Introduction
Rationale
Vietnam's dairy industry presents significant opportunities for growth, with the liquid milk market projected to exceed 34 trillion VND and the powdered milk market surpassing 48 trillion VND This potential not only positions Vinamilk for continued market expansion but also highlights the competitive nature of the Vietnamese dairy sector To maintain and enhance its market share, Vinamilk must consistently innovate and evolve, as stagnation could lead to a loss of competitive advantage.
Vinamilk, officially known as Viet Nam Dairy Products Joint Stock Company, is a leading player in Vietnam's food manufacturing sector, particularly in the dairy industry Competing with notable brands such as TH True Milk, Tan Hiep Phat, and Nutifood, Vinamilk has showcased its dominance by capturing significant market shares of 54.5%, 58%, and 55% in 2016, 2017, and 2018, respectively.
Human Resources plays a crucial role in every organization, and by examining Western theories X, Y, and Z, we can gain valuable insights into effective human resource management Despite management being an art rather than a strict science, it is essential for administrators to blend these theories creatively By leveraging these theoretical frameworks, leaders can discover strategies that drive their companies toward success.
Vinamilk, recognized for its excellent working environment, faces challenges such as difficulties in finding qualified replacements for departing employees Research on Vinamilk includes studies like "Evaluating brand openness according to the level of Vietnamese consumers of Vinamilk brand," which analyzes industry potentials and assesses the company's openness and development.
The study conducted by skknchat@gmail.com examines the corporate social responsibility (CSR) performance of Vinamilk, aiming to highlight the company's social contributions following its significant achievements.
Aims
This study aims to explore the art of leadership and the distinct approaches to people management employed by VNM compared to other companies It analyzes VNM's strategies that have consistently positioned them among the top-ranked workplaces in Vietnam from 2016 to 2018 Utilizing secondary data from previous research, the study employs statistical methods to ensure optimal results Additionally, it seeks to identify gaps and disseminate the successful practices of VNM to inspire young professionals and company leaders, ultimately contributing to the advancement of the Vietnamese economy.
Scope
The article focuses on the research and information selection of articles from 2016 to
In 2018, the Vietnamese market witnessed a significant focus on human resource (HR) strategies, highlighting their critical role in the overall development of companies This analysis emphasizes the successes achieved through effective HR strategies However, it is important to note that the findings are based on secondary data sources, which may limit the depth of the insights, as there was insufficient time and opportunity to gather direct statistical information from VNM staff, preventing a thorough exploration of internal issues.
This study highlights the critical success factors and challenges in HR strategy that companies encounter, offering valuable insights for stakeholders By examining these elements, it enhances our understanding of the significance of HR strategy, particularly for VNM, enabling them to identify and strengthen their competitive advantages while addressing areas for improvement.
Between 2016 and 2018, an analysis of VNM's HR strategy revealed key measures aimed at alleviating employee work pressure while fostering a competitive yet healthy work environment.
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Structure
This research paper is structured into five chapters, beginning with an introduction that outlines the company, its achievements, and key research issues, including purpose, scope, and significance Chapter 2 provides a literature review, detailing the company's development history, market share, competitors, and an analysis of Theory X and Y in relation to personnel management In Chapter 3, the methodology section explains the research methods employed and the data collection process, emphasizing the role of secondary data in scientific research Chapter 4 presents the findings and discussions, evaluating the company's performance from 2016 to 2018 and comparing it to established theories Finally, Chapter 5 concludes with recommendations that highlight the critical role of HR strategy in the company's success and offers proposed solutions for improvement.
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Literature Review
Overview of the company
Vinamilk (VNM) is a leading dairy company in Vietnam, renowned for its extensive brand recognition among all age groups In 2007, it earned a spot among the top 15 most valuable companies in the country, highlighting its significant market presence with over 70% share in the dairy sector VNM boasts more than 94,000 sales points across 64 cities and provinces, showcasing its vast distribution network Additionally, the company aims to expand its reach by exporting products to various countries, including France, the USA, Canada, Poland, Germany, and several nations in the Middle East and Southeast Asia.
