Synthesis Report

Instructor: Dr. Le Tan Buu

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

Falcuty of Commerce Tourism Marketing
o0o

SYNTHESIS REPORT

SAC MAU COMPANY LIMITED

Instructor :

Dr. Le Tan Buu

Student
Class
Batch

Nguyen Dang Hinh

Foreign Trade 1
37

:
:
:

January, 2015
Ho Chi Minh City

Synthesis Report

Instructor: Dr. Le Tan Buu

Instructors comments

Synthesis Report

Instructor: Dr. Le Tan Buu

Contents
1.

HISTORY AND DEVELOPMENT:.................................................................................................1

1.1

General information:.................................................................................................................1

1.2 Technical and Economic characteristics of SAMACO..................................................................1

2.

3.

4.

1.2.1

Business line.......................................................................................................................1

1.2.2

Products...............................................................................................................................2

1.2.3

Customers and markets.......................................................................................................2

1.2.4

Human Resource................................................................................................................3

MANAGEMENT AND ORGANIZATION STRUCTURE:...........................................................3

2.1

Organization chart.....................................................................................................................3

2.2

Function and Mission of Department......................................................................................4

2.2.1

Director...............................................................................................................................4

2.2.2

Human resource & administration department.................................................................4

2.2.3

Import and Export Department..........................................................................................4

2.2.4

Finance and Accounting Department.................................................................................4

2.2.5

Business Development Department....................................................................................4

BUSINESS OPERATIONAL RESULT............................................................................................4

3.1

Revenue analysis........................................................................................................................4

3.2

Cost analysis...............................................................................................................................6

3.3

Profit analysis.............................................................................................................................7

ADVANTAGES AND DIFFICULTIES IN BUSINESS...................................................................8

4.1

Advantages.................................................................................................................................8

4.2

Difficulties..................................................................................................................................8

4.3

Oriented Development...............................................................................................................8

List of Tables
Table 1: Products of SAMACO....................................................................................................................2
Table 2: Human Resource of SAMACO.......................................................................................................3
Table 3: SAMACO's Revenue in 2012-2014................................................................................................5
Table 4: SAMACO's Cost in 2012-2014.......................................................................................................6
Table 5: SAMACO's Profit in 2012-2014.....................................................................................................7

Synthesis Report

Instructor: Dr. Le Tan Buu

SAC MAU COMPANY LIMITED

1. HISTORY AND DEVELOPMENT:
1.1 General information:
Sac Mau Company was established on October 26th 2001, based on Business License No.
4102007065 issued by Department of Planning and Investment Ho Chi Minh city.

Vietnamese transaction name: CNG TY TNHH SC MU

International transaction name: SAC MAU COMPANY LIMITED
Abbreviation:
SAMACO., LTD
Type of company: Limited Liability Company
Total capital:
5.000.000.000 VND
Fixed capital:
1.000.000.000 VND
Working capital:
4.000.000.000 VND
Office:
127 Vo Van Tan Street, Ward 6, District 3, Ho Chi Minh city.
Phone:
(848) 39309953
Tax Code :
0302441353
Director:
Mr. Nguyen Trung Truc
1.2 Technical and Economic characteristics of SAMACO

SAMACO was established in 2001 by the contribution of 02 members. In the beginning,

total asset of the company was 1 billion VND. In June 2011, the company decided to
increase total asset of 5 billion.
1.2.1 Business line
SAMACOs business activities are in many areas, with many different industries:
Importing kinds of foods such as beef, chicken, pork, wheat, wheat flourand
then distributing to restuarants, retailers
Importing animal foods suck as fish flour, fish oil, soybean mealand distributing
to domestic plants
Broker: the company is a middleman that helps exporters and importers meet, deal
and follows all the export-import processes in both countries
1.2.2 Products
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The following list shows two kinds of animal food products and materials of SAMACO,
one has vegetal origin and the other from animals
Products name

Products code

1.Vegetal origin
Distillers dried grains
Maize
Wheat bran pellet
Rice brand extraction
Soyabean
Feed wheat
2.Animal origin

DDGS
MZE
WBP
RBE
SYB
FWH

Meat bone meal

Blood meal
Fish meal
Feather meal
Poutry meal

MBM
BLM
FSM
FTM
PTM

Table 1: Products of SAMACO

Source: Business Development
Dept.
1.2.3 Customers and markets
Customers
-

The main customers of SAMACO are plants or companies producing animal foods
or feeding animals.
As a broker, the companys customers are foreign companies from Autralia,
Singapore, Indiathat want to export their product for Vietnamese companies.

Markets
-

SAMACO mainly focuses on South Viet Nam market especially Ho Chi Minh
City, South East and Central Highland provinces
SAMACO is the representative for companies from USA, Sigapore, Autralia,
India
The products of SAMACO are imported from countries which are famous for
animal foods like USA, Paraguay, Australia.
1.2.4 Human Resource

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Synthesis Report

Instructor: Dr. Le Tan Buu

SAMACO now has a total of 20 employees, major of them have a bachelor degree and
are skillful. The company considers its employees as a priceless asset. Therefore,
SAMACO has created favourable conditions for its employees to develop.
Level
Univesity
College
Intermediate
High school
Total

Number of
person
17
1
1
1
20

Density
85
5
5
5
100

Table 2: Human Resource of SAMACO

Source: Human resource department

2. MANAGEMENT AND ORGANIZATION STRUCTURE:

2.1 Organization chart

Director

Human
Resource
Department

Finance &
Accounting
Department

Business
Development
Department

Import-Export
Department

Source: Human resource department

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2.2 Function and Mission of Department

