INTERNSHIP REPORT KE GO COMPANY LIMITED. Currently, after more than 5 years of operation, the company has the personnel of 72 persons, including nine persons in office blocks working in room 603, Kim Anh building, Dich Vong Hau Ward, Cau Giay District. There are seven supervisors, 56 employees work in the factory locating in Tien Phong commune, Yen Dung district, Bac Giang province. Accordingly, 100% officers have university degrees and workers are mainly unskilled localities.
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VIETNAM UNIVERSITY OF COMMERCE
ENGLISH DEPARTMENT
------
INTERNSHIP REPORT
Company:
KE GO COMPANY LIMITED
Supervisor:
Ph.D. Nguyen Khac Nghia
Student : Vu Thi Theu
Class : K49N2
Student Code : 11D170109
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TABLES OF CONTENTS
Introduction
List of abbreviations
List of tables and charts
PART 1: OVERVIEW OF KE GO COMPANY LIMITED
1.1. General introduction
1.2. Foundation history and development
1.3. Major business areas
1.4. Organizational structure
PART 2: KE GO’S BUSINESS RESULTS ANALYSIS....
2.1. Key products and markets
2.1.1. Key products
2.1.2. Core markets
2.2. Business results analysis in the period of 2016
2.3. Strengths and weaknesses evaluation on business activities
2.3.1. Strengths
2.3.2. Weaknesses
2.4. Evaluation on the use of English in the company
2.4.1 Strengths and weaknesses in using English
2.4.2. Suggested solutions to improve the use of English
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PART 3: KE GO’S EXISTING PROBLEMS
3.1. Existing problems and suggested solutions to improve human resources
3.2. Existing problems and suggested solutions to improve business activities
Conclusion
References
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INTRODUCTION
Wood is one of potential export items of Vietnam. In the context of economic
integration across the world, the wood export industry in Vietnam generally faces hard
competition from many countries. These existing problems require enterprises to explore
constantly, apply advanced technologies in the world as well as promoting research
activities to continuously develop.
As a small and medium enterprise operating in the field of manufacturing and trading
wood products, Ke Go Ltd is no exception. In addition to regularly checking and
improving the process of production, creating new models and using modern technologies,
the company also focuses on facilitating export activities and organizing the export process
to utilize resources of the company and ensure sustainable development objectives.
Vietnam University of Commerce and English Department have created an opportunity
for me to have an internship to make us understand knowledge of specialty and access
practical in Ke Go Ltd- Export and Import Department. During the internship, I get
dedicated help from the leadership and staff in the company. Enthusiastic working attitudes
of all staff in the company have helped me learn a lot while working here.
I would like to express my gratitude towards teachers at English Department –
Vietnam University of Commerce. Especially, I would love to express my sincere thanks to
my supervisor – Mr. Nguyen Khac Nghia as well as Mr. Le Thanh Ha – a sale staff and
colleges in Ke Go Ltd helping me a lot to fulfill the report. I look forward to receiving
comments and suggestions in order to perfect the internship report.
Hanoi, January 08, 2017
Student
Vu Thi Theu
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LIST OF ABBREVIATIONS
TNHH: Limited
STT: Number
Q: quarter
KNXK: turnover
LNTT: profit before tax
LNST: profit after tax
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LIST OF TABLES AND CHARTS
Diagram 1.1: Organizational structure chart of Ke Go Ltd
Table 1.1. Export turnover of wooden products in period of 2013-2015
Table 1.2. Structure of Wooden Exporting in the period of 2013 – 2015
Table 1.3. Business results of Ke Go in the first two quarters of 2016
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PART 1: OVERVIEW OF KE GO COMPANY LIMITED
1.1. General introduction
Vietnamese name: Cong ty TNHH Ke Go
English name: KE GO COMPANY LIMITED
Trade name: KEGO CO., LTD
Phone : (04) 62572345
Email: kego.vn@gmail.com
Website: www.kego.com.vn
Tax code: 0102842559
Legal representative: GM. Trinh Xuan Duong
Address: No. 415 Hoang Tang Bi Street, Duc Thang Ward, Bac Tu Liem District,
Hanoi
1.2. Foundation history and development
Licensing day: 09/09/2011
Capital: 3,000,000,000 (in words: three billion)
In 2011, Ke Go Ltd was established. It is time Vietnam was deeper in globalization
and international economic integration. Globalization and international economic
integration create for Vietnam business opportunities; however, they also result in great
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challenges. To the resources of a small and medium-sized company, the development of
Ke Go Ltd divides into 3 stages:
- Stage 1: Clinging and existing
From the early of establishment, Ke Go. Ltd operated with a relatively moderate
capacity power (because of Vietnam's bleak economy). The number of employees of
company in office blocks is only three persons (director, accountant, and one sales person).
