Analysis of factors affecting revenue at YOKOHAMA Tire Vietnam Company

1.2. Research objectives.

Analyze the production and business situation at the company. Analyze factors affecting sales revenue.

Positioning the YOKOHAMA tire brand and some solutions to expand the market.

1.3. Scope of research

The research topic is carried out within the scope of:

About space: The topic is researched within the scope of the Tire Company.

YOKOHAMA Vietnam. The topic will mention the two types of products that the company produces the most: motorcycle tires and light truck tires.

About time: The topic was carried out from March 2, 2009 to May 16, 2009.

1.4. Structure of the thesis

The topic is divided into 5 main chapters: CHAPTER 1: Problem statement

CHAPTER 2: Overview

CHAPTER 3: Research content and methods CHAPTER 4: Research results and discussion CHAPTER 5: Conclusion and recommendations

CHAPTER 2 OVERVIEW

2.1. Overview of YOKOHAMA Vietnam Company

 Company Name: YOKOHAMA TIRE COMPANY VIETNAM

 Trading name: YOKOHAMA TYRE VIETNAM COMPANY (Abbreviated as YTVC)

 Transaction office and showroom: 27B Nguyen Dinh Chieu-Ward Dakao-District 1-

HCMC

 Phone: 38242199

Fax: 38227743

 Factory: Tan Thoi Hiep Commune - Hoc Mon District - District 12 - Ho Chi Minh City

 Business form: commercial production

 Business areas: motorcycle tires, light truck tires, motorcycle tubes.

 Total number of employees: 160 people

 Accounting book form: Apply general journal form

 Depreciation method: Apply straight-line depreciation method

 Inventory accounting method: According to the periodic declaration method.

The unit used in accounting records is Vietnamese Dong. The languages used in accounting records include Vietnamese and English.

2.2. History of establishment and development of YOKOHAMA Vietnam company

YOKOHAMA Tire Company is a joint venture company established under Decision No. 1867/GP issued on April 1, 1997 by the Ministry of Planning and Investment. The operating period is 40 years with the type of manufacturing and trading motorcycle tires, light truck tires and motorcycle tubes, including joint venture partners such as: YOKOHAMA RUBBER

COMPANY LIMITED, SOUTHERN RUBBER COMPANY, MITSUBISHI COPORATION.

YOKOHAMA RUBBER COMPANY LIMITED: Head office located at 36 – 37

Shimbashi 5-Chome, Mitnato-Ku, Tokyo, Japan. With contributed capital of 13,600,000 USD, accounting for 68.45% of legal capital.

SOUTHERN RUBBER COMPANY (CASUMINA): Headquartered at 180 Nguyen Thi Minh Khai - District 3 - Ho Chi Minh City, with contributed capital of 5,700,000 USD, accounting for 30% of legal capital.

MITSUBISHI CORPORATION: Head office located at 6-3 Marunachi 2-

Chome, Chiyoda, Tokyo, Japan, with contributed capital of 294,000 USD, accounting for 1.55% of legal capital.

During the process of formation and development up to now, YOKOHAMA Vietnam Company has constantly improved, self-improved, enhanced product quality, meeting the increasingly diverse needs of consumers with the motto "Quality is the top goal of the company".

2.3. Company organizational structure

CEO

Deputy General Director

MANAGER

Figure 2.1. Organizational chart of the company

SET

	SET		SET		SET		SET		SET
PART		PART		PART		PART		PART		PART
ONION		PLAN		SELL		TECHNICAL		PRODUCT		ONION
MAIN		MATHS		ROW		TECHNIQUE		EXPORT		MAIN
										WORKSHOP

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Source: Human Resources Department of YOKOHAMA Tire Company Vietnam

General Director : is the person responsible for managing and operating the entire

Company's production and business activities.

As a representative of the unit to negotiate and sign economic contracts.

Review all production and business plans, report production and business results by month, quarter, year...

Deputy General Director : is the person who supports the General Director in planning, recruiting and developing human resources in administrative work and community relations roles .

Manager : is the person who manages and operates the entire factory in terms of training, organizing personnel to carry out production, ensuring product quality efficiency and general safety and order in production at the factory .

Administrative department : Responsible for planning management, creating satisfaction in welfare issues for all employees in the company, managing training plans, receiving documents, deciding to disseminate regulations of departments from superiors in the company .

Accounting department : Directly managed by the chief accountant, who is authorized to exercise his/ her authority according to current regulations. Advise the board of directors on economic and financial matters to ensure the company's business operations are most effective and in accordance with the law. Perform the tasks of protecting the company's assets through records, report to the director on the implementation of the company's economic and financial plans through tasks such as preparing accounting documents, inventory, calculating the cost of accounting objects, calculating the cost, opening accounts, double-entry bookkeeping and preparing accounting reports. At the same time, report to the director on the implementation of the state's financial accounting policies and regulations, and discover the company's potential. Coordinate with the company's functional departments, establish and monitor the implementation of plans on costs and product prices.

