly responsible for sales activitiesand is divided into two categories: sales at the enterprise and sales in the area This forceincludes:

- Sales force at the enterprise: This force usually works in the offices of theenterprise and uses fax, phone, email, etc to deal with customers Salespeople in thisforce rarely have direct contact with customers

- Local sales force: These are the people who directly sell the business's products tocustomers and provide customers with services through direct transactions in the area

Sales force outside the enterprise

This sales force is often spread out geographically For a sales force outside thebusiness to function effectively, the number of customers in that territory must be largeenough This force consists of sales agents and collaborators

- Sales agents: They are natural or legal persons who perform one or more actsrelated to sales activities under the mandate of the business

- Contributors: These are people who have an agreement with the business to sell

to the business in the market This force is not part of the company's employees and isentitled to commissions or discounts on sales

1.2.2 The Sale forms

Sales are classified as follows:

Based on the delivery location for the customer

Selling at the supplier's warehouse: suitable for buyers who need to buy in largequantities, have stable consumption and have available means of product transportation.Selling through stores, stalls suitable for small needs, wide product portfolio, stableconsumption cycle

Selling directly to consumer units, selling at home at the request of customers,creating convenience for buyers.

This method mainly improves the quality of customer service and competitionamong sellers

According to product rotation

Wholesale: Selling in large quantities, based on contracts, and with non-cashpayments At the end of the wholesale process, the products remain in circulation andhave not yet entered consumption

Retail: Selling to individual consumers' small-scale needs, meeting customers'immediate demands, and requiring immediate payment Due to the various stages ofwholesale, warehousing, and sales costs that products go through, the retail price isusually higher than the wholesale price While increasing a business's sales volume might

be slower, it receives direct feedback from consumers

According to selling methods

Contract Selling: This selling method is applied to important goods and involvesselling in large quantities During the contract execution, both parties demonstrateresponsibility and respect for each other's interests

Auction: Certain types of goods, such as those in large quantities, non-standardizeditems, or specialized products, are auctioned to find buyers at the highest price

Export: This is a specialized selling method that requires compliance with thegovernment's import and export regulations Only entities permitted to engage in importand export activities are allowed to execute this method

According to payment relationships:

Cash Purchase: Cash purchase involves buying and paying immediately upon goodsdelivery With this method, businesses receive immediate payment, ensuring financialsecurity, but it can be challenging for customers who may not have the capability to payimmediately

Installment Sales: In this method, the buyer pays for the purchased item in multipleinstallments In addition to the regular selling price, businesses also charge the buyer an

interest for the delayed payments In essence, with this method, the seller retainsownership rights until the buyer completes the full payment.

1.3 Sales Process

To achieve high sales efficiency, building an effective sales process is crucial.Typically, each business will have its own sales process tailored to the nature of thecompany's operations However, at its core, the sales process in a business usuallyconsists of seven main steps:

Bảng 1.1 Quy trình bán hàng trong doanh nghiệp

Tiếp cận khách hàng

Xử lý thông tin vànhận biết kháchhàng tiềm năng

(Nguồn: Bán hàng và quản trị bán hàng,David Jobber &Geoff Lancaster Trần

Đình Hải biên soạn, NXB Thống Kê, 2002)

Step 1 : Searching for and Collecting Customer Information

This is the initial step in the sales process, aimed at identifying potential customers.There are various methods to gather information, and this information is categorized intotwo types: internal business sources and external business sources

Internal business sources encompass the current customers of the business, internalinformation within the company (such as from the marketing department, colleagues,suppliers, competitors )

External business sources include information acquired from media outlets,personal relationships, seminars, events

Identifying and collecting information about potential customers lays thefoundation for successful engagement in the sales process

Step 2: Processing Information and Identifying Potential Customers

A potential customer is an individual or organization with sufficient financialcapacity and decision-making ability to purchase a business's products or services Thisgroup may provide limited immediate value but can yield substantial value to thebusiness in the future Therefore, when processing customer information, the companygains the opportunity to understand their expectations regarding products and services forthe future Employees need to gather specific information for different customersegments and input it into the company's customer database

For individual customers:

Name, age, address, contact phone number;

Educational background, current occupation;

Customer's current income;

Spending habits, personal preferences;

Customer's familiarity with the product;

What information the customer needs regarding the product

For business customers:

Company name, address, phone number, email, fax;

Name, title, phone number, email of the decision-maker for purchasing products;Company type: limited liability company, joint-stock company, state-ownedcompany, foreign-owned company;

Business area of operation;

Company's financial status;

Company's market reputation

Collecting and processing customer information enables the company to developspecific approaches to engage potential customers effectively

