the honors program end term project analyzing the operations of kinh do mooncake company

DUY TAN UNIVERSITYSTRATEGIC MANAGEMENT MGT 403 B THE HONORS PROGRAMEND TERM PROJECT: AnalyzingtheoperationsofKinhDoMooncakeCompanySTUDENTS’ FULL NAME - ID:.

DUY TAN UNIVERSITY

STRATEGIC MANAGEMENT ( MGT 403 B )

THE HONORS PROGRAM END TERM PROJECT: AnalyzingtheoperationsofKinhDoMooncakeCompany

STUDENTS’ FULL NAME - ID:

Đỗ Hoài Nam - 27211203012 Nguyễn Thị Thuý Nga - 27204701650

Cao Lê Ga - 27214731627

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PART 1: INTRODUCTION

KinhDoMooncakeCompanyisabrandownedbyCôngtyCổphầnMondelezKinhĐô ViệtNam

HeadOffice:Số26VSIP,ĐườngSố8,KhuCôngNghiệpViệtNam–Singapore,Phường BìnhHòa,ThànhPhốThuậnAn,TỉnhBìnhDương,ViệtNam

Website:https://banhkinhdo.vn/

Business:Thecompanyspecializesintheproductionandtradingofsnacks,including biscuits,freshbread,spongecakes,mooncakes,chocolates,chewinggum,andother confectioneryproducts

Distribution:KinhDoconfectioneryiscurrentlydistributedtoall64provincesandcitiesin Vietnamwithmorethan300distributorsand200,000retailoutlets.KinhDoproductshave beenexportedtoover30countriesaroundtheworld,includingtheUSA,Japan,Thailand, Korea,andSingapore

Achievements:

KinhDo'sproductsandproductionlineshavebeencertifiedbytheBritishStandards Institution(BVQI)tomeettheinternationalqualitymanagementstandardsISO9002:2000 ThecompanyhasalsoreceivedothercertificationssuchasISO22000:2005andHACCP KinhDohasbeenawardedtheLaborOrdertwicebytheStateandhasbeenvotedby consumersasaHighQualityVietnameseproductformanyconsecutiveyears.Itistheonly brandtobevotedaNationalBrandfourtimes

PART 2: PESTEL Analysis of Kinh Do Mooncake Company

2.1 Political :

PositiveImpacts:

Stablepoliticalenvironment:Vietnam'srankingof16thoutof190countriesintheGlobal PeaceIndex(GPI)in2023indicatesastablepoliticalenvironmentthatfacilitatesthe growthofbusinesseslikeKinhDo.Thisstabilityreducesinvestmentrisksandbuilds investorconfidence,attractingmoredomesticandforeigninvestment

Governmentsupportpolicies:TheVietnamesegovernmentfrequentlyissuespoliciesto supportbusinesses,suchasreducingtaxes,fees,interestrates,andprovidingloansupport. ThesepolicieshelpKinhDoreduceproductionandbusinesscosts,therebyenhancing profitsandcompetitiveness.Specifically,in2023,thegovernmentissuedResolution 01/NQ-CPonsupportpoliciesforpeopleandbusinessesaffectedbytheCOVID-19 pandemic.Underthisresolution,businessesweregranteda50%reductionincorporate incometaxforthefirstsixmonthsof2023

ComprehensiveandProgressiveAgreementforTrans-PacificPartnership(CPTPP)andthe Vietnam-EUFreeTradeAgreement(EVFTA),openupsignificantopportunitiesforKinh Dotoexpanditsexportmarket.Theseagreementstypicallyreduceoreliminatetariffs, makingKinhDo'sproductsmorepricecompetitiveandeasiertoaccesslargemarketslike theEUandCPTPPmembercountries

NegativeImpacts:

Specialconsumptiontax:Mooncakesareclassifiedasgoodssubjecttospecial

consumptiontax,andchangesintaxpoliciescanaffectproductprices,impactingconsumer affordabilityandKinhDo'sprofits

Complexregulatorysystem:Vietnamhasacomplexregulatorysystemforfoodsafetyand environmentalhygiene,withnumerouslegaldocumentsissuedbydifferentagencies.This makesitdifficultforbusinessestofullygraspandcomplywithallregulations.FoodSafety Law,DecreeguidingtheimplementationoftheFoodSafetyLaw,NationalTechnical RegulationsonFoodSafety,CircularsoftheMinistryofHealthonFoodSafety,Local regulationsonfoodsafety,etc.Foodsafetyandenvironmentalhygieneregulationsare frequentlychangedandsupplementedtoadapttoactualconditions