Figure 2.1: Historical development of Vinamilk
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Vinamilk (VNM), established on August 20, 1976, has grown into a leading dairy company in Vietnam The company marked a significant milestone with the inauguration of its Hanoi factory in 1995, followed by the opening of additional factories in Can Tho (2001), Binh Dinh, Saigon (2003), and Nghe An (2004) In 2006, VNM expanded its operations by launching a cow farm in Tuyen Quang, and continued to inaugurate more facilities in subsequent years Throughout its journey, Vinamilk has received numerous labor medals from the government in recognition of its efforts In 2014, the company took a bold step into foreign investment by increasing its shares in Miraka, New Zealand, aiming for international expansion By 2016, Vinamilk had successfully launched its brand in Thailand and Myanmar The company achieved global recognition in 2017, being ranked among the 2,000 largest listed companies worldwide, and continued to excel by placing in the Top 200 companies with revenues exceeding 1 billion USD in the Asia Pacific by 2018.
Vinamilk (VNM) aims to maintain its leadership in the Vietnamese dairy market while aspiring to rank among the top 30 global dairy companies by sales The company is open to mergers and acquisitions to strengthen its position and reduce competition VNM is also focused on expanding into the export market, striving to become the most valuable dairy company in Southeast Asia Their mission is to symbolize trust in health and nutrition products in Vietnam, with a commitment to delivering top-quality nutrition and fostering respect and responsibility towards human and social well-being.
2.1.4 Scope of operation, product concepts and Competitive advantages:
Vinamilk has a diverse portfolio, consisting of seven subsidiaries and three associates, including three international entities like Driftwood Dairy Holding Corporation and Angkor Dairy Products Co., Ltd The company utilizes two primary distribution channels to effectively reach its market.
Vinamilk, through its traditional distribution channel, operates with nearly 220 independent distributors and over 140,000 retail outlets, facilitating the distribution of approximately 80 percent of its output To enhance sales, the company has established 14 product showrooms in major cities, including Hanoi, Da Nang, Ho Chi Minh City, and Can Tho The modern distribution channel, consisting of various supermarkets, complements Vinamilk's extensive network of more than 1,400 first-level agents and 5,000 agents nationwide This robust system enables the sale of Vinamilk products across hospitals, supermarkets, and schools Additionally, Vinamilk has expanded its reach beyond Vietnam to countries such as Cambodia, the United States, Poland, and New Zealand.
With strong potential and a sensible strategy VNM always diversifies its products in different small markets such as Vinamilk Liquid Milk market share with products such as
Vinamilk offers a diverse range of products, including 100% fresh milk, Super SuSu cocoa barley drink, and various powdered milk options like Dielac Optimum Mama and Dielac Alpha Gold In the yogurt segment, Vinamilk holds significant market share with products such as Vinamilk Probi Yogurt and Vinamilk Pasteurized Drinking Yogurt Additionally, Vinamilk provides specialized nutrition products for children aged 6-24 months, as well as adult nutrition options like Vinamilk Sure Prevent and Vinamilk CanxiPro This extensive product variety and modest market shares contribute to Vinamilk's strong brand presence among consumers both locally and regionally While Vinamilk consistently satisfies customer needs, it also faces competition from notable brands such as TH True Milk, Tan Hiep Phat, and Nutifood, each vying for their respective market shares.
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Figure 2.2: Milk market share from 2016 to 2018 in Vietnam (%)
With increasing competition in the market, VNM has managed to maintain a strong market share of approximately 50 percent This solid position allows VNM to remain the leading player in Vietnam while also expanding its presence in the international market, demonstrating its commitment to growth and resilience amidst fierce rivalry.
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Figure 2.3: Vinamilk revenue (2016 - 2018) [CITATION Khư18 \l 1066 ]
Statistics show that annual sales have grown as impressively as market share.
Vinamilk have revenue VND 43,982 billion for 2016, VND 47,506 billion for 2017 (up 8 percent ) and VND 52,629 billion for 2018 (increase 10 percent )
Despite being recognized as one of the best workplaces globally, Vinamilk faces challenges, particularly in finding qualified talent to fill vacancies left by departing employees.
Concepts and definitions
Human resources play a crucial role in determining the success and growth of organizations Effective management of human resources is vital, as it encompasses addressing all work-related human issues within an organization This management process is both scientific and creative, deeply intertwined with organizational culture and emphasizing human values more than any other aspect of management.
Human resource management encompasses various critical activities, including talent acquisition, employment branding, training and development, and compensation and benefits Each of these elements is interconnected, playing a vital role in the success of the HR department and, ultimately, the overall success of the organization.
Theories
Human resources are crucial for the growth and sustainability of organizations, making human capital management a top priority Effective management of human resources involves addressing various human-related challenges within the workplace and is recognized as a vital aspect of the overall management process This field combines scientific approaches with creative strategies, deeply intertwined with corporate culture and emphasizing human values more than any other management discipline.