Step 3 : Customer Engagement

The objective of step 3 is to approach and schedule an appointment with thecustomer Businesses have various methods to arrange meetings with customers, such asutilizing intermediaries, leveraging connections with partner businesses, or using emailand phone communications Importantly, prior to meeting with the customer, employeesneed to clearly define the purpose of the meeting, adequately prepare relevant documents,and outline the presentation content in a clear and coherent manner Sales representativesshould also know how to initiate a greeting with the buyer to establish the foundation forfuture interactions

Step 4: Seeking Opportunities

In order to identify opportunities, effective questioning techniques are essentialwhen communicating with customers One of the most common question techniques isNeil Rackham's S.P.I.N technique:

S (Situation Question): These questions limit small talk and focus on details to grasp thecustomer's current situation

P (Problem Question): These questions explore difficulties and current needs of thecustomer

I (Implication Question): These are intricate and nuanced questions They elevate thecustomer's issues to a higher level, discussing potential consequences if current problemsare not resolved.

N (Need-pay off Question): After presenting the customer with concerning consequencesfrom their actual situation, the salesperson asks how the customer intends to address theirdifficulties Skillful questioning can prompt the customer to propose using the company'sproduct or service before it's introduced

Beyond gathering information through questions, after obtaining the information, salespersonnel need to classify customer groups Customers are divided into two groups:Active Customers: These are customers who are qualified to buy the company'sproduct or service or have clear purchasing needs

Passive Customers: These are customers who possess the qualifications to buy theproduct or service but lack a clear purchasing need

Step 5: Customer Needs Analysis

Customers typically have five basic types of needs as follows:

Safety Needs: Customers often fear risks when purchasing any product Therefore,they tend to trust products with clear technical specifications and origins

Convenience Needs: The key factor that drives customers to purchase a product isthat they need to invest minimal effort but receive maximum satisfaction

Novelty Needs: Customers tend to be curious and always seek novelty, things thathaven't been present in previous products or services

Prestige Needs: Customers desire that using a product will reflect their superiorityand status compared to others

Price Needs: Customers always desire to acquire a good product or service at thelowest possible price

Especially when analyzing customer needs, sales personnel need to identify the gaps

in customers' needs and find ways to fill those gaps by answering the followingquestions:

- What does the customer already have?

- What does the customer not have yet?

- What should the customer have?

- What does the customer want to have?

Step 6: Presenting Proposals, Providing Appropriate Solutions to Customer Needs

Customers almost always raise objections during the product introduction or whenproposing a purchase To address these objections, sales personnel must maintain apositive attitude and offer suitable solution proposals

Businesses offer proposals and various solutions in line with customerrequirements, including:

Quotation: Providing a price estimate for the product or service

Payment Methods: Offering options for how the customer can make payments.Delivery Time, Location, and Method: Specifying when, where, and how theproduct will be delivered

Warranty and Product Maintenance: Explaining the warranty terms and any productmaintenance services

Additional Services: Offering additional services such as inspections or after-salessupport

Other Support: Providing training for staff members or other technical assistance.Technical Solutions: Offering technical solutions alongside the product

Step 7: Negotiation, Contract Signing, and Deal Closure

The negotiation process aims to guide all parties towards an agreement and an acceptablecontract framework that aligns with the objectives of both sides Before entering into anyeconomic contract, thorough consideration of terms such as unit price, quantity, timing,location, delivery method, payment method, warranty, maintenance, contract penalties,disputes, and contract validity is necessary Only after careful review should the contract

be signed, marking the conclusion of the business deal

1.4 Sales Activity Management

Sales management is a closely integrated process that spans from setting goals for salespersonnel, creating sales plans, to recruiting, training, monitoring, and evaluating theperformance of the sales force Therefore, establishing a well-rounded system of salesactivity management steps is a crucial factor in creating favorable conditions forimplementing sales plans Thus, sales activity management can be depicted through thefollowing diagram:

Diagram 1.1: Sales Activity Management Process

(Nguồn: Lê Đăng Lăng, Kĩ năng và quản trị bán hàng , NXB Thống Kê, 2009)

1.4.1 Developing Sales Goals

Developing sales goals is one of the first and most crucial tasks for a sales manager.The process of setting sales goals typically revolves around key objectives such as

Xây dựng mục tiêu bán hàng

Xây dựng cấu trúc, tổ chức lực lượng bán hàng

Tuyển dụng và đào tạo nhân viên bán hàng

Xây dựng và triển khai kế hoạch bán hàng

Động viên lực lượng bán hàng

Giám sát và đánh giá hiệu quả bán hàng

revenue or volume targets, market coverage goals, new market development goals,market share goals, and profit goals.

