IntroductionAlong with the development and integration of the global economy, Vietnam is gradually innovating and entering the period of industrialization and modernization, both to build infrastructure and develop economy. Therefore, our State as well as local agencies has paid a lot of attention in it. Construction also plays a vital role in economic growth and development.Mechanical Construction Company No. 1, under Civil Engineering Construction Corporation No 1 JSC, is one of the outstanding units of the sector and a trustful partner of the domestic and foreign customers. The company has a huge contribution to the development of our country.During the internship time, with the help of the managers and colleges in the company, I have collected enough information to complete my report. Through my internship report, I hope to present a general formation about the establishment, development, organizational structure, business activities, as well as some problems existing in the business activities of the company which I have studied before. I would like to express my gratitude towards the teachers at English Department Vietnam University of Commerce as well as my managers and colleges in MCC1. Especially, I would love to express my sincere thanks to my supervisor MA. Ha Thi Vu Ha who has helped me a lot to complete the report. I look forward to receiving comments and suggestions in order to perfect the paper.Hanoi, February 2015StudentLe Thi Lien

PART 1: OVERVIEW OF MECHANICAL CONSTRUCTION COMPANY NO.11.1.The information and development of the company1.1.1.Overview of Civil Engineering Construction Corporation No 1 JSC (CIENCO1)Civil Engineering Construction Corporation No 1 JSC which was established in 1964 is one of the leading businesses about construction in Vietnam. Through 50 years of development, (1964-2015) CIENCO1 has built a powerful force including over 40 member units, a school of training technical workers and 3 affiliates (Ho Chi Minh City, Highland, Cambodia) with more than 9,000 officers and employees. Corporation was also awarded the Medal of Ho Chi Minh, the title of Hero of the Peoples Armed Forces, 10 independent medals, 5 individuals are Labor Hero, 7 projects were granted Gold Medal for high quality. Some constructional works of typical bridges, ports, roads, railways of Corporation recently as follows: Rach Mieu Bridge, Rong Bridge Da Nang City, Tran Thi Ly Bridge, Vinh Tuy Bridge, Port exports to products of Dung Quat Dung Quat Oil Refinery, Sai Gon Trung Luong Highway, Noi Bai International Airport, Road No. 78 Cambodia, Ring Road No. 3 Hanoi- Period. 2, etc.1.1.2. Mechanical Construction Company No.1.1.1.2.1. Information about the companyFull name: Cng ty Thi cng c gii IEnglish name: Mechanical Construction Company No.1Abbreviation: MCC1Address: 7th floor, No. 623 La Thanh Road, Thanh Cong Ward, Ba Dinh District, Hanoi City.Tel: 04.37725383Fax: 04.37720925Website: www.mcc1.com.vn Email: cienco1mcc1@gmail.com1.1.2.2. Formation and development of MCC1Mechanical Construction Company I - formerly known as Mechanical Construction Enterprise No 1 is one of the units under Civil Engineering Construction Corporation No 1 JSC. The company was established on August 15th 2011 according to Decision No. 509 / DOP LD. On February 26th 2003, Mechanical Construction Enterprise No 1 was renamed Mechanical Construction Company I according to Decision No. 502/ 2003/ Q-BGTVT of Ministry of Transport.With the goal of sustainable development, the company has preferred train labor force, focused on investing and exploiting the potential of equipment and construction materials, and applied science and technology in the production and management. Besides, the company constantly expands the business scale, business sectors, workforce increased in quantity, quality and professional qualifications which meets better the needs of customers. The companys slogan is Productivity - Quality Efficiency.Until now, MCC1 has become one of the most professional contractors in term of mechanical construction in Vietnam, and a trustful partner of foreign customers. Some typical constructional works: Rach Mieu Tien Giang Bridge, Tan An Long An Bridge, Vinh Tuy Bridge, My Thanh Bridge 1.2. Major business areas of the companyMCC1 operates in multiple fields: - Build constructional works of foreign and domestic civil engineering- Build constructional works of civil and industry (Irrigation, Defense, Electronics)- Transport materials, equipment, components to serve for execution- Excavate soil, ground leveling- Produce and trade constructional materials, precast concrete components, steel bridge beams, mechanical products- Fix auto machine, construction equipment- Execute the projects supplied by CIENCO1.1.3. Organizational structure and management1.3.1. Organizational Chart of MCC1

