TECHNOLOGY APPLICATION IN SALES

TECHNOLOGY APPLICATION IN SALES

I declare that this thesis is an original report of my research, has been written by meand has not been submitted for any previous degree The experimental work is almostentirely my own work; the collaborative contributions have been indicated clearly andacknowledged Due references have been provided on all supporting literatures andresources I declare that this thesis was composed by myself, that the work contained here

in is my own except where explicitly stated otherwise in the text, and that this work hasnot been submitted for any other degree or professional qualification

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Author

[Name Surname]

1 Problematic

In the technology times nowadays, the application of technology to the enterprisewill improve the production process faster, improve the quality of the product, strengthen,maintain and expand the market share of the product; to diversify product designs,improve working conditions and time, improve the safety of production for people andequipment, and reduce negative impacts on the environment Especially in the marketeconomy, companies with high competitiveness, so any company that owns thetechnology will have a very competitive advantage compared to other companies

Application the technology in to the Sales process will help all the department in thecompany easier to find and manage the all information of the customers The salesprocess should be systematized in modern software to reduce execution time and increaseaccuracy to increase satisfaction of customers and reputation of the company It alsoincreases productivity in other things like marketing or after-sales customer care becausethe software will reduce work time For those reasons stated above, I decided choose the

topic “Technology application in Sales service at PHU MAN Trading Service Joint

Stock Company” for my thesis I think the company should consider and apply the

technology to the sales department as soon as possible

2 Purpose of the research:

Analyzes and evaluate the performance of the current sales system in the retailcustomers part of Phu Man Co.,Ltd

Suggest some improvements in sales process to enhance sales team performance

3 The research’s scope:

Place : Thu Duc district , HCM city

Time : From March to May (2 months )

4 Research methodologies:

Desk research : Collect Sales data from sales department to evaluate to effiency ofsales team over time

Quanlitative : Interview the feed back of the employees (5 – 10 people ) to evaluatethe current effectiveness of the sales system.

Case study : Analyze and compare the sales system with the competitors about theprocess and the time that finished the product

CHAPTER 1 : THEORETICAL BACKGROUND 1.1 Main concept

1.1.1 Definition

Sales is activity related to selling or the amount of goods or services sold in a giventime period

The seller or the provider of the goods or services completes a sale in response to

an acquisition, appropriation, requisition or a direct interaction with the buyer at the point

of sale There is a passing of title (property or ownership) of the item, and the settlement

of a price, in which agreement is reached on a price for which transfer of ownership ofthe item will occur The seller, not the purchasergenerally executes the sale and it may becompleted prior to the obligation of payment In the case of indirect interaction, a personwho sells goods or service on behalf of the owner is known as

a salesman or saleswoman or salesperson, but this often refers to someone selling goods

in a store/shop, in which case other terms are also common, including salesclerk, shopassistant, and retail clerk

In common law countries, sales are governed generally by the commonlaw and commercial codes In the United States, the laws governing sales of goods aresomewhat uniform to the extent that most jurisdictions have adopted Article 2 ofthe Uniform Commercial Code, albeit with some non-uniform variations

A person or organization expressing an interest in acquiring the offered item ofvalue is referred to as a potential buyer, prospective customer or prospect Buying andselling are understood to be two sides of the same "coin" or transaction Both seller andbuyer engage in a process of negotiation to consummate the exchange of values Theexchange, or selling, process has implied rules and identifiable stages It is implied thatthe selling process will proceed fairly and ethically so that the parties end up nearlyequally rewarded The stages of selling, and buying, involve getting acquainted, assessingeach party's need for the other's item of value, and determining if the values to beexchanged are equivalent or nearly so, or, in buyer's terms, "worth the price" Sometimes,

sellers have to use their own experiences when selling products with appropriatediscounts

