Luận văn Negotiation and implementation of the international sale contracts’ terms of Burwitz Refractory Company: Problems and Suggestions

Nội dung text: Luận văn Negotiation and implementation of the international sale contracts’ terms of Burwitz Refractory Company: Problems and Suggestions

1. MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING VIETNAM MARITIME UNIVERSITY STUDENT NAME: TRINH THI LAN ANH DISSERTATION GLOBAL STUDIES AND MARITIME AFFAIRS NEGOTIATION AND IMPLEMENTATION OF THE INTERNATIONAL SALE CONTRACTS’ TERMS OF BURWITZ REFRACTORY COMPANY: PROBLEMS AND SUGGESTIONS HAI PHONG – 2015
2. MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING VIETNAM MARITIME UNIVERSITY STUDENT NAME: TRINH THI LAN ANH CLASS: GMA 02 DISSERTATION GLOBAL STUDIES AND MARITIME AFFAIRS NEGOTIATION AND IMPLEMENTATION OF THE INTERNATIONAL SALE CONTRACTS’ TERMS OF BURWITZ REFRACTORY COMPANY: PROBLEMS AND SUGGESTIONS Supervisor: Nguyen Viet Hoang Son Division: Basic Economics Faculty: Economics HAI PHONG – 2015
3. Negotiation and implementation of the international sale contracts’ terms of Burwitz Refractory Company: Problems and Suggestions PREFACE I certify that all the materials in this dissertation that is not my own work has been identified, and that no materials is included for which a degree has previously been conferred on me. The contents of this dissertation reflect my own personal views, and are not necessarily endorsed by the University. Signature TRINH LAN ANH Date of completion: 10th November 2015 TRINH THI LAN ANH – GMA 02 Page i
4. Negotiation and implementation of the international sale contracts’ terms of Burwitz Refractory Company: Problems and Suggestions TABLE OF CONTENTS Preface i Table of contents ii List of figures iv List of tables v Introduction 1 1. Necessity 1 2. Research Object 2 3. Research Scope 6 4. Research Findings 7 Chapter 1: Literature Review 9 1. Theoretical Background 9 2. Drafting contracts process 10 3. The international sale contracts’ terms of Burwitz Refractory Compnany 13 Chapter 2: Brief introduction of the company 19 1. Functions and Structure 19 2. The products and partners of Burwitz Refractory Comapany 23 3. Business results 29 4. Potential problems in the international sale contracts’ terms of Burwitz Refractory Compnay 32 Chapter 3: Recommendation for improvement 36 Conclusion 39 Annex 41 References 63 TRINH THI LAN ANH – GMA 02 Page ii
5. Negotiation and implementation of the international sale contracts’ terms of Burwitz Refractory Company: Problems and Suggestions ABBREVIATION LIST [1]. B/L: Bill of Lading [2]. B.O.M: Broad of Management [3]. BRC: Burwitz Refractory Company [4]. C.E.O: Chief Executive Officer [5]. CIF: Cost-Insurance-Freight (Incoterm) [6]. D/P: Document against payment (payment term) [7]. ICC: International Chamber of Commerce [8]. ISO: International Standard Organization [9]. FOB: Free-on-board (Incoterm) [10]. TT: Telegraphic transfer/ Telex Transfer (payment term) [11]. VND: Vietnam Dong TRINH THI LAN ANH – GMA 02 Page iii
6. Negotiation and implementation of the international sale contracts’ terms of Burwitz Refractory Company: Problems and Suggestions LIST OF FIGURES Figure 1: BEROA Deutschland, Gmbh 's International Projects. 4 Figure 2: Contracts drafting process 7 Figure 3: The article of commodity details in Burwitz’s sales contracts 15 Figure 4:The value of International sales contracts from January to September 2014 and 2015. 28 Figure 5:The Burwitz Vietnam's total revenue from 2012 to 2015 (billion VND) 29 Figure 6:The Burwitz Vietnam's Profit after tax (PAT) from 2012 to 2015 30 TRINH THI LAN ANH – GMA 02 Page iv
7. Negotiation and implementation of the international sale contracts’ terms of Burwitz Refractory Company: Problems and Suggestions LIST OF TABLES Table 1: Major products of Burwitz Refractory Company 23 Table 2: Linings industry customers’ list 25 Table 3: Other customers 26 Table 4: Business results of Burwitz Refractory Company from 2012 to 2015 31 Table 5: Comparison in terms of workers and salary monthly before and after adding new terms of packing conditions . .37 TRINH THI LAN ANH – GMA 02 Page v
8. Negotiation and implementation of the international sale contracts’ terms of Burwitz Refractory Company: Problems and Suggestions INTRODUCTION 1. Necessity It is no exaggeration to say that practice always plays an indispensable pattern to plenty of aspects, especially study. Without applying theories into reality, the learners cannot mature and get valuable experiences for their field. There are three major justifications for giving students’ practice opportunities by corporations and companies. To start with, the essential roles of internship are undeniable. Firstly, it is no little doubt that it is a strong support to develop students’ background knowledge. In our contemporary life, learners have to deal with plenty of information flows without applying in practicing. As a result, their recognitions are vulnerable and unstable, being easily to forget or misunderstanding. Thus, thanks to a number of valuable internship, students have a fabulous opportunity to apply their own knowledge to practice, contributing to the