LITERATURE REVIEW
Business capital and business capital of the enterprise
1.1.1 Concept and characterization of business capital
According to the 2013 Corporate Finance textbook, an enterprise requires essential elements to effectively operate its production and business activities, including labor materials, labor objects, and a skilled labor force.
In a market economy, businesses must invest monetary capital based on their size and operational conditions to acquire essential resources This initial investment is crucial for establishing necessary assets, including factory construction and the procurement of equipment and materials, and is referred to as the business capital of the enterprise.
The enterprise's production process operates continuously, resulting in a dynamic flow of business capital that exists in various forms throughout different stages of production and business activities.
Paul A Samuelson, a key figure in modern economic theory, emphasized that land and labor are the fundamental factors of production, while capital and capital goods emerge as outcomes of this process Capital is defined as durable goods that are created and utilized as essential inputs in future production Some capital goods may have a lifespan of several years, while others can endure for a century or more A defining characteristic of capital goods is their dual role as both outputs and inputs within the production cycle.
In Economics by David Begg, capital is divided into two forms:
Physical capital refers to the tangible assets of a business, including in-kind capital, which consists of goods held for sale that are used in the production of other goods On the other hand, financial capital encompasses the monetary resources and paper assets that a business possesses.
Business capital refers to the total investment made by an enterprise to establish essential assets for its production and operational activities.
Business capital is essential for starting a company and is a critical factor in its ongoing operations and growth.
Capital is a unique commodity, as it allows buyers to acquire the right to use it without transferring ownership This transaction involves the payment of interest, which represents the cost of using the capital for a specified duration The buying and selling of capital occur in the financial market, where prices are influenced by supply and demand dynamics Additionally, the cost of utilizing business capital reflects the opportunity cost associated with its use in these financial markets.
Capital is inherently linked to its owner, as unowned capital can lead to wasteful spending In various businesses, the owner may or may not be the capital user, yet capital remains associated with specific ownership and incurs different costs Effective capital management is crucial for maximizing benefits and preventing losses, emphasizing the need for strategic utilization The time value of capital highlights that present funds are more valuable than future ones due to potential investment opportunities, with interest rates serving as a measure of this time value and reflecting opportunity costs Understanding these characteristics is essential for developing effective capital management policies, as capital is a limited resource that must be used judiciously.
Business capital plays a crucial role in the production process and can be categorized into two main types: fixed capital and working capital Fixed capital refers to long-term investments in assets that support ongoing operations, while working capital pertains to the short-term funds necessary for daily business activities Understanding these categories is essential for effective financial management in any business.
Fixed capital refers to the investment made in the construction or acquisition of fixed assets essential for business operations These fixed assets, which are significant labor materials with a long lifespan, play a crucial role in an enterprise's production and business activities To qualify as fixed assets, they must meet specific standards and criteria.
Standard time: Have a use time from 1 year or more
Standard of value: Must be of great value, the specific value level shall be stipulated by the Government in accordance with the economic situation of each period
According to manifestations and economic uses, fixed assets are divided into two categories: tangible fixed assets and intangible fixed assets.
Tangible fixed assets are physical items utilized by businesses for production and operational activities, categorized into groups such as buildings, machinery, transportation means, transmission equipment, management tools, and perennial gardens In contrast, intangible fixed assets lack a physical form but hold significant value for enterprises, aiding in their production and service provision Common examples of intangible fixed assets include land use rights with a defined term, trademarks, publishing rights, computer software, and patent copyrights.
This classification method enables enterprise managers to visualize the structure of investments in fixed assets, serving as a foundation for making informed decisions regarding long-term investments It also allows for adjustments to the investment structure and the implementation of appropriate management measures for each type of fixed asset.
According to the usage situation:
Base on Basic business finance ( 2013), fixed assets of enterprises are divided into 3 categories:
Used fixed assets refer to those actively employed in production, business, or other enterprise activities, including welfare, career, security, and national defense In contrast, unused fixed assets are essential for operations but are currently not in use and are held for future needs Additionally, fixed assets awaiting liquidation are deemed unnecessary or incompatible with the enterprise's objectives and should be sold to recover the initial investment.
