CHAPTER 3: SOLUTIONS TO IMPROVE THE EFFICIENCY OF ENTRUSTED
3.3 Solutions to improve the process of entrustment export at SADACO
3.3.4 Solutions for customer services (ST1)
Currently, SADACO just receives passively information about foreign importers from trustor. This may lessen the entrustment fee from trustor. To increase income, SADACO needs to actively look for and deal with foreign importer, gradually transfer to full entrustment, hence, be more active in supplying the service and get more profits from trustor.
Employees of customer service should also learn more about products, goods and supply timely advice to customers: When the customer has demand for certain exports, the company will provide customers with information about the importer, prices, designs, catalogs of importers so that customer can have a full view about importers’ demand.
Every year SADACO should conduct a survey to collect customers’ ideas about quality of the service. Based on result of survey, manager can realize what problems still exist and then propose appropriate solution.
The survey simply could be a form, which gathers each trustor’s ideas after SADACO supplying entrusted export contract.
Diversifying kinds of cargo for entrusted export is also another way to increase income. When SADACO is not active in looking for new trustors, this is a smart way to deal with trustor. That helps to strengthen the relationship with old trustor and bring SADACO more profit.
Summary
Through SWOT analysis, this chapter has suggested some solutions to improve entrusted export operation at SADACO. Those solutions are based on theories in chapter one and analyzing current situation at chapter two. The solutions are divided into four groups: human resources, marketing activities, logistics service and customer service. SADACO’s management should consider applying properly those solutions in SADACO’s operation.
CONCLUSION
Entrusted export is a potential field of export business and promises to be a high profitable operation in the near future. Many other firms as well as SADACO are continuously improve the operation of themselves to get the best result from this type of exporting. During that process, SADACO faced many subjective and objective difficulties from the external and internal environment. Therefore, to achieve its goals and plans, SADACO need to take some actions as well as some changes to adapt with the current fiercer market. Human resources of SADACO should be more specialized and professional . SADACO should pay attention to look for new customers and promote its image to both domestic and international market. Besides, investment in logistics service and customer service should be considered as well.
The main goal of this research is that it gives recommendations to perfect the entrusted export operation at SADACO. This is a new issue of Vietnam’s export, hence, there are just a few materials or online sources about this topic. Besides, with the limited time and professional knowledge, I may make some unavoidable shortcomings in my research. I do hope that I may have chance to implement further researches about this topic in the future.
Above all, during my internship at SADACO, I collected a lot of useful knowledge and experiences for myself as well as for this research. I hope my recommendations can partly contribute to improve the entrusted export operation at SADACO in particular as well as at other firms in general
LIST OF REFERENCES I. Vietnamese materials
1. Finance - Accounting Department of SADACO, Annual report on business operation result of SADACO in 2010, 2011, 2012.
2. Human Resources Department of SADACO, General report on human resources situation at SADACO during period 2010 – 2012.
3. Import/Export Department of SADACO, Annual report on import/export operation performance of SADACO in 2010, 2011, 2012.
4. SADACO official home page, Introduction about SADACO, accessed date 12/6/2013,
http://sadaco.com/AboutUs.aspx?HTMLID=1 .
5. Vo Thanh Thu (2009), Ky thuat kinh doanh xuat nhap khau, Ho Chi Minh City General Publishing House, Ho Chi Minh City, 483.
6. Le Thanh Tung, Cac nhan to anh huong den hieu qua san xuat kinh doanh cua doanh nghiep, Vietnam Open Educational Resources, accessed date 12/6/2013, http://old.voer.edu.vn/module/kinh-te/cac- nhan-to-anh-huong-den-hieu-qua-san-xuat-kinh-doanh-cua-doanh- nghiep.html .
7. Doan Thi Hong Van (2011), Quan tri xuat nhap khau, Ho Chi Minh City General Publishing House, Ho Chi Minh City, 673.
8. Doan Thi Hong Van “To chuc thuc hien hop dong xuat nhap khau”, Quan tri xuat nhap khau, (Doan Thi Hong Van), Ho Chi Minh City General Publishing House, Ho Chi Minh City.
II. English materials
9. B.A Walters , R.L Priem (1999), “Business strategy and CEO intelligence acquisition”, Competitive Intelligence Review, 10(2), pp.
15-22.
10. C. Oliver, I. Holzinger (2008), “The effectiveness of strategic political management: A dynamic capabilities framework”, Academy of Management Review, (33), pp. 496-520.
11. D. B. Montgomery, M. C. Moore, J. E. Urbany (2005), “Reasoning about competitive reactions: Evidence from executives”, Marketing Science, (24), pp. 138-149.
12. D. G. Sirmon, S. Gove, M. H. Hitt (2008), “Resource management in dyadic competitive rivalry: The effects of resource bundling and development”, Academy of Management Journal, (51), pp. 919-935.
13. D.Vrontis, P.Pavlou (2008), Journal for international Business and Entrepreneurship Development, (3), pp. 289-307.
14. Hitt Ireland and Hoskisson (2011), Strategic management – competitiveness and globalization, 9th edition, South-Western Cengage Learning, Canada, 402.
15. J.C Short, D.J. Ketchen, Jr., T.B Palmer, and G.T Hult (2007), “Firm, strategic group, and industry influences on performance”, Strategic Management Journal, (28), pp. 147-167.