Board of DirectorsEquipment and Material Management DeptPlanning DeptConstruction Engineering DeptAccounting Finance DeptPersonnel DeptRepresentative office in Ho Chi Minh CityMarket DeptQuality Management DeptQuang Minh Mechanical workshop Warehouse of the CompanyConstruction Teams No.1Construction Teams No.2Construction Teams No.3Construction Teams No.4Construction Teams No.5Construction Teams No.6Construction Teams No.7Construction Teams No.8Construction Teams No.91st PA Board 2nd PA Board1st PA Board 2nd PA Board1st PA Board 2nd PA Board1st PA Board 2nd PA Board1st PA Board 2nd PA Board1st PA Board 2nd PA Board1st PA Board 2nd PA Board1st PA Board 2nd PA Board1st PA Board 2nd PA BoardChart 1: Organizational structure of MCC11.3.2. Function, responsibilities of management department. Board of Directors (Director and Deputy Directors)Director: As the representative of the company, with the highest authority, responsible for all business operations of the Company. Director defines functions and responsibilities of key personnel; makes decisions about projects and business plans, organize the executive apparatus, shares profit, distributes profits to fund the Companys budget. Deputy Directors: Assist the Director to manage and executive one or several tasks assigned by the director. Director assign a deputy director take over one or some areas of activity of the Company (Have a specific assignment) Personnel Dept: Advise the Director to provide human resources meeting the requirements of business production, coordinate employers, implement the planning of training, improve qualifications for officers and employees , monitor and address the policy regime for employees, manage the administration, organization and foreign relations etc ... Accounting Finance Dept: Organizes the financial and accounting apparatus of the company, establishes records, reports accounting data, closely manage the funds and ensure that they are used properly and effectively, analysis business operations and submits the Director timely to work out appropriate measures to accelerate the process of construction. Construction Engineering Dept: Advises the Director on the work of construction engineering and has tasks such as: sets up construction process, monitors the volume and quality of constructional work, receives the volume of work completed periodically, supervise engineering of work, sets up construction organization plan Planning DeptAdvices the Director to draw and sign economic contracts, build business production plan annually; monitor and supervise the business manufacturing and the implementation of projects annually; develop plans of labor norms, salaries, supplies for each work item; analysis of economic activities to assist the Director made the right decision. Equipment and Material Management DeptManages and runs the use and maintenance of motorcycles, equipment; builds plan of using, managing equipment and materials; organize warehouse and supplies storage. Besides, this Dept also consults in procurement organization, materials preservation for the activities of the Company. Quality Management DeptSupports Directorate to build, manages and develops the quality management systems; supervises and inspects the construction stage; organizes research, evaluates to improve the quality Market Dept Responsible for searching market, domestic and foreign customers; bases on the ability of firms and markets to establish the appropriate bid to help company win contracts, and construct efficiently and advise the Director to sign the contract; links with other businesses to provide products, Construction TeamsAdvises the Director in the field of construction; builds plans for implementing the assigned work; performs construction work in accordance with the approved technical documents, and companys plan; ensures product quality, timely completion; manages motorbikes, equipments, labor supplies in accordance with the statutes of the company.PART 2: BUSINESS RESULTS ANALYSIS OF MECHANICAL CONSTRUCTION COMPANY NO.12.1. Core markets, products and services of the company2.1.1. Characteristics of the productMCC1 is one of the companies under CIENCO1, its main field is bridge and port construction. The main products are construction products, transport, industrial and civil works. They have following characteristics: Construction products are works and large building which have complex structures, single units, prolonged duration and dispersion. Before construction, they have been estimated about design and construction. They have large investment capital and prices depend largely on input Construction products completed cannot be saved in warehouse but be delivered right to the customers in accordance with price agreements or contractors before. The product is fixed at a place, where products are built and consumed. The facilities, construction equipment, workers must often move to the location of the product which causes difficulties for the management. Products are directly affected by natural conditions so easily lost or damaged.Besides, the company also manufactures and trading of building materials, mechanical materials provided for the construction of their own works and other companies in the field of domestic and international markets.2.1.2. Core markets and partnersSince its establishment, the company has had lots of developments of all aspects, the works of company not only increases in number, but also ensures the technical and aesthetic requirement. Therefore, the company's markets expand not only nationally but also the international market. Currently, the company has many business partners in all provinces of the country, especially in Hanoi, Da Nang, Ho Chi Minh, Hue, Thanh Hoa, Kien Giang, Can Tho, Ca Mau ... The company's main customers include- The department of project management and construction works managed by city administration- The department of project management and construction works managed by the State, the Ministry of Transport.- Businesses, agencies and organizations operating in the same field, sectorIn addition, the company is gradually expanding into international markets through the implementation of projects of corporations and trading products of building and mechanical materials.2.2. Business situation analysis of the company in two years 2012 and 2013.2.2.1. Business results analysis Operation situation of a company is best expressed in the system of declaration board, books and its financial statements. Data in this report provides the most comprehensive information about the use of capital and human resources as well as the results of the sales and profits that the company achieved.Here is the situation of production activities of the company in 2012 and 2013:

Table 2.1: Reporting the results of operations of MCC1 in 2012 and 2013Expenses 20122013Difference

Increase (decrease)Ratio (%)

1. Revenues from sales of goods and services1,282,174,918,4431,227,881,289,501(54,293,628,942)4,23%

2. Cost of sale of goods and services(1,213,983,020,436)(1,168,436,106,370)(45,546,914,066)3,75%

3. Gross profit from sales and services68,191,898,00759,455,183,131(8,736,714,876)12,81%

4. Revenues from financial activities1,932,712,0441,779,210,761(153,501,283)7,94%

5. Financial expenses(20,355,004,849)(16,941,324,940)(3,413,679,909)16,77%

6.Enterprise Management expenses(34,699,374,093)(30,262,956,246)(4,436,417,847)12,79%

7. Net profit from operations15,070231,10914,020,112,706(1,050,118,403)6,97%

8. Other incomes32,404,237,12811,348,422,101(21,055,815,027)64,98%

9. Other costs(23,406,675,719)(9,291,971,510)14,114,704,20960,30

10. Other profits8,997,561,4092,056,450,591(6,941,110,818)77,14%

11. Profit before tax24,067,792,51816,076,563,297(7,991,229,221)33,2%

12. Business income tax expense7,456,237,8095,579,234,621(1,877,003,188)25,17%

13. Profit after tax 16,611,554,70910,497,328,676(6,114,226,033)36,81%

Source: Financial Report 2012, 2013 - Department of Finance and Accounting Mechanical Construction Company NO.1Looking at the statement of operations of 2years 2012 & 2013 we can see the company make profit but revenue and profit in 2013 was lower than in 2012 (revenues decreased 54,293,628,942 VND equivalent to 4.23%, net profit fell 6,114,226,033VND or 36,81%).

Revenues and StructureTable 2.2: Revenues structure in 2012 and 2013Structure20122013

- Revenues from construction work- Revenue from selling and exporting materials and equipment- Revenues from financial activities1,219,452,692,210

62,722,226,233

1,932,712,04494,97%

4,88%

0,15%1,163,647,126,760

64,234,162,741

1,779,210,76194,63%

5,23%

0,14%

Total revenues1,284,107,630,487100%1,229,660,500,262100%

Source: Financial Report 2012, 2013 - Department of Finance and Accounting Mechanical Construction Company NO.1Total revenues in general and revenues of each particular part in 2013 was lower than in 2012, suggesting that the business operations of the company in 2013 was not as effective as in 2012.About the structure of revenue in two years, revenue from the construction works accounted for a large proportion (greater than 94%), this is the main activities of the company. However, the proportion of revenue from the sale and export of goods in 2013 (5.23%) higher than in 2012 (4.88%) proves the company had started to focus more on this field, and partly because the company promoted the export of materials and equipment to international markets more. Capital and structureCost of sales and service delivery fell 3.73% in 2013 compared to 2012, due to a number of works with the execution time lasted from 2012 to 2013, the initial investment was calculated in 2012. The number of new buildings was not many, this is also the reason why revenues, costs and profits decrease.About the capital structure

