Competition brings many benefits, especially to consumers. Manufacturers must find ways to make products with better quality, more beautiful, cheaper production costs, more convenient... to meet consumer tastes.
Competition is the premise of the free-enterprise system because the more businesses compete with each other, the better the quality of products or services provided to customers. In other words, competition will bring customers products with the most optimal value.
In addition to its positive aspects, competition also brings about undesirable social consequences. It changes the social structure in terms of property ownership, polarization between the rich and the poor, and has negative impacts when competing unfairly, using illegal means or disregarding the law. For the above reasons, economic competition must always be regulated by social institutions and state intervention.
Competition also has negative impacts manifested in unfair competition such as: unethical actions, illegal smuggling, tax evasion, spreading destructive information, or competitive behaviors that divide the rich and the poor, damage the ecological environment... Therefore, in the international business market, a business must have high competitiveness to be able to survive and develop sustainably.
1.4.4 Labor
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Human creativity is the decisive factor for business performance. Enterprises need to invest adequately to develop the scale of training and fostering high-quality labor force and intellectuals in enterprises. Improve business skills and professional qualifications of scientific staff, engineers, and technical workers to optimize the exploitation of raw materials, machinery productivity, and advanced technological equipment.
In particular, managers and directors must be carefully selected and have a high level of understanding. The director is a business leader, ensuring effective business operations, so the director must have knowledge of technology, science, social communication, psychology, economics, ... synthesizing knowledge of life and must know
Apply knowledge to organize and make decisions on practical business operations.
Regarding human resource management, enterprises must form an optimal labor structure, ensuring jobs based on reasonable division and arrangement of labor, in accordance with the capacity, strengths and aspirations of each person. Before assigning or promoting staff, they must undergo a skill test. When assigning work, it is necessary to clearly define functions, powers, tasks and responsibilities. In particular, the work of paying salaries, bonuses and incentives for employees is always a very important issue.
Motivation is also a factor to gather and unite workers. In enterprises, the motivation for collectives and individual workers is the benefits and profits gained from more effective production. Enterprises need to distribute profits appropriately, ensure fairness, reasonableness, and strict rewards and punishments. In particular, there needs to be a satisfactory treatment regime for good employees, highly skilled or with achievements and initiatives. At the same time, it is also necessary to strictly handle violations.
1.4.5 Organizational structure
The organization must be compact, light, dynamic, flexible in the face of market changes and must be truly suitable to the characteristics of the enterprise: scale, business sector, characteristics of the product creation process, to ensure effective business management.
Clearly define the functions, tasks, powers, responsibilities, and relationships between departments, put the business's activities in order, and avoid overlapping functions and tasks between departments. Regularly maintaining and ensuring balance, strengthening relationships between stages and departments in the production process,... can enhance the sense of responsibility of each person, and enhance initiative and creativity in production.
Information systems include closely related elements that interact with each other in collecting, processing, preserving and distributing information to support analysis and assessment activities to check the current situation and make decisions.
decisions on issues related to the operations of an organization. The establishment of an information system must meet the following requirements:
The information system must meet the needs of use and be established with
Full content, issues that businesses are interested in.
The information system must be regularly updated.
The system needs to be arranged to suit the business's usage and exploitation capabilities.
1.4.6 Raw materials
A good product must originate from good materials. Therefore, businesses also need to have a source of good quality raw materials, on the one hand to ensure that their products are always of good quality, on the other hand to create a competitive position for their business compared to other businesses producing the same type of product.
The goal of the enterprise is to have a strategy to find a stable, quality, long-term supply source so that the enterprise can develop sustainably. In addition, the research of new alternative materials is equally important in the production of products. At the same time, having a good source of raw materials will also reduce the cost of processing finished products for the enterprise. In addition, technology also contributes to reducing waste of raw materials, which is also a concern for enterprises.
1.4.7 Engineering technology
One of the reasons for low economic efficiency in enterprises is the lack of modern techniques and technology. Therefore, the issue of improving techniques and innovating technology is always a matter of concern for enterprises. Depending on the type of business, characteristics of the business sector, and business goals, enterprises have appropriate technology investment policies. However, the development of technology requires large investments, takes a long time and must carefully consider the following issues:
Correctly predict market demand and business demand for the type of product the business intends to invest in and develop. Based on this prediction, the business will have specific goals in technological innovation.
Select appropriate technology. Enterprises, based on the set production goals, have appropriate technological innovation measures. It is necessary to avoid importing outdated, obsolete, refurbished technology that pollutes the environment.
Shortening construction time to quickly put investment projects into operation is always a factor that strongly affects the improvement of economic efficiency of technical and technological investment.
In technological innovation, it is impossible not to pay attention to the research on the use of new materials and alternative materials. Because the value of raw materials often accounts for a high proportion in the cost of many products and services. Moreover, the use of new alternative materials in many cases also has great significance in improving product quality.
Machinery and equipment are always the decisive factors in productivity, quality and efficiency. In technical and technological management, regular research and technical development play a decisive role. In addition, the maintenance of machinery and equipment, ensuring that machinery always operates according to plan and utilizing the capacity of machinery and equipment also plays an important role in improving the overall efficiency of production and business.
