Advertising and trade promotion activities help expand the image of the enterprise in the market and position the image in the hearts of consumers. The effectiveness of advertising and trade promotion activities is assessed through: the education level and experience of the enterprise's advertising and trade promotion team, the opportunity and capacity to access modern communication technologies, the ability of consumers to remember the product and the enterprise, the ability to build trade promotion plans, the success level of advertising campaigns, etc.
3.3.2. Group of indicators on business results and efficiency
- Export volume and value indicators of enterprises
+ Export volume: shows the level of production force of each enterprise, reflects the scale, as well as the production and consumption capacity of the enterprise. Export value is the factor that brings profit to the enterprise. This indicator also reflects the ability to mobilize resources for production, the ability to fulfill orders of the enterprise. With a constant selling price, increased consumption volume will increase the enterprise's profit.
+ Export price: The price of goods/services is an objective factor, but export capacity can be assessed through the pricing policy of the enterprise for exported goods/services. A reasonable pricing policy will help the enterprise gain more profit. Export prices will be compared between many periods, between many markets, between the price set by the enterprise and the market price in relation to fluctuations in export volume... to assess the effectiveness of the enterprise's pricing policy in the market.
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+ Export value: is calculated by the formula: q*p, in which q is the export volume and p is the unit price of the exported item, reflecting the value of the enterprise's revenue after an export period. This is also an indicator to evaluate the export capacity of the enterprise by monitoring the fluctuations in export value over business periods (relative and absolute), comparing with competitors (domestic and foreign) based on market share, growth rate, comparison with the industry,
- Cost indicators
Costs in general are the expenditure expressed in money in the business process with the desire to bring about a completed product, service or a certain business result. Costs arising in production, trade and service activities aim to achieve the ultimate goal of the enterprise which is revenue and profit. For export enterprises, good cost management will contribute to demonstrating the export capacity of the enterprise.
According to the general classification or classification according to the current accounting system, costs are classified into production costs, non-production costs, period costs and product costs. Production costs include direct material costs, direct labor costs, general production costs (employee costs, material costs, tools, equipment; fixed asset depreciation costs; electricity and water costs, production taxes; other cash costs). Non-production costs include sales costs (staff costs; material, tool, and equipment costs; fixed asset depreciation costs; transportation, loading and unloading costs; advertising and marketing costs; other cash costs) and business management costs (office staff costs; material, tool, and equipment costs; fixed asset depreciation costs; taxes, fees, interest; conference, reception, and business travel costs; other cash costs. Period costs are costs that arise in general during a business period and may be related to many different objects or products. Product costs are costs associated with and creating product value, in inventory or already in use.
sold. 6
When analyzing business costs, people often rely on a number of key related indicators such as:
+ Absolute difference in cost: (F): F=F 1 -F o
+ Fee rate of each business period: (F'): F'= [F/DT]*100%
+ Fee rate difference ratio (F'): F'=F' 1 -F' o
+ Rate of increase or decrease in fee rate ( t f ): t f =[ F'/F' o ]*100%
+ Deficit level (U): U= F'.DT of the research period
6 Nguyen Tan Binh (2005), Business performance analysis, Book, pp. 104, 105, 106, Statistical Publishing House
(F: Costs (of all types), DT: Revenue in export activities)
- Export performance indicators
Efficiency is a synthetic indicator reflecting the relative relationship between the use of total input factors and the ability to create all output factors in a specific set of circumstances. Efficiency has a decisive influence on the competitiveness of enterprises in general and the export capacity of enterprises in particular. The general formula of efficiency is often applied as follows:
Total output factors x100% Total input factors
Input factors are usually: costs, loan and investment capital, human resources, etc. Output factors are: revenue, profit, quantity of exported products, etc.
+ Group of indicators on the profitability of export enterprises: including export profit margin and profitability coefficient of capital invested in export activities. Export profit margin is calculated according to the formula:
Export profitx100%
Export price
reflects the efficiency of the production cost of export goods through the profitability index. The profitability coefficient of investment capital for export activities is calculated according to the formula:
Export profitx100%
Capital x export turnover in the period
+ Group of indicators reflecting average labor productivity
+ Group of indicators reflecting the effectiveness of each contract and project
- General financial indicators of the enterprise
Strong financial capacity of enterprises means good investment ability for export, thereby increasing the export capacity of enterprises. Indicators
Financial indicators are often used to reflect solvency, capital efficiency, profit, and financial structure.
+Payment index group: General coefficient:
Total receivables x100% Total payables
The criteria used to examine the specific situation include: receivables and payables.
Two ratios used to look at accounts receivable are:
Accounts receivable turnover =Short sales x100%
Accounts receivable and payable
The higher the turnover (ie the shorter the number of days to collect payment) shows that the debt management and collection situation is good, the business has regular, stable customers, and pays on time. On the other hand, a turnover that is too high shows a rigid sales method, almost cash sales, making it difficult to compete and expand the market. Depending on the specific situation, the above indicators will be applied appropriately.
Payables: Overview of solvency (debt repayment) expressed by the general solvency ratio:
Total payment = Payment ability x 100%
Payment requirements
Solvency includes all the resources that can be mobilized to pay debts. Payment needs are debts that need to be paid immediately or within a certain period. The general payment ratio is a balanced comparison ratio, so the best case is a ratio of one. Otherwise, it leads to two extremes: lack of payment ability or excess capital, causing congestion.