This classification helps managers see how effective they are to use fixed assets of the enterprise, thereby taking measures to further improve their efficiency
Working capital is essential for enterprises as it encompasses the liquid assets necessary for production and business operations It is typically categorized into two main types: production assets, which are used directly in manufacturing processes, and circulation assets, which facilitate daily business activities.
Production assets: including main raw materials, auxiliary materials, fuel, spare parts in the process of stockpile production and unfinished products, semi-finished products in progress manufacturing
Circulation assets: including assets in circulation such as finished products in storage waiting for consumption, accounts receivable, cash capital
In the business process, production assets and circulation assets always move, transform, replace each other, ensuring smooth and continuous production and business process
Business capital management of the business
1.2.1 Business capital management concept and goals
Effective capital management is crucial for the survival and growth of any enterprise, as it directly impacts profitability and compliance with financial principles and state regulations As businesses expand, they require increasing amounts of capital, necessitating the mobilization of both internal and external funding sources Additionally, the rapid advancement of science and technology, coupled with an open economy and growing internationalization, demands that companies utilize their capital resources efficiently to remain competitive.
Business capital management involves the strategic planning, organization, operation, and monitoring of an enterprise's financial resources This process ensures the effective allocation of capital, promoting efficiency and thriftiness to support the production and operational needs of the business.
Ensuring the mobilization of enough business capital with minimum costs to meet the business production process of enterprises
Allocating business capital appropriately to ensure regular and continuous production and business process
Control activities on the use of capital properly to avoid waste and loss affecting the business development of the business.
1.2.2 Content of business capital management
1.2.2.1 Working capital management of the business
Working capital is essential for maintaining the minimum level of operational materials needed for the smooth and uninterrupted functioning of a business Insufficient working capital can lead to production delays or interruptions, while excess working capital can result in capital stagnation and inefficient resource utilization Balancing working capital is crucial for optimizing business operations.
Working capital requirements = Equity + Inventory + Accounts receivable - Liabilities to suppliers (Corporate finance,2014)
Choosing the appropriate method to assess labor force needs depends on the unique characteristics and specific circumstances of a business at any given time Currently, there are two primary approaches to this evaluation: the direct method and the indirect method.
To effectively assess capital requirements, businesses can utilize a direct method that identifies the needs for inventories, accounts receivable, and payables to suppliers, subsequently aggregating these figures to calculate the total labor demand Alternatively, an indirect method can also be employed to analyze capital needs.
The method involves analyzing the actual working capital utilization of the enterprise during the reporting year, taking into account changes in business size, working capital turnover rates, and demand fluctuations for the planning year By assessing the revenue generated in the reporting year, the necessary working capital for the upcoming planning year is determined Specifically, adjustments are made based on the percentage of working capital needs relative to the reporting year.
Working capital in the planning year = Average working capital in the reporting year x Transfer of workingcapital∈the plan year
Transfer of working capital∈thereporting year x (1+ t ) %
In which: t%: Shortening rate of working capital rotation period in the plan year
Method based on total capital turnover and plan-year turnover rate:
Working capital in the plan year = Total capital turnover ∈the plan year
Number of labor turnover ∈the plan y ear
Percentage-based method of sales:
Increased need for working capital = Increased revenue x Percentage of demand for working materials compared to revenue
Effective treasury stock management involves overseeing inventory, which consists of assets held by a business for production or future sale This inventory is categorized into three main types: raw materials, unfinished or semi-finished products, and finished goods.
Effective inventory management requires balancing the costs associated with storing materials and goods against the benefits of maintaining high or low inventory levels Increased reserves lead to higher storage costs, while fewer supplies can reduce the costs of supply contracts Therefore, businesses must carefully evaluate this tradeoff to minimize total inventory costs and determine the most cost-effective strategy.
According to a 2010 Business Finance textbook, enterprises maintain cash reserves for three primary reasons: to fulfill daily transaction needs such as payments for purchases, salaries, dividends, and taxes; to seize profitable investment opportunities that enhance profit maximization; and to prepare for unforeseen risks that could impact business operations.
Accounts receivable refers to the money owed to a business by customers for goods or services purchased When accounts receivable become excessively high, it indicates that a significant portion of the business's capital is tied up, which can negatively impact its production and overall operations.