2.2.1 Director
Director is the legal representative of the company and decides all matters relating
to the companys daily operation.
Develop plans and operational projects of the company.
Operating all business activities of the company.
2.2.2 Human resource & administration department
Be responsible for management of companys personnel.
Implementation of recruitment, training for employees
Assess the quality of personnel in the company
Implementation of human resource prescribed by the State, as prescribed in
contract between employer and employee
2.2.3 Import and Export Department
Finding and developing the foreign markets and customers.
Implementation of customs formalities, transportation.
Preparing import and export documents.
Import materials and products for the company.
2.2.4 Finance and Accounting Department
Develop and implement financial plans for the short term and long term
Recording, calculating and analyzing financial situation of the company.
To advise, suggestions and effectively manage the use of capital
Develop and manage according to the rules of financial management
Preparation of financial statements, tax reporting and tax-related documents
2.2.5 Business Development Department
Implementation business strategies created by director
Finding and developing markets and customers
Finding and building relationship with suppliers
Conducting market researchs in order to build effective business plans

3. BUSINESS OPERATIONAL RESULT

3.1 Revenue analysis

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Table 3: SAMACOs Revenue in 2012-2014

Overall, there was a big fluctuation in SAMACOs revenue over the three-year period
2012-2014. As is shown by the table chart, from the starting point of 63,208,000,000
VND in 2012, the figure dropped more sharply to 27,728,000,000VND in 2013 (an
decrease of 56.13% compared to 2012), but then increased to 40,436,000,000 VND in
2014 (increasing 45.83% as opposed to the previous year). It shows that the companys
business seem to have difficulty in 2013.
The revenue mostly came from the sale of SAMACOs products (accounting for
greater than 99% of total revenue). The figure decreased sharply from 63,036,000,000
VND in 2012 to 27,630,000,000 VND in 2013 (an decrease of 56.17) due to difficulties
of the economy, but in 2014 it increased to 40,311,000,000 VND (increasing nearly 46%
compared to 2013).
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Instructor: Dr. Le Tan Buu

Financial income and others income only account for an insignificant amount in both
value and percentage (less than 1%) of total revenue through years and generally there is
not many fluctuations.
3.2 Cost analysis

Table 4: SAMACOs Cost in 2012-2014

In general, SAMACO witnessed a fluctuation in total cost during the period
surveyed. As is shown, there was a decrease of 59.2% with 37,196,000,000 VND in 2013
in comparison to 62,827,000,000 VND in 2012. This is followed by an increase of
24.82% to stand at 31,992,000,000 VND in 2014. The changes in costs did not
necessarily mean that the business activities were having a negative trend if costs rise
lead to sales rise and in contrast.
Representing the majority of total costs was the cost of sales, greater than 87%. To be
more specific, the 2012 figure was 54,981,000,000 VND (87.51%), before there was a
decline of 58.95% in 2013 and an increase of 7.85% in 2014. This was due to the
decrease of orders from the customers.
There was a significant fluctuation in both Sell & administration expenses and
Financial expense. More specificially, in 2013 Sell & administration expenses had a
decrease of 51.2% (from 5,932,000,000 VND dropped by 2,895,000,000 VND) and
Financial expenses had a reduction of 91.69% (from 1,889,000,000 VND dropped by
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Synthesis Report

Instructor: Dr. Le Tan Buu

157,000,000 VND) compared to 2012. In 2014, financial expenses increased strongly for
more than 1.6 times in comparision with 2013. Meanwhile, sell & administration
expenses raised up 71.54%.
Other expenses, in generally, shown a reduced trend through the years. In 2013, it
had a decrease of 60% (from 25,000,000 fell down 10,000,000), and 90% in 2014 (from
10,000,000 dropped by 1,000,000) as opposed to the previous year.
3.3 Profit analysis

Table 5: SAMACOs Profit in 2012-2014

Generally, SAMACO got profits through the years and the profits had a strongly
increasing trend. More specificially, in 2012 the companys profit was only 381,000,000
VND, but it raised up 2,097,000,000 VN in 2013 that marked an increase of 450%. After
that in 2014, the profit continued to increase and reached to 8,444,000,000 VND, greater
than 6,347,000,000 VND compared with 2013 (equal to an increase of 302.67%). These
are impressive results in case of difficulties of world economics.
Profit from business operation has accounted for major of total profit and more and more
increasing year by year, from 71.13% in 2012 raised to 96.23% in 2013 and 98.71% in
2014. Other profits marked a sharp decrease that reduced from 28.87% in 2012 downto
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Synthesis Report

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3.77% in 2013 and just 1.29% in 2014. Meanwhile, financial investments havent got any
profit, even got losses that indicates an inefficiency.
4. ADVANTAGES AND DIFFICULTIES IN BUSINESS
4.1 Advantages
The company has good relationships with business partners
Products are imported from well-known suppliers so ensure of quality
The company has a great reputation and are trusted by customers.
The emloyees are skillful and loyal.
4.2 Difficulties
The products are imported from foreign countries so the company has to pay a
large amount of money for transportation.
Limitation of financial capability
The company hasnt applied e-commerce yet so its very hard for customers to
know about company. This restricts the companys opportunities for finding and
expanding market.
4.3 Oriented Development
Make sure business operations produce 20% profit on sales.
Maintaining companys market share and finding new customers.
Increasing in quality and quantity of products.

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