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BANKING UNIVERSITY HO CHI MINH CITY BUSINESS ADMINISTRATION FACULTY FINAL EXAMINATION SUBJECT: STRATEGIC MANAGEMENT TOPIC THE INTERNAL AND EXTERNAL ENVIRONMENT ANALYSIS OF MASAN CONSUMER AND GIVING BUSINESS STRATEGIES COURSE: MAG313_2111_6_L10_TA STUDENT: DANG NGOC GIA BAO STUDENT ID: 0506061180029 INSTRUCTOR: Dr PHAM HUONG DIEN HO CHI MIH CITY - 2021 MỤC LỤC LIST OF ABBREAVIATIONS CHAPTER 1: Introduction of MASAN CONSUMER Company 1.1 The introduction of Masan Consumer Company Introduction: History: 1.2 The vision and mission of Masan Consumer 1.3 Objectives 1.4 The current strategy of Masan Consumer 1.5 The product of Masan Consumer 1.5 Industry and competitive environment CHAPTER 2: The internal and external environment analysis of Masan consumer 2.1 External Factor Analysis Summary (EFAS) 2.2 Internal Factor Analysis Summary (IFAS) 11 2.3 Strategic Factors Analysis Summary (SFAS) 15 CHAPTER 3: Lessons Learned and conclusion 21 3.1 Lessons Learned 21 3.2 Some solutions and Conclusion 22 3.3 Improve the quality of the workforce 23 REFERENCES 24 LIST OF ABBREAVIATIONS Acronym Definition IFAS Internal Factor Analysis Summary EFAS SFAS External Factor Analysis Summary Strategic Factor Analysis Summary CHAPTER 1: INTRODUCTION OF MASAN CONSUMER COMPANY 1.1 The introduction of Masan Consumer Company Introduction: Business name: MASAN CONSUMER CORPORATION Masan Consumer, whose Vietnamese name is Masan Consumer Goods Joint Stock Company, belongs to Masan Group (MASAN GROUP) Company's stock code: Contact information: MCH Address: 12th floor, MPlaza Saigon building No 39 Le Duan, Ben Nghe Ward, District 1, City Ho Chi Minh, Vietnam Tel: (84.28) 62 555 660 Fax: (84.28) 38 109 463 Website: www.masanconsumer.com Figure - Logo of Masan Consumer History: Source: Masan gruop 6/1996: Viet Tien Industry - Technology - Trade Joint Stock Company was established The company specializes in the production of processed foods, especially the seasoning industry (sauce, soy sauce, chili sauce ) May 2000: Established Minh Viet Import-Export and Industry Joint Stock Company, specializing in trading import-export and trade 2003: Masan Trading Joint Stock Company was established on the basis of merging Viet Tien Industry - Technology - Trading Joint Stock Company and Minh Viet Industry and Import-Export Joint Stock Company 12/2008: Masan Trading Joint Stock Company changed its company name to Masan Food Joint Stock Company (MASAN CONSUMER) March 2011: Masan Food Joint Stock Company (MASAN CONSUMER) officially changed its name to Masan Consumer Goods Joint Stock Company (MASAN CONSUMER) 1.2 The vision and mission of Masan Consumer  Vision The leading consumer goods company in Vietnam in terms of sales, profits and brand awareness; Meeting the daily needs of 100 million Vietnamese consumers; Attracting top talents, and being recognized as the best working environment in Vietnam; and is a symbol of quality and pride of Vietnamese people  Mission Constantly seeking and creating breakthroughs At the same time, improving the material and spiritual life of consumers every day Convert each category Masan Consumer has 12 brands ranked No in different consumer goods industries The average growth rate of revenue in the period 2020-2022 is 15%/year Being one of the three most popular workplaces in Vietnam in 2022 1.3 Objectives Continue to promote the achieved results in order to make the most of and promote the brand value, improve competitiveness in the domestic market and expand the market to the world 1.4 The current strategy of Masan Consumer In 2021, Masan Consumer has identified the annual goals as: (1) Continue to strive to achieve a low revenue growth of convenience food and condiment SBUs, reaching the expected revenue of 15,419 billion VND; equivalent to 4-5% revenue growth compared to 2020; (2) Reduce inventory from distributors and dealers with a required reduction of 80% of inventory from these distributors and dealers *Policies of Masan Consumer Therefore, in 2021, Masan has simultaneously implemented a series of business policies to focus on completing the previous goal A series of activities that will be carried out in 2021 include: · Masan cuts Marketing costs by instead of "outsourcing" market research, the company conducts these activities by itself Market survey activities are actively carried out by the company to help the company get closer, better understand and better grasp such as customer requirements so as to have strategic directions on diversification and innovation , improve and develop products in the coming periods In parallel with the market self-survey, in 2021, the company will deploy more communication, advertising and PR activities with the communication focused on products that are beneficial to health, delicious taste with good taste average price · To reduce inventory by up to 80% from distributors and agents, in the first months of 2021, Masan will stop all promotions, including discounts for distributors and agents At the same time, sharply reducing the amount of goods sold to distributors and agents Ask distributors to focus on accelerating inventory before resuming purchases from manufacturers Stopping all promotions also means that Masan stops push marketing, distributors and agents will no longer be interested in importing goods to receive high discounts, but instead, will focus on the amount of inventory to recover capital · 2021 also marks Masan Consumer's simultaneous application of inventory control technology from distributors and agents This helps the company to accurately and specifically capture inventory from distributors On that basis, the company builds, deploys and adjusts the production plan to suit the actual conditions 1.5 The product of Masan Consumer Masan Consumer Products Joint Stock Company's products include familiar brands such as: Chin-su, Nam Ngu, Tam Thai Tu, Omachi, Kokomi, Vinacafe, Wake-up, Wake-up 247, Vivant, Vinh Hao and Quang Hanh Products are divided and distributed Masan products into many segments Figure - Masan Consumer's products are currently on the market Source: Masan gruop The company is mainly engaged in the production and sales of consumer goods in Vietnam, specializing in food and beverage Producing and trading in food and beverages: seasonings, sauces, packaged instant foods such as instant noodles, instant porridge, in addition to instant coffee, nutritious