Solutions to improve the operational efficiency of the distribution channel system of Tunnel Brick products at Viet Ha Joint Stock Company - Ha Tinh

MINISTRY OF EDUCATION AND TRAINING HANOI UNIVERSITY OF AGRICULTURE

GRADUATION THESIS

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TOPIC:

SOLUTIONS TO IMPROVE THE EFFICIENCY OF DISTRIBUTION CHANNEL SYSTEM

TUNEL BRICK PRODUCTS AT VIET HA JOINT STOCK COMPANY - HA TINH

Student performance: NGUYEN CAO SANG

Course 55

Industry: BUSINESS ADMINISTRATION

Instructor: MSc. DO THI MY HANH

Hanoi – 2014

ACKNOWLEDGEMENTS

First of all, with sincere feelings and deep gratitude, I would like to thank MSc. Do Thi My Hanh, Faculty of Business Administration, who directly guided and helped me complete this thesis.

I would like to sincerely thank the teachers of the Faculty of Business Administration.

Hanoi University of Agriculture has taught and helped throughout the process of studying and writing this thesis.

I would also like to thank the Board of Directors of Viet Ha Joint Stock Company for creating

conditions for me to complete this thesis.

Finally, I would like to thank my friends and my entire family,

My relatives encouraged me during the time I did my thesis.

Hanoi, May 25, 2014

Student

Nguyen Cao Sang

INDEX

ACKNOWLEDGEMENTS................................................E

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TABLE OF CONTENTS...................................................Error: Reference source not found LIST OF ABBREVIATIONS...............................E

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LIST OF TABLES...................................................E

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LIST OF DIAGRAMS................................Error: Reference source not found PART I

INTRODUCTION

1.1. Problem statement 1

1.2. Research objective 2

1.2.1. General objective 2

1.2.2. Specific objectives 2

1.3. Research subjects 3

1.4. Scope of research 3

PART II

OVERVIEW OF LITERATURE AND RESEARCH METHODS

2.1. Document overview 4

2.1.1. Concept of distribution channel and distribution channel system 4

2.1.2. Role and function of distribution channel system 5

2.1.3 Distribution channel structure 6

2.1.4 Members of the distribution channel 13

2.1.5. Flows in the distribution channel 16

2.1.6. Factors influencing the choice of product distribution channels 18

2.1.7. Content of distribution channel system management 21

2.1.8 Practical basis 23

2.1.9. Related studies 25

2.2 Research methods 26

2.2.1. Analytical framework 26

2.2.2. Data collection method 27

2.2.3 Data analysis and processing methods 28

PART III

RESEARCH RESULTS

3.1 General overview of Viet Ha Joint Stock Company - Ha Tinh 29

3.1.1 Company formation and development process 29

3.1.2. Organization of the company 32

3.1.2.1. Organization of the 32nd Corporation

3.1.2.2. Organizational characteristics of the management apparatus at Tuynel Viet Ha brick and tile factory 33

3.1.3. Labor situation at the tunnel brick factory of Viet Ha Joint Stock Company 35

3.1.4. Production and business performance results at Viet Ha 37 Joint Stock Company

3.1.5. Asset and capital situation of Viet Ha Joint Stock Company 40

3.1.6. Business performance of the company in the field of tunnel bricks 43

3.1.7. Characteristics of the production process and product types of the tunnel brick factory of Viet Ha company.

................................................................ ................................................................ ................................................................ ......45

3.2. Current status of the distribution channel system of the tunnel brick factory of Viet Ha company 48

3.2.1. Product distribution channel structure of Viet Ha Joint Stock Company 56

3.2.2.1 Macro environment 62

3.2.2.2 Micro environment 63

3.2.3. Current status of distribution channel system management at Viet Ha 66 Joint Stock Company

3.2.3.1. Selection of channel 66 members

3.2.3.2. Encourage channel members 68

3.2.3.3. Channel Member Evaluation 70

3.2.3.4. Conflicts and contradictions occurring in channel 70

3.2.4. Evaluation of the effectiveness of the distribution channel system at Viet Ha Joint Stock Company 72

3.2.4.1. Consumption results by distribution channel and product type 72

3.2.4.2. Evaluation of the effectiveness of each distribution channel of Viet Ha company 79

3.2.4.3. Evaluate the performance of members participating in the distribution channel at Viet Ha Company 82

3.2.4.4. Evaluating the effectiveness of the company's distribution channel system 85

3.3 Some solutions to improve the company's product distribution channel system 88

3.3.1. Proposed solution orientations 89

3.3.2. Solution to increase the operational efficiency of the distribution channel system at Viet Ha Joint Stock Company.

3.3.2.1. Solutions to improve the efficiency of distribution channel management 90

3.3.2.2. Solutions to improve flows in the distribution channel of Viet Ha Joint Stock Company.. 92 3.3.2.3. Solutions to support distribution channels 94

3.3.2.4. Some other solutions 95

PART IV

CONCLUSION AND RECOMMENDATIONS

4.1 Conclusion 97

4.2 Recommendation 99

References

100

LIST OF TABLES

Table 3.1. Labor situation at Viet Ha brick factory

Table 3.2. Production and business performance in the 3 years 2011 - 2013 38

Table 3.3. Company's capital assets

Table 3.4. Business performance of the company in the field of tuyel bricks

Table 3.5. Main products of the factory

Table 3.6. Consumption situation of level 0 channel

Table 3.7. Consumption situation at dealers

Table 3.8. Consumption situation of retail stores

Table 3.9. The Company's consumption situation of industrial bricks and tiles

Table 3.10. Sales revenue of each product type on channels

Table 3.11. Performance of the company's distribution channels

Table 3.12. Accounting of agents participating in the distribution channel

i year 2013

................................................................ ................................................................ ................................83

LIST OF DIAGRAMS

Diagram 2.1. Types of product distribution channels

Diagram 2.2. Structure of consumer product distribution channel.

Diagram 2.3. Structure of industrial product distribution channel

Figure 2.4. Marketing Channels by Level of Linkage

Figure 2.5. Factors affecting the choice of distribution channel

Figure 2.6. Distribution channel management process

Figure 2.7. Analytical framework

Diagram 3.1. Organization of departments of Viet Ha Joint Stock Company

Diagram 3.2. Organizational structure of the Tuynel brick factory of Viet Ha company

Diagram 3.3 Finished brick production process

Diagram 3.4 Distribution channel of old consumer bricks and tiles