Effective accounts receivable management is crucial for a business's financial health, balancing the trade-off between profit opportunities and associated risks Selling on credit can enhance sales and profits, but it also increases the potential for bad debts and administrative costs Therefore, businesses must implement robust strategies to manage receivables, ensuring that profitability outweighs risks to facilitate growth and secure financial stability.
Fixed capital plays a crucial role in investment and overall business capital, influencing the scale and quality of an enterprise's technical facilities Effective management of fixed capital directly impacts the production and operational processes of a business, making it a vital component of corporate financial management.
The utilization of Fixed Capital is typically a long-term investment, characterized by slow capital recovery and inherent risks Managers must strategically manage fixed capital during production and business operations to produce high-quality products that meet market demands This approach not only facilitates quicker capital recovery but also enhances profitability for the business.
Select an appropriate depreciation method
Depreciation of fixed assets is a crucial aspect of business accounting, as it involves systematically allocating the cost of these assets over their useful life This process allows enterprises to recover the value of fixed assets through product pricing, making depreciation a significant cost factor in production Implementing a rational depreciation strategy is essential for optimizing the production process and ensuring accurate financial reporting.
Depreciation of fixed assets serves as a crucial method for recovering an enterprise's fixed capital When effectively organized and managed, depreciation not only facilitates the simple reproduction of assets but also enables the reproduction and expansion of fixed assets Various methods exist for calculating fixed asset depreciation.
THE STUDY
Overview of Quang Ninh Agricultural Materials Joint Stock Company
2.1.1 The formation of Quang Ninh Agricultural Material Joint Stock Company
Quang Ninh Agricultural Material Joint Stock Company, based in Quang Ninh Province, has over 56 years of experience in the agricultural trading sector, showcasing a strong commitment to growth and development.
Located in Ha Long city, Quang Ninh, Ha Long street, Bai Chay ward, the company operates as a joint stock enterprise under the leadership of Director Hoang Duc Quang With a dedicated team of 60 employees, the company specializes in supplying agricultural materials and equipment throughout Quang Ninh province Its primary clientele consists of retail units that provide agricultural supplies The company is open for business from 07:30 AM to 05:00 PM.
From 1959 to 1960, the North experienced economic recovery following the war and socialist reforms, leading to the establishment of a small-scale Agricultural Production Trading Cooperative with limited facilities This cooperative operated through the resistance wars against the US and France and continued until 1992, when it was renamed the Agricultural Materials Company under the Quang Ninh Agricultural Company In late 2003, it merged with Dong Trieu Mechanical Company, becoming the Quang Ninh Agricultural Equipment and Materials Company, under the Quang Ninh Department of Agriculture and Rural Development Its mission is to supply agricultural materials and equipment throughout Quang Ninh province Since January 2004, the company has operated as the Quang Ninh Agricultural Materials Joint Stock Company, authorized by the Department of Planning and Investment of Quang Ninh province, with a focus on the business of various fertilizers.
2.1.2 Business characteristics of Quang Ninh Agricultural Materials Joint Stock Company
2.1.2.1 Main functions, business lines and products.
As a specialized trading company in fertilizers, our primary role is to supply chemical fertilizers for agricultural production across the province We focus on supporting agriculture by subsidizing fertilizer costs for mountainous districts and remote communes Additionally, we ensure effective management of capital and income distribution within the company while fulfilling our commitments to customers, prioritizing service quality and mutual benefit.
Quang Ninh Agricultural Materials Joint Stock Company operates in a diverse range of sectors, including the wholesale of fertilizers, pesticides, and agricultural chemicals Their services extend to the wholesale of construction materials and installation equipment, road transportation, warehousing, agricultural machinery, and spare parts Additionally, the company wholesales various grains such as paddy, maize, and rice, as well as feed and feed ingredients for livestock, poultry, and aquaculture Notably, the primary focus of the company is on fertilizer wholesale, offering products like Urea, Quatar, Indo, Urea Russia, NPK, and microbiological fertilizers.