cereals and instant coffee bottled beverages distribute goods on distribution systems throughout the country and abroad 1.5 Industry and competitive environment Risk of entry of potential competitors: When joining the WTO, industry support from the state will decrease, quota protection will be abolished, taxes will be eliminated imports will decrease according to the schedule These are the factors that attract not only domestic enterprises that want to enter the industry, but also international brands that will want to enter Therefore, the risk of potential competitors is a great pressure for companies such as: Nestle group, Asiafoods group Competence of competitors in the industry: through experts in consumer goods This is a pretty fierce market It is true that there are so many "giants" participating in this playground, such as: Kabin fish sauce, Ong Tay fish sauce, Vina Acecook Vietnam Joint Stock Company, Asiafoods Food Joint Stock Company, the company Cholimex food stock Bargaining power of buyers: sauces, instant noodles are items of interest to many competitors, and small local manufacturers are also involved in distribution, so there is little difference in products As a result, consumers have more choices The bargaining power of suppliers: With the characteristics of Vietnam having abundant fish materials and fish sauce sources from Phu Quoc and Phan Thiet, the great advantage lies in the raw material area Therefore, the buyer has a choice Analysis of substitutes: with the rapid growth of consumer goods industries, operators are always looking for products to take the lead in new product launches Competitive position : Product quality: Product quality is always the company's top concern Masan Consumer's factories have met the standards of food hygiene and safety including GMP and HACCP (Good Manufacturing Practices and Food Safety Hazards Control), ISO 9001 and ISO 22000 (Safety Management System) food safety) The whole line is designed synchronously and automatically to completely eliminate unwanted human impact on product quality Customer loyalty: The ranking of the 10 most chosen manufacturers in Vietnamby publishedKantar Worldpanel in the Brand Footprint 2020 report includes: Urban: Masan Consumer ranked 3rd Rural: Masan Consumer ranked 2nd Market share: According to the statistics in 2020, more than 75% of the market share is in the hands of companies, namely Vina Acecook, Masan Consumer, Asia Foods, of which Masan Consumer fluctuates between 21-25% Distribution network: The business has developed retail points to nearly 180,000 for food products and 160,000 for beverage products Become the “one-stop” solution for about 300 distributors Furthermore, MCH's distribution centers are located in strategic locations capable of delivering same-day food and beverage products to individual distributors nationwide Raw material supply: Masan Consumer has a full certificate of origin, analysis and quarantine of raw materials derived from non-GMO plants; Domestic suppliers should have quality control systems, food safety and hygiene, animal quarantine and good agricultural practices The system of diverse partners and suppliers ensures that the company does not depend on any one supplier for any raw materials CHAPTER 2:THE INTERNAL AND EXTERNAL ENVIRONMENT ANALYSIS OF MASAN CONSUMER 2.1 External Factor Analysis Summary (EFAS) Table - EFAS Matrix External Factors Weight Rating Weight ed Score Comment THREATS T1 Competitive pressure in the FMCG (Fast Moving Consumer Goods) market 0.15 0.6 T2 High demand for safe food 0.05 0.1 0.05 0.1 Need more time 0.15 0.45 Add new promotion 0.1 0.3 Segment positioning T3 T4 T5 The retail market in Vietnam still has many defects and lacks connectivity Approaches to advertising methods Strong long-time competitor The consumer market is growing day by day, the population is increasing, the demand for consumption is large Human health is focused, life is more modern, people prefer clean technology OPPORTUNITIES O1 O2 Large market capacity, high population rate Instant coffee becomes a consumption trend of Vietnamese people 0.1 0.3 As the population grows, people prefer clean products 0.15 0.45 Need more time O3 R&D Product 0.1 0.4 Development Of New Products O4 Covid-19 0.1 3.8 0.38 The retail industry of consumer goods is growing rapidly O5 Availability 0.05 0.15 Total scores 1.00 3.23 THREATS  T1 - Competitive pressure in the FMCG (Fast Moving Consumer Goods) market Vietnam, with a population of more than 90 million people, is a potential market for the fastmoving consumer goods industry FMCG has made a significant contribution to creating jobs for people and meeting the essential needs of modern society The implementation of WTO commitments and the full opening of the retail market have created an impetus force for domestic retail enterprises to constantly change and improve themselves, and at the same time expand the scope of activities from North to South Currently, the number of companies operating in the FMCG sector is not small Businesses in the beverage group can be mentioned such as Vinamilk, Habeco, or businesses in the food sector such as Kido, Tuong An, Bibica, Hai Ha, Huu Nghi, Vissan, etc Along with that is the strong investment of foreign enterprises in the potential fertile market segment This ability can be mentioned as: Unilever, P&G, Suntory PepsiCo, This creates fierce competition in the FMCG industry, which is a big challenge for Masan Consumer T2 - High demand for safe food However, besides the achievements of the agricultural product processing industry, the development of the food processing industry is modest compared to its potential The causes are many, but in general, they must include: Loose linkages From production, collection to sustainable development of raw materials, processing, production technology is still backward, food safety control is still inadequate, investment is still limited, production is small and scattered , input quality is not high, unstable,  T3 - The retail market in Vietnam still has many defects and lacks connectivity Foreign retailers not only focus on big cities but also target potential areas in the future Meanwhile, most Vietnamese retailers only focus on big cities like Hanoi and Ho Chi Minh City Ho Chi Minh City, but forget about the potential of consumption from other regions The neglect of potential areas in the domestic market is causing the retail market