Factors Affecting Sales Performance at the Company

2.4. Evaluation of sales performance at the company

2018 is the first year the Company operates with an organizational structure, business network, and workforce that has been rearranged to suit the Company's operating situation. At the same time, in the context of the general difficulties of the national economy, the Company also has strengths and weaknesses in sales, specifically:

2.4.1. Strengths

Large business capital: The Company receives support from partners through joint purchase and sale contracts, import authorization; receives cooperation and support from manufacturing and trading companies that are suppliers and consumers of products distributed by the Company; is supported with low-interest capital from banks, so the Company has a good inventory plan to meet market demand; loans from banks have promptly met the Company's operations at each time.

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Continuously growing market share: During the past time, the Company's market share in terms of sales revenue has continuously grown. The sales networks are widely organized, covering markets nationwide and are located in locations with high traffic and stable customer numbers.

Diversity in product types: The company is known to many customers for its many products. The company always promptly launches new products to the market, always increasing the prestige and reputation of the company.

The sales system is adjusted promptly: To adapt to changes in the market, especially when meeting the widespread needs of the majority and many customer groups. The sales system administrators have done a good job of adjusting the system to change promptly, providing measures.

more suitable to attract customers and the company's sales have continuously increased in recent years.

Considerate after-sales services: The company reduces product prices for customers who buy in large quantities, offers bonuses and percentage promotions in sales activities. Free delivery department, collects money after delivering goods to customers. Caring for customers after purchasing aims to create brand and reputation for the company.

2.4.2. Weaknesses

Ineffective sales planning: The Company's sales plan is not specific and not suitable for business goals. The sales plan targets for the following year are often based on experience and judgment of product consumption capacity, without deep development in market research. Policies to increase sales revenue have not met consumption needs. Customer access through channels has not attracted many customers.

The sales locations are not arranged properly: The Company's affiliated sales locations are located in very convenient business locations, with a large population. However, the sales locations are organized in a way that they are places for trading and not for displaying goods. The goods are stored in warehouses, which does not attract many customers.

The management team and sales force are not strong: Training to improve the professional qualifications of the management team and sales force of the Company is organized when needed. The work of recruiting more experienced sales force and young force with professional capacity and enthusiasm in work has not been focused on.

Measures to motivate sales staff have not received deep attention: The Company's reward system is not clear enough to encourage and motivate employees to work actively and ensure equality among everyone. The solidarity and close relationship between sales staff in the Company is not deep.

The work of checking and evaluating sales staff is not strict: Although there is a smooth channel, sales staff can avoid the control of the management levels in the Company. The rapid expansion of consumer markets makes it difficult to closely monitor the activities of employees. The management team is still lacking, not enough to monitor a system of many employees.

Chapter 2 Summary

 Chapter 2 introduced the formation and development process, legal status, business lines and activities, organizational and management structure and main resources of Viet Phap Medical Equipment Import-Export Joint Stock Company.

 Then, analyze and evaluate the implementation of sales activities at Viet Phap Medical Equipment and Import-Export Joint Stock Company through contents such as sales planning, organization of the current sales apparatus, recruitment and development of the sales team, motivation and stimulation of the sales system, control of sales activities and evaluation of sales effectiveness through revenue, profit, market share, and sales labor productivity indicators. To draw out the strengths that need to be promoted as well as the weaknesses that need to be overcome. From there, it is the basis for proposing solutions.

Solutions to improve sales activities at Viet Phap Medical Equipment Import Export Joint Stock Company in the coming time.

CHAPTER 3: COMPLETE SALES SOLUTIONS AT VIET PHAP MEDICAL EQUIPMENT IMPORT-EXPORT JOINT STOCK COMPANY

3.1. Factors affecting sales at the company

3.1.1. The company's sales environments

3.1.1.1. Macro environment

Economic environment

Sociocultural environment

Natural environment

Political and legal environment

Technology environment

Micro-selling environment

Macro environment: Includes 5 factors such as economic, socio-cultural, natural, political-legal and technological (see Figure 3.1).