Increasedproductioncosts:Tocomplywithstrictregulations,thecompanymayneedto investininfrastructure,equipment,andemployeetraining,leadingtoincreasedproduction costs

Reducedprofits:Ifthecompanycannotpassontheseadditionalcoststoconsumers throughproductprices,itsprofitsmaybeaffected

2.2 Economic:

PositiveImpacts:

Economicgrowth:Vietnam'saverageGDPgrowthratefrom2015to2023wasaround 5.85%peryear.Thisnotonlyimprovespeople'slivingstandardsbutalsodrivesoverall consumerdemand

Boostedconsumerdemand:Withhigherincomes,consumershavemoredisposableincome tospendonnon-essentialgoods,includingconfectioneryandfoodproducts

Highconsumerdemand:Thereisasignificantincreaseindemandforconfectioneryand foodproducts,especiallyduringholidaysandfestivals.ThiscreatesopportunitiesforKinh Dotoincreasesalesandexpanditsmarketshare

Benefitsfromholidaysandfestivals:Holidaysandfestivals,suchasTetNguyenDanand Mid-AutumnFestival,areoftenaccompaniedbyincreasedshoppingandconsumption, creatingopportunitiesforincreasedrevenueforKinhDo'sconfectioneryproducts NegativeImpacts:

Reducedpurchasingpower:Inflationcanreduceconsumerpurchasingpower,affectingthe company'ssales

Impactonimportcosts:Exchangeratefluctuationscanincreasethecostofimportingraw materials,especiallywhenthenationalcurrencydepreciatesagainstthecurrencyofthe exportingcountry

Risingrawmaterialprices:

Increasedproductioncosts:Wheninputrawmaterialpricesincrease,thecompany's productioncostsalsoincrease,whichcanreduceprofitsorforcethecompanytoraise productprices

Impactonprofits:Risingrawmaterialpricesnotonlyaffectproductioncostsbutcanalso reduceprofitsifthecompanycannotpassontheseadditionalcoststoconsumers

2.3 Social :

PositiveImpacts:

Stableandincreasingdemand:Thecultureofenjoyingmooncakesandconfectionery duringholidaysandfestivalscreatesastableandpotentiallyincreasingdemandduring theseperiods.ThisallowsKinhDotoforecastandprepareinventoryaccordinglyand capitalizeonopportunitiestoincreasesales

Holidaygifting:

Opportunitytoincreasesales:Thedemandforgiftsduringholidaysandfestivals, especiallymooncakes,isnotonlyatraditionbutalsoanopportunityforKinhDoto increasesalesthroughpromotionsandtargetedmarketing

Consumertrends:

Focusonqualityandbrand:Thetrendofconsuminghigh-qualityproductsreflects consumers'focusonbrandandquality.ThisisbeneficialforKinhDoasthecompanyhas establishedareputationforproductquality,helpingtobuildcustomertrustandloyalty

2.4 Technological

PositiveImpacts:

Modernandautomatedproductiontechnology:Theapplicationofadvancedandautomated productiontechnologyhelpsKinhDotoincreaselaborproductivityandimproveproduct quality,therebymeetingmarketdemandquicklyandefficiently

Advancedpackagingandpreservationtechniques:Theuseofleadingpackagingand preservationmethodshelpstoextendproductshelflife,ensurefoodsafety,andbetter preserveproductflavor

Developmentofonlinesaleschannels:Thedevelopmentofonlinesaleschannelshelps KinhDotoexpanditsmarketandreachcustomerseffectively,especiallyinthecontextof growinge-commerce

2.5 Environmental :

PositiveImpacts:

Demandforenvironmentallyfriendlyproducts:Theincreasingdemandfor

environmentallyfriendlyproductsencouragesKinhDotomovetowardsusingrecyclable andsustainablepackaging,helpingtominimizenegativeenvironmentalimpactsand strengthenthegreenbrandimage

Environmentalprotectionregulations:Increasinglystringentenvironmentalprotection regulationsencouragethecompanytoinnovatetechnologiesandimproveproduction processes,helpingtominimizenegativeenvironmentalimpactsandenhancebusiness sustainability

2.6 Legal :

PositiveImpacts:

Intellectualpropertyprotectionlaws:Intellectualpropertyprotectionhelps

KinhDomaintainitscompetitiveadvantageandprotectitsproductsinthe

market.Thispreventsproductcopyingorcounterfeiting,therebyprotectingthe

company'sreputationandrevenue

Foodsafetyandenvironmentalregulations:TheseregulationsensurethatKinhDo's productsmeethighsafetyandhygienestandards,therebybuildingconsumer

confidence

PART 3: SWOT Analysis of Kinh Do Mooncake Company

3.1 Strengths:

Reputableandlong-standingbrand:KinhDoisaleadingconfectionerybrandinVietnam withover30yearsofexperienceinmooncakeproduction.KinhDo'sproductsaretrusted andlovedbyconsumersfortheirdelicioustaste,beautifulanddiversepackaging

Extensivedistributionnetwork:KinhDohasanextensivedistributionnetworknationwide withover200distributorsand150,000pointsofsale.Thankstoitsextensivedistribution network,KinhDo'sproductsareeasilyaccessibletoconsumersacrossthecountry Strongproductioncapacity:KinhDoowns8modernfactorieswithadvancedtechnology andhighlyautomatedproductionlines.StrongproductioncapacityhelpsKinhDomeet marketdemandwell,especiallyduringthepeakmooncakeseason

Strongresearchanddevelopmentcapability:Thecompanyhastheabilitytoresearchand developnewproducts,innovatetechnology

Diverseproductrange:KinhDooffersawidevarietyofmooncakeswithdifferentflavors anddesigns,meetingthediverseneedsofconsumers.KinhDoalsohashigh-end mooncakeproductstomeettheneedsoftheluxurycustomersegment

3.2 Weaknesses:

Highspoilagerate:Mooncakesareproductswithashortshelflife,sothespoilagerate duringproduction,transportationandsalescanbehigh

Dependenceoninputmaterials:KinhDodependsonthesupplyofinputmaterialssuchas mungbeans,lotusseeds,sausages,etc.Fluctuationsinrawmaterialpricescanincrease costsandreduceprofits

Heavydependenceonthemooncakemarket:RevenueismainlyconcentratedintheMid-AutumnFestivalseason,leadingtoseasonalrevenuefluctuations

ighproductprices:Comparedtocompetitors,KinhDomooncakepricesarehigher, affectingtheaccessibilityofsomecustomersegments

Fewbreakthroughproducts:KinhDodoesnothavemanynew,innovativeproducts, potentiallylosingmarketshare

3.3 Opportunities:

Potentialexportmarket:TheexportmarketformooncakestoAsiancountriessuchas China,Singapore,Malaysia,etc.hasgreatpotential.KinhDocanleverageitsbrandand productionexperiencetoexpanditsexportmarkettothesecountries.Participationinfree tradeagreementssuchasCPTPPandEVFTAalsofacilitatesKinhDo'sexportof mooncakestonewmarkets

Highdemandforhigh-endmooncakeproducts:Thedemandforhigh-end,luxury mooncakesisincreasingaspeople'sincomesimprove.High-endmooncakeproductscan bringhigherprofitstoKinhDo

Onlineconsumptiontrend:Thetrendofonlineconsumptionisincreasing,especiallyinthe contextoftheCovid-19pandemic.KinhDocantakeadvantageofthistrendtoboost

onlinesalesthroughe-commercechannels,website,socialnetworks.Onlinesaleshelp KinhDoreachpotentialcustomerseffectivelyandsavecosts

Demandforvegetarianmooncakeproducts:Thedemandforvegetarianmooncakeproducts isincreasingasmoreandmorepeoplefollowBuddhismandeatvegetarianfood. VegetarianmooncakeproductscanhelpKinhDoexpanditsmarketandattractmore customers

3.4 Threats:

Decliningtrendofmooncakeconsumption:Inrecentyears,duetotheimpactoftheCovid-19pandemicandchangingconsumptionhabits,thedemandformooncakeconsumption hastendedtodecrease.ThistrendaffectsKinhDo'ssalesrevenue

Highriskofcompetition:TheVietnamesemooncakemarkethasmanybusinesses participating,includinglargeenterprisessuchasGivral,Brodard,Vinamilk,etc.These businessesallhavereputablebrandsandhigh-qualityproducts,creatingfiercecompetition forKinhDo

Riskofcounterfeitproducts:KinhDo'smooncakeproductsarecounterfeitedandimitated onthemarket,affectingthebrandreputationandrevenueofthebusiness



