Evaluating the Successes and Limitations of Hmv Deli Distribution & Services Co., Ltd.

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- Improve the level of application and use of Information Technology, create a modern and effective working style for the Company's staff.

- Thanks to the Company's modern information system, communication and exchange between departments have become more convenient and effective. Thereby, the management board can easily grasp the company's situation and management decisions, plans and goals will be quickly communicated to all employees. Thereby contributing to increasing work efficiency, creating strength for the company.

However, the management level of HMV Deli Distribution & Services Company Limited is not effective when tasks such as business planning, market research... have not really received attention and implementation from the Board of Directors and employees.

Thus, to improve business efficiency, the Company must first improve its organizational and management skills. That requires the Board of Directors to improve its organizational and management skills, make reasonable business decisions, and arrange staff to perform tasks such as: business planning, organizing and implementing tasks such as: business planning, organizing and implementing marketing activities, etc. in the best way, ensuring that the Company's organizational structure is always consistent with the Company's business goals and directions.

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With modern technology, the company uses less manpower, saves time, helps the company increase labor productivity, reduce costs, choose high quality products, quickly meet market needs. Therefore, increase the competitiveness of the company's products in the market.

Product Features

HMV Deli Distribution & Services Co., Ltd. is an importer of butter, milk, cheese, cakes, etc. The suppliers of the Company's products are famous brands in the European market, so the quality of these products is very high and the imported products have certificates of origin (CO), quality certificates (CQ) and food safety inspection (ATTP) from famous brands. This is a strength of the Company to compete with other domestic enterprises.

HMV Deli Distribution & Services Co., Ltd. always ensures to provide customers with quality products through the selection of reliable suppliers, with commitments on quality, commitments to avoid counterfeit, fake and poor quality goods. The Company's Board of Directors has directly visited production facilities in European countries such as England,

France, Belgium, ... to ensure the selection of products that meet quality standards to meet the needs of domestic customers.

The Company's products meet most of the customers' needs in terms of both variety and quality. Moreover, the Company has created a certain reputation with customers through the quality of services provided by the Company. The Company always fulfills the signed contracts, delivers goods in full, quickly and with the right quality. The Company also performs quite well in sales and after-sales support services such as: supporting purchase and sale procedures, transportation, and at the same time having preferential policies and discounts for traditional customers, customers purchasing in large quantities, etc.

Thanks to ensuring product quality, the Company has had strategic partners such as: T-mart, K-mart, Vin-mart, Big C, Aeon mall, Soi bien Trung Thanh... Customers who come to the Company can buy the desired products and are very satisfied with the quality of the products and services of the Company. The rate of customers re-purchasing is up to 80%.

The goal of HMV Deli is to always maintain and continuously improve product quality. The company realizes that this is an indispensable condition if the enterprise wants to improve business efficiency, in other words, product quality is a matter of survival for the Company. When the quality is no longer guaranteed, does not satisfy customer needs, customers will immediately leave the Company. As a company operating mainly in the field of import, the issue of ensuring the supply of high quality products is always the top priority of the Company. The Company has established a Management Board and improved product quality to regularly research the market and customer tastes to select products that suit market needs and reasonable prices. Therefore, the Company's products are always favored and trusted by customers.

Marketing Capacity

For the company, this activity is very important to the company, HMV Deli has established a relationship between the finance department, the project department and the marketing staff, leading to marketing work closely linked to the company's competitive strategy and improving business efficiency. Marketing capacity is often assessed through activities such as: advertising, information collection, and qualifications of marketing staff.

- About advertising activities

The company has a reputation in the market and is known to customers through product image promotion. In particular, the company's leaders pay great attention to image promotion and product marketing to customers. According to statistics from the Finance - Accounting Department, each year the company spends up to 10% of its profits to invest in advertising activities. The communication channels used by the company: Shopee, Facebook, HMV Deli website, ...

- About information collection system

The company's information collection network is built in detail and actively searches for information; creating a deep information network to find market opportunities. The company searches for information on investment status, regulations, standards, and norms of the state and at the same time develops information channels on the market of input factors, information on current and potential competitors. Especially after the WTO integration period, the company focuses on investing in developing this information channel, improving the ability to compete with competitors and at the same time improving the company's business efficiency.

- About marketing staff qualifications

The marketing team consists of professionals in the field, who are dynamic, creative, and have a quick grasp of the market. Currently, the company has 10 employees in charge of marketing activities. They all have university degrees and have marketing certificates.

2.3. Evaluate the successes and limitations of HMV Deli Distribution & Services Co., Ltd.

2.3.1. The company's achievements through the criteria

- Faced with the increasing demands of the market, the company has paid attention to product quality and built product strategies to meet customer and market needs.

- As a young company operating in the field of importing and supplying food supplements such as butter, milk, cheese, etc., HMV Deli has affirmed its own brand with the best quality and service.

