Poor innovation activities at SMT (VN) Co.,Ltd

Abstract

The SMT Company is leading in textile industry about label manufacturing high quality base on the combination of high technology, customer‘s reliable and satisfaction, good management and high demand of market. However, nowadays, in the completive market, SMT seem lost the top position because objective and subjective factors. Base on the symptoms is profit margin drop down, the main problem of this company was revealed is the strategy company does not invest machine and technology. The reasons are point out three majors: the power of financial equity and the well-trained workload, in this situation, finance and human resources are the challenge for company. Finally, the conception of director also related to run the business for company’s strategy. These problems must solve quickly as it is indeed threatening the survival. Company suggests two positive solutions for cause problem are finance leasing and built up the training process and policy. These solutions are not only support about capital resources through choose the bank with interesting attractive, professional process and more benefits but also give company the plan in human resource training by heightening labor awareness of training skill and knowledge, making training plan and plus more policy to encourage the labor with reasonable cost. Based on these solutions, company conduct the action plan with people in charge such as CEO, CFO, Factory Manager … in time to improve the situation. This thesis also collects the data from financial and internal reports, refers the literature by author and in-depth interview all persons with high position in charged for more details also interview other related employees to be executed fully understand the problem. Additions, this thesis used formula is Gross profit margin = (Sale revenue – Cost of Goods Sold) / Sale revenue to clarify the symptom also used some kind of charts to analysis and compare the information in detail. Meaning, this thesis presented the important problem and positive solutions also the action plan for main problem in positive.