Restructuring businesses, Can Tho Techno – Agricultural Supplying Joint Stock Company (TSC) is gradually reaping the results after about two years of restructuring. This initial result is the motivation for the Board of Directors and all employees to continue setting stronger and more sustainable development goals in the future.
Looking at TSC’s business results over the past years, before the market changes and business situation, TSC’s profit in 2016 has plummeted by 10 times compared to 2015. This situation requested urgently actions, however, restructuring the business is not simple and takes a lot of time. 1) It is necessary to consider the appropriateness of business activities with the medium and long-term strategy of the whole F.I.T Group. 2) It must be ensured that employees can continue to work, to be guaranteed their benefits.
Only after a while, the Board of Directors has decided to divest from TSC’s traditional industries/businesses such as agrochemicals, concentrated for industries which associated with the philosophy of serving people with high quality products, high value, environmentally friendly.
The short-term effects of this restructuring process are visible when TSC’s revenue and profits simultaneously decline.
Facing this situation, the Board of Directors has focused resources and acted more forcefully in 2018. Instead of developing in width, TSC focuses resources on industries with competitive advantages and long-term potential. Specifically, TSC has correctly positioned its products to have appropriate strategies, promoting R&D to create more added value.
Entering 2019, the results of the restructuring process, the first achievement is coming to TSC. The results of quarterly Net Profit After Tax have been continuously improved and increased since the end of 2018. Typical for the success of the restructuring process is the premium natural mineral water product (Vikoda). This is a product embodying the philosophy of bringing high value, purity for human health and environmental friendliness.
From gaining customers’ trust and these initial successes, the Board of Directors and TSC’s leaders confidently replicate the model, boosting production for many other products/fields throughout the company, moving forward. Competition dominates with foreign corporations.