share of domestic enterprises to shrink rapidly The management team is inexperienced in dealing with arising problems that customers encounter, causing time-consuming and uncomfortable feelings for customers This leads to the loss of a large number of customers to foreign retailers There has not been a deep connection between businesses, which makes the effectiveness of the link between retailers not very good in the market Although, there has been the establishment of VN VDA Distribution System Investment & Development Joint Stock Company, but it has only operated in a few small locations throughout the country The VN VAR Sellers Association has not yet fully promoted its role in obtaining legal rights for its members, namely winning preferential loans with low interest rates from the Government's stimulus package  T4 – Exchange rate : Exchange rate is a standard measure to help users evaluate the ability of local currency to buy in business, use capital to build or cooperate, and joint ventures with many different countries This also helps you easily compare the value of our country's currency with foreign currencies and how productivity compares to foreigners.Currently, businesses have to face macroeconomic challenges, including high inflation and a depreciating currency at the expense of GDP growth In addition, the private sector, although strongly developed, is still fragmented, reflected in the revenue structure and market share Private companies  continue to face challenges due to long-term capital constraints, lack of expertise and less competitiveness than multinational companies  T5 – Strong long-time competitor By keeping track of their competition, businesses may expand their market share and remain relevant to their customers They may recognize and assess accomplishments and issues, understanding what to implement into their own processes and how to avoid income loss They can also utilize the data they collect to generate suggestions for (Anh, 2019) OPPORTUNITIES  O1 – Large market capacity, high population rate With a population of over 95 million people, the average economic growth rate is about 7.5%/year in recent years, the material and spiritual needs of each Vietnamese people have been gradually increased, especially demand for clean products, products that are deeply processed and delicate The habit of using products processed from milk, cooking oil, beer, wine, soft drinks has formed and developed rapidly People's consumption demand for processed foods is increasing and diversifying Therefore, this is also an opportunity to stimulate the development of Vietnam's food processing industry  O2 - Instant coffee becomes a consumption trend of Vietnamese people Coffee has become a drink of many Vietnamese people However, everyone's coffee taste is different, including many young people Starting a new day with a cup of coffee has become an indispensable thing for many Vietnamese, including many young people The taste of Vietnamese people drinking coffee roasted and ground by filter is also quite unique, to the point that it has become a distinct culinary culture For those who are knowledgeable and connoisseurs of coffee, drinking filter coffee has its own pleasures By putting coffee into a small filter, filling with boiling water and then sitting patiently waiting for the coffee drops to slowly fall, sipping small sips, fully feeling the rich flavor, mild bitterness, strong aroma is a feeling that evokes feelings of love inspirational and easy to cause "addiction" However, with an increasingly bustling and busy life, it is difficult for young people to choose filter coffee because it takes a long time to enjoy, which young people in dynamic cities often lack The usual coffee style of young people is to pop into the shop, order a cup of ready-made coffee, if in a hurry, order a "take away" cup The instant coffee line was born, filling the gap that busy people need to be able to enjoy coffee anytime, anywhere Domestic and foreign coffee production and trading brands have launched many instant coffee products to meet the diverse tastes of consumers Realizing the development of instant coffee in the Vietnamese market, Masan Consumer made a plan to acquire the entire VinaCafe Bien Hoa Joint Stock Company (a member of Vietnam Coffee Corporation) with the expectation that coffee and Coffee products will be one of the pillars in the strategy of developing the beverage industry and creating high "added value" for Vietnam's coffee industry  O3 – R&D Product Currently, the company owns a most modern Research and Development Center (MRD - Masan Research & Development Center) in Vietnam In 2020, Masan Consumer's research & development (r&d) team has launched more than 30 new products, of which more than 10 are breakthrough products  O4 - covid 19 Covid-19 for many businesses, even many countries is a terrible disaster It has not only engulfed a few businesses, it has engulfed the economies of many countries around the world However, for Masan Consumer, this is a big opportunity for them The fact also shows that in the past years from the end of 2018 the outbreak of the epidemic to 10 now, the revenue of 2018 was more than 17 trillion and that revenue has increased to 18500 billion in 2019 and it continues to increase tremendously than in 2020 the revenue will reach 233342 billion At the same time, we can also see that the stock price was 80,000 VND/share at the end of 2018 despite the outbreak, but the price has increased year by year and is now more than 120,000 VND/share and still on the rise From there, we can see that the covid epidemic is really a great opportunity for Masan Consumer So how can Masan take advantage of this great opportunity? O5 – Availability: "If you advertise on TV for a lot, but tomorrow people go to the market and have no goods, what's the use of advertising?" "The raw materials must always be available, the factory must always be running, the trucks must always be ready, and the goods must always be on the shelves and on the shelves at the right price and in the right size." General review: Finding the company's total critical score of 3.23 at a good level, it shows that the current external environment, both macro and industry environment, has an impact that is neither worrisome nor too negative for the company In other words, the company operates relatively well in the current external environment, in which, the factors that