- Faced with market fluctuations and increasingly fierce competition between businesses, HMV Deli Distribution & Services Co., Ltd. has chosen its own path: building a business as a bridge between manufacturers and consumers, between foreign and domestic businesses. From there, providing the market with diverse products in both design and type, meeting the strict requirements of customers.

- The company has received enthusiastic support from European product manufacturers. Therefore, the company has gained a reputation for product quality of many types of items.

- The quality of the Company's products has been tested by a system of modern equipment and a team of experienced experts from Europe and Vietnam. Therefore, the Company's products always receive the trust of customers nationwide.

- The Company's products are diverse in types and designs and are always updated with the latest

New products are popular with consumers and are of the highest quality.

- Reasonable labor structure has created conditions for the company to do better business, the arrangement between business departments is even, at the same time the management and organization departments are streamlined but still ensure the work. The company always cares about the lives of staff. Thanks to that, employees focus their efforts on work, helping the company's business results to be better.

- The company has a team of young, dynamic and enthusiastic sales staff; skilled technical workers who are always dedicated and thoughtful, combined with leading experts from Europe and Vietnam, so the company has received the support of a large number of customers.

- The positive working atmosphere in the company has promoted the working spirit of the employees in the company, creating joy, excitement, wholeheartedness in the work, motivation to work and work more effectively for the common goal of the company.

2.3.2. Limitations

The weaknesses that have long existed within the Company are now more evident in the period of economic integration:

- Poor management quality and competitiveness: The Company's staff, directors and managers still have many limitations in knowledge and management skills.

- Financial competitiveness is still very weak: The capital scale and financial capacity (including owner's capital and total capital) of the Company are still small, ineffective and unsustainable. That leads to the Company having difficulty in choosing high-quality products in business, investing in innovation of equipment and business technology.

- Lack of business experience: In the context of the country opening up and integrating, the Company still lacks experience in the market, especially experience in handling global opportunities and risks, low tolerance for impacts and risks in business, and does not really understand international business practices and laws...

- Regarding market research activities and target market selection: Market research is still limited, many potential markets have not been exploited.

- Furthermore, the ability to search, exploit and process information of staff is still weak, so decision making is mainly based on experience and feelings.

The Company's market research has not been organized scientifically, and there are many limitations in the use of information technology, mathematical tools, and statistics in market research.

- The Company's corporate culture, commercial civilization, and service system are still lacking and weak. The ability to connect, cooperate, and share information with other businesses is poor, or even non-existent.

- The above weaknesses are not too serious, but clearly if not effectively overcome, they will have a negative and increasingly large impact on the business results and business efficiency of the Company.

2.3.3. Causes of limitations

- Because the company is still young, it is difficult to affirm the brand because the current market is fiercely competitive, while rival companies have had more exposure to the market than before, so changing the way consumers view competitors' products to welcome and support their own products is still a difficult problem.

- The business scale is still small, the capital budget is not much, so there are not many separate departments, so when the same department does too much work, the efficiency will not be high.

- Although the credit and financial policies have been amended and supplemented, there are still many inappropriate things. The State has not created conditions and has not required enterprises to be autonomous, self-responsible, and proactive in production and business, and to accumulate capital for investment in technological innovation; the capital market has not been completed and developed synchronously to create a smooth capital circulation throughout society, meeting the capital needs of enterprises. Especially in terms of initial capital, enterprises in general are not fully invested but only invested in fixed assets. This makes enterprises unable to ensure minimum working capital.

- Besides, the banking system has not created favorable conditions for businesses to access medium and long-term capital sources to invest in technological innovation and improve product competitiveness.

- The State has not yet eliminated the preferential treatment and discrimination between state-owned enterprises and private enterprises in accessing credit and financial resources in the same industry and field.

- The legal system is unclear, causing inequality in competition, thereby reducing the competitiveness of enterprises.

CHAPTER 3

PERSPECTIVES AND SOME SOLUTIONS TO IMPROVE BUSINESS EFFICIENCY AT HMV DELI DISTRIBUTION & SERVICES COMPANY LIMITED

3.1. Development direction to improve business efficiency of HMV Deli Distribution & Services Co., Ltd.

3.1.1. Some forecasts of changes in the business environment and market of HMV Deli Distribution & Services Co., Ltd.

2020 is considered a year of great difficulties and challenges for the world economy in general, including Vietnam. The world economy is forecast to have the most severe recession in history, the growth of major economies has decreased sharply due to the negative impact of the Covid-19 epidemic. The import-export industry has been significantly affected by these impacts. It can be seen that 2020 is a year of major changes in both the political economy and the world, thereby also greatly affecting the world and domestic economy as mentioned above and more specifically, greatly affecting the world import-export industry in general and Vietnam in particular. That is reflected in the business results of HMV Deli Distribution & Services Co., Ltd. in 2020 in particular and the period 2018 - 2020 in general.