2.1.2.2 Organization structure of the Company.
The Director oversees the overall direction and administration of the Company's business activities, holding primary responsibility for all operational aspects Additionally, the Director serves as the Company's legal representative in all legal matters.
Deputy Directors, including the Deputy Business Director and the Deputy Director of Administrative Organization, play a crucial role in supporting the Director in managing various aspects of the company They are tasked with specific functions and assignments from the Director and are accountable for the successful execution of these responsibilities.
Company offices encompass various departments and professional divisions that assist leaders in strategizing and executing business plans while enhancing employee well-being in alignment with state policies The Planning and Sales Department plays a crucial role in developing comprehensive annual, quarterly, and monthly business plans, managing the signing of sales contracts, and ensuring a steady supply of goods by monitoring and supporting branches in achieving their annual objectives.
The Accounting Department plays a crucial role in advising the Director on the development and execution of financial plans, as well as in balancing and mobilizing capital for production and business activities Additionally, it provides guidance in establishing internal control regulations related to finance, accounting, and statistics, ensuring that cost norms align with state regulations and policies.
The Administrative Organization Department provides guidance and support to the Director on staff organization and training, while also nurturing a pool of local talent This includes researching proposals for organizational structure and staffing, developing training programs, establishing wage labor norms, and creating salary payment regulations Additionally, the department implements policies tailored to meet the needs of employees during different periods within the company.
The warehouse department plays a crucial role in managing, preserving, and overseeing the import and export of materials and goods It is essential for maintaining a steady supply chain to support farmers promptly Additionally, the department identifies poor-quality items that do not meet consumer preferences and recommends them to the company for appropriate action.
2.1.2.3 Characteristics of business activities of the company :
As a long-established equitized state-owned enterprise, the company has successfully navigated numerous challenges and continues to thrive in the market With a dedicated workforce of 60 employees, it remains committed to ongoing development and growth.
Quang Ninh Agricultural Materials Joint Stock Company faces intense competition in the agricultural materials market, characterized by fluctuating prices and significant increases in fertilizer costs This volatility has adversely impacted the company's consumption and revenue To address these challenges, the company has strategically established a robust sales network, comprising 10 branches across various districts and towns within the province, including Yen Hung, Uong Bi City, Dong Trieu, Hoanh Bo, Van Don, Tien Yen, Binh Lieu, Dam Ha, Hai Ha, and Mong Cai City.
And 6 warehouse clusters to distribute goods to branches: Yen Hung, Dong Trieu, Tien Yen, Dam Ha, Hai Ha, Mong Cai.
The Company's sources of goods purchased from Tier I companies such as Thuan Dat General Trading Company Limited, Ha Anh Import Export
Lam Thao Chemical and Supe Phosphate Company has successfully transferred its products to the company's warehouse clusters To meet customer demands across various districts and towns, the company will efficiently deliver goods to its branches for sale.
2.1.2.3.1 Organization and operation of the branches directly under the Company:
The bookkeeping organization is recorded in the form of book entry vouchers, accounting reports, detailed and general accounting under the guidance, direction and consistency of the Company
Branches play a crucial role in executing the Company's strategic plan by organizing sales operations and managing the assets entrusted to them, ensuring effective support for the business objectives.
2.1.2.3.2 Business process characteristics of the business:
Management of business capital at Quang Ninh agricultural material
2.2.1 Business capital and source of business capital of Quang Ninh Agricultural Materials Joint Stock Company
Through the analysis table, in 2019, the company's business capital has changed in both size and capital structure:
Table 2.3: CHANGE OF WORKING CAPITAL IN 2019
31 st December 2019 31 st December 2018 Up and down Amount of money Proportion
Amount of money Ratio Proportion
Total assets at the end of 2019 reached VND 35,736.37 million, an increase of VND 10,650.30 million (equivalent to 42.46%) compared to the end of 2018 moving
Fixed capital: As of 2019, the company's fixed capital reached 3,369.33 million VND, a decrease of 204.9 million dong compared to 2018, equivalent to 5.73%, making business capital decrease by a corresponding amount.
In 2019, the company prioritized production and business activities, leading to a strategic change in Fixed Capital by selling or liquidating outdated and damaged assets This approach not only enhanced financial resources and autonomy but also improved the company's ability to settle existing debts Such measures reflect the company's proactive strategy to expand its business amidst challenging market conditions for its primary product, signaling a positive trend for the business.