Table 2.3: Capital structure in 2012 and 2013Structure20122013

1 Liabilities559,000,889,38896,6%571,420,533,38098,75%

2. Equity19,681,161,5893,4%19,681,161,5891,25%

Sub total578,682, 051,247100%591,101,695,239100%

Source: Financial Report 2012, 2013 - Department of Finance and Accounting Mechanical Construction Company NO.1According to the table, the source of the companys equity accounted for a very low rate (3.4% in 2012 and 1.25% in 2013). Moreover, the proportion of equity in 2013 also decreased compared to 2012 due to equity fall but liabilities increased. Cost and structureThe costs including financial cost, enterprise management expenses and other expenses are reduced. The amount of capital invested in sale activities and services reduced, so Financial expenses decreased (16.67%). Enterprise management expenses fall 12.97% proving the company has removed unnecessary existences in organizational structure. Other expenses include expenses from the sale of scrap materials, reasonable asset liquidation expenses, costs of rental equipment ... also reduced a significant amount. Profits and structureBoth in 2012 and 2013, companys profits was positive (VND 16,611,554,709 and 10,497,328,676 VND in 2012 and 2013 respectively), so the business activities of the company made profit. However, profitability is not high due to high cost of sales and other expenses. Revenue from construction works accounted a large proportion but profit from that got low proportion. In addition, the profit after tax of decrease 36.81% in 2013 compared with 2012.Based on the above analysis we can see, production and business activities of the company in both 2012 and 2013 made profit, however, the growth was negative due to many objective reasons. So in the coming years the company should take measures to save costs, reduce prices in order to contribute to improving profitability, growth.2.2.2. Labor and labor structureMCC1 always focuses on investing in human development. Staff and employees are trained regularly to improve professional qualifications and entitled to reasonable remuneration. Besides, companies are facilitating technical facilities and machinery so that officers and employees have a favorable working environment, most comfortable in order to raise labor productivity.In 2013, total number of employees of the company is 819 people (compared to 2012 with 885 people). In which the number of officers and employees have graduated from college and graduate education is 763, accounting for 93.16%. Number of employees under age 35 is 682, accounting for 83.27%.With young and highly qualified professional staff, the company is committed to bringing their customers the attention, attentive service and high quality products.2.3. Evaluation and comments on the strengths and weaknesses of business activities of enterprises2.3.1. The strengthsSince being established and experienced 13 years of development, the company has confirmed its position and its reputation in the market.The company is under the Civil Engineering Construction Corporation No 1 JS - one of the leading units in the construction sector, under the Ministry of Transport, so it regularly receives many large projects delivered from the Corporation, especially international and foreign investment projects.Moreover, not only having the experienced and enthusiastic staff, the company also has a team of young officers who has been formally trained, dynamic. Management staff have a high level of expertise, capacity, working with high sense of responsibility.The scale and scope of business activities is relatively wide, across the whole country and is gradually expanding into international markets.Machineries are modern and ensure the process of construction, high competitiveness.The construction works are certified quality assurance.2.3.2. The WeaknessesThe company has not optimized business costs, financing costs and used capital effectively, thus operating profit had lower proportion than revenue.It has also not achieved stable growth.Moreover, marketing activities and market searching have not been promoted yet, large projects are mainly due to the delivery from the Corporation.In addition, the operations of selling, exporting materials, construction equipments and mechanical equipments has not been focused. Revenues were mainly from the construction of transportation projects, bridges and port. The country is entering international integration, however, the number of international projects and foreign investment of the company is very low. Therefore, the use and requirement about English in the company is still very limited, many employees are not proficient in English as well as in international trade transactions.