16. L. Capron & O. Chatain (2008), “Competitors’ resource-oriented strategies: Acting on competitors’ resources through interventions in factor markets and political markets”, Academy of Management Review, (33), pp. 97-121
17. The National Assembly of Socialist Republic of Vietnam ,
Commercial Law 2005, english version posted publicly by Ministry of Justice, accessed date 12/6/2013,
http://www.moj.gov.vn/vbpq/en/Lists/Vn%20bn%20php%20lut/Vie w_Detail.aspx?ItemID=5497.
18. The Government of Socialist Republic of Vietnam, Decree No.
12/2006/ND-CP, english version posted publicly by Ministry of Justice, accessed date 12/6/2013,
http://www.moj.gov.vn/vbpq/en/Lists/Vn%20bn%20php%20lut/Vie w_Detail.aspx?ItemID=6040 .
19. T. Yu, M. Subramaniarn, & A. A. Cannella, Jr.( 2009), “Rivalry deterrence in international markets: Contingencies governing the mutual forbearance hypothesis”, Academy of Management Journal, (52), pp. 127-147.
APPENDIX NO. 1 APPENDICES
APPENDIX NO. 2
APPENDIX NO. 3
APPENDIX NO. 4
APPENDIX NO. 5
APPENDIX NO. 6
APPENDIX NO. 7
APPENDIX NO. 8
APPENDIX NO. 9
THE NATIONAL ASSEMBLY
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SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness
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Law No.36/2005/QH11 Hanoi, June 14, 2005
COMMERCIAL LAW
Pursuant to Article 103 and Article 106 of the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented under Resolution No.
51/2001/QH10 of 25 December, 2001, of the tenth National Assembly, the tenth session;
This Law provides for commercial activities.
Section 3. SALE AND PURCHASE OF GOODS BY MANDATED DEALERS Article 155.- Purchase and sale of goods by mandated dealers
Purchase and sale of goods by mandated dealers mean commercial activities whereby the trustee conducts the purchase and sale of goods in his/her/its own name under terms agreed upon with the trustor and is entitled to receive mandate commission.
Article 156.- Trustees
A trustee for purchase and sale of goods is a trader dealing in goods which are consistent with the entrusted goods and conducting the purchase and sale of goods under terms agreed upon with the trustors.
Article 157.- Trustors
APPENDIX NO. 10
A trustor of purchase and sale of goods may, or may not, be a trader that authorizes a trustee to conduct the purchase and sale of goods at his/her/its request and pays a commission.
Article 158.- Entrusted goods
All goods which are lawfully circulated may become the subject matter of a mandated sale and purchase.
Article 159.- Entrustment contracts
Mandate contracts for purchase and sale of goods must be made in writing or in other forms of equivalent legal validity.
Article 160.- Sub-entrust to a third party
A trustee shall not be allowed to sub-mandate a third party to perform the signed entrustment contract for purchase and sale of goods, except where it is so approved in writing by the trustor.
Article 161.- Multilateral mandate
A trustee may accept the entrustment for purchase and sale of goods from different trustors.
Article 162.- Rights of trustors
Unless otherwise agreed, trustors shall have the following rights:
1. To request trustees to supply adequate information on the performance of mandate contracts;
2. Not to bear responsibility in cases where trustees commit law violations, except for cases specified in Clause 4, Article 163 of this Law.
Article 163.- Obligations of trustors
Unless otherwise agreed, trustors shall have the following obligations:
1. To provide information, documents and means necessary for the performance of mandate contracts;
2. To pay mandate commissions and other reasonable expenses to trustors;
3. To hand over money and goods as agreed upon;
4. To bear joint responsibility in cases where trustors commit law violations which are attributable to acts of trustor or intentional law-breaking acts of the parties.
Article 164.- Rights of trustees
Unless otherwise agreed, trustees shall have the following rights:
1. To request trustor to provide information and documents necessary for the performance of mandate contracts;
2. To receive mandate commissions;
3. Not to bear responsibility for goods handed over to trustor strictly under agreement.
Article 165.- Obligations of trustees
Unless otherwise agreed, trustees shall have the following obligations:
1. To conduct the purchase and sale of goods as agreed upon;
2. To notify trustor of matters related to the performance of mandate contracts;
3. To follow instructions of trustor as agreed upon;
4. To preserve assets and documents assigned to them for the performance of mandate contracts;
5. To keep secret information related to the performance of mandate contracts;
6. To hand over money and goods as agreed upon;
7. To bear joint responsibility for law violation acts of trustor, in cases where such law violation acts are partially attributable to their own faults
THE GOVERNMENT ---
SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness
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No.12/2006/ND-CP Hanoi, January 23, 2006
DECREE
Detailing the implementation of the commercial law regarding international goods sale and purchase and goods sale, purchase, processing and transit
agency activities with foreign countries THE GOVERNMENT
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the June 14, 2005 Commercial Law;
At the proposal of the Minister of Trade,
Chapter IV
ENTRUSTMENT OF IMPORT AND EXPORT OF GOODS AND UNDERTAKING OF ENTRUSTED IMPORT AND EXPORT OF GOODS Article 17.- Entrustment of import and export of goods and undertaking of entrusted
import and export of goods
Traders may entrust other traders to import and export all kinds of goods, or
undertake import and export of all kinds of goods entrusted by other traders, except those on the list of goods banned or suspended from export and goods on the list of goods banned or suspended from import.
APPENDIX NO. 11