2.2.1.2 Business capital situation of Quang Ninh Agricultural Materials Joint Stock Company
To gain a comprehensive understanding of the organization and utilization of business capital at Quang Ninh Agricultural Materials Joint Stock Company, we will analyze the status of business capital resources as illustrated in the following table.
31 st December 2019 31 st December 2018 Up and down Amount of money
Amount of money Ratio Proportion A
1 Short-term loans and fiancial lease debts 3,462.16 13,77% 1,130.53 8.31% 2,331.63 206.24% 20.20%
2 Short-term payables to sellers 10,227.58 40.69% 6,468.72 47.57% 3,758.86 58.11% 32.57%
3 Short-term prepayment by buyers 861.53 3.43% 675.72 4.97% 185.81 27.50% 1.61%
4 Taxes and other payables to the government 150.39 0.60% 58.62 0.43% 91.77 156.56% 0.80%
8 Long-term borrowing and financial lease debts 3,175.04 100% 4,064.63 100% (-889.59) -21.89% 100%
The total capital of the company in 2019 reached 35,736.37 million VND and increased by 42.46%, equivalent to 10,650.30 million VND, showing that the scale of capital has expanded significantly in 2019.
Liabilities at the end of 2019 increased by 10,650.30 million VND, equivalent to 60.3%, due to financial leasing loans, making business capital increase accordingly.
Equity at the end of 2019 remained unchanged compared to the end of
2018, showing that the policy of raising capital from the company has been sluggish Companies need to come up with policies to increase equity mobilization and reduce liabilities.
So, in 2019 the asset structure that the company is maintaining is relatively reasonable, consistent with the characteristics of the business line.
In the near future, the company must focus on adjusting its capital structure to maintain financial balance, ensuring a safer financial position This strategy will support normal production and business operations amid an unstable economy while simultaneously reducing capital costs.
2.2.2 Business capital management situation at Quang Ninh Agricultural Material Joint Stock Company
Working capital is essential for the establishment and ongoing operations of a business By analyzing the rotation of working capital, companies can evaluate the acquisition, inventory, and utilization of their resources This assessment enables businesses to identify opportunities for growth, enhance their operations, and address weaknesses, ultimately leading to improved working capital management.
Table 2.5: WORKING CAPITAL ALLOCATION SITUATION
2018 Up and down Amount of money
I Money and amounts cash equivalents 2,009.54 6.21% 665.50 3.09% 1.344,04 201.96%
(Source: 2019 Financial Statements Quang Ninh Agricultural Materials Joint Stock Company)
At the end of 2019, working capital surged to 32,367.04 million VND, reflecting a significant increase of 50.46% compared to the end of 2018, which corresponds to an additional 10,855.21 million VND in working capital.
As of December 31, 2019, the company's cash and cash equivalents totaled VND 2,009.54 million, representing 6.21% of its total working capital This marks a significant increase of 3.12% from the beginning of the year, with a remarkable growth of 201.69% in cash and cash equivalents compared to the start of 2019.
By the end of 2019, short-term receivables totaled 23,274.24 million VND, reflecting a significant increase of 91.26% Additionally, accounts receivable from customers reached 11,935.56 million VND, marking a 59.64% rise compared to the beginning of the year.
The company's working capital allocation primarily emphasizes accounts receivable and cash capital, reflecting a tailored approach suitable for its agricultural business model In 2019, the company implemented policies aimed at rebalancing its working capital structure, demonstrating significant efforts in the organization and utilization of its financial resources.
The shift in cash capital will significantly impact the company's solvency, particularly its capacity for prompt payments Therefore, it is essential to conduct a thorough analysis of the company's financial stability to fully understand these implications.