From a management viewpoint it is thought of as a part of marketing, although theskills required are different Sales often forms a separate grouping in a corporatestructure, employing separate specialist operatives known

as salespersons (singular: salesperson) Selling is considered by many to be a sort

of persuading"art" Contrary to popular belief, the methodological approach of sellingrefers to a systematic process of repetitive and measurable milestones, by which asalesman relates his or her offering of a product or service in return enabling the buyer toachieve their goal in an economic way While the sales process refers to a systematicprocess of repetitive and measurable milestones, the definition of the selling is somewhatambiguous due to the close nature of advertising, promotion, public relations, and directmarketing

Selling is the profession-wide term, much like marketing defines a profession.Recently, attempts have been made to clearly understand who is in the sales profession,and who is not There are many articles looking at marketing, advertising, promotions,and even public relations as ways to create a unique transaction

Two common terms used to describe a salesperson are "Farmer" and "Hunter" Thereality is that most professional sales people have a little of both A hunter is oftenassociated with aggressive personalities who use aggressive sales technique In terms ofsales methodology a hunter refers to a person whose focus is on bringing in and closingdeals This process is called "sales capturing" An example is a commodity sale such as along distance sales person, shoe sales person and to a degree a car sales person Their job

is to find and convert buyers A sales farmer is someone who creates sales demand byactivities that directly influence and alter the buying process

Many believe that the focus of selling is on the human agents involved in theexchange between buyer and seller Effective selling also requires a systems approach, atminimum involving roles that sell, enable selling, and develop sales capabilities Sellingalso involves salespeople who possess a specific set of sales skills and the knowledge

required to facilitate the exchange of value between buyers and sellers that is unique frommarketing, advertising, etc.

Within these three tenets, the following definition of professional selling is offered

by the American Society for Training and Development (ASTD):

Team selling is one way to influence sales Team selling is "a group of peoplerepresenting the sales department and other functional areas in the firm, such as finance,production, and research and development" (Spiro) Team selling came about in the1990s through total quality management (TQM) TQM occurs when companies work toimprove their customer satisfaction by constantly improving all of their operations

Sales and marketing alignment and integration:

Another area of discussion involves the need for alignment and integration ofcorporate sales and marketing functions According to a report from the Chief MarketingOfficer (CMO) Council, only 40 percent of companies have formal programs, systems orprocesses in place to align and integrate the two critical functions

Traditionally, these two functions, as referenced above, have operated separately,left in siloed areas of tactical responsibility Glen Petersen's book The ProfitMaximizationParadox sees the changes in the competitive landscape between the 1950sand the time of writing as so dramatic that the complexity of choice, price andopportunities for the customer forced this seemingly simple and integrated relationshipbetween sales and marketing to change forever Petersen goes on to highlight thatsalespeople spend approximately 40 percent of their time preparing customer-facingdeliverables while leveraging less than 50 percent of the materials created by marketing,adding to perceptions that marketing is out of touch with the customer and that sales isresistant to messaging and strategy

2 Buyers broker or Buyer brokerage: This is where the salesman represents theconsumer making the purchase This is most often applied in large transactions.

3 Disclosed dual agent: This is where the salesman represents both parties in thesale and acts as a mediator for the transaction The role of the salesman here is to overseethat both parties receive an honest and fair deal, and is responsible to both

4 Transaction broker: This is where the salesperson represents neither party buthandles the transaction only The seller owes no responsibility to either party getting afair or honest deal, just that all of the papers are handled properly

5 Sales outsourcing involves direct branded representation where the salesrepresentatives are recruited, hired, and managed by an external entity but hold quotas,represent themselves as the brand of the client, and report all activities (through theirown sales management channels) back to the client It is akin to a virtual extension of asales force (see sales outsourcing)

6 Sales managers aim to implement various sales strategies and managementtechniques in order to facilitate improved profits and increased sales volume They arealso responsible for coordinating the sales and marketing department as well as oversightconcerning the fair and honest execution of the sales process by their agents

