Bach viet college faculty of foreign languages internship report e-commerce necessity and development trend



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BACH VIET COLLEGE

FACULTY OF FOREIGN LANGUAGES



INTERNSHIP REPORT

E-COMMERCE
NECESSITY AND DEVELOPMENT TREND


Instructor : Nguyễn Thị Nguyệt Ánh, M.A.

Student : Phạm Minh Hiền

Student code : 21090244

Class : C109TA01


Ho Chi Minh City, July 10th 2012

BACH VIET COLLEGE

FACULTY OF FOREIGN LANGUAGES



INTERNSHIP REPORT

E-COMMERCE
NECESSITY AND DEVELOPMENT TREND


Instructor : Nguyễn Thị Nguyệt Ánh, M.A.

Student : Phạm Minh Hiền

Student code : 21090244

Class : C109TA01


Ho Chi Minh City, July 10th 2012


ACKNOWLEDGEMENT

During the last few weeks, I got many valuable instructions from school. At the same time, Hau Phong Limited Liability Company has agreed to help me and created favorable conditions for me to complete my assignment well.

I would like to express my deep gratitude to teachers of Bach Viet College, Faculty of Foreign Languages, and specially, my heartfelt thanks to Nguyễn Thị Nguyệt Ánh Master who helped me a lot in my internship report.

I express also thank to Hau Phong Limited Liability Company for created conditions to help me finish my internship well.

On this occasion, I wish respectfully all of the staff and teachers at Bach Viet College, staffs at Hau Phong Company constant good health and great success in your career.