The number of employees working in workshops ranges from 10-15 people. Product the
company mainly trading that time is veneer.
- Stage 2: adapting to the market
Once in tune with the market rules, Ke Go Ltd expanded the scale of business
activities. The enterprise hired more workers, widened factories and traded a variety of
items as well as broadened many other business sectors.
- Stage 3: Pioneering
Ke Go Ltd is currently the crucial partner supplying raw materials for many domestic
as well as international markets. The number of employees and workers of the company
has reached nearly 60 people after more than four years of operation. Types of products
more diversify and meet the demand of domestic and foreign markets.
Currently, after more than 5 years of operation, the company has the personnel of 72
persons, including nine persons in office blocks working in room 603, Kim Anh building,
Dich Vong Hau Ward, Cau Giay District. There are seven supervisors, 56 employees work
in the factory locating in Tien Phong commune, Yen Dung district, Bac Giang province.
Accordingly, 100% officers have university degrees and workers are mainly unskilled
localities.
1.3. Major business areas
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The company operates business on many fields, the main business segments of the
company are:
- Logging: The firm has signed a contract with a logging workshop in Hoa Binh. Every
month, the company books a shipment with the collaborator and nominate personnel
directly inspect the quality of merchandise.
- Transportation and forwarding Service: Ke Go has relatively extensive relationship
with forwarder and shipping companies, so it at the same time provides transport and
forwarding service. Should the business hires vehicles to consign or receive commodity, it
will be available for issuing transportation and logistics services for retail trading
companies.
- Wholesale of agricultural and forestry materials: This is the primary domain the most
accounting for profit of the company. The enterprise purchase products or raw materials
from one company and then sold these for another company. Besides, it sells self-produced
goods for domestic and overseas partners.
- Producing plywood, veneer, laminated and other planks of wood: The business has a
factory in Bac Giang acquiring substances from diverse sources and manufacturing
towards purchase orders.
- Launching and promoting: In addition to operating the business, the firm also sets up
a website named Kien Tap Center. Moreover, it associates with several subsidiaries to
advertise products as well as aid to seek human resources for its subsidiaries and receive
monthly commissions.
1.4. Organizational structure
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Diagram 1.1: Organizational structure chart of Ke Go Ltd
Director
Director of the company has the highest power, operating and managing activities of
the company, negotiating and contracting with customers. Additionally, he is also
responsible for implementing the firm’s tasks in line with regulations of the State as well as
representing the sake of workers and employees in the company in accordance with
prevailing law.
Accounting division
Accounting division of the enterprise consists of two personnel: one business
accounting and one bookkeeper. This partition takes responsibility for planning and
orienting towards short-term financing targets of the company, analyzing the financial
performance, listing payroll, forming reports monthly, quarterly, annually and guiding
manpower to valid remittance documents.
This division plays an important role in the company. The number of the staff is five
person including three sales and two document persons. It undertakes the following tasks:
ensuring input and output of the operation, approaching and researching new markets,
carrying out business plans, pricing and establishing contracts, checking up implementation
Board of
Directors
Division of
Accounting
Business
Accounting
Bookkeeper
Division of Business
Document
Officer
Sale
Officer
Division of
Production
Workshop
Manager
Worker
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progress of the departments and production workshop to ensure timely as dealing with
customers and proposing the most efficient production in time.