higher - level working skills among learners in the near future. It is obvious that students in general and teachers in particular can take advantages of those internships. In the second analysis, because of working in the practical environment, students can build up their own experience. It is common knowledge that corporations and companies require candidates having two - year experience or more, guaranteeing that potential worker can work right after recruitment process. Thus, should companies give opportunities to senior students, they will shortage the recruitment and keep the potential professional candidates. From students’ perspective, it is also a valuable chance to show up their abilities, impressing the future recruiters. From students and corporations points of view, this is a win-win situation. Regarding to the justifications for choosing Burwitz Refractory Company (BRC), it is undeniable that the international company like BRC has strong and thorough experience in international business. The company involves in plenty of multinational businesses in the field of refractory linings’ raw materials. In contemporary period, BRC has variety of prolong and truthful relationships with TRINH THI LAN ANH – GMA 02 Page 1
9. Negotiation and implementation of the international sale contracts’ terms of Burwitz Refractory Company: Problems and Suggestions numerous of providers such as China, Germany, Japan and so forth. On the other hand, I had an opportunity to do the second internship in BRC with the topic “International Sale Contracts between Burwitz Refractory Company and Chinese Partners”. Therefore, in the third and also the final internship, I aim to conduct further study in this field and to give feasible suggestions to existed problems. Thus, thanks to this internship at BRC, I have an excellent opportunity to continue not only apply theoretical knowledge, especially in international trade but also develop my study regarding to company’s existed issues. Being close to experienced staffs of BRC via the second internship, I have been received glorious guilds to catch up with the real circumstance of not only company itself but also Vietnamese corporations. Finally but yet importantly, this environment may indeed nurture and improve my knowledge and working skills. In a word, for aforementioned viewpoints, it is no exaggeration to conclude that internships are an important part with both companies and students due to its benefits and roles. It may indeed be true to say that internships are the bridge connecting enterprises and students, creating the close relationship. Therefore, it is common knowledge that internships is now and will be done annually. Moreover, it is no exaggeration to say that the internship in BRC is a value and glorious opportunity in my care. 2. Research Object The research has been conducted at the Burwitz Refractory Company, also known as BRC Vietnam. Being a subsidiary of BEROA Deutschland GmbH, Burwitz Refractory Company has been established in 2004, basing on the technology of Burwitz Feurungsbau, GmbH (1949). BEROA Deutschland GmbH For more details, Burwitz Feurungsbau, GmbH is a famous branch name, under the umbrella of one of the most giant corporations in terms of refractory linings and chimneys - the BEROA Germany Limited Corporation as known as BEROA Deutschland, Gesellschaft mit beschrọnkter haftung (BEROA Deutschland , GmbH). It has been created a massive international network, representing by 50 TRINH THI LAN ANH – GMA 02 Page 2
10. Negotiation and implementation of the international sale contracts’ terms of Burwitz Refractory Company: Problems and Suggestions companies in over 20 countries. Having over 95 years of experience, the BEROA Group has a confidence toward their products and customers’ strong belief. Under BEROA Group umbrella, there are plenty of well-respected brands such as Karrena (Germany, 1914), Burwitz (Germany, 1949), Bierrum (England, 1928), CPT- Themique (France, 1926), YLA Pty Limited (Australia, 1974) and many more(BEROA Deutschuland Gmbh, 2014)(BEROA Group, 2007). Mergers and acquisitions of BEROA Deutschland GmbH not only increase the revenue of the group but also help this international network run more workable. Developing based on “act-local-think-global” orientation, the corporation is not only remaining the primitive brand names but also standardize those brand images by using internationally the BEROA’s logo (BEROA Group, 2011). BEROA Group serves international customers, doing across - boundary projects. There are plenty of BEROA’s successful projects in recent years, including: “Blast furnace shaft lined with shotcrete” in Slovakia of Refratechnik Steel (picture A) The most modern lignite fired power station in the world “Refractory lining” (2011) of HITACHI (picture B) The largest secondary ammonia reformer in the world (2005) of Uhde (picture C) The project in 2010 of Andritz Energy & Environment as known as “Refractory lining of a circulating fluidized bed plant, combustion chamber with full masonry, thermal capacity 150 MW” at Eisenhỹttenstadt CHP plant, Germany (picture D)(BEROA Deutschuland Gmbh, 2014). TRINH THI LAN ANH – GMA 02 Page 3