Ho Chi Minh City, July 10th 2012



Student

Phạm Minh Hiền





SUPERVISOR’S COMMENTS





INSTRUCTOR’S COMMENTS




TABLE OF CONTENT

INTRODUCTION 1

0.1.RATIONALE FOR THE STUDY 1

0.2.SIGNIFICANCE OF STUDY 2

0.3.STATEMENT OF PURPOSE 3

0.4.LIMITATION 3

0.5.METHODOLOGY 3

0.6.RESEARCH PROCEDURE 4

0.7.ORGANIZATION OF THE REPORT 4



CHAPTER I: BACKGROUND INFORMATION OF THE COMPANY 5

1.1.OVERVIEW 5

1.2.ORGANIZATIONAL STRUCTURE 6

Board of Members 6

Chairman of the Board 7

Director 7

Finance and Accounting Department 7

Administrative and Personnel Department 7

Sales Department 7

Technology Department 8

1.3.THE FIELDS OF BUSINESS 8



CHAPTER II: E-COMMERCE AND E-COMMERCE ACTIVITIES IN VIETNAM 10

2.1.GENERAL INFORMATION OF E-COMMERCE 10



2.1.1.Fundamental concepts 10

2.1.1.1.Traditional Commerce 10

2.1.1.2.E-Commerce 10

2.1.1.3.E-Commerce transaction 10

2.1.1.4.Parties involved in E-Commerce 11

2.1.1.5.Characteristic of E-Commerce 13

2.1.1.6.Advertising in E-Commerce 13

2.1.1.7.Website and E-Commerce website 13

2.1.1.8.Customer Service 14

2.1.1.9.General differences between E-Commerce and Traditional Commerce 15

2.1.2.Benefit and limitation of E-Commerce 15

2.1.2.1.The benefit 15

2.1.2.1.1.To organizations 15

2.1.2.1.2.To consumers 15

2.1.2.2.The limitation 16

2.1.2.2.1.In technique 16

2.1.2.2.2.In non-technical 16

2.1.3.Things to be noted when joining in E-Commerce 17

2.1.3.1.Security 17

2.1.3.2.Electronic Payment 17

2.2.REAL SITUATION OF E-COMMERCE IN VIETNAM 17



2.2.1.Infrastructure situation of E-Commerce 17

2.2.1.1.Information technology 17

2.2.1.2.Human resources 18

2.2.1.3.Economy, society and policies 19

2.2.2.Development of E-Commerce in recent years 19

CHAPTER III: REAL-LIFE EXPERIENCES, RECOMMENDATION AND PETITIONS 23

3.1.GENERAL VIEW OF INTERNSHIP PROCESS 23



Primary mission 23

Advantages and difficulties when researching 23

Advantages 23

Difficulties 23

3.2.EFFECTIVENESS OF E-COMMERCE ACTIVITIES IN HAU PHONG CO., LTD 24



Infrastructure 24

Human resources 24

Equipment 24

Success of Hau Phong Co., Ltd in applying E-Commerce 25

Remarks on E-Commerce of the company 26

3.3.ANALYZING CUSTOMER SERVICE FEATURES ON E-COMMERCE WEBSITE OF HAU PHONG CO., LTD 28



General analysis 28

On the content 28

On the form 29

On the texture 29

Applying “PACT” formula to Customer Service 29

Process 29

Attitude 30

Communication 30

Time 30

Purchase and payment process 31

Search engine 33

Customer care 34

Customer relationship management 35

3.4.ANALYZING THE DEVELOPMENT TRENDS OF E-COMMERCE 36



Forecast in the near future 36

Development trends of E-Commerce 37

Social Commerce 37

Flash Sales 37

Discount Codes 38

Mobile Optimization 38

International Buying 39

3.5.SHORTCOMINGS OF E-COMMERCE AND THEIR CAUSES 39

3.6.STUDY RESULTS 40

Theoretically 40

Practically 40

3.7.PETITIONS AND RECOMMENDED SOLUTIONS 41



To the State 41

To the company 41

To the college 42

To the students 43

CONCLUSION 44

REFERENCE 45

INDEX 1

Index 1: The connection forms of the Internet throughout the country 1

Index 2: The information security measures by size of the enterprise 1

Index 3: The situation applying Internet Banking over the years 2



Index 4: The Mobile Banking model 2

LIST OF ABBREVIATIONS

M.A.

Master

IT

Information Technology

E-Commerce

Electronic Commerce

Hau Phong Co., Ltd

Hau Phong Limited Liability Company

EC

Electronic Commerce

E-Business

Electronic Business

E-Trade

Electronic Trade

EDI

Electronic Data Interchange

E-mail

Electronic Mail

C2C

Consumer to Consumer

C2B

Consumer to Business

B2C

Business to Consumer

B2B

Business to Business

B2G

Business to Government

G2B

Government to Business

G2G

Government to Government

C2G

Consumer to Government

G2C

Government to Consumer

URL

Uniform Resource Locator

HTML

Hypertext Markup Language

XHTML

Extensible Hypertext Markup Language

HTTP

Hypertext Transfer Protocol

HTTPS

Hypertext Transfer Protocol Secure

GSO

General Statistics Office

Mb/s

Megabit per second

ICT

Information and Communication Technology

3G

Third-generation technology

MIC

Ministry of Information and Communication

Vinasa

Vietnam Software and information technology Services Association

SCM

Supply Chain Management

RCM

Reliability Centered Maintenance

ERP

Enterprise Resource Planning

VND

Vietnamese dong

E-wallet

Electronic wallet

PACT

Process – Attitude – Communication – Time

VECOM

Vietnam E-Commerce Association

MOIT

Ministry of Industry and Trade

IDC

International Data Corporation

US

United States

M-Commerce

Mobile Commerce

QR code

Quick Response code

APA standard

American Psychological Association

LIST OF TABLES, CHARTS & IMAGES

Tables

INTRODUCTION



  1. RATIONALE FOR THE STUDY

Information Technology continues to bring about drastic changes in the world as well as create a real revolution from every field of science and life. Applying IT to economic activities will bring society long-term benefits.

Applying IT to production and business activities is not an exception. Applying IT to commercial activities or E-Commerce is becoming the new trend. And it is going to take the place of old business method gradually with a lot of advantage.

However, E-Commerce is a new definition with developing countries in general and Vietnam in particular. In Control work of State, this field is not also perfect yet. Applying to companies or organizations is only survey and support for traditional business or combine E-Commerce and for traditional business.

Developing of E-Commerce in Vietnam is facing up to a lot of difficult. It requires objective research works about E-Commerce development rule. From these researches, we can create and deploy strategy to develop this commercial activity field.

The rising from those requirements, and wish that every people in Vietnam will understand the importance of E-Commerce more and more profound, bring E-Commerce to development national economy activities, improve and enhance competition competence in integration environment; I decided to choose topic “E-Commerce, necessity and development trend” for my internship and report topic.

In research process, my professional skill and time is limited, and real conditions in Vietnam and thus my report can contain many defects, so I would like to receive valuable constructive idea from the experts, the researchers, the teachers and everybody for topic “E-Commerce, necessity and development trend” be perfected.



