Analysis of capital efficiency at Kinh Do Northern Food Processing Joint Stock Company

From this expression, we can determine a policy of reserving an additional unit of a good if the probability of selling it is higher than or equal to the probability of not being able to sell that reserved unit of a good.

The company should regularly re-evaluate inventory and promptly handle backlog and poor quality goods to quickly release capital.

In the current conditions, the supply of raw materials is increasingly diverse and abundant. The Company needs to update the latest information to research the market to have the lowest cost and high quality supply of raw materials to improve the efficiency of the Company's production and business activities.

In addition, the Company should establish a reserve fund for inventory depreciation, which brings benefits to the Company such as limiting the impact of risks when inventory is damaged or of poor quality, bringing stability to production and business, and improving the Company's operating efficiency.

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3.2.1.4. Group of complementary solutions

+ Perfecting Marketing work: Research and market expansion are extremely important. The Marketing program is the basis for the Company to determine market demand in order to develop appropriate product strategies, thereby determining capital needs for the Company's production and business activities.

The Company's Marketing objective is to expand the market, promote and enhance the Company's image, in order to meet market demand while achieving the Company's profit and sustainable development goals. To achieve that goal, the Company needs to pay attention to the following specific solutions:

- Study the characteristics of the market during the process of movement to grasp the movement trends of the market in general and of the food processing industry in particular, grasp the development trends of technology in the food processing industry, and legal regulations in the processing process.

food processing... on that basis determine the production and business strategy and investment orientation correctly.

- The Company's product manufacturing needs to have specific plans and strategies that are suitable for the production characteristics of each product of the Company. The product manufacturing needs to be concerned from the stage of importing raw materials, preserving raw materials to the stage of putting raw materials into production to create products with quality, diverse designs and high competitiveness in the market.

- Enhance the Company's reputation through communication channels, the Company's production output and revenue results achieved. This is the basis for creating a competitive advantage for the Company in the market.

+ Risk prevention solutions:

- Improve product quality: Product quality is closely linked to the reputation of the Company. Therefore, from the time of putting raw materials into production until the product is put into circulation, quality control must be carried out continuously and regularly. Ensuring product quality will avoid risks that cause damage, increase production costs and improve the efficiency of business capital.

- Fully comply with regulations on human, product and property insurance: Because the Company's products are not only consumed domestically but also exported to a number of other countries, purchasing insurance for goods in transit will help the Company avoid unavoidable risks caused by natural disasters during transportation.

3.2.2. Some recommendations for the state

+ It is necessary to further innovate macroeconomic policies to ensure orientation and create conditions for the economy and businesses to effectively integrate with countries in the region and the world.

+ Innovating the operating mechanism of commercial banks and non-bank financial institutions, specifically interest rates, needs to be formed on the basis of supply-demand relations in the capital market, eliminating the distinction in lending interest rates for economic sectors so that enterprises can more easily access credit capital from credit institutions, meeting the capital needs for production and business.

+ It is necessary to promote the development of capital and the stock market to create conditions for enterprises to participate in domestic and foreign capital markets, thereby mobilizing capital sources to serve production, business and investment development.

+ The State resolutely fights against smuggling and counterfeit goods, creating a fair and healthy competitive environment among businesses.

+ Now that Vietnam has joined the WTO, the competitive pressure is very large, so the State needs to promulgate and perfect a synchronous legal system, create a strict legal corridor, stabilize the favorable and equal investment and business environment.

Conclude

Capital efficiency has become a top concern for businesses in general and Kinh Do Northern Food Processing Joint Stock Company in particular, because it determines the existence and development of each business. In an increasingly competitive market economy, with many fluctuations in the domestic and foreign economies, how to effectively use a business's capital is a big challenge for businesses.

After a period of studying about Kinh Do Northern Food Processing Joint Stock Company, with the enthusiastic help of teacher Dr. Nguyen Tien Dung , based on the knowledge acquired during the study process, I have completed my thesis with the topic "Analysis of capital usage efficiency at Kinh Do Northern Food Processing Joint Stock Company". With the researched content in the thesis, I hope to bring to those who are interested in the issue of capital usage efficiency an overview of the capital usage situation in general and of Kinh Do Northern Food Processing Joint Stock Company in particular, especially with the solutions proposed, I hope that they can be references and applications in management to improve capital usage efficiency at Kinh Do Northern Food Processing Joint Stock Company.

Although the thesis has been completed, the efficiency of capital use is a broad and complex issue, and the time spent in contact with reality is limited, so the thesis is difficult to avoid limitations. We hope that teachers and friends will give us feedback to make the thesis more complete.

Hanoi, June 2009

References

Vietnamese Documents

1. Financial report of Kinh Do Northern Company from 2004 to 2008

2. Ngo The Chi, Nguyen Trong Co (2008), Corporate financial analysis , Finance Publishing House, Hanoi.

3. Dinh The Hien (2008), Financial management - investment theory and application , Statistical Publishing House, Hanoi.

4. Tran Van Hung (2004), Production and operations management , Labor Publishing House, Hanoi.

5. Luu Thi Huong (2005), Corporate Finance , Statistical Publishing House, Hanoi

6. Nguyen Minh Kieu (2008), Corporate Finance , Statistical Publishing House, Hanoi.

7. Nguyen Viet Loi, Dau Ngoc Chau (2008), Auditing financial statements , Finance Publishing House, Hanoi.

8. Nguyen Cong Nghiep, Phung Thi Doan (1992), Capital preservation and development , Statistical Publishing House, Hanoi.

9. Nguyen Nang Phuc (2003), Theoretical and practical analysis of business economics , Finance Publishing House, Hanoi.

10. Nguyen Nang Phuc (2006), Financial analysis of joint stock companies , Finance Publishing House, Hanoi.

11. Nguyen Hai San (2007), Business Administration , Finance Publishing House, Hanoi.

12. Doan Xuan Tien (2005), Business management accounting , Finance Publishing House, Hanoi.

13. State Planning Commission (1991), Solutions for mobilizing and using capital sources , Hanoi.

English Documents

14. Brigham, E., F (2002), Financial Managament , South-Westen.

15. Moosa, AI (2004), International Finance , McGraw-Hill Western College Publishing.

16. Shapiro, A (1999), Multinational Financial Management , Prentice-Hall.

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