Production division
The factory in Bac Giang currently comprises of 7 employees being in charge of
managing and supervising: workers during the production exercise, raw materials,
completed goods, formulating long-term production plans to recruit workers as needing.
PART 2: KE GO’S BUSINESS RESULTS ANALYSIS
2.1. Key products and markets
2.1.1. Key Products
The goods making of wood under the brand name Ke Go: planks, lumber, veneer…,
are raw products being evolved to a higher level of manufacturing. Products can be divided
into 3 main groups:
- The first group: raw timber products aim at constructing and manufacturing utilities,
including plywood, lumber, and pallet.
- The second group: wooden products have been processed to reach the high-end
manufacturing activities such as eucalyptus core veneer, acacia core veneer.
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- The third group: wooden products are taken advantages of leftover materials after
the process of producing the two groups of products mentioned above, including wooden
broom handle, coffee stirrer, and ice cream stick.
Table 1.1. Export turnover of wooden products in period of 2013-2015
No Name of product Revenue (USD)
2013 2014 2015
1 Plywood 82,810 95,679 110,970
2 Lumber 40,193 52,486 57,289
3 Pallet 33,754 65,690 60,420
4 Eucalyptus core veneer 185,438 250,267 748,276
5 Acacia core veneer 150,295 215,438 567,431
6 Wooden broom handle 5,201 5,456 2,071
Export turnover 500,265 685,016 1,546,45
7
(Report on export in the period of 2013- 2015)
Among the company's wooden products, eucalyptus and acacia core veneer are the two
brands of the business. Eucalyptus wood veneer accounts for the largest proportion with
export turnover reaching USD 185,438 in 2013, rising USD 250,267 in 2014 and surging
rapidly in 2015 with the figure up to USD 748,276. Acacia core veneer also makes up for
relatively in the total as rising from USD 150,295 in 2013 to USD 567,431 in 2015. The
reason for increasing exports is that these items are favored in Southeast Asian, East Asian
and European markets, and meet well stringent requirements of customers.
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The export turnover of plywood, lumber, and pallet in the first group of products also
accounts for a considerable amount, resulting in substantial revenue for the company.
Results range from 50000 to 100000 dollars and fluctuate annually. These wooden are
very preferred in Middle East and Southeast Asian markets, where is usually very high in
demand of building.
The products in the third group are processed from leftover materials constituting a
very small part in the total of turnover because of few orders.
2.1.2. Core Market
Thanks to distributing reliable products with good quality and stable quantity, the
market structure of the company is quite diverse after operating more than 5 years,
including:
- Southeast Asia: Thailand, Malaysia, Philippines, Indonesia, Singapore
- South Asia: Sri Lanka
- East Asia: South Korea, Japan
- Middle East: Iraq, Iran, Lebanon, United Arab Emirates, Kuwait
- North Africa: Egypt, Algeria
- Europe: Turkey
Table 1.2. Structure of Wooden Exporting in the period of 2013 – 2015
Code: USD
Market 2013 2014 2015 Growth rate
Revenue % Revenue % Revenue % 2014/
2013
2015/
2014
Southeast
Asia
210,111.5 42 267,156.5 39 525,795.3 34 2.592 11.76
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(Report on strategic market for 2016)
From the data in the Table 1.2, total turnover of wooden products increases over 3
years with the growth rate of 2014 in comparison with 2013 and 2015 against 2014
reaching respectively 8.397% and 39.15%.
Since 2013, Southeast Asian market has been a familiar market representing the
biggest amount of profit among the collaborators of Ke Go. The reason that the market
occupies a considerable proportion is Vietnam is a country in Southeast Asia. As a result,
cost of transporting shipments from Vietnam to consignees in the region is less expensive
than other markets.
East Asian market is the second major market of the enterprise. Customers in the
market mainly are patrons of three countries: Japan, China, and Korea with the number of
Korean tourists accounting for more than 50%. The revenue and export proportion from the
regional market represents steadily and impressively with export ratio of 25% in 2013 and
26% in the following year, reaching 28% in 2015.
Europe is the third market in promotion plan to expand the cooperative's business.
