Some solutions to promote food business activities at the General Food Exploitation and Supply Enterprise

INTRODUCTION

In recent years, implementing the renovation policy initiated and led by our Party, the trade sector has worked together with other sectors and localities to strive and achieve important initial achievements in the field of goods and services circulation, contributing to profound changes in the domestic market and position in foreign markets. Types of services associated with goods circulation have developed strongly, promoting production and business, contributing to serving the lives and solving employment for workers. Among them, it is impossible not to mention the food production and business sector, a consumer goods production sector that is always closely associated with people's daily lives.

Every business clearly sees the importance of the market impact on business, sees the factors that impact production and business efficiency, and from there builds a suitable business plan. For a general food exploitation and supply enterprise, the issue of promoting the consumption of goods is more important than ever because the main function of the enterprise is to exploit and trade food. Through the internship period at the enterprise, I have a little understanding of the current situation and production and business situation of the enterprise. With my own knowledge and the enthusiastic help of the instructor and the teachers in the enterprise, I would like to propose some small solutions to contribute to the promotion of business development of the enterprise.

With the topic: "Some solutions to promote food business activities at the General Food Exploitation and Supply Enterprise" . In addition to the introduction and conclusion, it is divided into 3 chapters:

- Chapter I: General theory of food business of enterprises

- Chapter II: Current status of food business activities at the General Food Exploitation and Supply Enterprise

- Chapter III: Some solutions to promote food business at the enterprise exploiting and supplying synthetic food

Chapter I

GENERAL THEORY OF FOOD BUSINESS OF ENTERPRISES

1. Concept and role of food business in the production and business process

1.1. Concept of business and food business

There are many different understandings of business, here are a few definitions:

Business is the implementation of one, several or all stages of the investment process from production to consumption of products or provision of services on the market for the purpose of making a profit.

(Excerpt from Vietnamese Enterprise Law)

Business is an economic activity aimed at making a profit for the business entity in the market.

(Excerpt from business administration theory textbook)

When conducting any business activity, it is necessary to use a set of means, people, capital... and put these resources into operation to generate profits for the business. But they all have the common characteristic of being closely linked to the movement of capital, a business entity not only needs capital but also needs ways to make its capital rotate continuously, so that at the end of the business cycle the capital increases again. On the other hand, the business entity must have revenue to cover costs and make a profit. Food business is one of thousands of business forms, is a consumer goods business field, it has the same common characteristics

as above but has its own characteristics:

- Consumers have little knowledge about systematic goods: there are tens of thousands of products on the market, although people have taken advantage of many methods.

Methods of introducing goods and businesses, but consumers still do not fully understand the production address, quality, characteristics, uses and how to use all types of goods.

- Purchasing power in the market changes greatly, over time, by location... consumers can consider very carefully when they need to shop, especially at a time when there are many consumer goods that can replace each other.

- The difference in consumers is very large: between different classes, statuses, groups of people with different occupations, ethnicities, genders, cultural levels, ages, and living habits, so their understanding and consumption of different types of food products are different.

- Many people buy food because it is associated with people's daily lives. All members of society have consumption needs, but each time they buy not much, it is petty and scattered because life needs are very diverse.

Here, the business items are food products associated with human needs: food, sugar, milk, canned food, cooking oil, beer, wine, flour, candy, etc. Its raw materials are products of agriculture, forestry, livestock, aquaculture, and some other processing industries. Agricultural products are used as input materials for food production and business, so we must clearly understand its characteristics to proactively exploit this input source in the best way. Agricultural products business has the following characteristics:

+ Seasonality: because livestock and crop farming are seasonal, it is necessary to know the production rules of agricultural products to prepare well before the harvest season. When the harvest season comes, it is necessary to quickly concentrate labor resources to carry out the purchasing and processing of products from these industries.

+ Dispersion: agricultural products are dispersed in rural areas and in the hands of millions of farmers, while consumption is concentrated in cities and concentrated industrial zones. Therefore, the location of purchase, method of purchase, processing and transportation must be suitable to the above characteristics.

+ Regional: depending on the terrain of each place, some areas are suitable for growing agricultural crops, some for industrial crops, some for animal husbandry, so there are very different agricultural product production facilities with a fairly high commodity ratio.

+ Instability: Agricultural production is unstable, agricultural output can fluctuate erratically, one region has a good harvest, another region has a bad harvest...

Agricultural products are very diverse, production and consumption are scattered everywhere, supply and demand relationships are very complicated, so the agricultural products business must master the rules of their circulation: master the production area, master the direction and consumption area of traditional agricultural products, master the characteristics, quality and seasonality of agricultural products. The business entity can be a trading company that only acts as a bridge between production and consumption or a manufacturer and processor. In addition to needing a business registration license, manufactured products must also have a certificate of food hygiene and safety issued by the Ministry of Health.

1.2. The role of food business

1.2.1. The role of food business in socio-economic development

Food business is a process that includes many stages, many steps, many complex and continuous parts that are closely related and intertwined. The results of this stage or part affect the quality of other stages or the entire business process, in which the product consumption stage is considered the key stage that determines the success or failure of the business. Producing but not consuming or slow-consuming food products will cause the business to lose money and then go bankrupt.

Food is an important factor for society in general and for each individual in particular. Food provides people with nutrients such as starch, fat, vitamins, protein and other minerals... helping people have the health to survive, work and develop.

Product consumption plays a role in balancing the supply and demand of food in the market. Food can be in its natural form or processed, the product is produced and then consumed, which means that the production and business of food takes place normally and continuously, avoiding imbalances in the supply and demand of food products. Food businesses have the need to use social resources to ensure inputs for production such as raw materials, capital, human resources, machinery and equipment, technology, etc., which has affected a series of other activities, other business areas such as livestock breeders, growers, human factors, socio-cultural factors. That is, it has directly or indirectly affected the development of other industries or the entire national economy.