have the most positive impact on the company's production and business activities must be mentioned: Vietnam's retail market and the potential of the food and beverage industry in Vietnam The factors that have the most negative impact on the company's production and business activities include great pressures from: changes in needs and expectations of customers, the Vietnamese retail market still has many defects and the market Coffee school is in trouble 2.2 Internal Factor Analysis Summary (IFAS) Table - IFAS Matrix Internal Factors Weight Rating Weighted Score Comment STRENGTHS S1 S2 Big Brand Corporate Governance 0.1 0.05 0.3 0.2 Nguyen Dang Quang 0.4 Scale large, modern technology S3 Production capacity 0.1 Distribution channel system 0.1 4.5 0.45 Distribution channel network throughout the country Innovation capacity 0.15 0.45 Product S4 S5 Good and growing WEAKENESSES 11 W1 W2 Most materials are imported through distributors Product quality 0.05 0.1 2 0.1 Reputation decrease 0.2 Quality decreasing 0.2 Using nylon, plastic instead of glass, paper bags, 0.1 Mostly imported from abroad W3 Improve packaging W4 Raw materials 0.1 0.05 2 W5 Have financial problems Total scores 0.2 1.00 0.6 3.05 The professionalism of the staff goes down STRENGTHS  S1 - Brand Masan Consumer or Masan Consumer Goods Joint Stock Company is the company that occupies the 5th position in the list of Top 50 most valuable brands in Vietnam 209 and ranks 2nd in the consumer goods industry Masan Consumer manufactures and distributes a wide range of food and beverage products  S2 - Corporate Governance One of the core factors to Masan Consumer's success is its leadership Mr Nguyen Quang Dang - Chairman of Masan Group has built a development strategy around the brand, thereby setting the right direction leading to the success of Masan Consumer in the future At the time of its establishment, Mr Quang directed the company to focus on building a methodical business under the policy of "one organization, not a group of people" They invested in building human resources and researching and developing products and brands, introduced the brand of Chin-su sauce, later expanded to other products such as Omachi, Vinacáfe, etc  S3 – Production capacity According to news website https://forbesvietnam.com.vn/, Masan Group has unified the fish sauce market by bringing this traditional production to an industrial scale with an ingredient processing plant in Phu Quoc The advantage of large scale helps Masan reduce costs, pushing hundreds of small production facilities to death A part of the market calls Masan's products "industrial fish sauce." The large scale of production with the most modern machines and lines has accelerated the product production process, helping Masan Consumer achieve huge sales  S4 – Distribution channel system Operating since 2000, Masan Consumer has grown its product portfolio, increased domestic sales and expanded distribution channels for a variety of food products, including soy sauce, fish sauce, chili sauce, instant noodles with huge sales The ability to supply and distribute goods on a large scale has helped Masan Consumer establish a leading position in the branded food sector in Vietnam 12 S5 – Position in the international market Strategies to "premium" products: According to the accumulated financial statements for the third quarter of 2018, Masan Consumer Corporation (Masan Consumer, UpCom:MCH) recorded spectacular business results with growth of over 25% in revenue and over 50% in net profit In the third quarter of 2018 alone, MCH's revenue increased by 29.8% over the same period in 2017, thanks to the "premiumization" of food products, and the continued growth of beverages  MCH's condiments, convenience foods, non-alcoholic beverages and coffee all had strong quarters WEAKNESSES W1 –Violation of business ethics In the market, each product and service applies a separate marketing tactic to attract the attention of potential customers In particular, there is one technique that many companies often use to overthrow competitors and honor themselves, which is the advertising tactics are too true Masan Food Joint Stock Company is no exception, the company has taken advantage of consumer confidence to gain an advantage in the fierce competition for market share W2 – Product quality Masan has been involved in a scandal about dishonesty in advertising Specifically, hitting the Vietnamese people's fear of MSG, Masan launched an advertisement for Chinsu "no MSG seasoning" However, after this sample of Masan's seasoning without MSG was tested at the Laboratory Analysis Service Center of the Department of Science and Technology of Ho Chi Minh City, consumers were shocked to learn that Chinsu did not contain flour sweet but powdery… super sweet  W3 - Improve packaging Environmental pollution is a hot topic today and receives a lot of attention from people In particular, the problem of pollution from plastic and nylon waste in Vietnam has been and is becoming more and more serious Through the media, we can easily see images, as well as articles that reflect the current state of the environment Reducing waste from plastic and nylon has become an urgent requirement right now As a large company, Masan applied instead of using plastic packaging, plastic bottles, to pack products into paper bags, glass bottles,  W4 – Raw materials The main raw materials for the production of Masan Consumer's products such as sauces, noodles, seasonings, etc., are mostly imported from abroad At that time, the price of raw materials on the world market fluctuates and the exchange rate of VND/USD changes will affect the cost of raw materials of the product  W5 – Have financial problems Although revenue and profit grew well in the first quarter of 2021, according to the financial report of the first quarter of 2021 at Massan Group, as of March 31, 2021, total assets reached VND 116,266 billion, approximately compared to the begin of the year In which, liabilities at MSN are 3.5 times higher than equity Specifically, the balance of liabilities is 90,861 billion dong, equivalent to 78% of total assets and 3.5 times higher than 25,405 billion dong of equity It can be seen that with the amount of cash that MSN currently 13 has, it is completely difficult to ensure the immediate ability to pay short-term liabilities, so we give it 0.15 points in weight and 4.0 points in rating The important score result of 