Human resource management encompasses various areas, including talent acquisition, employer branding, training and development, compensation and benefits, and the role of human resources business partners This study will concentrate on three key factors: the behavioral culture of administrators towards their subordinate employees, the importance of raising awareness among employees, and the critical role of middle management in bridging the gap between senior management and staff.
2.3.2 The importance of Human Resource Management.
The study of Western theories X, Y, and Z enhances our understanding of human capital management Effective human resource management is crucial for aligning the HR framework with an organization's strategic goals Additionally, successful HR practices significantly influence the working environment for employees.
15 download by : skknchat@gmail.com including inspiring factors to improve labor efficiency on all employees in the enterprise
It is these factors that will affect the company's growth [ CITATION AFC18 \l 1066 ]
Previous studies
Numerous studies have focused on Vinamilk (VNM), including one that evaluates brand openness among Vietnamese consumers by analyzing industry potential search data to assess pricing strategies for Vinamilk's growth and expansion This research aims to facilitate the company's scale development in the near future Another significant study investigates Vinamilk's corporate social responsibility activities, highlighting the brand's commitment to social and environmental issues.
In 1066, the focus was on showcasing Vinamilk's (VNM) contributions to society following the company's successes Additionally, the study titled "Analyzing Factors Affecting Customers' Loyalty to Vinamilk's Fresh Milk in Gia Lam, Ha Noi" aimed to identify the key determinants of customer loyalty towards Vinamilk This research is crucial for VNM's sales department to develop effective strategies that can enhance the company's revenue.
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Methodology
Research design
The selection and collection of data is crucial in research, significantly impacting the findings and credibility of a study Two main types of research data are primary and secondary data Primary data is collected directly by a researcher in response to a specific research problem, while secondary data refers to information that has already been gathered by others Researchers often prefer secondary data due to its advantages, including ease of access through various sources like websites and articles, as well as its established credibility, which can enhance the professionalism and authenticity of their studies.
While secondary data can be valuable, it has notable drawbacks, including the unreliability of information from certain websites and the lack of continuous updates to ensure the data aligns with the current research period.
3.1.2 Reason for using secondary research method
The study leverages secondary data, which offers significant advantages by drawing on the insights and findings of previous research Firstly, secondary data can be conveniently accessed via the Internet or public libraries, facilitating easy collection Secondly, cross-referencing multiple sources allows for the identification of false or inaccurate information Lastly, utilizing secondary data effectively reduces both the cost and time associated with data collection, making it a practical choice for researchers.
Going back to this study, the importance of secondary data collection will help us get the most accurate figures and assessments of Vinamilk (VNM) These data will show
Yearly fluctuations in downloads, sales, and market share significantly impact the company's management structure and human resource strategies, which are essential for achieving success.
Source of data
Secondary data is highly diverse and readily accessible from various sources, including articles, live websites, official company sites, libraries, books, and online reports.
3.2.1 Book and article: www.sciencedirect.com
3.2.2 Company’s website: https://www.vinamilk.com.vn/
3.2.3 The library, proquest: http://lib.huflit.edu.vn
3.2.4 Reports: http://CafeF.vn/doanh-nghiep.chn
The domestic websites have a high reputation and are widely used by other researchers.
Data collection
The author conducted research using familiar resources, including Google tools, school internal library systems, and official platforms, to save significant time and money.
Easily search and access articles, reports and books to explain definitions of research problems, solve sales figures, revenue
3.3.2 Internal library system in school
This is a valuable instrument for secondary data collection In order to help get the right details, the data in the library is highly theoretical and diverse.
3.3.3 Data systems on platforms and websites official
This data source allows to find basic facts, development history, and analysis with secondary data from market rivals without having to go to the company for research.
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Check for relevant data from the company's annual sales and profit figures, as market share and market growth are more reliably evaluated.
Data analysis
This study employs a secondary research approach to gather data and insights Initially, the author conducts online searches to collect company information, followed by analyzing and filtering the obtained data Additionally, the author estimates and compares annual financial statements across different years to gain further understanding Ultimately, the research data is thoroughly analyzed to draw meaningful conclusions.
This article analyzes Vinamilk's human resource management techniques through a thorough examination of secondary research methods By estimating and assessing relevant data, the study aims to quantify and clarify the core issues and significance surrounding the company's HR practices.
The research paper includes charts and statistics that illustrate historical developments and compare market share and growth within the industry Visual elements such as images help simplify complex ideas and definitions.