Table 2.6: INDICATORS REFLECTING SOLVENCY OF THE
2 Short-term debt 25,137.07 13,597.18 11,539.89 3.Cash and cash equivalent 2,009.54 665.50 1,344.04
4 Total accounting profit before tax 295,912.16 277,247.53 18,664.62
The company's ability to meet its short-term debt obligations is declining but remains at an acceptable level, indicating that it can still manage its financial commitments While the enterprise's capacity for immediate debt repayment has improved, it remains a concern, signaling a red alert for liquidity Despite an increase in cash reserves and overall financial capacity, investor confidence is not fully restored The year 2019 marked significant advancements in the management of fixed capital, with most related indicators showing improvement despite challenges in the economy and a sluggish real estate market To enhance revenue and profitability, the company must prioritize effective management of fixed capital A comprehensive evaluation of both fixed and working capital is essential to assess the overall efficiency of capital utilization at Quang Ninh Agricultural Materials Joint Stock Company.
Table 2.7: SUMMARY OF EFFICIENT USE OF BUSINESS CAPITAL
Difference Amount of money Ratio
5 Profit before tax and interest
In 2019, businesses faced significant challenges due to economic fluctuations, particularly in the agriculture, forestry, and fishery sectors, which were severely impacted by natural disasters and droughts Many companies reported losses and some even declared bankruptcy The crisis also affected our company, as evidenced by the low but improving efficiency ratios of working capital management, indicating a need for substantial effort to enhance profitability and overall business performance.
2019 generally had slight fluctuations compared to 2018 but were still at a very low level
In 2019, Quang Ninh Agricultural Materials Joint Stock Company demonstrated improved effectiveness in utilizing its business capital, particularly in working capital management To enhance both capital and business efficiency, the company must focus on better management of its revenue and costs.
2.2.3 General assessment of business capital management of Quang Ninh Agricultural Material Joint Stock Company
Over the past year, the economy has faced significant fluctuations in raw material prices and heightened competition, presenting challenges for businesses Despite these difficulties, the company has achieved strong business results and consistently high profits, leading to a steady growth in total assets Specifically, total assets have increased for three consecutive years, rising from 25,044.16 million VND in 2017 to 25,086.07 million VND in 2018, and reaching 35,376.37 million VND in 2019.
With the right and dynamic directions, the company has been creating more opportunities in production and business activities both domestically and internationally.
Investment in technical facilities for management has been insufficient, resulting in a lack of specialized high-tech software for critical areas such as warehouse, financial, and sales management This shortfall has created significant challenges for effective management, ultimately preventing the achievement of optimal results.
Asset management and use policies have not taken full advantage of the effectiveness that assets can bring
Human resources, highly qualified staff and staff are still lacking, especially those with experience in the foreign trade forwarding industry.
The Company has made significant strides in its production and business operations, achieving notable effectiveness; however, there are still areas that require improvement To enhance operational efficiency, it is essential for the Company to focus on optimizing organizational effectiveness and capital utilization, while also preserving and developing its resources Additionally, prioritizing the well-being of employees is crucial for sustaining and advancing production capacity.
RECOMMENDATIONS
Recommendations to the Board of Directors of Quang Ninh
To meet established goals in challenging conditions, the Board of Directors and the entire organization must exert exceptional effort in production, business activities, and the effective management of business capital Based on the analysis of the aforementioned factors and the gathered data, I propose several recommendations to enhance the utilization and management of business capital.
3.1.1 Develop appropriate capital structure for the company and determine capital needs
In today's business landscape, enterprises must self-finance their labor needs, making the accurate determination of regular working capital essential Properly assessing these requirements lays the groundwork for effective funding organization and ensures that businesses can operate smoothly and continuously This task is challenging and demands skilled analysts who excel in data collection and processing Successfully managing working capital not only enables companies to proactively mobilize funding sources and minimize financial costs but also helps prevent capital waste and enhances the overall efficiency of working capital utilization.
3.1.2 Fully and timely mobilize capital to serve production and business
To maintain continuous and stable business operations, companies must identify suitable working capital funding sources tailored to their specific needs By strategically determining funding sources for each capital type, businesses can enhance capital flexibility, reduce costs, and improve overall efficiency In a banking context, if lending interest rates decrease, companies should adjust their capital structure and financing policies to leverage financial advantages Effective measures to meet these requirements include securing short-term and long-term loans from financial institutions, forming joint ventures with domestic and foreign partners to mitigate capital challenges, and gaining access to advanced production expertise Additionally, companies can preserve and enhance their capital by leasing, mortgaging, or liquidating underutilized assets, ensuring that both previously invested and new capital is effectively utilized for growth.