2.85/4 points, which is quite average, shows that the company's current internal environment is still limited, so that it can serve as a springboard for the company to develop and take advantage of the time opportunities from the external environment to dominate the market, requires a lot of effort in investment and in operation and management In which, the most important factors affecting the production and business activities of the company must be mentioned: innovation capacity, financial position, and brand The inefficiencies or weaknesses of the company are the loss of identity, the improvement of packaging and materials Thus, the company needs to come up with strategies to develop more strengths and overcome existing weaknesses 14 2.3 Strategic Factors Analysis Summary (SFAS) Table - SFAS Matrix Strategic Factors Weight S1 Big brand in the market S4 The distribution network of the corporation Rating Weighted Score Duration Short Interm ediate Long Comments 0.1 0.3 X 0.1 4.5 0.45 X 0.05 0.1 X W5 Have financial problems 0.2 0.6 X Debt is higher than equity O2 Covid-19 0.1 3.8 0.38 X O3 R&D sản phẩm 0.1 0.4 T4 Approaches to advertising methods T5 Strong longtime competitor 0.15 0.1 The retail industry of consumer goods is growing rapidly Development Of New Products Add new promotion Segment positioning W1 Violation of business ethics Total scrores X 0.45 X 0.3 X Good and growing Distribution channel network throughout the country Reputation decrease 2.98 Analyze Strengths Big brand in the market Masan consumer is valued at about $305 million, up 113% In 2011, Masan Food Joint Stock Company changed its name to Masan Consumer Goods Joint Stock Company (Masan Consumer) At this time, Masan consumer privately issued 10% shares with a value of $ 159 million to the US investment fund Kohlerg Kravis Roberts & Co, thereby valuing the company at $ 1.6 billion 15 On December 17, 2020, Forbes Vietnam announced the list of 50 leading brands in business fields in Vietnam 2020 In which, Masan Consumer is in the top in the beverage food industry with brand value brand reached 323.7 million USD Due to being such a big brand, Masan has abundant resources in finance, human resources, equipment and machinery, according to statistics, Masan has relied on this abundant resource and they have occupied 70% of the market holding country , 70% of domestic market share in fish sauce and seasoning, 40% market share in instant coffee of the whole country of Vietnam As a result, it won its position as one of the largest enterprises in Vietnam In addition, thanks to the success of current products and abundant resources as one of the largest brands in the retail market in Vietnam, Masan can continue to expand its market share by capturing the unbranded product segment, which has a lot of potential for small manufacturers Based on the above, we can really evaluate the big brand as one of the strong competitive advantages of Masan compared to other competitors in the market In addition, we can also evaluate the big brand as one of the long-term competitive advantages of Masan Because Masan has continuously led the Vietnamese market for many years From its inception in 2000, only years later, in 2002, Masan Consumer made a splash when launching chinsu soy sauce products Following the success of 2003 Masan Consumer continued to market Chinsu premium fish sauce products and was once again a resounding success Reason choose Long-term With the above points, we can see that Masan Consumer is an extremely reputable big brand with more than 20 years of experience and many years leading the consumer market in Vietnam We can fully assess this as a long-term competitive advantage of Masan Consumer The distribution network of the corporation Masan's current distribution channel is extremely strong compared to other competitors with more than 180,000 retail points for food products and 160,000 for beverage products with nearly 3,000 sales staff This extensive network demonstrates the strength of Masan's distribution network in rural areas, where Masan has the strongest market coverage and reach strategies, and at the same time helps Masan gain speed to market faster when launching new products and promotions Especially, the Chinsu distribution channel is very strong, including distribution centers throughout Vietnam, a strong sales force with 162 exclusive distributors and 1,628 sales staff, helping Masan to supply products to customers more than 164,000 retailers nationwide In addition, Masan Consumer has merged with Vingroup, so VinCommerce is the official distributor of Masan products In addition, the Vinmart chain, Vinmart + is present in many places, so you can conveniently search All of the above points show that Masan Consumer has an extremely huge distribution network that almost knocks out all competitors in terms of bringing products to customers With such a huge distribution network, all Masan Consumer products can be delivered to customers in all parts of Vietnam quickly At the same time, this is also one of Masan Consumer's strongest weapons to continuously capture the majority of the consumer 16 goods market share in Vietnam when it is able to quickly bring quality-assured products to customers and make it's popular in the market Reason choose Long-term We can fully evaluate this as a long-term advantage of Masan Consumer Although the online shopping era is taking place regularly and increasingly strongly in the country, in the Vietnamese market we can see with the Products for daily consumption, people still like the feeling of being able to choose for themselves the products they like and best taste, not just based on a few pictures like buying online In addition, when buying online, it usually takes a very long time to deliver, at least 24 hours from the time of ordering However, essential consumer goods are often items that we need to use immediately when it's over For example, water, fish sauce, imagine if the house suddenly ran out of fish sauce, soy sauce, you could eat bland white cop the whole day and wait at least 24 hours to receive the goods or will run directly to a store nearest Masan Consumer distribution location and buy a quality product that can be used immediately Analyze weaknesses Violation of business ethics In the market, each product and service applies a separate marketing tactic to attract the attention of potential customers In particular, there is one