7 Salesperson: The primary function of professional salespeople is to generate andclose business resulting in revenue The sales person will accomplish their primaryfunction through a variety of means including phone calls, email, social media,networking, and cold calling The primary objective of the successful salesperson is tofind the consumers to sell to Sales is often referred to as a "numbers game" because ageneral law of averages and pattern of successful closing of business will emerge throughheightened sales activity These activities include but are not limited to: locatingprospects, fostering relationships with prospects, building trust with future clients,identifying and filling needs of consumers, and therefore turning prospective customersinto actual ones Many tools are used by successful salespeople, the most important ofwhich is questioning which can be defined as a series of questions and resulting answersallowing the salesperson to understand a customer's goals and requirements relevant to

the product The creation of value or perceived value is the result of taking theinformation gathered, analyzing the goals and needs of the prospective customer andleveraging the products or services the salesperson's firm represents or sells in a way thatmost effectively achieves the prospective clients goals or suits their needs Effectivesalespeople will package their offering and present their proposed solution in a way thatleads the prospective customer to the conclusion that they acquire the solution, resulting

in revenue and profit for the salesperson and the organization they represent

8 Internet Sales Professionals: These people are primarily responsible for ensuringimmediate response to the leads generated via social media, website or email campaigns

Inside sales vs outside sales:

In the United States, the Fair Labor Standards Act defines outside salesrepresentatives as "employees [who] sell their employer's products, services, or facilities

to customers away from their employer's place(s) of business, in general, either at thecustomer's place of business or by selling door-to-door at the customer's home" whiledefining those who work "from the employer's location" as inside sales Inside salesgenerally involves attempting to close business primarily over the phonevia telemarketing, while outside sales (or "field" sales) will usually involve initial phonework to book sales calls at the potential buyer's location to attempt to close the deal inperson Some companies have an inside sales department that works with outsiderepresentatives and book their appointments for them Inside sales sometimes refers

to upselling to existing customer

1.2.3 Role

In any organisation, the sales department plays a pivotal role in the success of thebusiness The unique and important role of sales is to bridge the gap between thepotential customer’s needs and the products/services that the organisation offers that canfulfil their needs Here are some of the key ways in which sales impact the organisation’ssuccess:

Sales Lead Conversions

As mentioned before, salespeople bridge the gap between customer needs and theproduct/service that fulfils that need Often, salespeople are dealing with already warmed

up prospects who have an existing awareness of the company through marketing andadvertising efforts, and it’s the job of the salesperson to close the deal by introducingfurther information and helping the customer make those connections

Because salespeople interact directly with the potential customer, they have theadvantage of being able to glean personal knowledge that will aid them in delivering theirsales pitch and tailoring their offerings to their audience This is often an attractive aspectfor customers, as they may view the salesperson as the expert, which builds credibilityand therefore trust

Business Growth

Sales play a key role in the building of loyalty and trust between customer andbusiness Trust and loyalty are the main reasons why a customer would choose torecommend your company to a friend or family member, or write a great review of yourproduct or service online

Recommendations and reviews have always been valued by prospects andcustomers, as they come from a third party and the perception is that the reviews andrecommendations are independent of the seller and therefore carry more credibility In thedigital age, they are extremely influential, due to the reach and power of social media andonline media During sales interactions, encouraging the customer to recommend a friend

or give positive feedback can have an impact on the growth of the business throughincreased brand awareness and sales

Customer Retention

Selling is a personal interaction between one human and another, which is apowerful thing Never under estimate the personal connection between two people, andthe potential effect this can have on your brand’s reputation

Excellent salespeople are those that not only make the sale, but create a long-lastingimpact on the customer Long term customer relationships lead to repeat custom, referralsand increase the brand’s reputation by word of mouth

One of the keys to customer retention through sales is to perform sales follow-ups.Setting up after-sales calls or meetings is a great way to maintain and build a positiverelationship and gives the customer an opportunity to feedback their experience of theproduct or service If the customer has a complaint or issue, it can be dealt with quicklyand professionally Too often, unhappy customers will not complain, they will simplyswitch their custom to another provider and won’t recommend your services or products

to others It’s more cost effective to retain customers than to win new ones, so look afteryour existing customers well

