Marketing Activities of Sea Dredging Joint Stock Company 1

Due to the nature of natural flows, every year estuaries, waterways, and wharves are deposited with alluvium, so it is important and urgent to conduct dredging and maintenance of these structures.

The Company's customers are industrial parks, ports, organizations, units, the State (maritime department, river transport department). In which, the Company's traditional customers are Hai Phong Port, Dredging of export and import ports - Chinpon Cement Company...

Table 2.1: Dredging demand in 2017

STT

Construction site	Estimated volume ( m 3 )
1	Hai Phong Port Entrance	720,000
2	Dinh An Stream	500,000
3	Sa Ky - Quang Ngai stream	250,000
4	Hon Net Section - Quang Ninh	50,000
5	Region 3 - Navy - Da Nang	220,000
6	Ha Long Shipyard Stream	300,000
7	1000T Bridge - Dinh Vu	400,000
8	Stream 234 - Da Nang	150,000
9	Thanh Hoa stream	200,000
10	Tac Cau Stream - Kien Giang	180,000
11	Cua Ranh Stream - Quang Binh	100,000
12	Tien Sa Port Turnaround - Da Nang	250,000

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2.1.6. Marketing activities of Sea Dredging Joint Stock Company 1

Fierce competition in the market has posed many challenges to the Company. Customers have more and more choices for the same type of product.

Products. Reality has proven that companies with effective strategies and plans to invest resources to satisfy customers are often the companies that gain a large market share in the market. Every company is aware that their existence and development depends on whether they can win customers or not, satisfy their changing requirements or not and maintain customer loyalty or not. To achieve this requirement, the company has been implementing policies that contribute to expanding the market, creating trust for customers, enhancing the company's reputation in the market.

 Product policy :

 Understand the investor's wishes to propose construction plans suitable for the project.

 Survey the project owner's opinion after handover and putting into use.

 Training to improve workers' skills to adapt to market fluctuations to build reputation and brand for the company.

 Build a team of experienced inspectors and supervisors to ensure maximum project quality.

Pricing policy:

 Take advantage of the company's monopoly on raw material trading in the market it occupies, buy at low prices from the source so the price is cheaper than competitors.

 At the same time, reduce transportation costs, accept low profit but profit can be high thanks to receiving many projects.

 Promotion policy :

 Pay commission percentage depending on contract value for individuals who introduce and broker customers to the company.

 Expand and maintain relationships with existing customers.

 Participate in sponsoring major programs to promote the company's brand.

 Distribution channel :

Analyze and evaluate the needs of new markets and then expand the market to other provinces.

Because of its nature as a joint stock company, the company's marketing strategy is mainly based on existing relationships. Therefore, the company should have strategies to maintain and enhance those relationships.

2.1.7. Human resource situation in Sea Dredging Joint Stock Company 1 Table 2.2: Human resource structure and human resource fluctuations in 2015–2016

2015

2016		Difference deviated
Criteria		Difference deviated
Criteria	Number (people)	Proportion (%)	Number (people)	Proportion (%)	Number (people)
A. Classification by gender
1. Male	300	86	300	73	0
2. Female	50	14	110	27	60
Total	350	100	410	100	60
B. Classification by level
1. University and post-university	30	8.57	50	12.2	20
2. Secondary College	20	5.71	10	2.43	10
3. General labor	300	86	350	85.3	50
Total	350	100	410	100	60

(Source: Department of Labor Organization)

Due to the nature of the construction company, the workforce is mainly male. In 2015, the company had a total of 350 employees, of which 86% were male and 14% were female. However, by 2016, the total number of employees in the company increased to 410 because the proportion of women increased while that of men remained unchanged.

The labor force in the Company is divided into two groups: indirect labor and direct labor. Indirect labor includes: CBCNV doing specialized work in functional departments, factories, teams such as: Finance and Accounting Department, Market Department, Production Planning Department, Administrative Organization Department. Direct labor includes: Security forces, janitors, service workers, workers - laborers working directly at construction sites and on ships such as mechanics, electricians, sailors, dredgers, etc. Due to the nature of the dredging industry, the number of technical workers in the company is quite high.

By level, in 2016, the number of university and above graduates was 50 people, an increase of 20 people compared to 2015, while the number of college and intermediate graduates decreased by 10 people. This shows that the level of employees in the company is improving.

With a reasonable and attractive salary and bonus regime, most of the company's employees have worked since the company's establishment and rarely quit. Therefore, the company has little need to recruit workers during the year. Instead, the company focuses on training policies for employees to improve service quality. The company always identifies that training and development play an important role in improving the general level of qualifications and capacity of the staff and engineers.

In recent years, in addition to skilled and experienced staff, the Company has recruited many young staff with good qualifications and capacity to meet the increasingly high technological requirements. However, there are still many limitations and lack of initiative, including in assessing needs, organizing training as well as training and development programs and content. In addition, the majority of young staff and engineers in the Project Management Boards are knowledgeable, have professional qualifications, are dynamic and strong.

bold but not properly trained in construction supervision and project management.