technique that many companies often use to overthrow competitors and honor themselves, which is the advertising tactics are too true Masan Food Joint Stock Company is no exception, the company has taken advantage of consumer confidence to gain an advantage in the fierce competition for market share Chin-su wedge seeds "no sweet foam" but only super sweet : According to a report published in giaoduc.net.vn in January 2014, to hit consumers with fear of MSG, Masan launched an Advertisement for "sweet foam-free wedges" to compete with rivals However, shortly after launching the ad, this MSG-free wedge sample of Masan was tested at the Laboratory Analysis Service Center under the Department of Science and Technology of Ho Chi Minh City The test showed that Chin-su's "non-MSG" seasoning powder had a content of 1.21% monosodium glumate (also known as MSG) Not only Chin-su wedges, a study by the Institute of Public Health Hygiene (HCMC) has also given the results of testing samples of Knorr wedge seeds, Maggi also contains super sweet And in fact, in these seasoned nuts, the composition is not completely crystallized from bone broth, meat as advertised: "100% from bone broth", "delicious from meat, sweet from bones", "better for health" It contains a lot of MSG Reason choose Short-term As this is a problem that the company can overcome in the nearfuture, the company is aware that healthy competition is the foundation for long-term development Masan should not be too focused on profit targets to make ads that violate business ethics The company 17 needs to both ensure the harmony and accurate information about the product, while ensuring the interests of businesses, customer interests and social interests to not lead to ethical violations in advertising Have financial problems In the first quarter of 2021, revenue and profit at MSN grew well However, MSN recorded liabilities of 3.5 times equity, short-term debt balance exceeding short-term assets of nearly VND 6,446 billion Specifically, the balance of liabilities is VND 90,861 billion, equivalent to 78% of total assets and 3.5 times the vnd 25,405 billion of equity Thus, in the capital structure of capital ratio of capital, 3is owed The instant solvenation coefficient at MSN is 0.18 times According to the financial statements, as of March 31, 2021, the balance of money and cash equivalents at MSN reached nearly VND 7,118 billion compared to short-term liabilities of nearly VND 37,774 billion It can be seen that with the amount of cash that MSN currently has, it is completely difficult to ensure the ability to pay immediately the debt payable in the short term According to banking and finance experts, the debt/equity coefficient represents the level of dependence on corporate loans If this coefficient is greater than 1, it means that the assets of the business are financed primarily by debts, while the assets of the business are financed mainly by equity Reason choose Inter-term Financial issues are considered in terms of medium-term weakness because in the future the company will be able to adjust this, because in 2021 the company will have many new business strategies, acquire other businesses, which led to a spike in short-term debt Analyze Opportunities : Covid-19 : Covid-19 for many businesses, even many countries is a terrible disaster It has not only engulfed a few businesses, it has engulfed the economies of many countries around the world However, for Masan Consumer, this is a big opportunity for them The fact also shows that in the past years from the end of 2018 the outbreak of the epidemic to now, the revenue of 2018 was more than 17 trillion and that revenue has increased to 18500 billion in 2019 and it continues to increase tremendously than in 2020 the revenue will reach 233342 billion At the same time, we can also see that the stock price was 80,000 VND/share at the end of 2018 despite the outbreak, but the price has increased year by year and is now more than 120,000 VND/share and still on the rise From there, we can see that the covid epidemic is really a great opportunity for Masan Consumer So how can Masan take advantage of this great opportunity? During the stressful epidemic period, when the government is aggressively implementing the blockade and implementing the directive 16 banning people from going out, in order for a business to thrive during the epidemic season, two factors are needed: The first, because when the epidemic comes, necessity for food, drinking water and other essential items is extremely urgent People will have the intention that storing a large 18 amount at home makes supply unable to meet demand, causing product prices to rise dramatically, creating an additional source of great profits for businesses The second factor is the supply chain, before the government's blockade order, many supply chains of businesses were broken Masan Consumer meets both of the above factors: Firstly, Masan Consumer was voted as one of the top 10 most prestigious enterprises in 2021 of the food industry in VietNam, so this is absolutely a great advantage of Masan during this epidemic season The second, besides this self-sufficient meat source, Masan Group Joint Stock Company also has long-term contracts until the end of the year with other suppliers From that, it can be seen that this is a huge opportunity for Masan Consumer Reason for choosing Intermediate-term : However, this is only an intermediate-term opportunity because when the epidemic ends for a while, prices will also return to normal, and other companies will also return to the race and fierce competition again R&D strategy: In 2019, Masan Consumer's product research and development team brought to market more than 30 new innovations: Convenience food group: launched Chin-Su Instant Noodles with real beef, Omachi potato noodles mixed with salted egg shrimp cheese sauce, Kokomi Dai 90 grams of spicy and sour shrimp, Seasoning: fish sauce Anchovies Spring glass bottles of Chin-su brand, Chinsu seasoning seeds within year of launch have captured 11% of the market share of the industry Refreshments: Launch of new products that are well received by consumers: coffee-flavored energy drink Wake-Up 247 continues to grow strongly, Compact Cherry energy drink, Vivant natural mineral drink Coffee industry launched WakeUp instant coffee product with coconut milk cream Reason for choosing Long-term: This is a long-term strategy, a long-term race of