3.1.3 Modernizing internal information, paying attention to the lives of employees in the company
Modernizing the information system and enhancing internal management can significantly boost the efficiency of business operations and capital management To elevate employee capabilities, the company should implement attractive recruitment incentives, including competitive salaries, bonuses, and allowances Additionally, ongoing training sessions, both domestically and internationally, along with the deployment of skilled professionals, will further enhance employees' professional skills Therefore, the company should adopt these strategic solutions to foster growth and efficiency.
Effectively managing and supervising business capital is essential for maximizing efficiency By utilizing all idle capital for business activities and financial investments, companies can enhance their operational performance while preserving and growing their capital.
To enhance workforce skills, the company is sending officials to participate in bachelor's classes focused on politics, while also offering advanced training for drivers, machine operators, and equipment repair workers Additionally, the organization is implementing training on occupational hygiene for all employees and conducting refresher courses to ensure continuous professional development.
Fostering a supportive work environment is essential for employee satisfaction and productivity Implementing an effective incentive and reward system for employees who excel in production and business not only encourages creativity but also enhances their sense of responsibility and loyalty to the company By prioritizing employee well-being, organizations can motivate their workforce to perform at their best.
Recommendations to the Government
To enhance business efficiency and profitability, it is essential to create favorable conditions for capital supplementation The government should prioritize providing financial support to effectively operating businesses that lack capital, potentially through corporate income tax exemptions for firms that do not require additional funding Furthermore, implementing open policies and simplifying investment procedures, along with interest rate adjustments, can significantly reduce costs for businesses, enabling them to capitalize on opportunities more effectively.
Recommendations to the Company
To enhance production efficiency and minimize costs, the company should prioritize self-inspection and supervision while aligning with the State's financial regulations and internal spending contracts Additionally, it is crucial to improve debt collection efforts to fully resolve both due and overdue debts.
To enhance long-term strategic benefits, the company must prioritize training and skill development for its officials and employees, focusing on elevating education levels, political and legal knowledge, as well as proficiency in foreign languages and informatics Additionally, implementing a strategy to acknowledge and reward individuals and teams that significantly contribute to the company's growth is essential for fostering a motivated and productive workforce.
As Vietnam integrates into the global economy, businesses must adopt innovative strategies and management practices to thrive and adapt to market changes Effective business capital management is crucial, serving not only as a foundation for establishing a business but also as a key factor in its operational success and growth Quang Ninh Agricultural Materials Joint Stock Company has recognized this importance and has implemented measures to enhance its capital management, yielding significant results However, challenges remain in managing working capital effectively To address these shortcomings and foster sustainable development, the company must focus on improving its capital management practices Drawing from practical research and academic insights, I propose several solutions aimed at strengthening the company's working capital management, with the hope of contributing positively to its financial performance in the future.
1 MA.Luu Huu Duc, PhD.Nguyen Thi Ha, PhD.Pham Thanh Hoa, MA.Ngo Thi Kim Hoa, MA.Dang Phuong Mai, PhD.Bui Van Van
2 David Begg, Rudiger Dornbusch, Stanley Fischer Economics (1994)
3 PhD Vu Van Ninh, PhD Bui Van Van, Financial Publisher Coporate finance textbook (2013)
4 PhD Bach Duc Hien, PhD Nguyen Dinh Kiem Financial Publisher.
5 PhD Nguyen Minh Kieu , Labour and Social Publisher Basic coporate finance (2013)
6 PhD Nguyen Trong Co, PhD Nguyem Thi Ha Corporate financial analysis course (2010)
APPENDIX Diagram 2.1: Organizational structure of Quang Ninh Agricultural
Supervisor: M.A Pham Thi Lan Phuong
Student: Đinh Thọ Phương Nam
Topic: “SOLUTIONS TO IMPROVE EFFICIENCY OF BUSINESS CAPITAL USE AND MANAGEMENT AT QUANG NINH AGRICULTURAL MATERIAL JOINT STOCK COMPANY”