PART 4: Porter's Five Forces Analysis and Strategies for Kinh Do Mooncake Company

4.1 Bargaining Power of Suppliers

Weakness:KinhDoMooncakeCompanyisdependentonanumberofkeyinputmaterial supplierssuchasflour,sugar,mungbeans,etc.Thecompanymayfacerisksintermsof priceandqualityofrawmaterialsifitdoesnothaveagoodrelationshipwithsuppliersorif suppliersareinshortsupply

MitigationStrategies:

Seekanddiversifysourcesofsupplytoreducedependenceonafewspecific suppliers

Buildlong-termandreliablepartnershipswithsuppliers

Self-producesomekeyinputmaterialstotakecontrolofsupplyandquality

4.2 Bargaining Power of Buyers

Weakness:ThepriceofKinhDoMooncakeCompany'sproductsishigherthanthatof somecompetitors,makingbuyershavemorebargainingpower.Customersalsohavemany choicesofmooncakeproductsfromdifferentbrands,leadingtohighcompetitivepressure MitigationStrategies:

Providegoodcustomerservicetoincreasetheshoppingexperienceandcustomer loyalty

Developpromotionsanddiscountstoattractcustomers

Strengthenmarketingactivitiestoraisebrandawarenessandattractpotential customers

4.3 Threat of New Entrants

Weakness:Themooncakeindustryhasrelativelylowbarrierstoentry,sonewcompanies caneasilyenterthemarketwithcompetitiveproductsandprices,puttingpressureonKinh DoMooncakeCompany

MitigationStrategies:

Improveoperationalefficiencytoreduceproductioncostsandproductprices Investinresearchanddevelopmentofnewproductstocreatedifferentiationand attractcustomers

Buildastrongandreputablebrandtobuildcustomerloyalty

Closelymonitorthemarketandcompetitorstobeabletorespondpromptlyto changes

4.4 Threat of Substitute Products

Weakness:Confectionery,jams,freshfruits,etc.canreplacemooncakesinsomecases, especiallyforthosewhoarehealthconsciousorhaverestricteddiets

MitigationStrategies:

Developmooncakeproductsthatareinlinewithmodernconsumptiontrends,such aslesssweetmooncakes,vegetarianmooncakes,mooncakesfordieters,etc Raiseawarenessoftheculturalandtraditionalvaluesofmooncakestoattract customers

Strengthenmarketingactivitiestopromotemooncakeproductsandconsolidate KinhDoMooncakeCompany'sleadingpositioninthemarket

4.5 Intensity of Rivalry Among Competitors

Weakness:Themooncakeindustryhasmanyparticipants,withfiercecompetitioninterms ofprice,productquality,andmarketingactivities.KinhDoMooncakemayface difficultiesinmaintainingmarketshareandgrowingrevenueinthiscompetitive environment

MitigationStrategies:

Focusontargetcustomersegmentsanddevelopproductsthatmeettheirneeds Strengthenmarketingandbrandingactivitiestoattractpotentialcustomersand solidifyKinhDoMooncake'sleadingpositioninthemarket

Enhanceoperationalefficiencytoreduceproductioncostsandproductprices Investinresearchanddevelopmentofnewproductstodifferentiateandattract customers

* Impact Analysis of the Strategies:

ImplementingtheabovestrategiescanbringthefollowingbenefitstoKinhDo:

Increasedrevenueandprofit:Bydiversifyingproducts,expandingthemarket,and improvingmarketingeffectiveness,KinhDocanattractmorecustomersandincrease revenueandprofit

Enhancedcompetitiveness:Byimprovingproductquality,reducingproductioncosts,and expandingthemarket,KinhDocanenhanceitscompetitivenessagainstotherrivals Strongbrandbuilding:Byimplementingeffectivemarketingstrategies,KinhDocanbuild astrongerbrandinthemarket

Sustainabledevelopment:Byapplyingappropriatestrategies,KinhDocanachieve sustainabledevelopmentinthefuture

*ChallengesofImplementingtheStrategies:

Significantresourcerequirements:Toimplementthesestrategies,KinhDowillneed substantialfinancialandhumanresources

Marketrisks:Theconfectioneryandmooncakemarketissubjecttosignificantfluctuations, soKinhDoneedstohavecontingencyplanstodealwithrisks

Intensecompetition:Theconfectioneryandmooncakeindustryhasmanycompetitors,so KinhDoneedstoimplementeffectivestrategiestomaintainitsleadingposition