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Finding and discussion
The administrator's behavioral culture with subordinate employees
In any organization, administrators bear significant responsibilities, as they must create a management structure aligned with the company’s goals, standards, and financial resources When mistakes happen, it is often the managers who bear the greater responsibility rather than the employees Therefore, effective managers must exercise sound judgment, maintain positive behavior, and foster strong relationships with their team members to ensure smooth operations and achieve favorable outcomes for the company.
Managers must take assertive actions to guide employees effectively, ensuring they communicate clearly and adjust their behaviors for the benefit of the company It's essential for managers to master various approaches in their interactions with subordinates, including persuasion, reprimanding, rewarding, and discipline when necessary This structured approach provides employees with a clear framework and direction, preventing any dissent that could negatively impact the organization's stability and long-term success.
Vinamilk's leadership excels in fostering a collaborative work environment, aligning all employees towards the company's shared goals This strategic approach is a crucial element in driving Vinamilk's operational efficiency and contributing to its remarkable successes.
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Figure 2.2: Milk market share from 2016 to 2018 in Vietnam (%)
As competition intensifies with the emergence of new rivals in the market, VNM continues to maintain a significant market share of approximately 50 percent Despite the growing rivalry, VNM remains the leading brand in Vietnam and is actively expanding its presence in the international market, showing no signs of slowing down.
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Figure 2.3: Vinamilk revenue (2016 - 2018) [CITATION Khư18 \l 1066 ] Statistics show that annual sales have grown as impressively as market share.
Vinamilk have revenue VND 43,982 billion for 2016, VND 47,506 billion for 2017 (up
8 percent ) and VND 52,629 billion for 2018 (increase 10 percent )
Vinamilk, despite being recognized for its exceptional working environment, faces challenges such as the difficulty in finding qualified talent to replace former employees This issue highlights the company's struggle to maintain a seamless workforce transition.
Human resources play a crucial role in determining the success and growth of organizations Effective human resource management is a vital aspect of the overall management process, addressing various human-related challenges within the workplace This discipline combines scientific principles with creative approaches, as it is deeply intertwined with organizational culture and emphasizes the importance of human values.
Human resource management encompasses various critical activities, including talent acquisition, employer branding, training and development, and compensation and benefits Each of these elements is interconnected and plays a vital role in the effectiveness of the HR department, ultimately contributing to the overall success of the organization.
Human resources are crucial for the success and growth of organizations, making the management of human capital a top priority Effective human resource management addresses various work-related issues and is a vital aspect of the overall management process This discipline blends scientific principles with creativity, as it is deeply intertwined with corporate culture and emphasizes human values more than any other management field.
In human resource management, various areas such as talent acquisition, employer branding, training and development, compensation and benefits, and human resources business partnering exist This study will concentrate on three key factors: the behavioral culture of administrators towards their subordinate employees, the importance of raising awareness among employees, and the critical role of middle management in bridging the gap between senior management and staff.
2.3.2 The importance of Human Resource Management
The study of Western theories X, Y, and Z enhances our understanding of human capital management Effective human resource management is crucial for aligning and directing the human resources framework with an organization’s strategic goals Furthermore, successful human resource management significantly influences the work environment for employees.
Download 15 key factors from skknchat@gmail.com that can inspire and enhance labor efficiency among all employees in your enterprise These factors play a crucial role in driving the company's growth and success.
Numerous studies have been conducted on Vinamilk (VNM), including one that evaluates brand openness among Vietnamese consumers, which utilizes industry potential search data to assess the pricing strategies for Vinamilk's growth and expansion This research is instrumental in facilitating Vinamilk's future development Another significant study focuses on the corporate social responsibility initiatives at Vinamilk, highlighting the company's contributions to society following its successes.
Andby the : last skknchat@gmailoneistheAnalyzingFactors Affecting com Customers'
The study on customer loyalty to Vinamilk's Fresh Milk in Gia Lam, Ha Noi, aims to identify the key factors influencing consumer loyalty This research is crucial for Vinamilk's sales department, as it will provide insights to develop effective strategies that can enhance the company's revenue.
16 download by : skknchat@gmail.com
The selection and collection of data are crucial in research, significantly impacting the findings and authenticity of the study Research data can be categorized into two main types: primary and secondary data Primary data is collected directly in response to a specific research problem, while secondary data refers to information that has already been gathered by others Researchers often prefer secondary data due to its advantages, such as ease of access through various sources like websites and articles, and the assurance of professionalism and authenticity it can provide.
While secondary data can be useful, it has notable drawbacks, including the unreliability of information from various websites, which may contain misinformation Furthermore, secondary data often lacks continuous updates, making it less relevant to the current time frame of research.
3.1.2 Reason for using secondary research method