Consumption of products in general and food consumption in particular does not directly create material wealth for society, but it only serves the process of continuing production in the circulation stage. Food business has many effects on the field of production and social consumption, it provides products such as food, foodstuffs which are essential goods to all people in a complete, timely, synchronized, correct quantity, quality in a convenient way, with an increasingly expanding scale. For production fields, commercial enterprises, wholesale and retail agents can receive products, technical input materials in a timely, synchronized, correct quantity, quality. For the consumption field, individuals can easily satisfy the need for food products on the market in a timely and civilized manner, thanks to a series of stores, stalls, supermarkets... Providing for everyone, every family and the diverse needs of all classes of people, ages, and occupations. It also has the effect of stimulating demand, suggesting needs, directing consumers to high quality food products, convenient to use, and at the same time diversifying products with diverse, civilized, and modern service styles.

1.2.2. The role of food business in business development

Food business from the stage of purchasing raw materials, production and processing, and product consumption, every stage is important to increase the efficiency of business activities if any stage is operating poorly or behind schedule.

will affect other stages. But it must be said that in business in general and food business in particular, the consumption of goods is an important stage, because it directly affects other stages, the existence and development of the enterprise. To continue and promote business in the market, enterprises operating in the food industry always seek to reproduce and expand the market so that there are many products that meet the maximum needs of customers. The necessary and sufficient condition is that the enterprise must consume the product so that it can earn an amount of money to ensure compensation for the costs incurred, and make a profit from which the enterprise has enough resources to continue to reproduce and expand for the next production cycle. If the enterprise cannot consume, it will cause capital stagnation, increase warehouse and preservation costs, etc., causing stagnation in production and business activities.

For the food industry, product consumption plays an important role in maintaining and expanding the market. The more products are consumed, the more the food product has been accepted by the market, and more customers need to know the product, know the brand, and know the food business. In any form of business, the goal of maintaining and expanding the market is a very important goal for the business to be able to maintain and develop. The business must propose measures to stimulate consumption volume, increase sales not only in the current market but also in the potential market. The larger the volume of goods sold, the more conditions the business has to expand and develop its business, thereby discovering more needs and launching new food products.

Food consumption in enterprises also contributes to improving the production and business efficiency of enterprises, through the indicators of profit, capital turnover rate, and cost per capital. Business efficiency is an economic category that reflects the level of use of elements of the business process in enterprises to achieve the highest results, with the lowest cost. It is not only a measure of the level of business organization but also a matter of survival for enterprises. Food consumption directly affects the process of organization and management, promotes the application of scientific and technological advances, improves food quality, and reduces production costs of enterprises in the food industry.

Organizing consumption activities well helps reduce circulation costs, reduce storage time of finished products and raw materials, increase capital turnover, shorten production and business cycles, etc., thereby helping businesses increase revenue and bring high profits.

Food consumption brings a higher position and safety to food businesses in the current fiercely competitive environment with businesses in the industry and outside the industry, this is also a goal that any business wants to aim for. Position is assessed through sales, quantity of goods sold, and the market scope it occupies. Every business must always pay attention to reputation, to the trust of customers in the business's products, to the business's brand, in order to create momentum for expanding the consumption market, increasing competitiveness.

Food consumption plays a role in connecting food producers and processors with consumers of their products. It helps food producers better understand the results of their production and business processes through the feedback of food consumers, thereby also grasping their new needs. At the same time, through consumption activities, businesses can also check the business performance of units, stores, agents, branches, etc. On that basis, businesses will have effective measures for each market segment to be able to exploit the needs of customers to the maximum.

For the input activities of enterprises, it is the first stage of the production and business process. Without it, there will be no production, leading to no products for consumption. If this stage is well organized from the stages of researching sources of goods, organizing purchasing, transportation, preservation, preliminary processing, etc., it will help the production and business activities of enterprises to take place continuously, smoothly and without interruption. There will always be products to best meet the most complete needs, even when the volume of food purchases reaches its highest level in the business cycle (near the Lunar New Year every year). Thereby improving the quality of products, reducing the cost per unit of product, helping enterprises in the food industry to gain an advantage in competition, even with alternative products, and increasing profits.

2. Content of food business

2.1. Purchasing activities for production materials (sourcing)

In order for production and consumption activities to take place continuously without interruption, it is necessary to ensure regular and continuous supply of raw materials, machinery and equipment... Only by ensuring sufficient quantity, correct items and necessary quality within the prescribed time can production be carried out normally and production and business be effective. Supplies (raw materials, fuels, etc.) for production in enterprises play a very important role, contributing to improving the level of technology, enhancing competitiveness, and meeting the requirements of industrialization of the country. Input materials for food production such as: fresh and dried agricultural products (rice, chili, bamboo shoots, garlic, soybeans, sugarcane, melons, etc.), machinery and equipment, capital, infrastructure, electricity, water.

Ensuring good materials for production means meeting the requirements of quantity, quality, timeliness, variety and uniformity. This affects the productivity of the enterprise, the quality of the product, the rational and economical use of materials, the financial situation of the enterprise, the efficiency of production and business, the existence and development of the enterprise.

In a market economy, the content of input work for production and business in general and for the food sector in particular (logistics of materials for production) includes market research, determining material sources, planning material procurement, organizing procurement, organizing reception, preservation and distribution to management of use and settlement.

Management analysis and evaluation

Identify needs

Building a material requirements plan