Sales Department:

is a team of auxiliary staff

responsible for market research

market, sales planning, finding ways to bring products to consumers to satisfy customer needs while bringing the highest profit to the company. Support the general director in managing the company's financial activities, managing sales marketing, accounting, and product marketing advertising activities.

Technical department : Carry out preparation work for new product development, research and solve production technology problems , maintain and improve machinery in the factory and manage inspection to ensure the quality of input materials and output products, establish production processes in order and standards to reduce production costs to the lowest possible level.

Production department:

Function: organize and operate the production line, check product quality, achieve technical standards, apply all techniques to the company's production process.

Tasks: manage and monitor the entire production process, arrange and use human resources appropriately within the scope of production management. Collaborate with the sales department to organize the purchase of raw materials and calculate profits and losses in production and business.

Factory administration department : responsible for making factory operation plans, managing import, export , and inventory of raw materials in terms of quantity, planning production, coordinating with the company's accounting department to manage factory costs, managing training activities, coaching, and safety work for the factory.

2.4. The company's business goals and future vision

“For your happy life” is the slogan of YOKOHAMA Vietnam Company with the desire that the company’s products will bring a happy life to its customers with quality, safe products that make life better. Because in Vietnam, the rate of casualties due to traffic accidents is very high, and most of the accidents are due to poor quality products, because businesses only focus on profits without thinking about the safety of consumers. YOKOHAMA Vietnam Company with the criterion of serving for the safety of consumers, the goal will strive to increasingly produce prestigious, quality products to serve consumers, and the company’s standards are all based on the safety of consumers as the top priority.

YOKOHAMA has set out a very reasonable development strategy “Bringing a happy life to everyone” and launched environmentally friendly designs, combining two elements: tradition and modernity with high efficiency. The characteristic of YOKOHAMA products is that they all have designs

Very beautiful spikes, many sizes, many designs, rich in types, diverse in designs, ... giving consumers a sense of style and safety. Compared with the same type of tire on the market, YOKOHAMA's motorcycle tire can be used for about 30,000 km, truck tire can be used for 80,000 - 100,000 km.

2.5. Company production capacity

Officially entering the Vietnamese tire market since 1997 in the form of a joint venture, YOKOHAMA Vietnam is still dependent on its business partner and competitor in the market - CASUMINA for raw materials and production facilities. This has caused YOKOHAMA Vietnam's production capacity after more than 10 years of operation in the Vietnamese market to still have many limitations. The company has not yet satisfied customer needs through product supply.

Thousand tires

Figure 2.2. Production capacity of Yokohama Vietnam

Motorcycle tires

Car tires

Yokohama Vietnam's production capacity

900

800

720

700

600

500

400

300

200

100

600

480

120

144

2005 2006 2007 2008

Year

Source: Marketing and Sales Department of YOKOHAMA Vietnam Company

2.6. Advantages and disadvantages of the company

2.6.1. Advantages

By implementing product strategies well and constantly developing new designs, YOKOHAMA tire company has gained a foothold in customers' hearts with quality.

The best products, long-lasting durability and good warranty. The products are available throughout Vietnam and exported to Malaysia, Singapore, Cambodia, and Japan. Contributing to that success, there is a significant contribution from the team of employees with over 10 years of experience in the profession.

The company always strives to meet consumer tastes by researching and launching new products, forklift lines, with high durability tires.

2.6.2. Difficulties

Currently, the demand for YOKOHAMA tires is high while the output produced by the factory is not enough to meet the demand.

Raw materials are imported from abroad and paid in US dollars. Due to economic fluctuations in 2008, the dollar price increased sharply, causing raw material prices to increase. This led to increased costs, causing many difficulties in sales. As a result, profits were negative in 2008.

Competition in the tire market is very fierce today, due to the presence of many new manufacturers and foreign manufacturers, increasing competition in the market.

CHAPTER 3

RESEARCH CONTENT AND METHODS

3.1. Theoretical basis

3.1.1. Concept of business activities

Labor production is the basis of human existence and development, and over time, that truth has shown its correctness. The level of social production development in each era and each region is different, but people always seek a better production method that brings more benefits in terms of material and spirit. From that need, people in the production and business process must be close to reality, think comprehensively and analyze all aspects of their production and business activities. On the other hand, along with the development of productive forces and scientific and technical progress, people are required to have a full and accurate understanding of their business activities to help produce better and improve economic efficiency.

3.1.2. Factors affecting revenue

a) Business environment

Business environment is all the factors that affect the entire operation of the business. It includes 2 types of environment:

o Macro environment: law, politics, economy, technology...

o Micro environment: customers, competitors, partners...

Researching the business environment of an enterprise helps business leaders be proactive in all situations that may arise in their operations, thereby having appropriate policies and measures.

b) Product price

One of the most important decisions you will have to make is determining the price for your business's product or service. If the price is too high or too low

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