Trang 1 VIETNAM GENERAL CONFEDERATION OF LABOUR TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION INTERNATIONAL BUSINESS STRATEGY REPORT YEAR 2020 VINAMILK BUSINESS STRATEGY In
VIETNAM GENERAL CONFEDERATION OF LABOUR TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION INTERNATIONAL BUSINESS STRATEGY REPORT YEAR 2020 VINAMILK BUSINESS STRATEGY Instructing Lecturer: Major: Academic Year Code: Mr LE DUC NHA International Business 2018 - 2022 HO CHI MINH CITY AUGUST, 2020 LIST OF MEMBERS No STUDENT NAME STUDENT ID Trần Bảo Anh 718H1831 Lê Hoàng Phương 718H1002 Nguyễn Thị Hồng Thắm 718H2007 Võ Hữu Châu 718H0827 Đỗ Duy Tân 718H0352 Tạ Trung Kiên 718H1916 Nguyễn Hồng Hào 718H0878 Lý Thành Thắng 718H2008 LIST OF TABLES Table 1.1 Statistics of Shareholders in 2019 11 Table 1.2 The development stages of Vinamilk (since equitization - 2019) 13 Table 1.3 The China GDP growth rate 23 Table 2.1 China’s top eight dairy-processing enterprises 32 Table 2.2 The total sales of the top-ten dairy-processing enterprises (unit: US$ million) 32 Table 2.3 Value of daily product exports for China’s major dairy suppliers, 2014-16 37 Table 3.1 SWOT Vinamilk analysis 59 Table 4.1 External and Internal drivers of Vinamilk 83 Table 4.2 Scenario Development 84 Table 5.1 Work plan 86 LIST OF FIGURES Figure 1.1 Vinamilk logo Figure 1.2 Vinamilk achievement 10 Figure 1.3 Vinamilk achievement 10 Figure 1.4 Operation model of Vinamilk 15 Figure 1.5 Organizational and managerial hierarchy 16 Figure 1.6 Vinamilk products 17 Figure 1.7 Total Domestics Sales of milk and yogurt products in China 19 Figure 1.8 Market share of plant protein beverage in China 2018 20 Figure 1.9 Vinamilk export seed milk to China market in 2020 20 Figure 1.10 Index details about China ranking 22 Figure 2.1 Balanced diet pagoda for Chinese consumers 29 Figure 2.2 China dairy production and net import (tons of raw milk equivalent) 30 Figure 2.3 Company Shares of milk market in China (2019) 33 Figure 2.4 Yili, Milk Products of Yili 34 Figure 2.5 Mengniu, Milk Products of Mengniu 35 Figure 2.6 Mengniu and Yili market share by product in China, 2016 36 Figure 2.7 Import partners of milk market in China (2019) 37 Figure 2.8 Dairy exports to China by type 38 Figure 2.9 Vinamilk dairy farm in Vietnam from 2007-2019 42 Figure 2.10 Compare between Tetra Pak package and Combibloc package 43 Figure 2.11 Yogurt selling area of Vinamilk at Hop Ma supermarket (under Alibaba) in Hunan, China (My, 2019) 44 Figure 2.12 At Hop Ma supermarkets, buyers can pay directly by themselves using a mobile app and very modern facial recognition (Anh, 2019) 45 Figure 2.13 The interface of Vinamilk's online store on Tmall, a major Chinese ecommerce site (Anh, 2019) 45 Figure 2.14 Increase in income and consumption of Vinamilk 47 Figure 3.1 Some types of milk 49 Figure 3.2 Types of powdered milk 50 Figure 3.3 Types of yogurt 50 Figure 3.4 Types of sweetened condensed milk 51 Figure 3.5 Types of seed milk 51 Figure 3.6 Average income per capital 62 Figure 4.1 Comparison of entry mode strategies 65 Figure 4.2 Relationship between timing of entry, entry mode and international market selection 66 Figure 4.3 Evaluating strategies (Exploring Strategy: Text and Cases, 2017) 69 Figure 4.4 Business report third quarter/2019 of Vinamilk 70 Figure 4.5 New packaging of seed milk for Lunar New Year in China 71 Figure 4.6 Human resources plan for Vinamilk 73 Figure 4.7 Company best workplace 74 Figure 4.8 In 2019, VInamilk has successfully maintain these certificates 75 Figure 4.9 Vinamilk farm growth 76 Figure 4.10 Vietnam Dairy Dream 77 Figure 4.11 Balance stakeholder structure 80 Figure 4.12 The relationship between stakeholder and investor 80 Figure 5.1 Thong Nhat Dairy Factory 88 CONTENTS LIST OF TABLES LIST OF FIGURES Chapter 1: LITERATURE REVIEW 1.1 Overall Information of Vinamilk 1.2 History and development 12 1.2.1 History and development 12 1.2.2 Develop strategy of Vinamilk 13 1.2.3 Distribution network 14 1.3 Organizational structure 14 1.3.1 Operation model in the Vietnamese market 14 1.3.2 Organizational and managerial chart 15 1.3.3 Business field 16 1.3.4 Vision, mission, and core values 17 1.4 Vinamilk enter in China market 17 1.4.1 Yogurt 18 1.4.2 Plant-based milk 19 1.4.3 Condensed milk 20 1.5 PESTEL analyze 21 1.5.1 Political 21 1.5.2 Economic 22 1.5.3 Social 24 1.5.4 Technological 24 1.5.5 Environmental 25 1.5.6 Legal in China 