1.1.3 Function

The main function of a sales department is to effect sales It is concerned with thetransfer of ownership or merchandize on terms satisfactory to both the buyer and seller.This has to be done at the lowest possible cost

The basic objective is obviously the achievement of profit through service A salesdepartment consists of persons working together with a view to market the productsmanufactured by the organization itself or products purchased for resale

It is thus responsible for all that is necessary to market the product from the stagewhen the product has left the manufacturing or purchasing department, as the casemaybe

The result of the sales effort would naturally depend also on the effort of the otheroperations and departments such as research, advertising traffic, finance and credit

1.2 Sales process

1.2.1 Definition

A sale process is conducted by a business broker or investment banker when theyare engaged in a sell-side assignment The sales process is a systematic approach toselling a business, and its primary purpose is to find the most effective way to meet thepre-determined objectives of the seller

The following types of sale processes can be employed depending on the objectives

of the seller:

- Full auction process - approaching all potential buyers in the market;

- Limited competitive auction process - approaching a few logical best buyers; and

- Negotiated sale process - negotiating a transaction with only one party

1.2.2 Role

As Customer Relationship Management (CRM) systems become more sophisticatedand feature-rich, many companies implement the technology working under theassumption that the automation alone will deliver the most effective salesprocess for theirneeds

No two companies sell in exactly the same number of steps or use exactly the sameset of conditions or rules to sell Any company that has not produced a successful,repeatable sales process—either manually or with some prior automation—will not gainground by implementing more technology They will simply drive an incomplete orineffective process faster!

This article focuses on the need for the development of an accurate "map" of themost efficient process for each discrete sales effort prior to committing that process toautomation Mapping and improving processes prior to enabling them with technologyprovides several benefits:

- Locks in agreement on how things work among sales process owners

- Provides an efficient environment to discuss or produce change

- Provides least cost initiative approaches

- Compresses the time needed to decide on changes

- Provides an accurate picture of the steps and relative ROI of each for prioritization

- Provides documentation and internal disciplines to re-create change downstream

The role of process

Process mapping is the documentation of discrete activities involved in completingthe sales cycle—from point of customer contact through information gathering to closureand fulfillment

Surprisingly, few companies take the time to produce this map in any great detail or

to understand the roles within the sales and marketing team Beyond sales and marketingare many more layers of support and customer service people whose roles create touch-

points within the sales process If sales roles are not well understood, these supportingroles suffer as well

The reason most companies don't map their sales process is a sense that everything

is working—that the perceived process is in place and working by its own momentum.Process is important to the entire enterprise, although for purposes of this document weare generally speaking about CRM process improvement and its role within theenterprise

1.2.3 Function

Sales order processing describes a function related to the wholesale part of anorganizational business

The most common functions under the sales order processing are

- Availability of the articles purchased

- Checking for incomplete data

- Checking the status of the sales transaction

- Calculation of pricing and taxes

- Schedule the deliveries of goods

- Printing of documents or e-transfer of documents

All these functions can be configured automatically or manually as per the systemconfiguration The data from these functions is stored in a sales document and can bechanged manually during the processing A sales document can be a single document orcan be part of a series consisting of interrelated documents

Example:

There is a customer telephone inquiry in the system Then the customer requests aquotation, which can be created by referring to the same inquiry Next, assume that thecustomer places an order on the basis of that quotation and a sales order is created bycopying the information from this quotation and if at all there are any modifications thatare required The merchandise is then shipped and the bill is sent to this customer Afterthe delivery of goods, this customer raises a claim of damaged articles Then a deliverycan be created free of charge with reference to the sales order

All these sales documents − starting with the inquiry, quotation, raising a salesorder, delivery of goods, billing document to customer and the free of charge deliveryforms a document flow The data flow from one document to another removes ordecreases the practice of manual processing and helps in simpler problem resolution.