+ Capital efficiency index group: Shown through the total capital turnover, goods turnover and payment term.
The total capital turnover ratio is a general ratio of total asset turnover, which compares the relationship between total assets and operating revenue. The higher the ratio, the more efficient the use of assets.
Asset turnover = Revenue from financial activities
Total assets
The number of product turnovers indicates the quality and variety of products suitable for the market. This ratio is a typical indicator, often used when analyzing the efficiency of capital use.
Number of freight turns
=Value of goods sold at cost price x 100% Value of inventory goods overpriced
Number of days per lap =
360 x100%
Round
Payment terms include collection period and payment period.
Collection period = Accounts receivable x 100%
Revenue b x n 1 day
Payment term =
Payables per day Cost of goods sold per day
x100%
+ Profit ratio group: includes gross profit ratio, net profit ratio, return on assets, return on equity and DuPont equation.
Gross profit margin: Gross profit is the difference between the selling price and the cost of goods sold. Not taking into account business expenses, the fluctuating gross profit margin will be the direct cause affecting profits. Gross profit margin shows the ability to cover costs, especially fixed costs, to achieve profits.
Paired score =
Net profit margin:
Net profit margin =
Revenue Compounding
Net Profit Revenue
Net profit here is understood as profit after tax. Net profit ratio, also known as revenue profitability, shows how much net profit one dollar of revenue is capable of generating.
Return on assets ROA:
Return on assets ROA =
Net profit Total assets
Meaning: how much net profit does one asset generate? The higher the ratio, the more reasonable and effective the arrangement, allocation and management of assets.
Return on equity ROE:
The maximum yield per unit area is ÷ u =
loop
The old version
means how much net profit one dollar of equity generates for the owner.
+ Dupont equation: ROE=ROA*Financial leverage
In which, financial leverage or financial balance or debt balance FL (financial leverage) is an indicator showing the financial structure of the enterprise:
§ Financial statement =
Total assets Equity ÷ u
+ The group of financial structure indicators includes the debt to asset ratio and the debt to capital ratio.
Debt ratio or debt ratio is the portion of debt in total capital:
Total number = Total number
Total assets
Debt to equity ratio:
Debt to equity ratio - another way of writing about financial leverage, is a type of balance ratio used to compare debt and equity, showing the clearest financial structure of the business.
The coefficient of variation of the mean square root is ÷ u =
Total assets are in stock.
The higher the ratio, the higher the efficiency for the owner in case of stable volume of operations and profitable business. The lower the ratio, the more safety is ensured in case of reduced volume of operations and loss of business.
II. FACTORS AFFECTING ENTERPRISES' EXPORT CAPACITY
The export capacity of a business is affected by many factors. We can divide these factors into two main groups: the group of factors belonging to the internal environment of the business and the group of factors belonging to the external environment of the business.
1. Factors of the internal environment of the enterprise
1.1. Human resources
The human factor always plays an important role in the production and business process of an enterprise. Therefore, the size and quality of the workforce will determine the success or failure of the enterprise.
The scale of human resources is expressed in a number of criteria as follows: the number of employees in the enterprise, the number of employees that the enterprise can mobilize in a certain period of time, the annual growth rate of the number of employees, the future human resource needs of the enterprise, etc.
Because the products of export enterprises are intended to be sold in foreign markets, they must ensure compliance with international standards as well as the standards of the importing country's market, therefore, the quality of human resources serving export is often required to be higher and more stringent than that of human resources producing products sold to the domestic market. First of all, the quality of human resources is expressed through the proportion of workers with education, degrees, and training, the proportion of workers with experience in the enterprise, the number of experts, and the number of people receiving internationally recognized certificates. In addition, the foreign language and computer skills of employees are also an important requirement for employees of export enterprises, especially enterprises with e-commerce websites for online shopping.
Employee welfare policies are a spiritual medicine that stimulates the enthusiasm and creativity of the staff. Salary and bonus policies, training support policies, training and technology transfer policies
Techniques, appointments... play a huge role in maintaining and promoting the human resource factor of export capacity.
1.2. Financial capacity
For any business, financial activities always play an important role in the survival of the business. The financial capacity of a business is often demonstrated through two main factors: the ability to mobilize capital and the efficiency of capital use.
As we know, capital is an indispensable condition for establishing a business and conducting production and business. The capital scale of a business will ensure that the business can pursue contracts, projects, and strategies that require large and long-term investments. Normally, people often rely on the capital scale of the business to evaluate the scale of the business.
The ability to mobilize capital of an enterprise represents the ability of the enterprise to meet the capital requirements to implement investment decisions. Faced with a contract, project, or strategy that requires investment, the enterprise is able to mobilize capital from equity capital (contributed capital, funds, increasing capital through the issuance of new shares for joint stock companies) or from other sources outside the enterprise (requesting funding, support from the State, borrowing from credit funds, borrowing from banks, issuing bonds, etc.). The ability to mobilize capital of an enterprise depends on many factors such as: The level of development of the financial market, the size of the enterprise, the reputation and growth of the enterprise's production and business, etc.
However, having a lot of capital and the ability to mobilize capital does not mean that a business can use capital effectively. The efficiency of a business's capital use is expressed through its financial capacity to meet short-term financial obligations, its ability to finance financial risks, and its ability to ensure capital balances. In addition, an important indicator to evaluate the efficiency of capital use is the business's ability to generate profits and its ability to maintain its position in the context of general economic growth and industry growth. Efficiency of capital use