businesses to expand the market and position the image of the business in customers In order to reach and attract more customers to know and use the product, businesses are required to reduce the price as much as possible, earn less per product unit but ensure the number of loyal customers and growing At this time, enterprises not put profit first but aim to get many potential customers Analyze Threats Approaches to advertising methods : 19 Over the past 10 years, Masan's businesses have achieved many successes, in which the great merit belongs to marketing campaigns "hitting the fear" of consumers, with only one common formula: "Product" + "NO" + "toxic substance" Successful Noodles are not hot, noodles not use fried oil to fry again and again Masan Food launched Omachi, a premium-mass instant noodle, with the statement "made from potato fibers, very tasty without fear of heat" – hitting consumers' long-standing fear of eating hot noodles Next, Masan Food launched Tien King noodles, hitting the average segment with a healthier message "noodles not use fried oil over and over again" With only products, Masan has quickly established a position in the industry, surpassing many big brands Omachi and Tien King's success still comes from "fear marketing." After less than years on the market, Omachi and Tien King have won 15% of the market, knocking out both the long-established brand Vifon and another strong manufacturer, Asia Food Recent years have been a time when information about "dirty food", "food containing banned substances" flooded social networks and the media Among them, the problem of pork containing lean substances once again spooked consumers This time, Masan with Bio-zeem bran products is aimed at bran manufacturers, with the message "No lean substances" A post-ad survey showed that about 95% of farmers who tested Masan's bran continue to regularly buy products, a very high percentage in the livestock industry Failed In 2008, Masan continued to use its "fear marketing" strategy to attack the wedge seed market with the ad "MSG-free wedge seeds" While major competitors in the same industry choose to advertise well about their products, such as Knorr - Seeds seasoned from meat; Maggi - Rich in meat; Aji Ngon Delicious from meat, sweet from bones, Masan chooses to advertise "SEASONING SEEDS WITHOUT MSG" However, Masan has not been successful in the wedge seed market, as MSG is the flavoring agent 621 Masan does not use this substance but uses other flavoring agents 627 and 631, which are considered "super MSG" Not only did masan fail with the strategy, but it was also condemned by marketing experts and medical experts Reason choose short-term: Since the marketing strategy is short-term, we must constantly change the strategy to meet our customers' tastes Businesses must innovate ongoing trend advertising strategies to suit customer tastes 20 Strong long-time competitor: The Vinmart retail chain with the largest coverage in Vietnam with nearly 100 supermarkets and 2,500 Vinmart + stores in provinces and cities across the country has been acquired by Masan Masan Group and a multinational group, including Chinese e-commerce giant Alibaba and Baring Private Equity Asia, on May 18 announced the signing of agreements to repurchase 5.5% shares of The CrownX in cash, valued at $400 million According to Retail Data (data as of the first months of 2020), Acecook Vietnam holds a 35.4% market share in terms of revenue However, these are acecook's lowest numbers in the period 2017 to the first nine months of 2020 Acecook is followed by Masan (27.9%) The impetus of this growth comes partly after the merger of Vinmart and Vinmart+ in 2019, thereby expanding the product distribution network Recently, the Food Safety Authority of Ireland announced the recall of batches of delicious and sour shrimp instant noodles branded Hao Hao and good rib-flavored instant noodles of Acecook Vietnam due to the discovery that pesticide Ethylene Oxide is not allowed to be used in Europe The authorities have stepped in, asking Acecook Vietnam Joint Stock Company to urgently control, check and report to transparent information to consumers In contrast, a chain of convenience stores with a new opening speed not inferior to VinMart, VinMart+ is Bach Hoa Xanh,which said it has reached break-even points for stores This system achieved revenue of VND 8,224 billion in the first 10 months of the year In 2018, when the number of stores was half of the current, this figure was VND4,325 billion Obviously, the handshake between VinCommerce, VinEco and Masan will change the retail industry, at least in the short to medium term Reason choose long-term: Because competitors are long-standing corporations that have a position in the market Analyzing competitors will help the company gain a lot of experience and come up with a unique, sound tactical strategy that beats all competitors and especially attracts interest from target customers,which affects the long-term goal process that the company is aiming for CHAPTER 3:LESSONS LEARNED AND CONCLUSION 3.1 Lessons Learned Great lesson about Vietnamese stature: VinCommerce and VinEco merged with Masan Consumer Holding to establish a consumer-retail group This is aimed at building and maintaining M&A deals with domestic enterprises, having the opportunity to develop in a more professional and 21 sustainable way It is important to be able to protect Vietnamese enterprises from manipulation by foreign enterprises Talent recruitment: Masan Consumer has seen the potential of the FMCG industry in Vietnam and has received expert support from experts around the world for both management and production Masan operates very well the production line, management and has a great strategic vision, bringing his brand far, bringing great success to the business Through this, we can draw out that, with strategy and operation, businesses need to recruit personnel from multinational companies with a history of success in emerging markets (typically Vietnam) It is their management experience that will help the business enter the market, grow rapidly and even stay in the leading position Brand expansion in foreign markets: Masan Consumer has opened its own market, exporting chili sauce to Russia and teaching Russians how to eat chili sauce like the Vietnamese When expanding the line of Chin-Su Yod Thong (Chin - Su Drops of Gold) fish sauce in the Thai market, the Company