1.3 Evaluation of sales performance

Evaluating Sales Performance Performance versus Effectiveness Behavior a whatpeople do; the tasks on which they expend effort Performance a behavior evaluated interms of its contribution to the goals of the organization Effectiveness a some summaryindex of organizational outcomes for which the individual is at least partly responsiblePerformance Evaluation Measures Objective measures a reflect statistics the salesmanager can gather from the firmâs internal data Output Input Ratios of output or inputSubjective measures a rely on personal evaluations by the sales manager and othersProcedure for Evaluating Salespeople 1 Establish basic policies 2 Select evaluationbases 3 Set performance standards 4 Compare performances standards 5 Discuss resultswith salespeople Output Factors Used as Evaluation Bases Sales volume In dollars and inunits By products and customers (or customer groups) By mail, telephone, and personalsales calls Sales volume as a percentage of: Quota Market potential (i.e., market share)Gross margin by product line, customer group, and order size Orders Number of orders.Average size (dollar volume) of order Batting average (orders / calls)

Assessing the performance of sales people includesallocating a relative score toreflect a sales person performance on the identified dimension for measuring both salesperformance and behavioural aspects of the employee in the job Performance evaluationmust have to linked with the strategic mission of the sales force and the performancestandard taken for measurement, it should be specific, measurable, attainable, realisticand time specific which reflect the quality of the sales person how well the employeeperform on the expected terms of the sales objective secondly it address the quantity howmuch work the employee produce comparing to expected value third timeliness representhow quickly the work is produced and finally it provides the cost effectiveness whichmeasure the aspects of performance as maintaining or reducing the cost of sales

providing service to the company.Strategic evaluation of sales people is used todetermine the effectiveness of given strategy in achieving the sales objective and takingcorrective action wherever required Now it has to find out whether the strategy beingimplemented is guiding the sales force towards the intended objective or not if thestrategy producing desired effect then we can say the mechanism is correct.

1.3.1 Evaluate base on revenue

Sales commission structures vary across industries and companies Businessesestablishing a sales commission structure want to create a program that not onlymotivates sales staff but also isn't a burden on bottom line profits Commissions might beflat fees per sale or a percentage of the sale Business owners can keep things simple ordevelop complex sliding scales in which commissions increase the more someone sells.Before defining rates and sliding scales, define whether commissions are paid from netrevenues or from gross margin Consider product pricing, accounting methods andoverall market share before finalizing a sales commission structure

The net revenue model is a popular commission structure because it is easy for staff

to understand and not cumbersome for management to administrate This model ispopular when product prices are fixed, so sales representatives are unable to manipulatethe price to land a sale

Net revenue models are frequently used in insurance agencies A life insurancerepresentative cannot control the price of the insurance, and even though product pricing

is based on a myriad of factors, the rate offered for any one policy is non-negotiable Theagent receives a percentage of the premium For example, if the premium is $1,000 peryear and the commission rate is 12 percent, the agent receives $120 in commissions forthe sale

1.3.2 Evaluate base on satisfaction

In contrast to trait & comparison method behavioural system focused on salesexecutive behaviour which they display in performing the sales When correctlydeveloped and applied, behavioural models provide results that are relatively free of ratererrors and biases Normally behavioural system measured by three types of technique

first one measure the critical incident of the sales job which distinguishes successfulperformance from unsuccessful ones The sales supervisor observes the sales executiveand records their performance on the critical job aspects Usually, sales supervisors ratethe sales employee on how often they display the behaviour described in each criticalincident, this procedure require extensive documentation that identifies successful andunsuccessful job performance and also demand continuous and close observation of thesales executive Second technique in this approach is behaviourally anchored rating saleswhich are developed in a manner that sales executive is expected to complete the task in atimely fashion here the expectation are clearly cited to the sales executive in order to ratethe performance In this method the sales supervisors list the expectation of the job whichare believe to be most significant aspects the sales executive must perform A typicalevaluation method might have 8 to 10 dimension each with separate rating sale whichreflects the range of performance on the job dimension from ineffective performance toeffective performance Among all subjective method of performance evaluation thistechnique is most defensible in court because it is based on actual observable jobbehaviours it also encourages all raters to make evaluation in same way Perhaps it haslimitation of data require making it effective Third technique of performance evaluation

in the above approach is behavioural observation scale where the sales supervisor ratesthe sales executive behaviour to the extent which he performs in a consistent manner.Scores of each performance are averaged to provide an overall rating by using the sameinstrument used in the above method Wherever it assure to accurate appraisal but timeconsuming to develop and maintain

CHAPTER 2: ANALYZING THE REAL SITUATION IN SALES SERVICES OF

PHU MAN Co., Ltd 2.1 Company Background

2.1.1 Brief history of Phu Man Co., Ltd

 Abbreviated Company Name: PHU MAN TRADING CO., LTD

 Phu Man Company was established in 2008 under the Decision No 782 / GP

-UP of the People's Committee of Ho Chi Minh City

 Headquarter is located at: 79/43 Road 51, Ward 14, Go Vap District,Ho ChiMinh City

 The showroom system includes:

Showroom Thu Duc: 138 Highway 1A, Tam Binh Ward, Thu Duc District, Ho ChiMinh City

Showroom Binh Duong: 10/9 Highway 13, Thuan An Town, Binh Duong province.Showroom Binh Chanh: National Road 1A, Binh Chanh District, HCMC

Showroom Can Thơ: 86 Le Hong Phong Street, Binh Thuy District, Can Tho CityShowroom Kien Giang: 68 Vo Van Kiet, Chau Thanh District, Kien Giang Province

 Phone Number: 028.6297.1472 Fax: 028.6297.1471

 Type of business: Joint stock company

Phu Man Trading Service Joint Stock Company (hereinafter referred to as Phu ManCompany or Phu Man Automobile Company) is a distributor and official dealer of manytrucks assembled in Vietnam and the famous import truck brands in the world such as :Hino , Isuzu from Japan , Hyundai from Korea , Tata from India , ………

With a system of 5 showrooms spread in the provinces of Southeast and SouthWest, the company specializes in selling and warranty assembled vehicles, imported withhigh quality to meet the increasing demand of consumers of product quality, as well asquality of service

In recent years, the company has built a certain reputation and quality in the truckindustry

2.1.2 Role and goal of Phu Man Co., Ltd

Phu Man Trading and Service Joint Stock Company is a business unit in accordancewith the functions and requirements of customers to ensure the economic contract in theprocess of economic business

Starting from the respectful point of view and wholeheartedly serving the interests

of the customers and the community: With the customers, the company always striveswith the deepest gratitude and the slogan of serving "In the company only one The onlyboss is the customer, the customer can evict anyone from the director to the employeewith one simple action: Buy another company."

It is the humanistic business attitude that creates the sense of responsibility in everyday of the Company to be worthy of being well organized in the social community withthree main goals:

 Satisfy the customers

 Bring quality service to serve customers perfectly

 Contribute positively to the development of the country's automobile industryand to the development of the society and the community

With the striving criteria, the company has been continuously trying to continuouslyimprove defects and promote its advantages to develop together with the truck industry ofVietnam

Customer service manager

Customer care staffs

* Function of Departments

◊ Director of the company:

Being the representative and highest accountability of the Company before the law,

before Chairman of the Board, customers, suppliers, subcontractors for all business

activities of the Company, the development strategy of the Company such as:

determining the company's objectives and development direction, draft action plan;

schedul activities; set up control measures; improve the organization, and manage all

daily activities of the company

◊ Human Resources Department:

Managing human resource, organizing recruitment according to the needs of

departments; Managing attendance, salary policy, bonus, social welfare, employee

promotion; Implementing employee contracts, work equipment, stationery supplies,

ensuring smooth facilities and operations of the entire company; Assuming the

organization of meetings, parties, receptions,

Receiving, implementing and distributing letters, press,

◊ Service Department:

The most important department in the company, bringing many valuable contractsand turnover for the company; Doing research on market expansion and search, reachingthe potential customers; Directly performing transactions with customers, managing pricerecords, customer records, schedules, schedules, pricing, offering and quoting productsand services to customers if they have needs, regularly contacting, caring for customers;Drafting and implementing the contract to bring good effect to the company; Consultingand answering the import and export procedures to the customers who have questions,unclear about the services of the company.

◊Accounting department:

Collect, process, exam, analyze and provide economic-financial information in theform of value, kind and working time; Create capital to ensure production and businessprocess is continuous and development Manage all activities of production and business

of the company Distribution of monetary funds after a production-business cycle.Manage production costs and production costs Check and control all financial activities -internal audit Study, organize, manage and developing functions and tasks for internaldepartments, participating in building regulations and working regulations at theCompany Collect and process accounting information and data according to the objectand content of the accounting work, according to accounting standards and regimes Toinspect and supervise financial revenues and expenditures, obligations to collect and paydebts Analysis of accounting information, data; and then propose solutions formanagement and decide economic and financial to leaders Monitor, balance and plan ofreceivables and payables to adjust management Monitor and synthesiz turnover,collection of work project management report on a monthly basis

To be responsible for managing the import and export of cash, foreign currency,gold, silver and precious stones Every day, the treasurer must regularly check the actualfund balance, compare the remaining money in the fund books and accounting books Ifthere is a difference between the cashier and the accountant to find out the cause of thedifference and then propose a resolution To avoid the difference on the cashier mustcheck all cash receipts, receipts, payment and have to be signed by the collector of the

receiver, who authorized to import funds After collecting the stamped cashier's money orpaying money on vouchers At the end of the day, the treasurer shall base himself / herself

on the receipts and receipts to enter the fund book and make a fund report together withthe receipts and expenses for transfer to the cash accountant

120,434,544,100

Saling

components and

repairing

Components 337,355,443 506,340,410 590,576,771Repairing 456,112,202 730,001,196 550,331,490

Revenue from financial activities 816,012,635 3,512,233,494 3,102,332,433Net revenue from sales and

service providing

67,876,774,909

109,125,270,000

Profit from sales and service

providing

12,620,990,019

30,009,495,399 13,109,862,220

Net profit from sales 4,300,330,005 10,003,132,133 6,100,421,150Total financial profit before tax 4,056,491,100 6,027,882,301 5,780,110,009Firm’s income tax 811,298,220 1,205,576,460 1,156,022,002Profit after tax 3,245,660,890 4,822,005,459 4,624,660,098

Source: Accounting Department

In the market – economy each company have to try their best to have advantagescompetitive and they find that profit is the final goal for all company’s activities Untill

now, Phu Man always find the wrong point to fix and find the good point to developthemselve And each individual in the company have to aware themselve to contributetheir hand to complete the job as well as they can Then, company’s productivity can beraise up.

In 2015, total revenue of the company was 67,876,774,909 vnd, and the profit aftertax was 3,245,660,890 vnd So the rate of profit per revenue just 0.05 That’s mean profitjust equal to 5% of total revenue

In 2016, the rate of profit per revenue equal to 4.4% But, both revenue and cost ofproduct was higher than 2015 In more detail, in 2016 revenue of company was109,125,270,000 vnd, that’s mean revenue in 2016 increased 1.61% Cost of product in

2016 was 95,977,009,499 vnd, that’s mean the cost in 2016 increased 1.57% So that,company’s activities were more effective but the cost management policy is not too good

Diagram 2.2: Trending of Phu Man’s operation in last 3 years

In 2017, the rate of profit per revenue equal to 4.6% But, in this year, revenue ofthe company was falls down while the cost of product was highest in the last 2 years.That’s mean they had some problem inside or outside of the company

Phu Man also have a lots of problems in the last 3 year, but they was released somepolicy to fix this problems in the future The final goal is always to minimum cost andmaximum profit Moreover, company must effort their best to achieve the goal in thestable manner, and also they must try to beat their competitors in the smartly way

2.1.5 Sales department

2.1.5.1 Function

Business is one of the most important parts of the company, determined to theexistence and development of the company should not be when the business departmentbrings quite a lot of important tasks in the company First, the sale department have todevelop the strategy, the work plan of the department to suit the market and thecompany's goals The human resource organization develops working processes andstandards while also evaluating and improving the process over time to match the times.Particularly, department reference and market analyze to develop policies on price,