Source: Synthesized from research results

Figure 3.1: Diagram of the macro sales environment

Economic environment: The strong development of the national economy has created many attractive business opportunities for the Company but at the same time posed many difficulties and challenges for the Company. The participation of foreign organizations and investors in our country's economy is more numerous. More goods from abroad are flooding into our country, forcing domestic enterprises to compete fiercely. Rising inflation makes the price of goods more expensive, people's demand will decrease... greatly affecting the Company's business activities.

Socio-cultural environment: Is a basic factor that all businesses must pay attention to when entering the business. It affects the consumer behavior and purchasing decisions of customers. At the same time, it

also oriented to the field and list of goods traded by the Company. The Company's products are all familiar items that are suitable for the consumption habits of the population. On the other hand, as a populous country with a young population, the Company has many favorable conditions in attracting and recruiting workers suitable for business purposes.

Natural environment: Natural phenomena are always evolving in a complex way that can cause many difficulties for the Company but can also give rise to many new needs that need to be met. In recent years, the weather has been extremely complicated, storms and floods have occurred frequently, and droughts have raged for a long time. The demand for food has increased, and the Company has also prepared these items to serve the needs of the people.

Political-legal environment: Doing business in a market mechanism requires businesses to understand the law and do business legitimately to survive and develop sustainably.

Technological environment: The company also regularly researches and applies science and technology to business. The company's store system is equipped with automatic cameras, goods preservation equipment, and computers connected to the Internet to serve sales activities.

3.1.1.2. Micro environment

Material resources

Spiritual resources

Supplier

Competitors

Microenvironment: Includes 2 main factors such as the Company's resources and the Company's customers (see Figure 3.2).

Micro-selling environment

Company resources

Company customers

dynamic

Source: Synthesized from research results

Figure 3.2: Diagram of the micro-sales environment

Company Resources:

Including material and spiritual

Material resources: Including technical facilities, capital and labor.

- Regarding technical facilities: The company constantly improves productivity.

labor, quality of business activities by regularly applying new scientific and technological advances to production and business activities to meet customers' consumption needs, promote sales activities and increase revenue profits. The company applies IT to sales, accounting operations, Internet connection, speeding up the process of searching, looking up information about goods, partners, sources of goods online and conducting online trading.

- Regarding capital: With a charter capital of 20 billion VND, the Company has encountered some difficulties in meeting capital needs during its production and business activities. The Company has used many measures to mobilize and increase capital such as borrowing from banks, borrowing idle money from the Company's employees, etc. Currently, the Company plans to increase its charter capital to 30 billion VND as a basis for expanding its business scale.

- Regarding labor: The company has a large workforce, with over 220 employees in 2019. Most of the employees have been trained and have professional qualifications, and are regularly sent by the management to learn experience and receive further professional training, which has created a driving force for the company's development.

This workforce is quite young, so there are many advantages in training human resources, creating dynamism and creativity in business.

Spiritual resources: The Company's Youth Union activities are always well implemented. The Youth Union has many exciting activities that contribute to promoting the Company's enthusiastic emulation in production and business such as working overtime, participating in cultural and sports activities, helping people when they are sick, organizing birthdays and traveling... The Company's Board of Directors has strict and timely reward and punishment policies and regimes to motivate employees to strive to actively contribute to the Company.

Company's customers:

Including customers, suppliers and competitors, specifically:

- The Company's customers: Are individuals, organizations, domestic and foreign enterprises, numerous in number, diverse in needs and consumer tastes. Therefore, the quantity, type, and structure of the products that the Company trades are very rich and diverse. The Company has introduced many new products to satisfy those needs in a timely manner. The Company's supply time is not limited, so customers can freely buy according to their preferences and at any time.

- Suppliers: The Company's partners and suppliers are all reputable enterprises in the market with many famous brands such as ABIPHA International Pharmaceutical Joint Stock Company, Nam Ha Pharmaceutical Joint Stock Company, Vinh Phuc Pharmaceutical Joint Stock Company, Hau Giang Pharmaceutical Joint Stock Company, etc. In the coming time, the Company plans to find and cooperate with a number of new partners because input prices are increasing very strongly. The Company wants to find a more reasonable source of supply and ensure competitiveness.

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