  1. SIGNIFICANCE OF STUDY

E-Commerce has become a popular commerce method and increasingly developed for recent years in Vietnam. Preeminent particularity of E-Commerce helped everyone to save expenditures and to increase profits significantly. And it is the main development trend of commerce in the world.

Although E-Commerce was present widely in our country, aware of its necessity and effect was not complete. Vietnamese firms are still hesitating about the power of E-Commerce.

From the result of statistical analysis in internship process, I realized that Vietnamese firms in general and Hau Phong Co., Ltd in particular are interested in long-term investment in E-Commerce services, especially enhancing activities effectiveness of websites. One of those features is customer service.

According to Bezos, J. (1999), the founder of Amazon.com – the world famous E-Commerce website, in normal, 30% human and financial resources of a company are reserved for customer service division with a view to bringing customer the comfort, 70% remains are reserved for marketing activities. But in business online, you need 70% resources to bring customer the comfort and only 30% to broadcast about it. He considers that internet is the future of mankind; it is not only a gigantic library, but also a wide market for business all type of product.

Customer care methods include technology support methods, check invoice, and supply transport of goods status to useful classic feedback methods. Web users, specially the people who pay for online services, often require the technology supports and they want those requirements are responded quickly. Maybe the customers who placed an order want to monitor their goods during transport process, and the other customers want to supply company with the feedback or to complain about the service they received. Customer care can create or damage the online business effects.

For this reason, research on E-Commerce to learn about its necessity and to grasp its development trend is necessary.



  1. STATEMENT OF PURPOSE

Following the development trends in E-Commerce, this report is considered an important piece to help E-Commerce become perfect in Vietnam. To this opinion, aside from learning about overview of E-Commerce and its matters, at the same time researching on basic theoretical issues of E-Commerce website and customer service features on E-Commerce website, I will also research on real situation activities of customer service features on www.hauphong.com website and member websites to bring a more detail comment.

From the results that I received, I will propose bravely some solution to enhance activities effectiveness of customer support service on websites.

With these purpose of research, I hope that my report will bring the practical results to help the business apply E-Commerce successfully.


  1. LIMITATION

Because time is rather limited, research object in this report is E-Commerce activities effective of Hau Phong Co., Ltd, especially customer cervice on websites of the company. Research time is from January 1st 2012 until now.

  1. METHODOLOGY

Searching and analyzing general information about E-Commerce

Learning about E-Commerce model of Hau Phong Co., Ltd, combine using theory bases with research, inquire, and analyze data methods

Analyzing the website of Hau Phong Co., Ltd and its customer service applications

Combining analyze data methods with internet tools



  1. RESEARCH PROCEDURE

Step 1: Choose the topic.

Step 2: Choose the company for internship.

Step 3: Approach the company to gain the information need.

Step 4: Take information from the other sources.

Step 5: Analyze information.

Step 6: Propose recommendations.

  1. ORGANIZATION OF THE REPORT

This report includes 5 parts. They are the introduction, three chapters and the conclusion.

The introduction describes the reason for choosing the topic and the significance of the topic. At the same time, this part also brings out the overview information of study topic.

Chapter 1 provides the background information of the company where the practice was done.

Chapter 2 gives some general information of E-Commerce and shows the real situation of E-Commerce activities in Vietnam.

Chapter 3 is my salutary experiences and recommended solutions to develop E-Commerce.

The conclusion will summarize the study contents and result of the topic.



CHAPTER I:
BACKGROUND INFORMATION OF THE COMPANY


  1. OVERVIEW

Image 1.1: Hau Phong Company

Hau Phong Co., Ltd was established in March 26th 1996 with the first name was Hoa Tap Private Company and the company’s head office was on Nguyen Chi Thanh Street, District 11, Ho Chi Minh City. Under the leadership of Hong Chanh Chi Director, the company achieved many great successes continually in business activities. In 1997, the company moved its head office to 105B Ngo Quyen Street, Ward 11, District 5 and the name of the company has been changed to Tan Hoa Tap Private Company.

In early 2001, Vietnamese economy has opened the markets with the large consumer market and industrial scale production has been developed, the company renamed and converted business form to Hau Phong Co., Ltd. The company decided to open the branch in the North and develop a nationwide sale system. From August 31th 2010 onwards, Hau Phong Co., Ltd has introduced the official website: http://hauphong.com and member websites: http://thietbidiengiare.com/, http://satmynghe.net/, http://smc-hp.com/ and http://linked.asia/ to serve business needs. And now, the company’s infrastructure was equipped to supply market needs relatively.





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