2.1.5.2 Structure of sales Department

Since the company has been established for 10 years with the system of 5showrooms so the company has sales force in each showroom is quite powerful, the mostnumber of members may be the largest compared to competitors, About 30 -50 salesstaffs per showroom

Diagram 2.3: Organizing the sales structure of the company

* Salary policy of sales department

The salary policy in general and salaries for sales staff are very important for thespirit of work, sales staff loyalty to the company Recognizing the importance of thisissue in the past years Phu Man company always have the appropriate compensationpolicy for its sales staff, as follows:

 Basic salary: 2,500,000 VND / person / month

 Commission on sales: $ 100 to $ 1,000 for a truck sold (may be higher or lowerdepending on type of truck)

 Reward to complete the target or exceed sales: monthly depending on the marketconditions of the company to set targets and sales staff must achieve this target, sales staffwho exceed the target will be rewarded by the company Bonus depending on the case butusually $ 200

 In addition, the company also has other support for employees such as: telephonesupport, support costs for advertising customers, meals allowance

With the current salary policy, commissions are generally quite competitivecompared to many other businesses, most satisfying the sales staff in the company,ensuring relative income for the sales staff

* Recruitment of sales force

Post reruitment Receive applications First Interview Second interview Intership within 2

In order to response the growing demand for sales, the company regularly recruits

new sales staff to increase sales force, replace the staffs quit the company determines

that this is an important duty because the quality of the sales staff is the decisive factor in

sales revenue , as well as the profitability of the company

The process of recruiting sales staff of Phu Man company is as follows:

Diagram 2.4: Recruiting process

+ Step 1: Post the recruitment of sales staff on newspapers or internet with the

requirements of different qualifications, experience

+ Step 2: Receive applications from applicants

+ Step 3: Proceed with the screening process and interview the qualified candidates

+ Step 4: Conduct interviews with each candidate, then choose the best candidates,

then call the second interview for the best candidates and choose the best candidates

+ Step 5: Candidates who have been selected for a two-month probation period, if

anyone who guarantees sales will be accepted into the job

The recruitment process of the company is quite suitable with the characteristics of

the industry and many companies have applied and practically achieved many positive

results The sales force of the company is considered to be of high quality and

competitive with other enterprises in terms of human resources

* Staff training

The purpose is to create a team of sales staffs, professional sales skills, knowledge

of the automotive market, understand the technical features of the trucks The companyregularly launches training courses for sales staff, especially for newly-arrived sales staff,the training content includes:

- Overview of Phu Man Trading Service JSC

- Training on the sales skills of a truck sales staff

- Train sales staff to understand the basic specifications of each truck, the price ofeach truck at each time

- Training overview of issues related to the purchase of trucks with customers such

as purchase contract, how to register, register vehicles, how to guide customers to buyprocedures truck payments through banks, how to deliver trucks

- Train employees to find potential customers

In addition to meeting the increasing demand of the market, especially the dailychange of automobile manufacturing technology companies regularly open sales trainingclasses for sales staff , as well as new sales staff with the participation of manyexperienced lecturers from the economics university in the city Especially, the companyalways offers technical training courses, basic technical parameters and basic features ofthe new types of trucks that are available in the market

Also, it is essential for sales staff in Phu Man to have at least a B2 driver license If

a sales staff is unable to drive, the company will assist the employee to study the driver'slicense in the shortest possible time

2.2 ANALYZE THE REAL SITUATION IN PHU MAN Co.,Ltd

2.2.1 Current Situation analyzed of the company

Firstly as in the introduction of the company above, Phu Man Trading Service JSC

is one of the largest trading companies and has a widespread presence in the truck market

in the south and west of Vietnam Male The truck market as well as other truck market inVietnam are quite special that the factory will not officially distribute products toconsumers that are distributed through agents have been signed