In 2020, it is impossible not to mention that exports overcame difficulties in the pandemic situation, maintaining positive growth; trade surplus reached a record high (19.1 billion USD) and the trade balance maintained a trade surplus for 5 consecutive years (Trade surplus turnover in the years 2016-2020 was: 1.6 billion USD; 1.9 billion USD; 6.5 billion USD; 10.9 billion USD; 19.1 billion USD, respectively). The signing of Free Trade Agreements has brought positive signals to the Vietnamese economy, especially the Free Trade Agreement between Vietnam and the EU (EVFTA). In 2020, exports to the EU reached 34.8 billion USD; notably, after 5 months of implementation (from August 1, 2020), Vietnam's total export turnover to the EU reached 15.4 billion USD, an increase of 1.6% over the same period last year.

This reflects the high growth in domestic production capacity, the favorable investment, production and business environment, and the many achievements in Vietnam's international economic integration. This is an encouraging result in the context of the EU economy seriously declining and continuing to face the complicated developments of the Covid-19 pandemic.

Free trade agreements (FTAs) in general, especially those with a regulatory scope such as the Vietnam - EU Free Trade Agreement (EVFTA), are the driving force that creates great attraction for Vietnam's import-export industry. At the time of research,

Researching the business performance of HMV Deli Distribution & Services Co., Ltd., this Agreement has officially come into effect, creating great attraction for importers who want to import products from the European market.

When discussing the business environment of enterprises, it is impossible not to mention the Fourth Industrial Revolution that has exploded over the past years. The Fourth Industrial Revolution has had a strong impact on many fields, with the emergence of robots with artificial intelligence bringing many applications to society. Thanks to AI technology, robots work smarter, have the ability to remember and learn infinitely, while the ability there is weaker as people get older. The advantage of robots working 24/7, not needing to pay salaries, taxes, insurance... is also threatening the correlation in the use of real or robot labor.

EVFTA opens up opportunities for domestic enterprises to access modern and advanced technology from EU countries. In the context of trade patterns that may change in the direction of reducing trade surplus with the EU, increasing the import of modern machinery and equipment will not only help domestically produced goods achieve higher quality and meet higher standards, but also increase the ability and opportunity for domestic enterprises to participate more deeply in the global value chain. This is also a challenge for domestic enterprises because they need to renew themselves, improve their skills and ability to receive new technology, improve products in both design and quality to enhance competitiveness, and avoid losing advantages right at home.

Vietnam is currently the leading country in two-way trade with the EU, and can be considered a gateway for the EU to ASEAN and possibly China. However, this advantage is not forever. The EU is also negotiating FTAs with other countries in the region such as Thailand, Malaysia, the Philippines and Indonesia (after the FTA negotiations with the ASEAN region collapsed). These are all countries that directly compete with Vietnam in exporting goods to the EU region. Therefore, Vietnam needs to make the most of the advantages and opportunities of its predecessor to maintain and promote its existing advantages in trade relations with the EU.

The fourth industrial revolution (industry 4.0) with the explosive development of information technology and the internet will create enormous advantages. This revolution increases income levels, improves the quality of life when products and services are created at low costs, and implementation is simplified. The positive impact of industry 4.0 on the import-export industry can be seen as:

- Firstly , creating opportunities to replace repetitive work that does not require skills or experience, toxic work, and work that is prone to accidents... with new technology machines.

- Second , help solve weak links in Vietnam's import supply chain and restructure the industry.

- Third , improving labor productivity per capita will improve very quickly, with the application of automation, robots and the use of big data, the ability to increase productivity will become exponential rather than arithmetic; improve product quality, increase income, improve the lives of workers.

- Fourth , create pressure to improve workers' skills.

3.1.2. Orientation and goals to improve business efficiency of HMV Deli Distribution & Services Co., Ltd.

a) Orientation

As analyzed above, in any economic context, opportunities and challenges always go hand in hand in the existence and development of enterprises. Some orientations and goals that HMV Deli Distribution & Services Co., Ltd. is aiming for in the period 2019-2025 are as follows:

- Increase productivity - Improve quality - Compete on price to enhance production development - premise to improve business efficiency of enterprises.

- The achievements of the Industrial Revolution 4.0 are best absorbed through: preparing high-quality human resources and gradually automating production stages to optimize these modern achievements.

- Prepare financial capacity, human resources, materials... to take advantage of opportunities from trade agreements when they come into effect. Specifically, bilateral trade agreements instead of multilateral ones are the basis for developing international relations.

- Participate in import-export merchant associations and unions to connect with businesses, investors, and consultants to develop technology and human resources according to needs through linking training centers.

- Take advantage of cooperation and support each other in science and technology, environment, and human resource training.

- Specific orientation:

o Maintain stability with existing customers, research and develop new customer markets both domestically and internationally. Thereby improving competitiveness towards expanding the market and affirming the company's position.

o Expand the import sector, especially food supplements such as butter, milk, cheese, cakes, etc., and expand to high-quality food products.

o Overcome difficulties, shortcomings and weaknesses of previous years.