Technological innovation must ensure and improve product quality, perform technical inspection and product acceptance well, and avoid releasing poor quality products to the market.
1.4.8 Relationship
Along with the development of the commodity economy, businesses expand towards large-scale production, socialization and openness, making the relationship between each other in society increasingly close. Businesses that know how to use good relationships will exploit many orders and consume well. Business activities of enterprises that want to achieve high efficiency need to take advantage of the advantages and limit the difficulties of the external business environment. That is:
* Solving customer relationships well: is the main goal in business, because customers are the ones who receive the products, the consumers of the business's products. Only when customers are satisfied can the products be consumed, and the business can survive and develop.
* Create trust and reputation in the market for the business in terms of product quality, business style, service spirit,... any business that wants to have a foothold in the market must build trust. That is the law of existence in competition.
* Managing relationships with suppliers well will provide businesses with a stable source of raw materials of the right quality. This also contributes to ensuring that the products the business creates are always of high quality.
* Resolve relationships well with advertising organizations, business leadership agencies, etc. through these organizations to expand the business's influence, make customers and consumers know more about the business's products, and at the same time protect the reputation and trust of customers in the business.
1.5 Concept and role of export
1.5.1 Export concept
Exporting is a business activity that makes a profit by selling products or services to foreign markets, the products or services must move beyond the borders of a country.
Another concept is that export is the sale of goods and services to another country on the basis of using currency as a means of payment, with the goal of profit.
Although there are many different understandings of export, the main purpose of export is still to exploit the advantages of countries in the international division of labor, creating foreign currency revenue for the country.
Exports reflect trade and commerce relations between countries within the region and around the world.
1.5.2 Tasks and roles of exporting goods
The task of export activities is to exploit the advantages of each country in the international division of labor. Based on the development of domestic goods trading activities, more than ever, export is taking place strongly in both breadth and depth in all industries and fields in all diverse and rich forms, not only with tangible goods but also intangible goods. But no matter what, the goal of export is still to bring benefits to all parties involved.
For the national economy
Increased exports will create more jobs in the economy, especially in the manufacturing industry for export goods, increasing investment -> A factor stimulating economic growth.
Exports actively solve employment problems and improve people's lives. Exports increase GDP, increasing national income.
- Exports create the main source of capital for imports: importing machinery, equipment, and modern technology to serve the cause of industrialization and modernization.
- Export contributes to the economic restructuring, promotes production development, and creates conditions for other industries to develop. Export not only increases foreign currency revenue but also increases production and business demand in other related industries. Export creates the ability to expand the consumer market, helping to stabilize production and develop the economy because there are many markets => spreading risks due to competition.
For businesses
Exporting creates conditions for businesses to expand the market for the products they produce. Thanks to exporting, the name of the business is not only known to domestic customers but also to foreign customers.
Exports create foreign currency for businesses, increase reserves, thereby improving the ability to import, replace, supplement, and upgrade machinery, equipment, and raw materials for the production process.
Exporting highly promotes the dynamism and creativity of import-export staff as well as participating units, actively exploring and developing the ability to export export products, inevitably leading to competition not only domestically but also in foreign markets. Therefore, enterprises must always innovate and improve business administration, improve product quality and also reduce product costs, thereby saving input factors and human resources.
Export also improves the lives of workers in enterprises, increasing income and helping to stabilize the lives of workers.
1.5.3 Some main export forms of Vietnamese enterprises Direct export
Exporting goods and services produced by the enterprise itself or purchased from domestic production units and selling them to foreign customers through its own organization.
In case the enterprise participating in export is a commercial enterprise that does not produce the product itself, the export includes 2 stages:
- Purchase to create export sources for domestic units.
- Negotiate and sign contracts with foreign enterprises, deliver goods and pay for goods with importers.
Although this form increases risk, manufacturers have the opportunity to gain more profit by reducing intermediate costs and promptly grasping information about market fluctuations to have countermeasures.
When participating in direct export, businesses must prepare a number of tasks: carefully research the market, types of goods, and transaction conditions. Select people with sufficient capacity to participate in trading goods and services.
Export authorization
This is a form of business in which the import-export unit acts as an intermediary on behalf of the production unit to sign an export contract and carry out the necessary procedures for export, so the entrusted exporter benefits from a certain amount of money called the entrustment fee.
This form includes the following steps:
Sign export contracts with domestic units.
Sign export contracts, deliver goods and pay for goods with foreign parties (importers).
Receive export commission fees from domestic units.
- The rights and obligations of the entrusting party and the entrusted party for export and import are agreed upon by the parties in the entrustment and entrusted contract for export and import.
International processing
This is a business method in which one party, called the contracting party, processes raw materials or semi-finished products from another party, called the ordering party, to process finished products for delivery to the ordering party and receive a processing fee.
This is one of the export forms that is developing strongly and is being focused on by many countries.
Forms of international processing
Receive raw materials or semi-finished products, deliver finished products to the ordering party and collect processing fees.
Buy outright, sell in parts based on long-term sales contracts with foreign countries.
Combination is a form in which the ordering party only delivers the main raw materials and the processing party provides the auxiliary raw materials. After processing, the processing party will deliver the finished product to the ordering party and collect a profit from the raw materials and processing fees.