Revenue or Volume Targets

A revenue target is the total value of products or services that need to be achievedthrough sales efforts within specific timeframes Revenue targets should be specific,measurable, achievable, and have tangible outcomes In addition to revenue goals, salesmanagers can also set volume targets – the quantity of products to be sold within aspecific time period When setting these goals, they should be based on factors such asprevious year's sales results, industry growth rates, competitive landscape, etc Thisinformation is typically drawn from sales performance reports and the marketingdepartment

It is important to meticulously determine sales goals as they provide direction andmotivation for the sales team Well-defined and achievable goals help ensure effectiveplanning and resource allocation for the sales activities

Market Coverage Goals

Market coverage goals are reflected through the extent of market coverage that abusiness aims to achieve This includes the number of sales points where the business'sproducts are present in the market, as well as the quantity of product units available ateach sales point In practical business scenarios, market coverage goals often encompassboth the number of sales points and the quantity of products at each sales point

New Customer Development Goals

Developing new customers plays a highly significant role and serves as thefoundation for growth In the sales realm, new customers can be those newly reachedwithin the current sales channels (increasing coverage) or customers obtained throughnew sales channels or territorial expansion Due to this nature, managers often align newcustomer development goals with market coverage objectives

Expanding the customer base is crucial for business growth, and setting goals to tapinto new markets helps diversify and broaden the customer portfolio These goals

encourage sales teams to actively seek out and engage potential customers, contributing

to the overall success of the business

Market Share Goals

Market share refers to the percentage ratio between the current customer base andthe total potential customer base within the target market Market share goals representthe percentage of customers acquired within the total target customer base to be achievedover a specific period after sales efforts have been undertaken These goals should bespecific, achievable, time-bound, and measurable The basis for establishing market sharegoals relies on the company's achieved market share in the previous business period, themarket shares of competitors, market size, and the investment resources allocated to themarket

Profit Goals

Profit goals entail the level of profit that a business aims to achieve through its

organizational sales activities within a specific timeframe This profit can be either total profit or profit for each product line However, for ease of calculation, managers often use a target profit percentage for sales goals instead of specifying a specific profit

amount When developing profit goals, attention should also be given to determining factors such as measurability, feasibility, time frame, and having a basis Several bases for establishing profit goals include overall business objectives, sales volume, product costs, management, and promotional efforts

1.4.2 Building Sales Force Structure and Organization

An effective organizational chart will assist a business in achieving its overarching

strategic objectives The design of this structure should efficiently provide the level of service that customers demand, while simultaneously achieving the outlined sales and profit goals Currently, there are various organizational options tailored to specific

business situations, including:

Geographical Area-Based Sales Network Organization

Diagram 1.2: Geographical Area-Based Sales Network Model

(Nguồn: Giáo trình quản trị bán hàng)

Organizing by geographical area is the most fundamental approach to sales forceorganization based on territories Regional sales managers hold full authority to decide onthe business of products within the enterprise's product portfolio for all customers in theirrespective territories

Product-Based Sales Network

This structure divides the sales force according to the nature of products andbusiness sectors

Diagram1.3: Product-Based Sales Network Model

(Nguồn: Giáo trình quản trị bán hàng)

The product-centric sales network model is particularly suitable for businesses

sales staff to leverage their in-depth product knowledge This capability enables them toprovide enhanced services to customers However, the drawback of this network model isthat the cost for the sales team is higher compared to other network models.

Customer-Centric Sales Network Model

Diagram 1.4 Sales network by customer

(Nguồn: Giáo trình quản trị bán hàng)

The customer-centric sales network is a relatively new and increasingly popularorganizational model based on customer characteristics such as customer scale, shopping

behavior, and product consumption habits This sales network model has the advantage ofeasily achieving sales goals as it allows for in-depth research into customer needs andfinding the best ways to satisfy those needs However, building a sales network in thismanner can face difficulties if customers are geographically dispersed or if the needs ofeach customer group are not substantial enough.

Hybrid Sales Organization Model

Diagram 1.5 Hybrid Sales Organization Model

(Nguồn: Giáo trình quản trị bán hàng)

Hybrid Sales Organization Model is a method of organization that aims to leveragethe advantages of the individual organizational forms mentioned above For example, itcombines the specialization in product and customer orientation with geographic territoryorganization In each developmental phase, as well as under specific business conditions,

a business can choose one of the network sales organization models mentioned above.However, it is not fixed throughout the business's operation It may need to change toalign with market conditions and the business's evolving capabilities

1.4.3 Recruitment and Training of Sales Staff

Probationary Training

Even though candidates have been recruited, they need to undergo a probationaryperiod This period serves as a real-world test for candidates to demonstrate theircapabilities and qualifications to meet the job requirements

Hiring Decision

After the probationary period, the management makes the final decision to select themost suitable candidates for the job and eliminate those who do not meet the jobrequirements After making the hiring decision, the final step in the recruitment process is

contract signing This involves explaining and answering candidates' questions about thecompany's policies to ensure their clear understanding.