Despite facing difficulties in transport processes as well as strict requirements of the
market, sales volume and export share from this market are relatively high. Ke Go's
revenue in this market hikes from USD 100,053.1 in 2013 to 157,553.8 in the next year and
East
Asia
125,066.3 25 178,104.3 26 433,008 28 2.410 11.58
Europe 100,053.1 20 157,553.8 23 371,149.6 24 2.613 7.254
Middle
East
65,164.5 13 82,202 12 216,504 14 0.774 6.104
Total 500,265.5 100 685,016.8 100 1,546,457 100 8.397 39.15
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escalates USD 371,149.6 in 2015. The share of exports also increases from 20% in 2013 to
24% in the two years later.
Finally, although Middle East market contributes a sizeable percentage to the
practice’s revenue, the proportion is not high and no sign of rising. Thus, the company sets
the goal of remaining loyal customers in the market.
2.2. Business results analysis in the period of 2016
Regarding to evaluating business performances of Ke Go Ltd in 2016, the following
table presents operation results of the company:
Table 1.3. Business results of Ke Go in the first two quarters of 2016
No. Indicator Code Quarter 1 Quarter 2
1 Total revenue USD 813.097 852.407
2 Plywood revenue USD 44.623 41.113
3 Proportion % 5,49 4,82
4 Lumber revenue USD 19.431 25.801
5 Proportion % 2,39 3,03
6 Pallet revenue USD 22.978 24.513
7 Proportion % 2,83 2,88
8 Eucalyptus core veneer
revenue
USD 412.276 408.009
9 Proportion % 50,7 47,87
1
0
Acacia core veneer revenue USD 312.714 351.993
1
1
Proportion % 38,46 41,29
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1
2
Wooden broom handle
revenue
USD 1.075 0.978
1
3
Proportion % 0,13 0,11
1
4
Total expense USD 585.429 596.685
1
5
Proportion % 72 70
1
6
Interest after tax USD 101.13 147.02
1
7
Average income Milli
on
5,21 5,21
1
8
Profit before tax USD 227.668 255.722
1
9
Profit after tax USD 209.375 233.431
2
0
Total capital USD 594.887 601.145
2
1
Fixed capital USD 410.472 420.801
2
2
Proportion % 69 70
2
3
Current capital USD 184.415 180.344
2
4
Proportion % 33 30
(Business results of Ke Go Corporation Limited in 2016)
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Indicators of the following quarter roughly increases compared with the previous
quarter. Revenue of the business mainly comes from eucalyptus core veneer. Obviously,
total revenue of Q2 is USD 852,407 soaring by USD 39,31 in comparison with USD
813,097 in Q1. Among six major export commodities of the company, revenue from
eucalyptus core veneer accounts for most of the total business activities. Total expense of
Q2 is 11,256 USD higher than Q1, escalating 1.92%. Referring to the interest after tax
indicator, in Q1 and Q2 the index attains respectively USD 101,13 and USD 147,02. It
generates noticeably that the later interest rates stay higher than the former quarter.
Undoubtedly, Ke Go Ltd has planned measures to invest greater resources and run the
business more effectively improving revenue of the company.
The total capital soars including current and fixed capital, with fixed capital making up
for 70% of the total. It is possible that effectiveness on management, capital structure, and
manpower of the company has been enhanced frequently.
There exist a complication that the current average salary per an employee of the
corporation is 5,21 million dong, lower comparing with their expenditure in spite of having
higher earnings than the previous year (nearly 5 million) . Accordingly, it affects working
productivity of the human resources as well as the company's reputation. Therefore, Ke Go
is necessary to take the corrective measures such as raising income or offering better
incentive policies for staff.
2.3. Strengths and weaknesses evaluation on business activities
2.3.1. Strengths
• The appropriate administration of the board of directors is not only an outstanding
advantage of the company but also a factor assisting to expand business operations
conveniently.
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• Besides, all divisions constantly pursue new customers and enlarge the market share
at the same time planning for seasoned strategies to raise customer spirits and increase
sales volume.
• Ke Go mainly exports their shipments by sea (usually Hai Phong port), and goods are
in containers. The business establishes relatively good relations with couriers, so delivery
conditions are also quite diverse: FOB, CIF, FCA, CFR...
• The firm offers incentive and awarding policies in cases of the talented and dedicated
.
• That the close coordination between parts of the company makes purchasing orders
delivered adequately and timely. Wherever the delay exists, the problem will be checked
up and supported by superiors and colleagues solved, ensuring these steps are completed
on schedule.
• Import-Export Division has flexible attitude towards work. The personnel in specific
department supervise customer orders from creating sales contracts to transferring goods. If
there are any incidents, the officers always support each other and resolve any problems
expectedly.
2.3.2. Weaknesses
• The budget using for encouraging staff is still limited, so that it cannot stimulate the
working capacity of some employees, particularly in the peak season.
• The number of labor force is relative (over 50 people); however, few of them are
craftsmen.
• Export process is complicated, time, and cost consuming that resulting in not
competing with outstanding Laos and Cambodia companies while exporting to Southeast
Asian markets.
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• Despite constantly looking for new customers and widening operation, exporter
markets of the company are still Asian and African consumers. Moreover, the company
still encounters with certain barriers in accessing to the US and European markets due to
failing to meet the requirements of ARP and being under pressure from Malaysian and
Chinese purchasers.
• Export revenue of wooden broom handles or any items is unstable over the period
because of the segment buyer mostly are Muslims. The Muslims run fewer business
activities in Ramadan, so that the company's shipment is also anyway affected.
• Additionally, there exists bureaucracy in some countries of North African region.
Therefore, it should be time for delay in working perspective and complicated procedures
making negotiation and sign a contract prolong several months even up to a year.
2.4. Evaluation on the use of English in the company
2.4.1 Strengths and weaknesses in using English
Organizing mainly in sectors of purchasing agricultural and forestry materials, Ke Go
picks finished products or raw materials up from one company and then sells them to
another company, and exports self-produced merchandises to meet domestic and overseas
requirements. Recently, the company keeps a close eye on seeking and establishing
relationship with new and potential foreign investors. To fulfill these operations, the
employees are trained to negotiate, write emails, communicate, and perform transactions in
English.
The official website of the company is www.kego.com.vn designed and displayed in
English to aid overseas purchasers in visiting and acquiring activities of the business easily.
Nowadays, English is considered as an essential tool in negotiation of import-export
parties. Normally, English is the official language in some countries; however, Chinese and
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Korean also regard it as the second language. Consequently, local and foreign enterprises
commonly adopt English to negotiate or discuss contracts.
Ke Go has recruited staff to be good at English, facilitating communicate with foreign
partners smoothly. The export department of the company now contains many graduates
from prestigious universities such as Hanoi University, University of Foreign Language, so
their English capacity is relatively good.
Existing problem
The language is used professional only in import and export department; meanwhile,
the process of drafting, contacting, and reading documents in English is related to several
other parts of the company. In the import and export division, it is only one employee to be
fluent in both 4 English skills (listening, speaking, reading and writing). This is a downside
of the company because it is impossible to apply more effective scheme such as accessing
customers by telephone.
Moreover, the staff cannot receive calls directly from international clients who would
like to get the specific information of the company. Staff of the administrative office is not
good at English whilst they have a duty to recruit new personnel for the company. It is
understandable that they normally impress on their degrees rather than direct interviews.
Overall, the company has some gaps in English equipping employees. The company
also does not have the appropriate policies to help employees practice and improve their
English.
2.4.2. Suggested solutions to improve the use of English
By acquiring existing difficulties in order, the company leadership has oriented to have
language training courses for all employees in the company to support the expansion of
business operations in the future. Currently, the company has planned to be in coordination
with some English centers in Hanoi to create some Business English courses. Accordingly,
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these courses will especially focus on training some skills of communication, negotiation,
writing email, drafting contract in English, turning this language into one of the effective
tools boost operations of the company.
Furthermore, the enterprise also creates favorable conditions for employees to
participate in English sharing workshops organized by local and foreign units.