In the coming time, the Corporation needs to be more active in this work, ensuring adequate human resources that can access and master modern technology.

2.1.8. Advantages and disadvantages of Sea Dredging Joint Stock Company 1

Favorable:

 The Corporation has a 35-year tradition of construction and development, creating prestige and brand name of Dredging Company 1 in the market. After equitization, the company will continue to consolidate its position as a strong construction contractor in the Vietnamese construction industry.

 After equitization, the company has attracted capital, expanded production and business, and operated effectively, creating conditions for the company to soon become a strong company with highly specialized member companies in the fields of construction, construction materials production, housing and urban development, consulting, surveying and testing.

 After equitization, the company will switch to operating under a new model, creating new motivation, expanding its field of operation and customer base, and fully promoting the company's potential and strengths.

 After equitization, the multi-ownership form will create conditions to mobilize many sources of capital from investors through different channels to meet the company's production and business development requirements.

 During the construction and development process, the company has always received attention, guidance and support from the Ministry of Construction and relevant central and local agencies.

Hard:

 The company has gradually stabilized, however, equity capital is still low, affecting job search and production expansion.

 The capacity of staff and engineers is still limited, the skilled technical workforce is lacking, the level of proficiency, professionalism, and professional skills are not high. Therefore, it has not met the requirements of technology level and production development speed of the construction industry.

 In addition, the Company may also encounter other risks such as natural disasters, fires, etc., which are force majeure risks that, if they occur, will cause damage to assets, people and the Company's general operations.

2.2. Analysis of production and business efficiency of Sea Dredging Joint Stock Company 1

2.2.1. General analysis of production and business activities of Sea Dredging Joint Stock Company 1

Business analysis is extremely important for every business, so it needs to be carefully considered and analyzed so that we can see the economic results, on that basis, we can make decisions. It is also a tool to perceive business results phenomena, thereby creating a premise for the next stages of development. At the same time, it helps businesses improve productivity, quality and efficiency, both promoting strengths and overcoming weaknesses to best exploit all potentials of the business.

To control and evaluate the effectiveness of the company's production and business activities, we first analyze the business results that the company has achieved in recent years through the items in the balance sheet and the company's business results report in 2 years (2014-2015). Thereby, we will have the most general view of the business situation of the enterprise in a certain period of time.

Table 2.3: Business performance report of Sea Dredging Joint Stock Company 1

Unit: VND

INDICATORS

MS	2015	2016	DIFFERENCE
1. Sales revenue and service provision	1	88,642,246,636	95,056,347,716	6,414,101,080
2. Deductions	2	-	-	-
3. Net revenue	10	88,642,246,636	95,056,347,716	6,414,101,080
4. Cost of goods sold	11	68,448,499,340	80,350,076,120	11,901,576,780
5. Gross profit	20	20,193,747,296	32,514,714,038	12,320,966,742
6. Financial operating revenue	21	40,971,340	42,166,140	1,194,800
7. Financial costs	22	6,553,651,563	9,315,281,575	2,761,630,012
- Including: Interest expense	23	6,553,651,563	9,315,281,575	2,761,630,012
8. Selling expenses	24	-	-	-
9. Business management costs	25	11,717,062,807	8,647,235,917	(3,069,826,890)
10 Net profit from business activities	30	1,964,004,266	14,594,362,686	12,630,358,420
11. Other income	31	449,577,248	369,838,808	(79,738,440)
12. Other costs	32	671,609,699	761,764,362	90,154,663
13. Other profits	40	(222,032,451)	(391,925,554)	(169,893,103)
14. Total profit before tax	50	1,741,971,815	14,202,437,132	12,460,465,317
15. Corporate income tax	51	487,752,108	5,485,393,159	4,997,641,051
16. Profit after tax	60	1,254,219,709	8,717,043,973	7,462,824,264

(Source: Accounting and Finance Department)

Comment :

Revenue:

Through the company's business performance report, we can see that the company's sales and service revenue in 2016 increased by VND 6,414,101,080 compared to 2015. Thanks to that, the company's net sales and service revenue in 2016 also increased by VND 6,414,101,080 compared to 2014, equivalent to 7.24%.

Cost of goods sold in 2016 also increased by VND 11,901,576,780 compared to 2014, equivalent to 17.38%. Financial revenue in 2016 increased by VND 1,194,800 compared to 2015, equivalent to 2.91%.

Expense:

The company's financial expenses in 2016 increased by VND 2,761,630,012 compared to 2015, equivalent to 42.13%. Due to the unstable economic situation, the company is focusing on investing in financial activities. However, the company's business management expenses in 2016 decreased by VND 3,069,826,890 compared to 2015, equal to 24.2%. This shows that the company has effective management measures to reduce costs and increase revenue, which is a good sign that needs to be promoted in the coming year.

However, in terms of expenses, other expenses in 2016 increased by VND 90,154,663 compared to 2015, equivalent to 13.42%. The reason here is that the management of extra expenses is still weak and not strict. That is the largest increase and the problem for the company next year is to effectively reduce this expense. Through the above factors, we can see that the company needs to have measures to reduce expenses and use expenses more reasonably in the coming time.