The process of personnel recruitment is not complicated, but it requires thoroughpreparation to ensure no errors occur during the recruitment process This ensures that thebest and most suitable candidates are chosen for sales positions

− Training for Employees

Training sales staff is an incredibly important task in any business Training isconducted to enable employees to perform their tasks effectively, to assign more criticalresponsibilities, or to meet the increasing demands of customers Additionally, when theefficiency of employees' work is not high or when employees do not meet specificrequirements, training will also be organized

The content of training covers issues related to product knowledge, sales operationskills, sales management skills, company information, market knowledge, companypolicies, and relevant strategic directions to enhance the skills and professional expertise

of the sales team

1.4.4 Develop and implement sales plan

− Defining the Sales Force Scale

Organizing the sales force can take various forms, and each business has its ownway of organizing its workforce based on its specific needs Typically, the number ofemployees and the allocation of labor are determined by the business's management.Store managers are not allowed to change or hire additional labor without theconsent of the company Depending on the size of the store, the target customer base, andthe products being sold, business managers determine the number of employees and theirrequirements in terms of qualifications, appearance, and communication skills

Sales personnel need to possess knowledge and a specific understanding of thecompany's products in order to provide accurate introductions and advice to customers.Additionally, they need to exhibit patience and resilience when dealing with customers,

as their attitude, gestures, and actions reflect the company's image

Regarding the issue of remuneration for sales staff, there are currently three methods: fixed monthly salary, compensation based on the volume (value) of goods sold, and a mixed compensation model Nowadays, most companies use a mixed compensation model This entails paying a small portion as fixed salary and the majority as

performance-based pay This compensation structure encourages employees to work more effectively Additionally, management introduces various incentives for employees,such as rewarding the top salesperson of the year with a foreign trip, granting extra

vacation days, providing monetary rewards, and giving tangible gifts Companies can also organize recreational activities and trips for their employees

Businesses can also organize training courses to enhance the professional skills of their employees These courses aim to increase their expertise in sales techniques and overall effectiveness in sales

1.4.5 Motivating the Sales Force

The sales team and the revenue they generate are of paramount importance to abusiness Therefore, businesses always seek ways to understand and motivate their salesteams to perform well and drive high revenue for the company Recognizing thissignificance, businesses often establish specific provisions for material and moraleincentives, also known as financial incentives and non-financial incentives, for theiremployees Decisions regarding the motivation of the sales force are generally executedbased on fundamental principles of human resource management

Financial incentives are typically executed by the company through variouscompensation plans such as base salaries, commissions, allowances, bonuses, andsupport

Non-financial incentives involve nurturing the psychological well-being ofemployees through means that do not necessarily involve monetary rewards Thisincludes motivating through opportunities for career advancement, engaging andenjoyable job tasks, and enhancing the work environment

Table 1.2 Remuneration

(Nguồn: Quản trị nguồn nhân lực – NXB Thống Kê – 2003)

When it comes to designing salaries for salespeople, businesses can implement several compensation plans as follows:

Base Salary (Fixed Salary): This approach is suitable for cases where employees

establish stable, regular relationships with customers Adopting a base salary allows the company to forecast costs, but it may lack the incentive factor for the sales force

Straight Commission: This is a percentage of each unit of product sold that the company

pays to the salesperson In this way, we can observe that under this model, the

salesperson's income depends on the volume of products sold in the market The

advantage of this method is that it provides strong incentives for salespeople,

encouraging them to plan and increase their sales productivity

Salary Plus Bonus: In addition to the fixed base salary, salespeople are rewarded when

individual or sales team targets are achieved

Salary Plus Commission: This is a hybrid compensation plan combining a fixed

monthly base salary with a percentage-based commission on each sales target achieved Itencourages salespeople to excel in their roles and meet sales goals effectively

1.4.6 Monitor and evaluate sales performance

Sales activities are a crucial component within the overall framework of a business'soperations Therefore, it is essential to assess the contribution of sales activities towardsachieving the overarching goals of the business To evaluate this contribution, it isnecessary to establish control standards

Standards serve as the basis for measuring the outcomes of sales activities Salesactivity control standards consist of two main groups: output standards and foundationalstandards

Output Standards reflect the results of sales activities, including standards related torevenue generated from sales, the number of customers, sales costs, and profits from salesactivities

− Revenue from Sales Activities: Reflects the business's operational results fromsales activities This includes:

Revenue volume: Daily revenue, revenue within a period