Simultaneously, Ke Go is not only in favor of supporting in finance, career but also
applying policies on raising wage, awarding to encourage employees to acquire the
foreign language that make them have opportunities to take part in these interesting
activities.
It appears to me that the process of recruitment should be clear and more detailed to
have an accurate appreciation of English capacity of interviewees, particularly Business
English. Besides, it is necessary to regularly give employees from other departments a
chance to interact directly with foreign purchasers that will assist the manpower in
intensifying quick response of English as well as listening skills from different countries.
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PART 3: KE GO’S EXISTING PROBLEMS
3.1. Existing problems and suggested solutions to improve human resources
Inspite of having work experience, the workforce of the company does not meet the
requirements in context of the economy, regional and international integration. At present,
Ke Go has no human resource department, so that any issues relating to human resources
management are controlled directly by the director. As a result, there are still some matters
in managing and training human resources. Addressing the demand of operation, the firm
merely intends to draft general initiatives to quantity of employees in the near future, and
there is no specialization on training schemes.
Suggested solutions
To address the problems of workforce, the company should wonder the following
incentive polices for employees:
- Recruit new candidates in accordance with the certain criteria: the company should
select candidates who have university degrees as well as working experience. In 2014, the
enterprise had a demand of recruiting 2-3 persons to keep balance on the retirement.
- Address modes of social, health, and labor insurance; labor safety, labor regulation,
and labor convention under Labor Code
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- Generate suitable policies to encourage the spirit of workers and employees both
mentally and physically by organizing visit, entertainment, award following revenue and
good performance
- Operate advanced specialty classes to enhance qualifications for employee
3.2. Existing problems and suggested solutions to improve business activities
The effectiveness of business of the company is literally low, and there are no measure
to improve that. Since a new branch has opened recently accounting for the considerable
expense, the company need to take measures to reduce costs accelerate the pace of revenue
after run the business stably.
Although the financial situation of the company is relatively good, marketing and
operation network are less effective. The company has not yet put an important emphasis
on these matters as well as built a good advertising strategy to promote products.
Suggested solutions
Wooden products should be diversified and created by taking advantages of surplus in
production line. The business continuously invests and improves technologies to enhance
export volume as well as meet the growing demand of the domestic market. Commitment
on the quality of products is the leading motto in any operations. That element is the core
value helping the company run business stably in recent years and in the future.
In relation to enlarge its market, Ke Go continues to development traditional markets
in Southeast Asia, South Asia, East Asia, Africa and simultaneously expands as well as
widen to difficult markets such as Middle East, Europe.
To fulfill those objectives, the company needs to have flexible and proactive
perspective, habitually improve the quality of labor force as well as science and technology
24. Dịch vụ viết thuê đề tài – KB Zalo/Tele 0917.193.864 – luanvantrust.com
Kham thảo miễn phí – Kết bạn Zalo/Tele mình 0917.193.864
content in assembly line. Moreover, the enterprise would rather improve staff training
programs to enhance the quality and efficiency of work.
CONCLUSION
Ke Go Ltd succeeds in overcoming the difficulties causing by the economic scenario.
As a private company focusing on manufacturing and exporting furniture, Ke Go has made
efforts to operate, develop, and effectively compete on the wooden market as well as work
hard to become a reliable domestic market.
As a student specializing in Business English, is the introduction of the university, the
faculty and the consent of the board of corporations, Ltd. Ke, I have a precious opportunity
to access and acquire general business results as well as business basic operations of the
company. Although the internship is performed in a short period, this is a chance for me to
pick up experiences and apply what have learned into practice.
I would love to give my gratitude towards to my beloved supervisor – Mr.Nguyen
Khac Nghia, the board of leadership and colleges at Ke Go Company Limited for helping
me to accomplish this report.
Hanoi, January 08, 2017
Student
25. Dịch vụ viết thuê đề tài – KB Zalo/Tele 0917.193.864 – luanvantrust.com
Kham thảo miễn phí – Kết bạn Zalo/Tele mình 0917.193.864
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