developed products that fit the local culture and taste: meet experts to understand the history history and role of fish sauce in Thai cuisine; learn how to cook Thai food by Thai chefs; live and eat with Thai families to integrate into the culture and cuisine of Thai consumers On this basis, Masan Consumer has developed a fish sauce for Thai people The business strategy here is never to pursue short-term results, but always to pursue long-term growth plans, expanding the product range Enterprises not only produce goods for Vietnamese people, but also for foreigners, the main goal is not to bring products to consumers, but to make consumers come to choose products 3.2 Some solutions and Conclusion Developing product policy Consumer demand is becoming more and more diversified in terms of categories and there are differences in demand among different types of markets Therefore, to exploit the full potential of market segments, it is necessary to develop feasible product diversification policies and expand product lines In order to build a reasonable product policy, Masan must first be based on the results of market research, product price life cycle analysis, demand analysis and market competition A product policy is considered correct when it helps Masan to produce and export products with quality, quantity, and price acceptable to the market, ensuring certain, profitable consumption and expanding the consumption market, improving the reputation of Masan's products Based on their actual internal strength in certain periods, it is necessary to have a specific strategy suitable for each stage For Masan in the current period, it is necessary to implement the following product strategy: 22 Firstly, Masan must constantly change the color of the goods to serve the diverse requirements of customers New models must be designed based on market research results to suit the needs and tastes of customers in each region For example, customers in Hanoi prefer high-end products that are durable but require high-quality raw materials and high-tech production processes, and customers in provinces consume high-priced products average, too inexpensive Second, Masan can focus on products that can not only meet the needs of the regional market, but can also meet the needs of different levels in the direction of: Medium products: products with functional Low technology quality, suitable for kitchen space For example: plastic chairs, tools for peeling and slicing vegetables High-class products: using good materials to produce products with high technology content Example: kitchen furniture set Third, product quality determines business reputation, so Masan must focus on quality and consider this a key issue The most effective business trend for Masans is to diversify production products on the basis of focusing on specializing in a few key products Focusing on specialization allows Masan to take advantage of products, prices and quality Diversification allows Masan to exploit and reduce risks when there are adverse fluctuations in certain commodities With this business strategy, Masan can achieve high business efficiency In fact, Masan focuses on manufacturing and trading all kinds of simple molded items In the coming years Masan should focus on producing a wide variety of high-precision items In short, in product policy, there are many issues that need to be resolved such as product quality, design improvement, if well solved, it will positively affect the improvement of Masan's business efficiency 3.3 Improve the quality of the workforce People are always the central factor determining the success or failure of any production or business activities Humans influence us to improve product quality, save costs and reduce product costs Therefore, in any development strategy of any Masan, it is indispensable for people to be human Masan has many good workers, experienced and skilled managers But along with the era of science and technology, gradually the Masan will have to use modern machinery and equipment that requires workers to be qualified and knowledgeable to be able to master and operate the facilities new technology equipment The identification of education and training needs is based on the human resource plan to realize the strategic goals of Masan Based on the requirements of each specific department, a training plan is established, focusing on improving product quality, equipping technical knowledge for the application of newly invested machinery and equipment Masan's training needs stem from the requirements on competencies and qualifications that need to be met to perform the task and the future Therefore, the identification of training needs must be conducted directly by functional departments under the direction of Masan's board of directors through a survey on the knowledge, capacity and responsiveness of employees in the form of: Face-to-face interviews and questionnaires allow functional departments to identify educational and training needs The Organization Department synthesizes those needs and at the same time, based on the requirements of implementing strategic goals to develop a training plan Conclusion Over 26 years of construction and development of Masan, it is impossible not to mention the ups and downs that this corporation has experienced, there are failures and successes that have gone down in history to get Masan experienced and full of experience 23 Experience today The factors that have helped Masan firmly in the market are focusing on building and developing strong brands, having the ability to make breakthroughs to create different products, and having a sales system and strong distribution With the philosophy for community life expressed through the strategic vision: Doing well by doing good “meaning: doing good by doing good Masan has continuously improved all aspects of the community life in which we operate – environmental, social, economic – contributing to creating a better tomorrow than today” has brought this Group success telling and growing stronger REFERENCES Admin (2021) Ông trùm kinh doanh Việt Nam chơi lớn, cạnh tranh với đối thủ nước thị trường 10 tỷ USD Retrieved from Gapping world: https://gappingworld.com/46853-Ong-trum-kinh-doanh-Viet-Nam-choi-lon,-canhtranh-voi-cac-doi-thu-nuoc-ngoai-tren-thi-truong-10-ty-USD Anh, L (2019) Tham gia bán lẻ, Masan phải cạnh tranh với ông lớn nào? 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