26 CHAPTER 2: CHINA MARKET ANALYSIS 29 2.1 Grow Rate & Demand Forecast 29 Document continues be Discover more from: Kinh doanh quốc tế Đại học Tôn Đức Thắng 231 documents Go to course Chiến lược kinh doanh quốc điển hình Kinh doanh quốc tế 100% [123doc] - do-an-thanh-toan 30 quoc-te-dai-hoc-hang-hai-… Kinh doanh quốc tế 100% Chứng từ xuất hoa 104 Kinh doanh quốc tế 100% TCQT FULL - Tài quốc tế test bank Kinh doanh quốc tế 100% Báo cáo tập nghề nghiệp 54 Kinh doanh quốc tế 100% Chiến-lược - Chiến lược kinh 58 doanh quốc tế (Anh) cuối kì Kinh doanh quốc tế 100% 2.2 Competitor Analysis 31 2.3 Domestic competitor 32 2.4 International competitor 36 2.5 Five forces 39 2.5.1 Competitors in the industry 39 2.5.2 Potential competitors 40 2.5.3 The threat from substitute products 41 2.5.4 Bargaining power of supplier 41 2.5.5 Bargaining power of buyer 46 CHAPTER 3: ASSESSMENT OF INTERNAL CAPABILITIES 48 3.1 Core competencies 48 3.1.1 Value of resources and capabilities 48 3.1.2 Rarity 53 3.1.3 Inimitability 53 3.1.4 Organizational support 54 3.2 Leverage Core Competencies 55 3.2.1 Leverage resources and capabilities 55 3.2.2 Rarity 57 3.2.3 Inimitability 58 3.2.4 Organizational support 58 3.3 SWOT 58 3.3.1 Strengths 59 3.3.2 Weakness 61 3.3.3 Opportunities 61 3.3.4 Threat 63 CHAPTER 4: STRATEGIC CHOICES OF VINAMILK 65 4.1 Mode of entry options: for a specific period of time 65 4.2 Evaluating strategies 69 4.2.1 Assess performance 69 4.2.2 Identify the gap 77 4.2.3 SAFs Test 79 4.3 Scenario planing 81 4.3.1 Define Objectives & Scope 81 4.3.2 Define Key Drivers 82 4.3.3 Develop Distinct Scenario Stories 83 4.3.4 Apply Scenarios 85 4.3.5 Monitor Progress 85 CHAPTER 5: EXECUTION 86 5.1 Implementation work plan 86 5.2 Lesson learnt from past expansion 86 5.3 Recommendation 87 CONCLUSION 90 REFERENCES 93 CHAPTER 1: LITERATURE REVIEW 1.1 Overall Information of Vinamilk In recent years, milk has become one of the fast-growing food industries in Vietnam and a staple in people's lives Milk is considered as a nutritious and energy supplement One of the leading companies in the Vietnamese market is Vinamilk Vietnam Dairy Products Joint Stock Company was established on October 1, 2003 by the Ministry of Industry on the transformation of the State-owned Vietnam Dairy Company into Vietnam Dairy Products Joint Stock Company (VINAMILK) Certificate of business registration by the Department of Planning and Investment of Ho Chi Minh City on November 20, 2013 Figure 0.1 Vinamilk logo • Company name: Vietnam Dairy Products Joint Stock Company (VINAMILK) • Head office: Vinamilk Building - 10 Tan Trao - Tan Phu Ward - District – Ho Chi Minh City • Phone: (+84.028) 54 155 555 • Fax: (+84.028) 54 161 226 • Gmail: vinamilk@vinamilk.com.vn • Website: https://vinamilk.com.vn More specifically, in 2019, Vinamilk has a charter capital of 17,416,877,930,000 VND with a total revenue of 56,400,000,000,000 VND, an increase of 7.17% compared to 2018 (52,629,000,000,000 VND) The huge sales volume shows that Vinamilk is the brand that consumers choose to buy the most compared to other brands (2013-2020) Not only that, Vinamilk in turn achieved the goal of the 1st in the best 50 brands of 2019, the bestselling brand and triumph in liquid milk and powdered milk - Commodity prices Consumer spending Rate of technological innovation Inflation Social attitudes - Cost structure Quality Talent Time to market Access to capital Table 4.1 External and Internal drivers of Vinamilk 4.3.3 Develop Distinct Scenario Stories In traditional planning processes, much of the data collected is of a historic nature After all, in most organizations, the only plentiful source of data is the records of past transactions and activities As a consequence, the majority of plans and budgets are heavily biased towards the future extrapolation of past trends When embarking on the development of scenario plans, the data collection net should be cast widely Numerous types of data can be collected, including historic trends, future projections and forecasts, insights as to potential sources of disruption, alternative hypotheses of the future, and analyses of the relationships between key drivers Having collected the base data, the next step is to identify the relative impact and predictability of the drivers Even for drivers where the long-term trend has been reasonably stable, scenario planners should not be afraid to ask the question: